20 unchanged sentences
Energy Information Administration (spot prices).
−Removed: The average spot price of WTI crude oil declined 10% in the second quarter of 2025 following to the imposition of broad-based trade tariffs by the United States on imported goods and the announcement by OPEC+ of plans to increase crude oil production.
−Removed: These actions have led to ongoing uncertainty regarding the broad future effect of reciprocal trade tariff increases on the global economy as well as the future demand for and supply of crude oil, and negatively impacted the demand for and pricing of our products and services in the U.S.
−Removed: land-based market during the second quarter of 2025.
+Added: The third quarter 2025 average spot price of WTI crude oil declined 8% from the first quarter 2025 average following the imposition of broad-based trade tariffs by the United States on imported goods and increased crude oil production by OPEC+.
+Added: These actions have led to ongoing uncertainty regarding the future effect of reciprocal and other trade tariffs on the global economy as well as the future demand for and supply of crude oil, which has negatively impacted the demand for and pricing of our products and services provided to the U.S.
+Added: land-based market during recent quarters.
The ultimate magnitude and duration of the trade conflict and increased crude oil production by OPEC+, and the related impacts on crude oil prices and the global economy, remain uncertain.
−Removed: While it is difficult for management to assess or predict with precision the broad future effect of these events on the global economy, the energy industry or the Company, management expects that it may adversely affect demand for our products and services, particularly in the United States, over the balance of 2025 and possibly beyond.
+Added: While it is difficult for management to assess or predict with precision the broad future effect of these events on the global economy, the energy industry or the Company, management expects that it will continue to adversely affect demand for our products and services, particularly in the United States, over the balance of 2025 and possibly beyond.
+Added: On October 10, 2025, an explosion occurred at one of the facilities of a major U.S.
+Added: supplier of explosive powders to the perforating industry.
+Added: We obtain a majority of the powders used in the production of perforating charges and related products within our Downhole Technologies segment from this supplier.
+Added: We are seeking to arrange alternative sources of these materials, but we expect this supply chain disruption to potentially adversely affect our ability to produce and market perforating products in the latter part of the fourth quarter of 2025 and possibly beyond.
We have implemented certain initiatives to optimize our operations and reduce future costs.
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We also incurred legal costs associated with patent defense.
−Removed: As a result of these events, actions and assessments, our reported pre-tax results for the six months ended June 30, 2024 included $10.0 million in non-cash goodwill impairment charges as well as $6.9 million of facility consolidation and exit, patent defense and other charges.
−Removed: During the first six months of 2025, we made the strategic decision to exit three additional service facilities, continued the exit of facilities closed in 2024 and further reduced headcount, incurring $4.6 million of associated pre-tax charges.
−Removed: During the first six months of 2025, we sold facilities, equipment and inventory for net proceeds of $12.6 million.
−Removed: Additionally, during the first six months of 2025, we purchased $14.8 million principal amount of our 4.75% convertible senior notes due 2026 (the “2026 Notes”) and $12.0 million of our common stock.
+Added: As a result of these events, actions and assessments, our reported pre-tax results for the nine months ended September 30, 2024 included $23.4 million in non-cash goodwill, intangible and operating lease asset impairment charges as well as $11.8 million of facility consolidation and exit, patent defense and other charges.
+Added: During the first nine months of 2025, we made the strategic decision to exit three additional service facilities, continued the exit of facilities closed in 2024 and further reduced headcount, incurring $8.1 million of associated pre-tax charges.
+Added: During the first nine months of 2025, we sold facilities, equipment and inventory for net proceeds of $13.8 million.
+Added: Additionally, during the first nine months of 2025, we purchased $20.8 million principal amount of our 4.75% convertible senior notes due 2026 (the “2026 Notes”) and $16.2 million of our common stock.
On July 4, 2025, the United States enacted tax reform legislation through the OBBBA, which resulted in changes to U.S.
−Removed: tax and related law, including certain key federal income tax provisions applicable to multinational companies such as Oil States.
+Added: tax and related law, including certain key federal income tax provisions applicable to multinational companies such as ours.
These include, among others:
2 unchanged sentences
and manufacturing tax incentives related to goods sold outside the United States.
−Removed: On July 28, 2025, we amended our asset-based revolving credit facility to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026.
−Removed: Current and expected future pricing for WTI crude oil and natural gas and inflationary cost increases, along with 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.
+Added: On July 28, 2025, we amended our asset-based revolving credit facility (the “ABL Facility”) to reduce the facility size to $100.0 million, increase borrowing availability, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026.
+Added: 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.
3 unchanged sentences
the levels of domestic or international crude oil and natural gas production;
+Added: technological advancements;
+Added: consolidation of oil and gas producers;
changes in governmental rules and regulations;
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crude oil and natural gas prices, given the short-term, call-out nature of our U.S.
−Removed: Customer spending in the natural gas shale plays has declined in recent years due to technological advancements and consolidation of oil and gas producers that have led to significant amounts of natural gas being produced from prolific basins in the Northeastern United States and from associated gas produced from the drilling and completion of unconventional oil wells in the United States.
−Removed: However, the extended outlook for natural gas in the United States is positive with increased exports of LNG, as well as increased power needs for the technology sector, namely data centers.
Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas production systems and facilities globally, as well as certain products and services to the offshore drilling and completion 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.
−Removed: Approximately 90% of Offshore Manufactured Products segment sales in the first six months of 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”).
+Added: Approximately 90% of Offshore Manufactured Products segment sales in the first nine months of 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.
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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.
−Removed: Deepwater oil and gas development projects may also be impacted by federal legislative and regulatory actions, including the OBBBA, signed into law in July 2025.
−Removed: The OBBBA 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, beginning in August 2025.
−Removed: This segment also produces a variety of products for use in industrial, military and other applications outside the traditional energy industry.
+Added: 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.
+Added: This segment also produces a variety of products for use in military, industrial and other applications outside the traditional energy industry.
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.
−Removed: Backlog reported by our Offshore Manufactured Products segment increased to $363 million as of June 30, 2025 from $311 million as of December 31, 2024.
−Removed: Bookings totaled $112 million in the second quarter of 2025, yielding a quarterly book-to-bill ratio of 1.1x (1.2x year-to-date).
+Added: Backlog reported by our Offshore Manufactured Products segment increased to $399 million as of September 30, 2025 from $311 million as of December 31, 2024.
+Added: Bookings totaled $145 million in the third quarter of 2025, yielding a quarterly book-to-bill ratio of 1.3x (1.3x year-to-date).
The following table sets forth backlog as of the dates indicated (in millions).
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Our Downhole Technologies segment provides oil and gas perforation systems, downhole tools and services in support of completion, intervention, wireline and well abandonment operations.
−Removed: This segment designs, manufactures and markets its consumable engineered products to oilfield service as well as exploration and production companies.
−Removed: Product and service offerings for this segment include innovations in perforation technology through patented and proprietary systems combined
−Removed: with advanced modeling and analysis tools.
+Added: This segment designs, manufactures and markets its
+Added: consumable engineered products to oilfield service as well as exploration and production companies.
+Added: Product and service offerings for this segment include innovations in perforation technology through patented and proprietary systems combined with advanced modeling and analysis tools.
This expertise has led to the optimization of perforation hole size, depth, and quality of tunnels, which are key factors for maximizing the effectiveness of hydraulic fracturing.
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Demand drivers for the Downhole Technologies segment include continued trends toward longer lateral lengths, increased frac stages and more perforation clusters to target increased unconventional well productivity.
−Removed: Demand for our completion-related products and services within our Completion and Production Services and Downhole Technologies segments is highly correlated to changes in the total number of wells drilled in the United States, total footage drilled, the number of drilled wells that are completed and changes in the drilling rig count.
+Added: Demand for our completion-related products and services within our Completion and Production Services and Downhole Technologies segments is highly correlated to changes in the total number of wells drilled in the United States, total footage drilled, the number of drilled wells that are completed and changes in the completion (“frac”) count.
The following table sets forth a summary of the U.S.
drilling rig count, as measured by Baker Hughes Company, as of and for the periods indicated.
−Removed: As of July 25, 2025
+Added: As of October 24, 2025
Average for the
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
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shale plays utilizing horizontal drilling and completion techniques.
−Removed: As of June 30, 2025, oil-directed drilling accounted for 79% of the total U.S.
+Added: As of September 30, 2025, oil-directed drilling accounted for 77% of the total U.S.
rig count – with the balance largely natural gas related.
We use a variety of domestically produced and imported raw materials and component products, including steel, in the manufacture of our products.
−Removed: In the first quarter of 2025, the United States imposed new or additional tariffs on a variety of imported raw materials and products, including steel and aluminum.
+Added: Beginning in the first quarter of 2025, the United States imposed new or additional tariffs, through executive orders, on a variety of imported raw materials and products, including steel and aluminum.
In response to the U.S.
tariffs on steel and aluminum, the European Union and several other countries, including Canada and China, have threatened and/or imposed retaliatory tariffs.
−Removed: In addition, in response to Russia’s invasion of Ukraine, governments in the European Union, the United States, the United Kingdom, Switzerland and other countries have enacted sanctions against Russia and Russian interests.
−Removed: Subsequently, the U.S.
−Removed: government announced additional tariffs on goods imported into the United States, including steel and other metal products.
−Removed: The effect of these sanctions and tariffs and the application and interpretation of existing trade agreements and customs, anti-dumping and countervailing duty regulations continue to evolve, and we continue to monitor these matters.
−Removed: While many of these tariffs are currently deferred, we cannot predict with certainty the impact of any new or increased tariffs, or the impact of any retaliatory tariffs, if we encounter difficulty in procuring these raw materials and component products, or if the prices we have to pay for these products increase and we are unable to pass corresponding cost increases on to our customers, our financial position, cash flows and results of operations could be adversely affected.
+Added: We continue to monitor the effects of the ever-evolving global trade landscape, including with respect to sanctions, tariffs, existing trade agreements, anti-dumping and countervailing duty regulations and more.
+Added: For example, in the third quarter of 2025, U.S.
+Added: tariffs on certain steel and other metal components we import from China substantially increased the cost of those products, and President Trump has threatened additional increased tariffs on goods imported from China as result of current Chinese trade policy.
+Added: A portion of those tariffs might be overturned depending on the resolution of certain U.S.
+Added: Specifically, the U.S.
+Added: Supreme Court has agreed to hear a case determining whether a federal law giving the president certain emergency powers allowed President Trump to levy tariffs on nearly all goods imported into the United States through a series of executive orders.
+Added: The Court is scheduled to begin hearing oral arguments on November 5, with a ruling on the challenges potentially expected at the end of 2025.
+Added: We cannot predict with certainty the duration of tariffs currently in place, the impact of any new or increased tariffs, or the impact of any retaliatory tariffs.
+Added: If we encounter difficulty in procuring these raw materials and component products, or if the prices we pay for these products remain at current levels or increase and we are unable to pass corresponding cost increases on to our customers, our financial position, cash flows and results of operations would be adversely affected.
Furthermore, uncertainty with respect to potential costs in the drilling and completion of oil and gas wells could cause our customers to delay or cancel planned projects which, if this occurred, would adversely affect our financial position, cash flows and results of operations.
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Unaudited Consolidated Results of Operations
−Removed: The following summarizes our consolidated results of operations for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share amounts):
+Added: The following summarizes our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts):
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2025 2024 Variance 2025 2024 Variance
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— — — — 10,000 (10,000)
+Added: Impairments of intangible assets
+Added: — 10,787 (10,787) — 10,787 (10,787)
Impairments of operating lease assets
6 unchanged sentences
Other income, net 362 731 (369) 1,136 1,311 (175)
−Removed: 636 652 (16) 774 580 194
Income (loss) before income taxes 3,337 (12,134) 15,471 11,757 (24,848) 36,605
−Removed: Income tax benefit (provision) (1,410) 665 (2,075) (2,451) 641 (3,092)
+Added: Income tax provision (1,437) (2,215) 778 (3,888) (1,574) (2,314)
Net income (loss) $ 1,900 $ (14,349) $ 16,249 $ 7,869 $ (26,422) $ 34,291
8 unchanged sentences
Offshore Manufactured Products, Completion and Production Services and Downhole Technologies.
−Removed: Supplemental financial information by operating segment for the three and six months ended June 30, 2025 and 2024 is summarized below (in thousands):
+Added: Supplemental financial information by operating segment for the three and nine months ended September 30, 2025 and 2024 is summarized below (in thousands):
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2025 2024 Variance 2025 2024 Variance
7 unchanged sentences
Completion and Production Services 27,525 40,099 (12,574) 91,468 133,812 (42,344)
−Removed: 29,424 46,421 (16,997) 63,943 93,713 (29,770)
Downhole Technologies 29,028 32,015 (2,987) 91,247 103,534 (12,287)
7 unchanged sentences
(4,667) (3,653) (1,014) (10,783) (16,873) 6,090
+Added: Corporate (4)
(9,136) (8,431) (705) (28,749) (28,349) (400)
1 unchanged sentence
_______________
−Removed: (1) During the three and six months ended June 30, 2025, we recognized charges of $0.3 million within the Offshore Manufactured Products segment, associated primarily with the consolidation and relocation of certain manufacturing and service locations.
−Removed: During the three and six months ended June 30, 2024, the segment incurred facility consolidation charges of $1.5 million and $3.0 million, respectively, associated primarily with the segment’s consolidation and relocation of a manufacturing and service location.
−Removed: (2) During the three and six months ended June 30, 2025, we recognized charges of $2.2 million and $3.1 million, respectively, within the Completion and Production Services segment, associated primarily with the exit of service locations.
−Removed: During the three and six months ended June 30, 2024, the segment incurred charges of $2.9 million and $3.9 million, respectively, associated primarily with the consolidation and exit of certain underperforming service locations and the defense of certain patents.
−Removed: (3) During the three and six months ended June 30, 2025, we recognized charges of $1.2 million within the Downhole Technologies segment, associated primarily with the exit of a leased facility.
−Removed: During the six months ended June 30, 2024, the segment incurred a $10.0 million non-cash impairment charge related to goodwill reassigned to the business in connection with the realignment of operations between segments.
−Removed: For further discussion of charges recognized during the three and six months ended June 30, 2025 and 2024, see Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.
−Removed: Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
−Removed: We reported net income for the three months ended June 30, 2025 of $2.8 million, or $0.05 per share.
−Removed: The reported second quarter net income included charges of $3.7 million ($2.9 million after tax, or $0.05 per share) associated primarily with the exit of U.S.
−Removed: land-based facilities and personnel reductions, partially offset by non-cash gains of $0.4 million ($0.3 million after-tax, or $0.01 per share) associated with debt extinguishment.
−Removed: These results compare to net income for the three months ended June 30, 2024 of $1.3 million, or $0.02 per share, which included facility consolidation and other charges of $4.4 million ($3.5 million after-tax, or $0.06 per share), partially offset by non-cash gains of $0.5 million ($0.4 million after-tax, or $0.01 per share) associated with debt extinguishment.
−Removed: Our results of operations for the second quarter of 2025 reflect the impact of management’s decision to exit certain underperforming locations and service offerings in the United States, as well as the effect of a reduction by operators in U.S.
−Removed: land-based activity levels due to lower crude oil prices and competitive market conditions.
+Added: (1) During the three and nine months ended September 30, 2025, we recognized charges of $0.6 million and $0.8 million, respectively, within the Offshore Manufactured Products segment, associated primarily with the consolidation and relocation of certain manufacturing and service locations.
+Added: During the three and nine months ended September 30, 2024, the segment incurred facility consolidation charges of $0.4 million and $3.4 million, respectively, associated primarily with the segment’s consolidation and relocation of a manufacturing and service location.
+Added: (2) During the three and nine months ended September 30, 2025, we recognized charges of $2.7 million and $5.8 million, respectively, within the Completion and Production Services segment, associated primarily with the exit of service locations.
+Added: During the three and nine months ended September 30, 2024, the Completion and Production Services segment recognized charges of $17.2 million and $21.1 million, respectively, associated primarily with the exit of its flowback and well testing service offering, the consolidation and exit of certain underperforming service locations, and the defense of certain patents.
+Added: (3) During the nine months ended September 30, 2025, we recognized charges of $1.2 million within the Downhole Technologies segment, associated primarily with the exit of a leased facility.
+Added: During the three and nine months ended September 30, 2024, the Downhole Technologies segment recognized charges of $0.6 million associated primarily with the exit of an underperforming location.
+Added: Additionally, during the nine months ended September 30, 2024, the segment incurred a $10.0 million non-cash impairment charge related to goodwill reassigned to the business in connection with the realignment of operations between segments.
+Added: (4) During the three and nine months ended September 30, 2025, we recognized severance charges of $0.3 million within Corporate operations.
+Added: For further discussion of charges recognized during the three and nine months ended September 30, 2025 and 2024, see Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.
+Added: Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
+Added: We reported net income for the three months ended September 30, 2025 of $1.9 million, or $0.03 per share.
+Added: The reported third quarter net income included charges of $3.6 million ($2.8 million after tax, or $0.05 per share) associated primarily with the exit of U.S.
+Added: land-based facilities and personnel reductions.
+Added: These results compare to a net loss for the three months ended September 30, 2024 of $14.3 million, or $0.23 per share, which included charges of $18.2 million ($17.0 million after tax, or $0.27 per share) associated with the restructuring of certain of its U.S.
+Added: land-based operations, facility consolidations and closures, patent defense and personnel reductions.
+Added: Our results of operations for the third quarter of 2025 reflect the impact of management’s decisions to exit certain underperforming locations and service offerings in the United States, as well as the effect of a reduction by operators in U.S.
+Added: land-based activity levels due to lower crude oil prices, competitive market conditions and increased U.S.
These impacts were partially offset by stronger offshore and international project activity, supported by backlog growth over recent quarters.
−Removed: Consolidated total revenues in the second quarter of 2025 decreased $21.0 million, or 11%, from the second quarter of 2024 due primarily to our exit of underperforming service offerings and locations and lower U.S.
+Added: Consolidated total revenues in the third quarter of 2025 decreased $9.2 million, or 5%, from the third quarter of 2024 due primarily to our exit of underperforming service offerings and locations over the past 15 months and lower U.S.
land-based activity levels.
−Removed: Excluding the impact of exited operations, which generated $12.8 million of revenues in the second quarter of 2024, consolidated revenues decreased $8.2 million, or 5%, year-over-year.
−Removed: Consolidated product revenues in the second quarter of 2025 decreased $1.2 million, or 1%, from the second quarter of 2024, with the impact of reduced U.S.
−Removed: customer demand for completion and perforating products substantially offset by higher customer demand for project-driven products.
−Removed: Consolidated service revenues in the second quarter of 2025 decreased $19.7 million, or 25%, from the second quarter of 2024.
−Removed: This decrease was concentrated in the United States – driven by our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.
−Removed: The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the three months ended June 30, 2025 and 2024 (in thousands):
−Removed: Offshore Manufactured Products
−Removed: Completion and Production Services
−Removed: Downhole Technologies Total
−Removed: Three Months Ended June 30 2025 2024 2025 2024 2025 2024 2025 2024
+Added: Excluding the impact of exited operations, consolidated revenues increased $7.2 million, or 5%, year-over-year.
+Added: Consolidated product revenues in the third quarter of 2025 increased $5.7 million, or 6%, from the third quarter of 2024, with the impact of higher customer demand for project-driven products partially offset by reduced U.S.
+Added: customer demand for completion and perforating products.
+Added: Consolidated service revenues in the third quarter of 2025 decreased $14.9 million, or 20%, from the third quarter of 2024.
+Added: This decline was concentrated in the United States – driven by our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.
+Added: The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the three months ended September 30, 2025 and 2024 (in thousands):
+Added: Offshore Manufactured Products Completion and Production Services Downhole Technologies Total
+Added: Three Months Ended September 30 2025 2024 2025 2024 2025 2024 2025 2024
Project-driven:
7 unchanged sentences
$ 108,627 $ 102,234 $ 27,525 $ 40,099 $ 29,028 $ 32,015 $ 165,180 $ 174,348
−Removed: $ 106,586 $ 101,556 $ 29,424 $ 46,421 $ 29,396 $ 38,406 $ 165,406 $ 186,383
By destination:
6 unchanged sentences
Cost of Revenues (exclusive of Depreciation and Amortization Expense).
−Removed: Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the second quarter of 2025 decreased $16.7 million, or 12%, compared to the level reported in the second quarter of 2024.
−Removed: Consolidated product costs in the second quarter of 2025 increased $1.4 million, or 2%, from the second quarter of 2024 driven primarily by a shift in product sales mix.
−Removed: Consolidated service costs in the second quarter of 2025 decreased $18.1 million, or 30%, from the second quarter of 2024, due to lower revenue levels and strategic actions implemented in our U.S.
−Removed: land operations to improve reported results.
+Added: Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the third quarter of 2025 decreased $7.9 million, or 6%, compared to the level reported in the third quarter of 2024.
+Added: Consolidated product costs in the third quarter of 2025 increased $6.4 million, or 8%, from the third quarter of 2024 driven primarily by higher project-driven sales volumes, lower fixed cost coverage in our U.S.
+Added: manufacturing operations and increased tariff costs.
+Added: Consolidated service costs in the third quarter of 2025 decreased $14.3 million, or 25%, from the third quarter of 2024, due to lower revenue levels and strategic actions implemented in our U.S.
+Added: land-focused operations to improve reported results.
Selling, General and Administrative Expense.
−Removed: Selling, general and administrative expense was $23.0 million in the second quarter of 2025.
−Removed: This compares to an expense of $26.4 million in the second quarter of 2024, which included $1.0 million of costs associated with enforcing certain of our patents.
−Removed: Excluding these patent litigation costs, selling, general and administrative costs decreased $2.4 million, or 10%, from the second quarter of 2024, due primarily to lower incentive-based compensation, marketing and bad debt expenses.
+Added: Selling, general and administrative expense was $20.8 million in the third quarter of 2025.
+Added: This compares to an expense of $22.8 million in the third quarter of 2024, which included $1.3 million of costs associated with enforcing certain of our patents.
+Added: Excluding these patent litigation costs, selling, general and administrative costs decreased $0.7 million, or 3%, from the third quarter of 2024, with the impact of lower professional fees and bad debt expense partially offset by higher incentive-based compensation expense.
Depreciation and Amortization Expense.
−Removed: Depreciation and amortization expense decreased $2.8 million, or 19%, in the second quarter of 2025 compared to the prior-year quarter.
−Removed: Note 10, “Segments and Related Information,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.
−Removed: Impairment of Operating Lease Assets.
−Removed: In the second quarter of 2025, management continued its restructuring efforts to reduce costs in its U.S.
−Removed: land-based operations.
−Removed: As a result of these decisions, our Completion and Productions Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations.
+Added: Depreciation and amortization expense decreased $1.5 million, or 11%, in the third quarter of 2025 compared to the prior-year quarter.
+Added: Note 10, “Segments and Related Information,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.
+Added: Impairments of Intangible Assets.
+Added: In the third quarter of 2024, as a result of our decision to exit an underperforming service offering, our Completion and Production Services segment recognized non-cash impairment charges of $10.8 million to reduce the carrying amount of its long-lived intangible assets to estimated fair value.
+Added: See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated included in this Quarterly Report on Form 10-Q for additional discussion.
+Added: Impairments of Operating Lease Assets.
+Added: In the third quarter of 2024, management made strategic decisions to exit five leased service locations within our Completion and Production Services segment and one within our Downhole Technologies segment.
+Added: As a result of these decisions, our Completion and Production Services and Downhole Technologies segments recognized non-cash impairment charges totaling $2.6 million to reduce the carrying amount of the related operating lease assets.
See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.
−Removed: Operating Income.
−Removed: Our consolidated operating income was $5.3 million in the second quarter of 2025, which included $1.4 million in non-cash operating lease impairment charges as well as charges totaling $2.3 million associated with facility consolidations and exits and other management actions.
−Removed: This compares to second quarter 2024 consolidated operating income of $2.0 million, which included facility consolidation and other charges of $4.4 million.
−Removed: Excluding these charges, operating income increased by $2.5 million year-over-year, driven primarily by growth in offshore and international activity and actions taken to improve U.S.
−Removed: land-based operating results.
+Added: Operating Income (Loss).
+Added: Our consolidated operating income was $4.7 million in the third quarter of 2025, which included $3.6 million in charges associated with facility consolidations and exits and other management actions.
+Added: This compares to third quarter 2024 consolidated operating loss of $11.0 million, which included $13.4 million in non-cash intangible and operating lease asset impairment charges and $4.8 million of facility consolidation and other charges.
+Added: Excluding these charges, operating income increased by $1.1 million year-over-year, with the impact of the decline in revenue and increased tariffs offset by actions taken to improve U.S.
+Added: land-based operating results and lower depreciation and amortization expense.
Interest Expense, Net.
−Removed: Net interest expense totaled $1.7 million in the second quarter of 2025, which compares to $2.1 million in the same period of 2024.
−Removed: Interest expense as a percentage of total debt outstanding was approximately 7% in the second quarters of 2025 and 2024.
−Removed: Income tax benefit (provision) for the three months ended June 30, 2025 and 2024 was calculated using a discrete approach.
+Added: Net interest expense totaled $1.8 million in the third quarter of 2025, which compares to $1.8 million in the same period of 2024.
+Added: Interest expense as a percentage of total debt outstanding was approximately 7% in the third quarters of 2025 and 2024.
+Added: Income tax provision for the three months ended September 30, 2025 and 2024 was calculated using a discrete approach.
This methodology was used because changes in our results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate.
−Removed: For the three months ended June 30, 2025, our income tax provision was $1.4 million, which included the impact of valuation allowance adjustments for deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $4.2 million.
−Removed: This compares to an income tax benefit of $0.7 million, which included the impact of favorable changes in valuation allowances recorded against deferred tax assets and certain non-deductible expenses, on pre-tax income of $0.6 million for the three months ended June 30, 2024.
+Added: For the three months ended September 30, 2025, our income tax provision was $1.4 million, which included the impact of valuation allowance adjustments recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $3.3 million.
+Added: This compares to an income tax provision of $2.2 million, which included the impact of changes in valuation allowances recorded against deferred tax assets and certain non-deductible expenses, on a pre-tax loss of $12.1 million for the three months ended September 30, 2024.
Other Comprehensive Income (Loss).
−Removed: Reported comprehensive income (loss) is the sum of reported net income and other comprehensive income (loss).
−Removed: Other comprehensive income was $9.1 million in the second quarter of 2025 compared to other comprehensive loss of $3.2 million in the second quarter of 2024 due to fluctuations in currency exchange rates compared to the U.S.
+Added: Reported comprehensive income (loss) is the sum of reported net income (loss) and other comprehensive income (loss).
+Added: Other comprehensive loss was $1.3 million in the third quarter of 2025 compared to other comprehensive income of $9.6 million in the third quarter of 2024 due to fluctuations in currency exchange rates compared to the U.S.
dollar which are used to translate certain of the international operations of our operating segments.
−Removed: For the three months ended June 30, 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil.
−Removed: During the second quarter of 2025, the exchange rate for the British pound and the Brazilian real strengthened compared to the U.S.
−Removed: In the second quarter of 2024, the exchange rates for the British pound was flat while the Brazilian real weakened compared to the U.S.
+Added: For the three months ended September 30, 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil.
+Added: During the third quarter of 2025, the exchange rate for the British pound weakened compared to the U.S.
+Added: dollar while the Brazilian real strengthened compared to the U.S.
+Added: In the third quarter of 2024, the exchange rates for the British pound and the Brazilian real strengthened compared to the U.S.
Segment Operating Results
Offshore Manufactured Products
−Removed: Our Offshore Manufactured Products segment revenues increased $5.0 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024 due to increased international and offshore project-driven product revenue, supported by backlog growth over recent quarters.
+Added: Our Offshore Manufactured Products segment revenues increased $6.4 million, or 6%, in the third quarter of 2025 compared to the third quarter of 2024 due to increased international and offshore project-driven product revenue, supported by backlog growth over recent quarters.
Operating Income.
−Removed: Our Offshore Manufactured Products segment reported operating income of $17.0 million in the second quarter of 2025, which included $0.3 million in facility consolidation and relocation charges.
−Removed: This compares to operating income in the second quarter of 2024 of $14.4 million, which included $1.5 million in facility consolidation charges.
−Removed: Excluding these charges, operating income increased $1.4 million year-over-year.
−Removed: Backlog in our Offshore Manufactured Products segment totaled $363 million as of June 30, 2025, with second quarter 2025 bookings of $112 million and a quarterly book-to-bill ratio of 1.1x.
+Added: Our Offshore Manufactured Products segment reported operating income of $17.6 million in the third quarter of 2025, which included $0.6 million in facility consolidation and relocation charges.
+Added: This compares to operating income in the third quarter of 2024 of $19.3 million, which included $0.4 million in facility consolidation and other charges.
+Added: Excluding these charges, operating income declined $1.5 million year-over-year driven primarily by a shift in product and service mix and a gain of $1.0 million recognized on the sale of property and equipment in the prior-year period.
+Added: Backlog in our Offshore Manufactured Products segment totaled $399 million as of September 30, 2025, with third quarter 2025 bookings of $145 million and a quarterly book-to-bill ratio of 1.3x.
Completion and Production Services
−Removed: Our Completion and Production Services segment revenues decreased $17.0 million, or 37%, in the second quarter of 2025 compared to the prior-year period, driven by the exit of underperforming service offerings and facilities and lower U.S.
+Added: Our Completion and Production Services segment revenues decreased $12.6 million, or 31%, in the third quarter of 2025 compared to the prior-year period, driven by the exit of underperforming service offerings and facilities over the past 15 months and lower U.S.
land-based activity levels.
−Removed: Excluding the impact of exited operations, which generated $12.8 million of revenues in the second quarter of 2024, revenues declined $4.2 million, or 13%, year-over-year – driven primarily by the industry-wide reduction in U.S.
−Removed: land completion-related activity.
+Added: Excluding the impact of exited operations, revenues increased $3.8 million, or 16%, year-over-year – driven primarily by higher customer activity levels in the Gulf of America and the Rocky Mountains.
Operating Income (Loss).
−Removed: Our Completion and Production Services segment reported operating income of $1.9 million in the second quarter of 2025, which included charges totaling $2.2 million associated primarily with the exit of service locations.
−Removed: This compares to an operating loss of $0.5 million in the second quarter of 2024, which included charges totaling $2.9 million associated with facility consolidations and exits, and the defense of patents.
−Removed: Excluding these charges, the Completion and Production Services segment’s operating results improved $1.7 million from the prior-year period, supported by the segment’s U.S.
−Removed: land-based restructuring efforts and gains recognized on the sales of idle facilities.
+Added: Our Completion and Production Services segment reported operating income of $0.9 million in the third quarter of 2025, which included charges totaling $2.7 million associated primarily with the exit of service locations and personnel reductions.
+Added: This compares to an operating loss of $18.3 million in the third quarter of 2024, which included charges totaling $17.2 million associated with facility consolidations and exits, the defense of patents and other management actions.
+Added: Excluding these charges, the Completion and Production Services segment’s operating results improved $4.7 million from the prior-year period, primarily reflective of the segment’s U.S.
+Added: land-based restructuring efforts.
Downhole Technologies
−Removed: Our Downhole Technologies segment revenues decreased $9.0 million, or 23%, in the second quarter of 2025 from the prior-year period, driven primarily by lower U.S.
+Added: Our Downhole Technologies segment revenues decreased $3.0 million, or 9%, in the third quarter of 2025 from the prior-year period, driven primarily by lower U.S.
customer activity levels.
Operating Loss.
−Removed: Our Downhole Technologies segment reported an operating loss of $4.0 million in the second quarter of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility.
−Removed: This compares to an operating loss of $1.1 million in the second quarter of 2024.
−Removed: Excluding charges, the Downhole Technologies operating results declined $1.6 million year-over-year, driven by the decline in revenues.
+Added: Our Downhole Technologies segment reported an operating loss of $4.7 million in the third quarter of 2025.
+Added: This compares to an operating loss of $3.7 million in the third quarter of 2024, which included charges totaling $1.2 million associated with the exit of a facility, personnel reductions and a customer bankruptcy.
+Added: Excluding charges, the Downhole Technologies operating results declined $2.2 million year-over-year, driven by the decline in revenues, lower manufacturing volumes and increased tariff costs.
Operating Loss.
−Removed: Corporate expenses decreased $1.0 million, or 10%, in the second quarter of 2025 from the prior-year period due primarily to lower performance-based incentive expense.
−Removed: Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
−Removed: We reported net income for the six months ended June 30, 2025 of $6.0 million, or $0.10 per share.
−Removed: The reported first six months net income included charges of $4.6 million ($3.6 million after tax, or $0.07 per share) associated with the restructuring of certain of our U.S.
−Removed: land-based operations, facility consolidations and closures, and personnel reductions, partially offset by non-cash gains of $0.4 million ($0.3 million after-tax, or $0.01 per share) associated with debt extinguishment.
−Removed: These results compare to a net loss for the six months ended June 30, 2024 of $12.1 million, or $0.19 per share, which included:
−Removed: a non-cash goodwill impairment charge of $10.0 million ($9.5 million after-tax, or $0.15 per share) and facility consolidation and other charges of $6.9 million ($5.5 million after-tax, or $0.09 per share), partially offset by non-cash gains of $0.5 million ($0.4 million after-tax, or $0.01 per share) associated with debt extinguishment.
−Removed: Our results of operations for the first six months of 2025 reflect the impact of management’s decision to exit certain underperforming locations and service offerings in the United States as well as the effect of a reduction by operators in U.S.
−Removed: land-based activity due to lower crude oil prices and competitive market conditions.
+Added: Corporate expenses increased $0.7 million, or 8%, in the third quarter of 2025 from the prior-year period due primarily to higher incentive-based compensation expense, as well as $0.3 million of severance charges in the third quarter of 2025.
+Added: Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
+Added: We reported net income for the nine months ended September 30, 2025 of $7.9 million, or $0.13 per share.
+Added: The reported first nine months net income included net charges and credits of $7.8 million ($6.1 million after tax, or $0.10 per share) associated with the restructuring of certain of our U.S.
+Added: land-based operations, facility consolidations and closures, personnel reductions and debt extinguishment.
+Added: These results compare to a net loss for the nine months ended September 30, 2024 of $26.4 million, or $0.42 per share, which included net charges and credits of $34.6 million ($31.6 million after tax, or $0.51 per share) associated with the restructuring of certain of its U.S.
+Added: land-based operations, facility consolidations and closures, patent defense, personnel reductions and debt extinguishment.
+Added: Our results of operations for the first nine months of 2025 reflect the impact of management’s decision to exit certain underperforming locations and service offerings in the United States as well as the effect of a reduction by operators in U.S.
+Added: land-based activity due to lower crude oil prices, competitive market conditions and increased U.S.
These impacts were partially offset by stronger offshore and international project activity, supported by backlog growth over recent quarters.
−Removed: Consolidated total revenues in the first six months of 2025 decreased $28.3 million, or 8%, from the first six months of 2024 due primarily to our exit of underperforming service offerings and locations and lower U.S.
+Added: Consolidated total revenues in the first nine months of 2025 decreased $37.5 million, or 7%, from the first nine months of 2024 reflective of our exit of underperforming service offerings and locations and lower U.S.
land-based activity levels.
−Removed: Excluding the impact of exited operations, which generated $29.6 million of revenues in the first six months of 2024, consolidated revenues increased $1.3 million year-over-year.
−Removed: Consolidated product revenues in the first six months of 2025 increased $5.0 million, or 2%, from the first six months of 2024, with the impact of higher customer demand for connector and valve products partially offset by a reduced U.S.
+Added: Excluding the impact of exited operations, which generated $12.7 million and $64.3 million of revenues in the first nine months of 2025 and 2024, respectively, consolidated revenues increased $14.1 million year-over-year.
+Added: Consolidated product revenues in the first nine months of 2025 increased $10.7 million, or 4%, from the first nine months of 2024, with the impact of higher customer demand for connector, crane and valve products partially offset by a reduced U.S.
customer demand for completion and perforating products.
−Removed: Consolidated service revenues in the first six months of 2025 decreased $33.3 million, or 22%, from the first six months of 2024.
−Removed: This decrease was concentrated in the United States – driven by our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.
−Removed: The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the six months ended June 30, 2025 and 2024 (in thousands):
−Removed: Offshore Manufactured Products
−Removed: Completion and Production Services
−Removed: Downhole Technologies Total
−Removed: Six Months Ended June 30 2025 2024 2025 2024 2025 2024 2025 2024
+Added: Consolidated service revenues in the first nine months of 2025 decreased $48.1 million, or 21%, from the first nine months of 2024.
+Added: The majority of this decrease was in the United States – reflective of our exit of certain underperforming service offerings and locations and an industry-wide reduction in land-based activity levels.
+Added: The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the nine months ended September 30, 2025 and 2024 (in thousands):
+Added: Offshore Manufactured Products Completion and Production Services Downhole Technologies Total
+Added: Nine Months Ended September 30 2025 2024 2025 2024 2025 2024 2025 2024
Project-driven:
7 unchanged sentences
$ 307,809 $ 290,647 $ 91,468 $ 133,812 $ 91,247 $ 103,534 $ 490,524 $ 527,993
−Removed: $ 199,182 $ 188,413 $ 63,943 $ 93,713 $ 62,219 $ 71,519 $ 325,344 $ 353,645
By destination:
6 unchanged sentences
Cost of Revenues (exclusive of Depreciation and Amortization Expense).
−Removed: Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the first six months of 2025 decreased $26.0 million, or 9%, compared to the first six months of 2024.
−Removed: Consolidated product costs in the first six months of 2025 increased $6.6 million, or 4%, compared to the first six months of 2024 due primarily to the reported increase in product revenue as well as an unfavorable shift in product sales mix.
−Removed: Consolidated service costs in the first six months of 2025 decreased $32.6 million, or 28%, compared to the first six months of 2024, due to lower revenue levels and the strategic actions implemented in our U.S.
+Added: Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the first nine months of 2025 decreased $33.9 million, or 8%, compared to the first nine months of 2024.
+Added: Consolidated product costs in the first nine months of 2025 increased $13.0 million, or 5%, compared to the first nine months of 2024 due primarily to the reported increase in product revenue as well as an unfavorable shift in product sales mix.
+Added: Consolidated service costs in the first nine months of 2025 decreased $46.9 million, or 27%, compared to the first nine months of 2024, due to lower revenue levels and the strategic actions implemented in our U.S.
land-based operations to improve reported results.
Selling, General and Administrative Expense.
−Removed: Selling, general and administrative expense totaled $45.5 million in the first six months of 2025.
−Removed: This compares to an expense of $48.9 million in the first six months of 2024, which included $1.3 million of costs associated with enforcing certain of our patents.
−Removed: Excluding these patent litigation costs, selling, general and administrative costs decreased $2.0 million, or 4%, from the prior-year period, due primarily to lower compensation, marketing and bad debt expenses.
+Added: Selling, general and administrative expense totaled $66.3 million in the first nine months of 2025.
+Added: This compares to an expense of $71.6 million in the first nine months of 2024, which included $2.7 million of costs associated with enforcing certain of our patents.
+Added: Excluding these patent litigation costs, selling, general and administrative costs decreased $2.7 million, or 4%, from the prior-year period, due primarily to lower bad debt, marketing, information technology and commission expenses.
Depreciation and Amortization Expense.
−Removed: Depreciation and amortization expense in the first six months of 2025 decreased $5.0 million, or 17%, compared to the prior-year period.
−Removed: Note 10, “Segments and Related Information,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.
+Added: Depreciation and amortization expense in the first nine months of 2025 decreased $6.5 million, or 15%, compared to the prior-year period.
+Added: Note 10, “Segments and Related Information,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment.
+Added: Impairment of Goodwill.
+Added: In the first quarter of 2024, our Downhole Technologies operations recognized a non-cash impairment charge of $10.0 million related to goodwill transferred to the business in connection with the realignment of operations between segments.
+Added: See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
+Added: Impairments of Intangible Assets.
+Added: In the first nine months of 2024, as a result of our decision to exit an underperforming service offering, our Completion and Production Services business recognized non-cash impairment charges of $10.8 million to reduce the carrying amount of its long-lived intangible assets to estimated fair value.
+Added: See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.
Impairment of Operating Lease Assets.
−Removed: In the first six months of 2025, management continued its restructuring efforts to reduce costs in its U.S.
−Removed: land-based operations.
+Added: In the first nine months of 2025, management continued its restructuring efforts to reduce costs in its U.S.
+Added: land-based operations, which included the decisions to exit two leased service locations.
As a result of these decisions, our Completion and Productions Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations.
+Added: In the first nine months of 2024, management made strategic decisions to exit five leased service locations within our Completion and Production Services segment and one within our Downhole Technologies segment.
+Added: As a result of these decisions, our Completion and Production Services and Downhole Technologies segments recognized non-cash impairment charges totaling $2.6 million to reduce the carrying amount of the related operating lease assets.
See Note 2, “Asset Impairments and Other Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion.
−Removed: Impairment of Goodwill.
−Removed: In the first quarter of 2024, our Downhole Technologies operations recognized a non-cash impairment charge of $10.0 million related to goodwill transferred to the business in connection with the realignment of operations between segments.
−Removed: See Note 2, “Asset Impairments and Other Charges and Credits,” to our Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Operating Income (Loss).
−Removed: Our consolidated operating income was $10.9 million in the first six months of 2025, which included $1.4 million in non-cash operating lease asset impairment charges as well as charges totaling $3.2 million associated with facility consolidations and exits and other management actions.
−Removed: This compares to a consolidated operating loss of $9.1 million in the first six months of 2024, which included a $10.0 million non-cash goodwill impairment charge and $6.9 million in facility consolidation and other charges.
−Removed: Excluding these charges, operating results improved by $7.7 million year-over-year, driven primarily by growth in offshore and international activity and actions taken to improve our U.S.
+Added: Our consolidated operating income was $15.7 million in the first nine months of 2025, which included $1.4 million in non-cash operating lease asset impairment charges as well as charges totaling $6.8 million associated with facility consolidations and exits and other management actions.
+Added: This compares to a consolidated operating loss of $20.2 million in the first nine months of 2024, which included $23.4 million in non-cash goodwill, intangible and operating lease impairment charges and $11.8 million associated with facility consolidations and exits, patent defense and other management actions.
+Added: Excluding these charges, operating results improved by $8.8 million year-over-year, driven primarily by a $6.5 million decrease in depreciation and amortization expense, growth in offshore and international activity and actions taken to improve our U.S.
land-based operating results.
Interest Expense, Net.
−Removed: Net interest expense totaled $3.3 million in the first six months of 2025, which compares to $4.2 million in the first six months of 2024.
−Removed: Interest expense as a percentage of total debt outstanding was approximately 7% in the first six months of 2025 and 2024.
−Removed: Income tax benefit (provision) for the first six months of 2025 and 2024 was calculated using a discrete approach.
+Added: Net interest expense totaled $5.0 million in the first nine months of 2025, which compares to $6.0 million in the first nine months of 2024.
+Added: Interest expense as a percentage of total debt outstanding was approximately 7% in the first nine months of 2025 and 2024.
+Added: Income tax provision for the first nine months of 2025 and 2024 was calculated using a discrete approach.
This methodology was used because changes in our results of operations and non-deductible expenses can materially impact the estimated annual effective tax rate.
−Removed: For the first six months of 2025, our income tax provision was $2.5 million, which included the impact of certain discrete tax items and other non-deductible expenses on pre-tax income of $8.4 million.
−Removed: This compares to an income tax benefit of $0.6 million, which included the impact of a $10.0 million goodwill impairment charge, other non-deductible expenses and favorable changes in valuation allowances recorded against deferred tax assets, on a pre-tax loss of $12.7 million for the first six months of 2024.
−Removed: Other Comprehensive Income (Loss).
−Removed: Reported comprehensive income (loss) is the sum of reported net income (loss) and other comprehensive income (loss).
−Removed: Other comprehensive income was $14.6 million in the first six months of 2025 compared to other comprehensive loss of $6.2 million in the first six months of 2024 due to fluctuations in foreign currency exchange rates compared to the U.S.
+Added: For the first nine months of 2025, our income tax provision was $3.9 million, which included the impact of changes in valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses on pre-tax income of $11.8 million.
+Added: This compares to an income tax provision of $1.6 million, which included the impact of a $10.0 million goodwill impairment charge, other non-deductible expenses and unfavorable changes in valuation allowances recorded against deferred tax assets, on a pre-tax loss of $24.8 million for the first nine months of 2024.
+Added: Other Comprehensive Income .
+Added: Reported comprehensive income (loss) is the sum of reported net income (loss) and other comprehensive income.
+Added: Other comprehensive income was $13.3 million in the first nine months of 2025 compared to other comprehensive income of $3.4 million in the first nine months of 2024 due to fluctuations in foreign currency exchange rates compared to the U.S.
dollar for certain of the international operations of our operating segments.
−Removed: For the first six months of 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil.
−Removed: During the first six months of 2025, the exchange rates for both the British pound and the Brazilian real strengthened compared to the U.S.
−Removed: This compares to the first six months of 2024, when the exchange rates for both the British pound and the Brazilian real weakened compared to the U.S.
+Added: For the first nine months of 2025 and 2024, currency translation adjustments recognized as a component of other comprehensive income were primarily attributable to the United Kingdom and Brazil.
+Added: During the first nine months of 2025, the exchange rates for both the British pound and the Brazilian real strengthened compared to the U.S.
+Added: This compares to the first nine months of 2024, when the exchange rates for the British pound strengthened compared to the U.S.
+Added: dollar while the Brazilian real weakened compared to the U.S.
Segment Operating Results
Offshore Manufactured Products
−Removed: Our Offshore Manufactured Products segment revenues increased $10.8 million, or 6%, in the first six months of 2025 compared to the first six months of 2024 due primarily to increased demand for the segment’s international and offshore project-driven connector and valve products.
+Added: Our Offshore Manufactured Products segment revenues increased $17.2 million, or 6%, in the first nine months of 2025 compared to the first nine months of 2024 due primarily to increased demand for the segment’s international and offshore project-driven connector, crane and drilling products.
Operating Income.
−Removed: Our Offshore Manufactured Products segment reported operating income of $31.3 million in the first six months of 2025, which included $0.3 million in facility consolidation and relocation charges.
−Removed: This compares to operating income of $25.0 million in the first six months of 2024, which included $3.0 million in facility consolidation and other charges.
+Added: Our Offshore Manufactured Products segment reported operating income of $48.9 million in the first nine months of 2025, which included $0.8 million in facility consolidation and relocation charges.
+Added: This compares to operating income of $44.3 million in the first nine months of 2024, which included $3.4 million in facility consolidation and other charges.
Excluding these charges, the Offshore Manufactured Products segment’s operating income increased $2.1 million year-over-year due primarily to the reported revenue growth.
−Removed: Backlog in our Offshore Manufactured Products segment totaled $363 million as of June 30, 2025 compared to $311 million as of December 31, 2024.
−Removed: Bookings during the first six months of 2025 were $248 million, yielding a book-to-bill ratio of 1.2x.
+Added: Backlog in our Offshore Manufactured Products segment totaled $399 million as of September 30, 2025 compared to $311 million as of December 31, 2024.
+Added: Bookings during the first nine months of 2025 were $393 million, yielding a book-to-bill ratio of 1.3x.
Completion and Production Services
−Removed: Our Completion and Production Services segment revenues decreased $29.8 million, or 32%, in the first six months of 2025 compared to the first six months of 2024, driven primarily by the exit of underperforming U.S.
−Removed: service offerings and facilities.
−Removed: Excluding the impact of exited operations, which generated $29.6 million of revenues in the first six months of 2024, revenues were consistent year-over-year.
+Added: Our Completion and Production Services segment revenues decreased $42.3 million, or 32%, in the first nine months of 2025 compared to the first nine months of 2024, driven primarily by the exit of underperforming U.S.
+Added: service offerings and facilities and lower U.S.
+Added: land-based activity levels.
+Added: Excluding the impact of exited operations, which generated revenues of $12.7 million and $64.3 million, respectively, in the first nine months of 2025 and 2024, revenues increased $9.3 million year-over-year.
Operating Income (Loss).
−Removed: Our Completion and Production Services segment reported operating income of $5.4 million in the first six months of 2025, which included $3.1 million in facility exit charges.
−Removed: This compares to an operating loss of $1.0 million in the first six months of 2024, which included charges totaling $3.9 million associated with facility consolidations and exits, and the defense of patents.
−Removed: Excluding these charges, the Completion and Production Services segment’s operating results improved $5.5 million from the prior-year period, due primarily to the cost reduction measures implemented.
+Added: Our Completion and Production Services segment reported operating income of $6.3 million in the first nine months of 2025, which included charges totaling $5.8 million primarily associated with the exit of service locations and personnel reductions.
+Added: This compares to an operating loss of $19.2 million in the first nine months of 2024, which included charges totaling $21.1 million associated with facility consolidations and exits, the defense of patents and other management actions.
+Added: Excluding these charges, the Completion and Production Services segment’s operating results improved $10.2 million from the prior-year period, due primarily to a $5.4 million reduction in depreciation and amortization expense and implemented cost reduction measures.
Downhole Technologies
−Removed: Our Downhole Technologies segment revenues decreased $9.3 million, or 13%, in the first six months of 2025 from the first six months of 2024, driven primarily by lower U.S.
+Added: Our Downhole Technologies segment revenues decreased $12.3 million, or 12%, in the first nine months of 2025 from the first nine months of 2024, driven primarily by lower U.S.
customer activity levels and competitive market conditions.
Operating Loss.
−Removed: Our Downhole Technologies segment reported an operating loss of $6.1 million in the first six months of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility.
−Removed: This compares to an operating loss of $13.2 million reported in the first six months of 2024, which included the $10.0 million non-cash goodwill impairment charge related to the segment realignment in the first quarter of 2024.
−Removed: Excluding charges, the Downhole Technologies segment’s operating results declined $1.7 million from the prior-year period, due primarily to the decrease in activity levels and lower fixed-cost coverage.
+Added: Our Downhole Technologies segment reported an operating loss of $10.8 million in the first nine months of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility.
+Added: This compares to an operating loss of $16.9 million reported in the first nine months of 2024, which included the $10.0 million non-cash goodwill impairment charge related to the segment realignment in the first quarter of 2024 and $1.2 million in charges related to the exit of a facility, personnel reductions and a customer bankruptcy.
+Added: Excluding charges, the Downhole Technologies segment’s operating results declined $3.9 million from the prior-year period, due primarily to the decrease in activity levels, lower fixed-cost coverage and higher U.S.
Operating Loss.
−Removed: Corporate expenses in the first six months of 2025 decreased $0.3 million, or 2%, from the first six months of 2024, due primarily to lower performance-based incentive expense.
+Added: Corporate expenses in the first nine months of 2025 increased $0.4 million, or 1%, from the first nine months of 2024, due primarily to the incurrence of $0.3 million of severance charges.
Liquidity, Capital Resources and Other Matters
−Removed: Our primary liquidity needs are to fund operating and capital expenditures, new product development, general working capital needs and debt repayment.
+Added: Our primary liquidity needs are to fund operating and capital expenditures, new product development, general working capital needs and debt repayment, including the repayment of the 2026 Notes prior to their maturity on April 1, 2026.
In addition, capital has been used to fund share repurchases and fund strategic business acquisitions.
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Operating Activities
−Removed: Cash flows from operations totaled $24.3 million during the first six months of 2025, compared to $1.1 million used in operations during the first six months of 2024.
−Removed: During the first six months of 2025, $6.1 million was used to fund net working capital increases, which includes a decrease in accounts payable and payment of accrued short- and long-term cash incentive compensation, as well as a decrease in accounts receivable.
−Removed: During the first six months of 2024, $28.3 million was used to fund net working capital increases, primarily due to an activity-driven increase in inventories, the payment of accrued 2023 short- and long-term cash incentives in the first quarter of 2024 and a decrease in accounts payable.
+Added: Cash flows from operations totaled $55.0 million during the first nine months of 2025, compared to $27.7 million generated by operations during the first nine months of 2024.
+Added: During the first nine months of 2025, $9.9 million was provided by net working capital decreases, which includes increases in deferred revenues, accounts payable and accrued liabilities, partially offset by the unfavorable impact of increases in inventory and accounts receivable.
+Added: During the first nine months of 2024, $13.2 million was used to fund net working capital increases, primarily due to an activity-driven increase in inventories, the payment of accrued 2023 short- and long-term cash incentives in the first quarter of 2024 and a decrease in accounts payable, partially offset by the favorable impact of a decrease in accounts receivable.
Investing Activities
−Removed: Net cash used in investing activities during the first six months of 2025 totaled $6.9 million, compared to $3.2 million used in investing activities during the first six months of 2024.
−Removed: Capital expenditures totaled $19.5 million and $15.9 million during the first six months of 2025 and 2024, respectively.
−Removed: These investments were offset by proceeds from the sale of property, equipment and assets held for sale of $12.6 million and $12.8 million during the first six months of 2025 and 2024, respectively.
−Removed: Including investments associated with the continuing construction of a new facility in Batam, Indonesia, we expect to invest approximately $30 million in capital expenditures during 2025.
−Removed: We plan to fund our capital expenditures with available cash, internally generated funds and, if necessary, borrowings under our amended ABL Facility discussed below.
+Added: Net cash used in investing activities during the first nine months of 2025 totaled $14.5 million, compared to $8.3 million used in investing activities during the first nine months of 2024.
+Added: Capital expenditures totaled $28.2 million and $23.3 million during the first nine months of 2025 and 2024, respectively.
+Added: These investments were offset by proceeds from the sale of property, equipment and assets held for sale of $13.8 million and $15.4 million during the first nine months of 2025 and 2024, respectively.
Financing Activities
−Removed: During the first six months of 2025, net cash of $29.1 million was used in financing activities, which included the purchase of $14.8 million principal amount of our outstanding 2026 Notes for $14.3 million in cash and the repurchase of 2.4 million shares of our common stock (or 4% of our common stock outstanding as of January 1, 2025) for $12.0 million.
−Removed: This compares to $17.2 million of cash used in financing activities during the first six months of 2024, which included the purchase of $11.5 million principal amount of our outstanding 2026 Notes for $10.8 million in cash and the repurchase of $2.4 million of our common stock.
−Removed: As of June 30, 2025, we had cash and cash equivalents totaling $53.9 million, which compared to $65.4 million as of December 31, 2024.
−Removed: As of June 30, 2025, we had no borrowings outstanding under our ABL Facility, $108.8 million principal amount of our 2026 Notes outstanding and other debt of $2.5 million.
−Removed: Our reported interest expense included amortization of deferred financing costs of $0.7 million during the first six months of 2025.
−Removed: For the first six months of 2025, our contractual cash interest expense was $3.4 million, or approximately 6% of the average principal balance of debt outstanding.
−Removed: We believe that cash on-hand, cash flow from operations and borrowing capacity available under our ABL Facility will be sufficient to meet our liquidity needs in the coming twelve months.
−Removed: Our 2026 Notes mature on April 1, 2026, and we anticipate that cash on hand, cash flow from operations and borrowings under our amended ABL Facility will be sufficient to permit us to fully retire the remaining balance of the 2026 Notes.
−Removed: As further discussed below, on July 28, 2025 we amended our ABL Facility to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 2026.
+Added: During the first nine months of 2025, net cash of $39.4 million was used in financing activities, which included the purchase of $20.8 million principal amount of our outstanding 2026 Notes for $20.3 million in cash and the repurchase of 3.2 million shares of our common stock (or 5% of our common stock outstanding as of January 1, 2025) for $16.2 million.
+Added: This compares to $20.2 million of cash used in financing activities during the first nine months of 2024, which included the purchase of $11.5 million principal amount of our outstanding 2026 Notes for $10.8 million in cash and the repurchase of $5.1 million of our common stock.
+Added: As of September 30, 2025, we had cash and cash equivalents totaling $67.1 million, which compared to $65.4 million as of December 31, 2024.
+Added: As of September 30, 2025, we had no borrowings outstanding under our ABL Facility, $102.8 million principal amount of our 2026 Notes outstanding and other debt of $2.6 million.
+Added: Our reported interest expense included amortization of deferred financing costs of $1.2 million during the first nine months of 2025.
+Added: For the first nine months of 2025, our contractual cash interest expense was $5.0 million, or approximately 6% of the average principal balance of debt outstanding.
+Added: We believe that cash on-hand, cash flow from operations and borrowing capacity available under the ABL Facility will be sufficient to meet our liquidity needs in the coming twelve months, including full retirement of our 2026 Notes upon maturity on April 1, 2026.
If our plans or assumptions change, or are inaccurate, we may need to raise additional capital from other sources.
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Capital availability will be affected by prevailing conditions in our industry, the global economy, the global banking and financial markets and other factors, many of which are beyond our control.
−Removed: For companies like ours that support the energy industry, disruptions affecting the availability of capital have in the past and may in
−Removed: the future negatively impact the value of our common stock and may reduce our ability to access capital in the bank and capital markets or result in such capital being available on less favorable terms, which could negatively affect our liquidity.
−Removed: On March 6, 2024, the SEC finalized rules relating to the disclosure of a range of climate-related information (the “Rules”).
−Removed: The Rules were temporarily stayed by the SEC on April 4, 2024 pending judicial review, and on March 27, 2025, the SEC announced it would end its defense of the Rules.
+Added: For companies like ours that support the energy industry, disruptions affecting the availability of capital have in the past and may in the future negatively impact the value of our common stock and may reduce our ability to access capital in the bank and capital markets or result in such capital being available on less favorable terms, which could negatively affect our liquidity.
+Added: In March 2024, the SEC finalized rules relating to the disclosure of a range of climate-related information (the “Rules”).
+Added: The Rules were temporarily stayed by the SEC in April 2024 pending judicial review, and in March 2025, the SEC announced it would end its defense of the Rules.
+Added: Litigation challenging the Rules was held in abeyance in March 2025 and remains in
+Added: abeyance until the SEC reconsiders the challenged Rules by notice-and-comment rulemaking or renews its defense of the Rules.
Although the SEC’s rules are unlikely to become effective, certain states have enacted or are considering the adoption of similar rules.
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Subject to applicable securities laws, such purchases will be at such times and in such amounts as we deem appropriate.
−Removed: During the six months ended June 30, 2025, $12.0 million in repurchases of common stock were made under this program.
−Removed: The amount remaining under our new share repurchase authorization as of June 30, 2025 was $29.3 million.
+Added: During the nine months ended September 30, 2025, $16.2 million in repurchases of common stock were made under this program.
+Added: The amount remaining under our share repurchase authorization as of September 30, 2025 was $25.1 million.
Revolving Credit Facility.
Our senior secured credit facility provides for an asset-based revolving credit facility (the “ABL Facility”) under which credit availability is subject to a borrowing base calculation.
−Removed: The ABL Facility is governed by a credit agreement with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto (as amended, the “ABL Agreement”).
+Added: The ABL Facility is governed by a credit agreement (amended July 28, 2025 by that certain Fifth Amendment to Credit Agreement and First Amendment to Guaranty and Security Agreement) with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto (as amended, the “ABL Agreement”).
The ABL Agreement matures on February 16, 2028.
−Removed: On July 28, 2025, we amended our ABL Agreement to increase advance rates, lower interest charges and plan for the retirement of all 2026 Notes that remain outstanding at maturity in April of 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 ABL Agreement.
−Removed: As of June 30, 2025, we had $17.1 million of outstanding letters of credit, but no borrowings outstanding under the ABL Agreement.
−Removed: The total amount available to be drawn as of June 30, 2025 was $59.3 million, calculated based on the then-current borrowing base less outstanding letters of credit.
+Added: As of September 30, 2025, we had $13.4 million of outstanding letters of credit, but no borrowings outstanding under the ABL Agreement.
+Added: The total amount available to be drawn as of September 30, 2025 was $73.2 million, calculated based on the then-current borrowing base less outstanding letters of credit.
We issued $135.0 million aggregate principal amount of the 2026 Notes pursuant to an indenture, dated as of March 19, 2021 (the “2026 Indenture”), between us and Computershare Trust Company, National Association, as successor trustee.
−Removed: As of June 30, 2025, we have purchased a cumulative $26.3 million principal amount of the 2026 Notes for $25.1 million in cash, with $108.8 million principal amount outstanding.
+Added: As of September 30, 2025, we have purchased a cumulative $32.3 million principal amount of the 2026 Notes for $31.1 million in cash, with $102.8 million principal amount outstanding.
The outstanding 2026 Notes will mature on April 1, 2026, unless earlier repurchased, redeemed or converted.
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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 2026 Notes.
−Removed: As of June 30, 2025, none of the conditions allowing holders of the 2026 Notes to convert, or requiring us to repurchase the 2026 Notes, had been met.
−Removed: Our total debt represented 14% and 16% of our combined total debt and stockholders’ equity as of June 30, 2025 and December 31, 2024, respectively.
+Added: As of September 30, 2025, none of the conditions allowing holders of the 2026 Notes to convert, or requiring us to repurchase the 2026 Notes, had been met.
+Added: Our total debt represented 13% and 16% of our combined total debt and stockholders’ equity as of September 30, 2025 and December 31, 2024, respectively.
Contingencies and Other Obligations.
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Off-Balance Sheet Arrangements.
−Removed: As of June 30, 2025, we had no off-balance sheet arrangements.
+Added: As of September 30, 2025, we had no off-balance sheet arrangements.
Critical Accounting Policies
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.