The company posted a net loss of $10.4 million
HOUSTON: Nine Energy Service, Inc. (NYSE: NINE) reported second-quarter 2025 revenue of $147.3 million, landing at the upper end of its original guidance range of $138.0 to $148.0 million, despite significant rig declines and commodity price pressures in the U.S. land market.
The company posted a net loss of $10.4 million, or $0.25 per diluted and basic share, and adjusted EBITDA of $14.1 million. President and CEO Ann Fox attributed the resilient performance to operational efficiency and strategic diversification.
“Despite significant rig declines in the U.S. land market throughout Q2, our revenue came in at the upper end of our original guidance,” Fox said.
WTI crude prices fell below $60 for the first time in four years following U.S.-imposed tariffs in April, contributing to a drop of over 50 rigs between March 28 and July 3, primarily in oil-levered basins like the Permian. Fox noted that pricing pressure across service lines negatively impacted earnings.
Natural gas prices also declined but remained supportive, particularly in gas-levered basins such as the Northeast and Haynesville. Nine’s Completion Tool business saw a 9% revenue increase quarter-over-quarter, while its Wireline segment rose 11%, driven by efficient operations and market share gains.
The company reported a gross profit of $17.3 million and adjusted gross profitB of $25.8 million. ROIC stood at -16.2%, with adjusted ROICC at 6.7%. G&A expenses totaled $13.9 million, and depreciation and amortization expenses were $8.6 million.
Nine generated $10.1 million in net cash from operating activities and spent $6.1 million in capital expenditures during Q2. As of June 30, 2025, the company held $14.2 million in cash and had $51.3 million available under its revolving credit facility, resulting in total liquidity of $65.5 million.
Looking ahead, Fox said Nine expects Q3 revenue and earnings to decline due to full-quarter impacts of Q2 activity and pricing pressures. However, she emphasized the company’s nimble and diversified approach, citing international expansion, R&D investment, and cost control measures.
“We are playing both offense and defense to improve revenue and margins in a lower rig count environment,” Fox said. “This has and will continue to allow us to navigate these uncertain markets.”