# OIL STATES INTERNATIONAL, INC (OIS)

Informational only - not investment advice.

CIK: 0001121484
SIC: 3533 Oil & Gas Field Machinery & Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3533 Oil & Gas Field Machinery & Equipment](/industry/3533/)
Latest 10-K filed: 2026-03-04
SEC page: https://www.sec.gov/edgar/browse/?CIK=1121484
Filing source: https://www.sec.gov/Archives/edgar/data/1121484/000112148426000007/ois-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-26 · accession 0001121484-26-000012 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121484.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 668,988,000 USD | 2025 | verified |
| Net income | -109,377,000 USD | 2025 | verified |
| Assets | 883,431,000 USD | 2025 | verified |
| Free cash flow | 73,932,000 USD | 2025 | computed |
| Net margin | -16.35% | 2025 | computed |
| Operating margin | -14.64% | 2025 | computed |
| Revenue YoY | -3.41% | 2025 | computed |
| ROE | -19.08% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | OIS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -16.3% | 5.4% | 0 | 11 |
| Operating margin | -14.6% | 13.6% | 0 | 11 |
| Revenue growth | -3.4% | -0.3% | 20 | 11 |
| FCF margin | 11.1% | 9.2% | 75 | 9 |
| ROE | -19.1% | 6.6% | 0 | 10 |
| ROA | -12.4% | 3.9% | 0 | 10 |
| Liabilities / equity | 0.54 | 0.98 | 22 | 10 |
| Current ratio | 1.86 | 2.34 | 20 | 11 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3533 Oil & Gas Field Machinery & Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 668988000 | USD | 2025 | 2026-03-26 |
| Net income | -109377000 | USD | 2025 | 2026-03-26 |
| Assets | 883431000 | USD | 2025 | 2026-03-26 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121484.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 694,444,000 | 670,627,000 | 1,088,133,000 | 1,017,354,000 | 638,075,000 | 573,161,000 | 737,706,000 | 782,283,000 | 692,588,000 | 668,988,000 |
| Net income | -46,390,000 | -84,850,000 | -19,105,000 | -231,808,000 | -468,383,000 | -63,993,000 | -9,540,000 | 12,891,000 | -11,258,000 | -109,377,000 |
| Operating income | -69,283,000 | -73,872,000 | -5,876,000 | -228,180,000 | -534,340,000 | -64,792,000 | 2,905,000 | 23,164,000 | -1,689,000 | -97,971,000 |
| Diluted EPS | -0.92 | -1.69 | -0.33 | -3.90 | -7.83 | -1.06 | -0.15 | 0.20 | -0.18 | -1.86 |
| Operating cash flow | 149,257,000 | 95,382,000 | 103,170,000 | 137,432,000 | 132,755,000 | 7,194,000 | 32,862,000 | 56,575,000 | 45,894,000 | 105,123,000 |
| Capital expenditures | 29,689,000 | 35,171,000 | 88,024,000 | 56,116,000 | 12,749,000 | 17,517,000 | 20,266,000 | 30,653,000 | 37,508,000 | 31,191,000 |
| Share buybacks | 0.00 | 16,283,000 | 0.00 | 757,000 | 0.00 | 0.00 | 0.00 | 6,867,000 | 14,212,000 | 16,608,000 |
| Assets | 1,383,898,000 | 1,301,511,000 | 2,003,821,000 | 1,727,867,000 | 1,152,260,000 | 1,085,748,000 | 1,064,392,000 | 1,046,486,000 | 1,005,108,000 | 883,431,000 |
| Liabilities | 179,591,000 | 168,798,000 | 564,053,000 | 503,900,000 | 394,629,000 | 389,922,000 | 374,834,000 | 336,941,000 | 324,454,000 | 310,240,000 |
| Stockholders' equity | 1,204,307,000 | 1,132,713,000 | 1,439,768,000 | 1,223,967,000 | 757,631,000 | 695,826,000 | 689,558,000 | 709,545,000 | 680,654,000 | 573,191,000 |
| Cash and cash equivalents | 68,800,000 | 53,459,000 | 19,316,000 | 8,493,000 | 72,011,000 | 52,852,000 | 42,018,000 | 47,111,000 | 65,363,000 | 69,914,000 |
| Free cash flow | 119,568,000 | 60,211,000 | 15,146,000 | 81,316,000 | 120,006,000 | -10,323,000 | 12,596,000 | 25,922,000 | 8,386,000 | 73,932,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -6.68% | -12.65% | -1.76% | -22.79% | -73.41% | -11.16% | -1.29% | 1.65% | -1.63% | -16.35% |
| Operating margin | -9.98% | -11.02% | -0.54% | -22.43% | -83.74% | -11.30% | 0.39% | 2.96% | -0.24% | -14.64% |
| Return on equity | -3.85% | -7.49% | -1.33% | -18.94% | -61.82% | -9.20% | -1.38% | 1.82% | -1.65% | -19.08% |
| Return on assets | -3.35% | -6.52% | -0.95% | -13.42% | -40.65% | -5.89% | -0.90% | 1.23% | -1.12% | -12.38% |
| Liabilities / equity | 0.15 | 0.15 | 0.39 | 0.41 | 0.52 | 0.56 | 0.54 | 0.47 | 0.48 | 0.54 |
| Current ratio | 4.57 | 3.96 | 2.95 | 2.64 | 2.61 | 2.41 | 2.39 | 3.10 | 3.16 | 1.86 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001121484.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.03 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.03 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.01 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 194,289,000 | 4,212,000 | 0.07 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 208,266,000 | 5,963,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 167,262,000 | -13,374,000 | -0.21 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 186,383,000 | 1,301,000 | 0.02 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 174,348,000 | -14,349,000 | -0.23 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 164,595,000 | 15,164,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 159,938,000 | 3,158,000 | 0.05 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 165,406,000 | 2,811,000 | 0.05 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 165,180,000 | 1,900,000 | 0.03 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 178,464,000 | -117,246,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 145,363,000 | 1,108,000 | 0.02 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 156,659,000 | 5,910,000 | 0.10 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from OIS's latest 10-K: [/company/OIS/business/](/company/OIS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from OIS's latest 10-K: [/company/OIS/risk-factors/](/company/OIS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1121484/000112148426000033/ois-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read together with our condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and notes to those statements included in our 2025 Annual Report on Form 10-K, as amended by our 2025 Annual Report on Form 10-K/A, in order to understand factors, such as charges, financing transactions and changes in tax regulations, which may impact comparability from period to period.

We provide a broad range of manufactured products and services to customers in the energy, military and industrial sectors through our Offshore Manufactured Products, Completion and Production Services and Downhole Technologies segments. Demand for our products and services is cyclical and substantially dependent upon activity levels in the oil and gas industry, particularly our customers’ willingness to invest capital in the exploration for and development of crude oil and natural gas reserves. Our customers’ capital spending programs are generally based on their cash flows and their outlook for near-term and long-term commodity prices, making demand for our products and services sensitive to expectations regarding future crude oil and natural gas prices, as well as economic growth, commodity demand and estimates of resource production and regulatory pressures.

22

Recent Developments

Brent and WTI crude oil and natural gas pricing trends were as follows:

[[GREPCENT_TABLE]]
[["","","Average Price(1) for quarter ended","","Average Price(1) for year ended December 31"],["Year","","March 31","","June 30","","September 30","","December 31"],["Brent Crude (per bbl)"],["2026(2)","","$","80.72","","","$","102.63"],["2025","","75.87","","","$","68.07","","","$","69.03","","","$","63.65","","","$","69.14"],["WTI Crude (per bbl)"],["2026(2)","","$","72.74","","","$","95.65"],["2025","","71.78","","","$","64.57","","","$","65.78","","","$","59.62","","","$","65.39"],["Henry Hub Natural Gas (per MMBtu)"],["2026","","$","4.71","","","$","2.95"],["2025","","4.14","","","$","3.19","","","$","3.03","","","$","3.73","","","$","3.52"]]
[[/GREPCENT_TABLE]]

________________

(1)Source: U.S. Energy Information Administration (spot prices).

(2)On July 28, 2026, the spot price per barrel of Brent and WTI crude oil closed at $85.51 and $80.91, respectively.

The spot price per barrel of Brent crude oil averaged $103 in the second quarter of 2026, an increase of $39, or 61%, from the fourth quarter of 2025 following the escalation of military actions in the Middle East in late-February 2026. Despite the increases in crude oil prices, these evolving military actions have resulted in customer delays in project awards, cost increases and supply-chain and logistical constraints in the Middle East region, which have negatively impacted demand for our products and services in the area and limited our access to and increased the price of certain raw materials and other products used in our operations during the first half of 2026. The conflict has also resulted in damage to crude oil refining and storage facilities and severely limited tanker access to the region, causing operators to shut in or limit crude oil production. Continuation or expansion of these military hostilities and export constraints in the Middle East will likely negatively impact our results of operations over the balance of 2026 and possibly beyond. As a major oil producer, Iran’s involvement has heightened concerns over potential supply disruptions and transportation risks, contributing to significant volatility in global oil and natural gas prices. In particular, the restriction or cessation of maritime traffic through the Strait of Hormuz has significantly depressed global supply of oil and natural gas, resulting in increased volatility and overall elevated prices, as well as causing overall disruptions in global commodities markets. While the ultimate impact and magnitude of these disruptions is currently unknown, a prolonged interruption to the global commodities markets has the potential to materially adversely affect our business and operations and those of our suppliers and customers. Further, in late April 2026, the United Arab Emirates (“UAE”) announced that it was withdrawing from OPEC, and as a result, would no longer be subject to OPEC imposed production controls. While no other countries have yet followed the UAE in leaving OPEC, increased oil and gas production from the UAE, along with any other country that may leave OPEC, could increase global oil and gas supply, resulting in lower oil and gas prices.

In addition, the imposition of broad based trade tariffs by the United States has led to ongoing uncertainty regarding the future effect of reciprocal and other trade tariffs on the global economy. These factors have negatively impacted the demand for and pricing of our products and services provided to the U.S. land-based market and have increased the cost of certain products we manufacture in the United States.

We implemented certain initiatives in 2025, which have continued into 2026, to optimize our operations and improve future returns. These actions were concentrated in our U.S. land-focused service operations and included: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; the exit of previously closed facilities; and reductions in our U.S. workforce. We also assessed the carrying value of certain long-lived and other assets based on the industry outlook regarding overall demand for and pricing of our products and services, market competitiveness and management decisions. As a result of these events, actions and assessments, our reported pre-tax results for the first six months of 2026 included $4.1 million of costs associated primarily with facility exits as well as $1.4 million in non-cash asset impairment charges.

On January 28, 2026, we entered into an amended and restated cash-flow based credit agreement (the “Cash Flow Credit Agreement”) providing for original aggregate lender commitments of up to: $75.0 million under a revolving credit facility (the “Revolving Credit Facility”) and $50.0 million under a multi-draw term loan facility, which was available for a six-month period (the “Term Loan Facility”). The Cash Flow Credit Agreement replaced our existing asset-based credit agreement (the “ABL Agreement”). Subsequent to June 30, 2026, the Company repaid $20.0 million of outstanding borrowings under the Revolving Credit Facility with borrowings under the Term Loan Facility, and the remaining lender commitments under

23

the Term Loan Facility lapsed on July 28, 2026. See Note 4, “Long-Term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the Cash Flow Credit Agreement.

On April 1, 2026, we retired $52.7 million of outstanding principal of our 4.75% convertible senior notes (the “2026 Notes”) with a combination of $50.5 million of cash and the issuance of 529,428 shares of our common stock. With the election by substantially all holders of the outstanding 2026 Notes to convert the instruments into shares of our common stock at maturity, we recognized a pre-tax loss of $3.6 million on the extinguishment of the 2026 Notes at a premium in the second quarter of 2026.

Overview

Current and expected future pricing for crude oil and natural gas, inflationary and tariff-driven cost increases, and expectations regarding the regulatory environment in the regions in which we operate are factors that will continue to influence our customers’ willingness to invest capital in their businesses. Expectations for the longer-term price for Brent crude oil will continue to influence our customers’ spending related to global offshore and international drilling and development and, thus, a significant portion of the activity of our Offshore Manufactured Products segment.

Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including, but not limited to: geopolitical conflicts in the Middle East, Europe and South America, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; technological advancements; consolidation of oil and gas producers; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances.

Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas drilling, completion and production systems and facilities globally, as well as certain products and services to the military and industrial markets. This segment is particularly influenced by global spending on deepwater drilling and production, which is primarily driven by our customers’ longer-term commodity demand forecasts and outlook for crude oil and natural gas prices. Approximately 91% of our Offshore Manufactured Products segment’s sales in the first six months of 2026 were driven by our customers’ capital spending for products and services used in exploratory and developmental drilling, greenfield offshore production infrastructure, and subsea pipeline tie-in and repair system applications, along with upgraded equipment for existing offshore drilling rigs and other vessels (referred to herein as “project-driven products and services”). Deepwater oil and gas development projects typically involve significant capital investments and multi-year development plans. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. Given the long lead times associated with field development, we believe some of these deepwater projects, once approved for development, are generally less susceptible to change based on short-term fluctuations in the price of crude oil and natural gas. Deepwater oil and gas development projects may also be impacted by federal legislative and regulatory actions, including the OBBBA, which mandates that the Bureau of Ocean Energy Management conduct at least two offshore lease sales annually, of a minimum of 80 million acres (if available), in the Central and Western Gulf of America Planning Areas for the next 15 years. Additionally, we are investing in research and product development (and have been awarded select contracts and are bidding on additional projects) to facilitate the development of alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities.

Backlog reported by our Offshore Manufactured Products segment increased to $451 million as of June 30, 2026 from $435 million as of December 31, 2025. Bookings totaled $114 million in the second quarter of 2026, yielding a quarterly book-to-bill ratio of 1.2x (1.1x year-to-date). The following table sets forth backlog as of the dates indicated (in millions).

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1121484/000112148426000007/ois-20251231.htm
Complete FY 2025 MD&A: /company/OIS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-03-04
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Consolidated Financial Statements and related notes appearing in “Part II Item 8 Financial Statements and Supplementary Data.” This section of this Annual Report on Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in “Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. This discussion contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are based on our current expectations, estimates and projections about our business operations. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements as a result of numerous factors, including the known material factors set forth in “Part I, Item 1A. Risk Factors.” You should read the following discussion and analysis together with our Consolidated Financial Statements and the notes to those statements included elsewhere in this Annual Report on Form 10‑K in order to understand factors, such as business combinations, charges and credit and financing transactions, which may impact comparability from period to period.

We provide a broad range of manufactured products and services to customers in the energy, military and industrial sectors through our Offshore Manufactured Products, Completion and Production Services and Downhole Technologies segments. Demand for our products and services is cyclical and substantially dependent upon activity levels in the oil and gas industry, particularly our customers’ willingness to invest capital in the exploration for and development of crude oil and natural gas reserves. Our customers’ capital spending programs are generally based on their cash flows and their outlook for near-term and long-term commodity prices, making demand for our products and services sensitive to expectations regarding future crude oil and natural gas prices, as well as economic growth, commodity demand and estimates of resource production and regulatory pressures.

Recent Developments

Brent and WTI crude oil and natural gas pricing trends were as follows:

[[GREPCENT_TABLE]]
[["","","Average Price(1) for quarter ended","","Average Price(1) for year ended December 31"],["Year","","March 31","","June 30","","September 30","","December 31"],["Brent Crude (per bbl)"],["2025","","$","75.87","","","$","68.07","","","$","69.03","","","$","63.65","","","$","69.14"],["2024","","82.92","","","$","84.68","","","$","80.01","","","$","74.66","","","$","80.52"],["WTI Crude (per bbl)"],["2025","","$","71.78","","","$","64.57","","","$","65.78","","","$","59.62","","","$","65.39"],["2024","","77.50","","","$","81.81","","","$","76.43","","","$","70.73","","","$","76.61"],["Henry Hub Natural Gas (per MMBtu)"],["2025","","$","4.14","","","$","3.19","","","$","3.03","","","$","3.73","","","$","3.52"],["2024","","2.15","","","$","2.07","","","$","2.11","","","$","2.44","","","$","2.19"]]
[[/GREPCENT_TABLE]]

________________

(1)Source: U.S. Energy Information Administration (spot prices).

As can be derived from the table above, the 2025 average spot price of WTI crude oil declined 15% from the 2024 average following increased crude oil production by OPEC+. In addition, the imposition of broad based trade tariffs by the United States has led to ongoing uncertainty regarding the future effect of reciprocal and other trade tariffs on the global economy. These factors have negatively impacted the demand for and pricing of our products and services provided to the U.S. land-based market and have increased the cost of certain products we manufacture in the United States when compared to 2024 levels.

We implemented certain initiatives in 2025 to optimize our operations and improve future returns. These actions were concentrated in our U.S. land-focused operations and included: the consolidation, relocation and exit of certain operating locations; the exit of certain product and service offerings; the exit of previously closed facilities; and reductions in our U.S. workforce. We also assessed the carrying value of certain long-lived and other assets based on the industry outlook regarding overall demand for and pricing of our products and services, market competitiveness and management decisions. As a result of these events, actions and assessments, our reported pre-tax results for 2025 included $121.1 million in non-cash asset

-32-

impairment charges as well as $11.6 million of costs associated with facility exits and other charges. Partially offsetting these charges were sales of facilities, equipment and inventory for net proceeds of $20.2 million in 2025.

During 2025, we generated cash flow from operations of $105.1 million and materially delevered with the purchase of $70.8 million principal amount of our 2026 Notes. We also repurchased 3.3 million shares of our common stock for $16.6 million.

On January 28, 2026, we entered into the Cash Flow Credit Agreement providing for aggregate lender commitments of up to: $75.0 million under the Revolving Credit Facility and $50.0 million under the Term Loan Facility, replacing the existing ABL Agreement. See Note 16, “Subsequent Event,” to the Consolidated Financial Statements included in this Annual Report on Form 10-K for further information regarding the Cash Flow Credit Agreement.

On July 4, 2025, the United States enacted tax reform legislation through the OBBBA, which resulted in changes to U.S. tax and related laws, including certain key federal income tax provisions applicable to multinational companies such as ours. These changes include, among others: the reinstatement of 100% bonus depreciation election for investments in qualifying property; the immediate deduction of domestic research and development expenditures; and manufacturing tax incentives related to goods sold outside the United States.

Overview

Current and expected future pricing for WTI crude oil and natural gas, inflationary and tariff-driven cost increases, and expectations regarding the regulatory environment in the regions in which we operate are factors that will continue to influence our customers’ willingness to invest capital in their businesses. Expectations for the longer-term price for Brent crude oil will continue to influence our customers’ spending related to global offshore and international drilling and development and, thus, a significant portion of the activity of our Offshore Manufactured Products segment.

Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including: geopolitical conflicts in Europe, the Middle East and South America, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; technological advancements; consolidation of oil and gas producers; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances.

U.S. drilling, completion and production activity and, in turn, our financial results, are sensitive to near-term fluctuations in commodity prices, particularly U.S. WTI crude oil and natural gas prices, given the short-term, call-out nature of our U.S. operations.

Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas drilling, completion and production systems and facilities globally, as well as certain products and services to the military and industrial markets. This segment is particularly influenced by global spending on deepwater drilling and production, which is primarily driven by our customers’ longer-term commodity demand forecasts and outlook for crude oil and natural gas prices. Approximately 91% of Offshore Manufactured Products segment sales in 2025 were driven by our customers’ capital spending for products and services used in exploratory and developmental drilling, greenfield offshore production infrastructure, and subsea pipeline tie-in and repair system applications, along with upgraded equipment for existing offshore drilling rigs and other vessels (referred to herein as “project-driven products and services”). Deepwater oil and gas development projects typically involve significant capital investments and multi-year development plans. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. Given the long lead times associated with field development, we believe some of these deepwater projects, once approved for development, are generally less susceptible to change based on short-term fluctuations in the price of crude oil and natural gas. Deepwater oil and gas development projects may also be impacted by federal legislative and regulatory actions, including the OBBBA, which mandates that the Bureau of Ocean Energy Management conduct at least two offshore lease sales annually, of a minimum of 80 million acres (if available), in the Central and Western Gulf of America Planning Areas for the next 15 years. Additionally, we are investing in research and product development (and have been awarded select contracts and are bidding on additional projects) to facilitate the development of alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities.

-33-

Backlog reported by our Offshore Manufactured Products segment increased to $435 million as of December 31, 2025 from $311 million as of December 31, 2024. Bookings totaled $554 million in 2025, yielding a book-to-bill ratio of 1.3x. The following table sets forth backlog as of the dates indicated (in millions).

[[GREPCENT_TABLE]]
[["","","Backlog as of"],["Year","","March 31","","June 30","","September 30","","December 31"],["2025","","$","357","","","$","363","","","$","399","","","$","435"],["2024","","305","","","300","","","313","","","311"],["2023","","316","","","328","","","341","","","327"]]
[[/GREPCENT_TABLE]]

Our Completion and Production Services segment provides completion and production services in the United States (including the Gulf of America) and internationally. Prior to the sale of its drilling rigs in August of 2024, the segment also provided land drilling services in the United States. U.S. drilling and completion activity and, in turn, our Completion and Production Services segment’s results, are sensitive to near-term fluctuations in commodity prices, particularly WTI crude oil prices, given the short-term, call-out nature of its operations. We primarily supply equipment and service personnel utilized in the completion of, and initial production from, new and recompleted wells in our U.S. operations.

Our Downhole Technologies segment provides oil and gas perforation systems, downhole tools and services in support of completion, intervention, wireline and well abandonment operations. This segment designs, manufactures and markets its consumable eng

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/OIS/mda/fy2025/
All MD&A years: /company/OIS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/OIS/mda/fy2024/): filed 2025-02-21; accession 0001121484-25-000024 (https://www.sec.gov/Archives/edgar/data/1121484/000112148425000024/ois-20241231.htm)
- [FY 2023 MD&A](/company/OIS/mda/fy2023/): filed 2024-02-21; accession 0001121484-24-000021 (https://www.sec.gov/Archives/edgar/data/1121484/000112148424000021/ois-20231231.htm)
- [FY 2022 MD&A](/company/OIS/mda/fy2022/): filed 2023-02-17; accession 0001121484-23-000008 (https://www.sec.gov/Archives/edgar/data/1121484/000112148423000008/ois-20221231.htm)
- [FY 2021 MD&A](/company/OIS/mda/fy2021/): filed 2022-02-22; accession 0001121484-22-000024 (https://www.sec.gov/Archives/edgar/data/1121484/000112148422000024/ois-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3533 Oil & Gas Field Machinery & Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/OIS.md · JSON record: /company/OIS.json · verified financials: /company/OIS/financials.json / /company/OIS/financials.csv · machine TOC for the whole site: /llms.txt