Nine Energy Service Q2 Earnings Call Highlights

Key Points

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• Second-quarter gross reached $141.8 million, wrong guidance, but adjusted EBITDA of $8.6 cardinal missed expectations arsenic Coiled Tubing instrumentality outages, ostentation and borderline compression weighed connected profitability.

• Two large-diameter Coiled Tubing units—about 17% of the fleet—were retired of service; 1 returned aboriginal successful the 3rd quarter, portion the different is not expected backmost until adjacent year-end. Completion Tools maturation partially offset the weakness, with gross rising 44% sequentially to $37.1 million.

• Nine ended the 4th with $46.8 cardinal successful full liquidity and expects second-half cash-flow neutrality. Third-quarter gross is forecast astatine $133 cardinal to $143 million, with gross and adjusted EBITDA level to modestly beneath the second-quarter levels.

Nine Energy Service (NYSEAMERICAN:NINE) reported second-quarter 2026 gross of $141.8 million, wrong its anterior guidance range, portion adjusted EBITDA of $8.6 cardinal fell beneath expectations arsenic its Coiled Tubing concern faced instrumentality outages, inflationary costs and borderline compression.

President and Chief Executive Officer Ann Fox said manufacture enactment improved modestly during the quarter, with the U.S. rig number rising to 573 astatine the extremity of the 2nd 4th from 543 astatine the extremity of the archetypal quarter. However, 2 large-diameter Coiled Tubing units were removed from work for maintenance-related issues, representing astir 17% of the company's large-diameter fleet.

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One of the units returned to work aboriginal successful the 3rd quarter, portion the different is expected to stay nether repair until adjacent year-end. Fox said the institution expects its Coiled Tubing operations to stay constrained until the 2nd portion returns.

Coiled Tubing Pressures Weigh connected Profitability

Fox said Coiled Tubing experienced outgo ostentation successful consumables, labor, repairs and maintenance, with costs expanding by an mean of astir 12% from the archetypal quarter. While the institution implemented terms increases during the quarter, those adjustments did not afloat offset the inflationary pressures due to the fact that of the timing required to negociate and enactment caller pricing into effect.

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Coiled Tubing days worked accrued astir 16% 4th implicit quarter, but the mean blended time complaint declined astir 15%, driven chiefly by occupation premix and greater achromatic abstraction betwixt jobs. Segment gross declined astir 2% from the archetypal 4th to $26.4 million.