Nine Energy Service, Inc. (NINE) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals a decline in revenue and EBITDA, driven by rig count reductions and pricing pressures. Market share losses, operational challenges, and liquidity constraints compound these issues. The Q&A session highlights complex market conditions without clear solutions. Despite international expansion efforts, the overall sentiment is negative due to disappointing financial results, competitive pressures, and lack of actionable guidance.
Key Financial Performance
Revenue $132 million, a decrease from the original guidance range of $135 million to $145 million. This decline was due to significant rig declines, pricing pressure, tariffs, and a drop in oil prices.
Adjusted EBITDA $9.6 million, impacted by activity declines and pricing pressure across all service lines.
Cementing Revenue $49.3 million, a decrease of approximately 6% year-over-year. This was due to a 4% decrease in cementing jobs and a 1% decrease in average blended revenue per job.
Wireline Revenue $28.2 million, a decrease of approximately 15% year-over-year. This was due to a 4% decrease in wireline stages and an 11% decrease in average blended revenue per stage.
Completion Tool Revenue $31.2 million, a decrease of approximately 16% year-over-year. This was due to a 27% decrease in completion tool stages, driven by customer consolidation and changes in completion designs.
Coiled Tubing Revenue $23.4 million, a decrease of approximately 7% year-over-year. This was due to an 11% decrease in coiled tubing days, partially offset by a 5% increase in the average blended day rate.
Cash and Cash Equivalents $14.4 million as of September 30, 2025, with a total liquidity position of $40.3 million, including $25.9 million of availability under the revolving credit facility.
CapEx Spend $3.5 million for Q3, with total CapEx through Q3 at $13.9 million. The full-year CapEx budget remains unchanged at $15 million to $25 million but is expected to be at the lower end of the range.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Completion Tool Design: R&D team is working on designing and testing tools to address changes in casing sizes due to customer consolidation and completion design changes.
Cementing Division Innovation: Developed a latex-based cement slurry for challenging environments in the Haynesville basin, capable of maintaining stability, reducing friction pressure, and improving operational efficiency.
International Revenue Growth: International revenue grew by approximately 19% in the first 9 months of 2025 compared to the same period in 2024, driven by increased sales in the UAE, Argentina, and Australia.
Revenue Decline: Q3 revenue was $132 million, below the guidance range of $135 million to $145 million, due to rig declines, pricing pressure, and market share losses.
Segment Performance: Cementing revenue decreased by 6%, wireline revenue by 15%, completion tool revenue by 16%, and coiled tubing revenue by 7% in Q3.
Operational Challenges: Completion delays and inefficiencies in the Northeast due to droughts negatively impacted wireline and completion tool operations.
Cost Management and Market Share Focus: The company is focusing on lowering costs while maintaining service quality and growing market share domestically and internationally.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Revenue Decline: Revenue for Q3 2025 was $132 million, below the original guidance of $135 million to $145 million, driven by significant rig declines, pricing pressure, and a decline in oil prices.
Rig Count Decline: The U.S. rig count declined by 43 rigs (approximately 7%) from Q1 to Q3 2025, with the Permian region experiencing a 15% decline, leading to reduced activity levels and revenue.
Pricing Pressure: Increased competition and unsolicited bids from oilfield service providers have led to pricing pressure, forcing the company to lower prices or lose market share.
Market Share Loss: The completion tool division experienced domestic market share losses due to customer consolidation and changes in customer completion designs, negatively impacting revenue and earnings.
Northeast Operational Challenges: Droughts in the Northeast caused a lack of water, leading to completion delays and inefficiencies, negatively impacting wireline and completion tool operations.
Liquidity Constraints: The borrowing base under the 2025 ABL credit facility is expected to be reduced by $2.2 million monthly from October 2025 to January 2026, impacting liquidity.
Commodity Price Volatility: Volatility in oil prices has created uncertainty in operators' 2026 CapEx plans, affecting future activity and revenue projections.
Seasonal Slowdowns: Q4 2025 is expected to experience typical seasonality effects, including weather, holidays, and budget exhaustion, leading to reduced activity and revenue.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Natural Gas Prices: Natural gas prices remain mostly supportive, helping to drive more efficient operations in the Northeast and Haynesville and building a more positive sentiment, which has and will continue to benefit operations and earnings.
Q4 Revenue and Adjusted EBITDA: For Q4, the company does not expect any significant changes in activity but anticipates typical seasonality related to weather, holidays, and budget exhaustion, as well as continued low pricing of services. Revenue and adjusted EBITDA are projected to be down compared to Q3, with Q4 revenue projected between $122 million and $132 million.
2026 Activity and CapEx Plans: It is too early to provide specifics on potential 2026 activity. Many operators have begun bidding out 2026 work but are continuing to evaluate their 2026 CapEx plans, especially with the recent volatility in oil prices.
Full Year CapEx Budget: The full year CapEx budget remains unchanged at $15 million to $25 million but will likely come in at the lower end of the range.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
ATM program: During Q3, we did not sell any shares under the ATM program.
Repurchase of senior secured notes: As per the terms of the indenture governing Nine senior secured notes, the company is required to periodically offer to repurchase such notes with a portion of any excess cash flow. Nine did not generate any excess cash flow as defined in the indenture in the most recently ended 2 fiscal quarters. As a result, no excess cash flow offer will be made to noteholders this month.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:In the current service market environment, at what point do customers recognize that relief is needed, and when will they listen?
A:Ann Fox stated that the market is already flirting with that point, citing issues like frac availability problems in the Northeast due to underinvestment and asset movement. However, she noted that operators are also under pressure with flat CapEx expectations, rising costs, and moving into less favorable acreage. This creates a complex and challenging situation for both the service and upstream sectors.
Q:Is there a chance for a step change in the type of equipment needed for the coiled tubing market, given the introduction of a 2 7/8 unit?
A:Ann Fox acknowledged that the increasing length of laterals necessitates a step change in equipment. However, she highlighted that the service sector's financial pressures make capital investment for such changes challenging, even though operators are not slowing down on long laterals.
Q:Review of Unclear Management Responses
A:Management provided detailed responses to both questions, but their answers highlighted the complexity and challenges in the market without offering specific solutions or timelines. This could be interpreted as a lack of direct clarity on actionable outcomes.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Activity pricing
Argentina Australia
Australia market
Development Investor
Fahrenheit hole
Haynesville basin
Nine
Northeast drought
Northeast region
Permian rig
RD design
availability credit
benefit tax
borrowing base
cash flow
casing size
cementing job
conjunction
division
end rig
indenture
inventory value
job decrease
note
provider
quarter
rig decline
share loss
slurry
stage decrease
tax benefit
tubing
value borrowing
wireline
NINE Transcript
Nine Energy Service, Inc. (NINE) Q1 2026 Earnings Call Transcript
Unknown5-14
The earnings call reveals a mixed sentiment. The company faced significant Q1 challenges, including weather impacts and financial constraints, leading to weak results. However, management's optimistic guidance for Q2, driven by improved weather conditions and operational efficiencies, provides some positive outlook. The Q&A session highlights potential growth from DUC completions and refracs, but uncertainties remain around pricing strategies and cash flow normalization. Overall, the sentiment is neutral, reflecting both challenges and optimistic future prospects.
Nine Energy Service, Inc. (NINE) Q3 2025 Earnings Call Transcript
Unknown10-31
The earnings call reveals a decline in revenue and EBITDA, driven by rig count reductions and pricing pressures. Market share losses, operational challenges, and liquidity constraints compound these issues. The Q&A session highlights complex market conditions without clear solutions. Despite international expansion efforts, the overall sentiment is negative due to disappointing financial results, competitive pressures, and lack of actionable guidance.
Nine Energy Service, Inc. (NINE) Q2 2025 Earnings Call Transcript
Unknown8-6
The earnings call revealed mixed results: strong international growth and increased market share in some segments, but overall revenue decline and lack of clear guidance for Q4. The Q&A highlighted management's cautious outlook due to market unpredictability, with some optimism for Q1. These factors suggest a neutral impact on the stock price, as positive developments are offset by uncertainties and a lack of strong guidance.
Nine Energy Service, Inc. (NINE) Q1 2025 Earnings Conference Call Transcript
Unknown5-10
The earnings call reveals several concerning factors: declining market activity, pricing pressures, and uncertainty in forward guidance. While some financial metrics show growth, the lack of guidance, tariff challenges, and potential revenue declines overshadow these positives. The Q&A section highlights management's inability to quantify pricing pressures and future oil prices, further increasing uncertainty. These factors suggest a negative sentiment, likely leading to a stock price decline of -2% to -8% over the next two weeks.
NINE Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
