Nine Energy Service Q2 posts net loss on inflationary pressures
Nine Energy Service Q2 posts net loss on inflationary pressures
Overview
U.S. oilfield services firm's Q2 revenue rose sequentially, net loss totaled $4.9 mln
Profitability impacted by margin compression in Coiled Tubing and inflationary cost pressures
Company expects Q3 revenue and profitability to be flat to modestly down
Outlook
Company expects Q3 revenue and profitability to be flat to modestly down vs Q2
Nine maintains full-year 2026 capital expenditures guidance at $20-30 mln
Coiled Tubing operations expected to remain constrained until year-end due to unit repairs
Result Drivers
COILED TUBING DISRUPTIONS - Margin compression driven by two large-diameter coiled tubing units out of service for maintenance, constraining operations
COST INFLATION - Inflationary pressures in consumables, labor, and repairs weighed on margins across service lines
COMPLETION TOOLS GROWTH - Increased domestic sales and international growth supported strong performance in Completion Tools
Company press release: ID:nBw4Jj89ya
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Loss |
| $4.89 mln |
|
Q2 Capex |
| $4.80 mln |
|
Q2 Gross Profit |
| $12.83 mln |
|
Q2 Income from Operations |
| -$2.89 mln |
|
Q2 Pretax Loss |
| $4.51 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the oil related services and equipment peer group is "buy"
Wall Street's median 12-month price target for Nine Energy Service Inc is $14.00, about 18.4% above its August 4 closing price of $11.82
Reuters Recommended Reads
Aug 3 - Innovex Q2 revenue, adjusted EBITDA beat estimates on international activity
Aug 3 - Tetra Technologies Q2 revenue beats on strength in Completion Fluids & Products segment
Aug 4 - Flotek Q2 revenue jumps on Data Analytics segment growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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See all newsNine Energy Service Q2 posts net loss on inflationary pressures
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