OIL STATES INTERNATIONAL, INC

Previous wording

The following discussion and analysis should be read together with our condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and notes to those statements included in our 2025 Annual Report on Form 10-K, as amended by our 2025 Annual Report on Form 10-K/A, in order to understand factors, such as charges, financing transactions and changes in tax regulations, which may impact comparability from period to period.

Current wording

The following discussion and analysis should be read together with our condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and notes to those statements included in our 2025 Annual Report on Form 10-K, as amended by our 2025 Annual Report on Form 10-K/A, in order to understand factors, such as charges and credits, which may impact comparability of the selected financial data.

Previous wording

(2)On July 28, 2026, the spot price per barrel of Brent and WTI crude oil closed at $85.51 and $80.91, respectively.

Current wording

(2)On October 23, 2026, the spot price per barrel of Brent and WTI crude oil closed at $128.30 and $109.72, respectively.

Previous wording

The spot price per barrel of Brent crude oil averaged $103 in the second quarter of 2026, an increase of $39, or 61%, from the fourth quarter of 2025 following the escalation of military actions in the Middle East in late-February 2026. Despite the increases in crude oil prices, these evolving military actions have resulted in customer delays in project awards, cost increases and supply-chain and logistical constraints in the Middle East region, which have negatively impacted demand for our products and services in the area and limited our access to and increased the price of certain raw materials and other products used in our operations during the first half of 2026. The conflict has also resulted in damage to crude oil refining and storage facilities and severely limited tanker access to the region, causing operators to shut in or limit crude oil production. Continuation or expansion of these military hostilities and export constraints in the Middle East will likely negatively impact our results of operations over the balance of 2026 and possibly beyond. As a major oil producer, Iran’s involvement has heightened concerns over potential supply disruptions and transportation risks, contributing to significant volatility in global oil and natural gas prices. In particular, the restriction or cessation of maritime traffic through the Strait of Hormuz has significantly depressed global supply of oil and natural gas, resulting in increased volatility and overall elevated prices, as well as causing overall disruptions in global commodities markets. While the ultimate impact and magnitude of these disruptions is currently unknown, a prolonged interruption to the global commodities markets has the potential to materially adversely affect our business and operations and those of our suppliers and customers. Further, in late April 2026, the United Arab Emirates (“UAE”) announced that it was withdrawing from OPEC, and as a result, would no longer be subject to OPEC imposed production controls. While no other countries have yet followed the UAE in leaving OPEC, increased oil and gas production from the UAE, along with any other country that may leave OPEC, could increase global oil and gas supply, resulting in lower oil and gas prices.

Current wording

The spot price per barrel of Brent crude oil averaged $96 in the third quarter of 2026, an increase of $33, or 51%, from the fourth quarter of 2025 following the escalation of military actions in the Middle East in late-February 2026. Despite the increases in crude oil prices, these evolving military actions have resulted in customer delays in project awards, cost increases and supply-chain and logistical constraints in the Middle East region, which have negatively impacted demand for our products and services in the area and limited our access to and increased the price of certain raw materials and other products used in our operations during the first nine months of 2026. The conflict has also resulted in damage to crude oil refining and storage facilities and severely limited tanker access to the region, causing operators to shut in or limit crude oil production. Continuation or expansion of these military hostilities and export constraints in the Middle East will likely negatively impact our results of operations over the balance of 2026 and beyond. As a major oil producer, Iran’s involvement has heightened concerns over potential supply disruptions and transportation risks, contributing to significant volatility in global oil and natural gas prices. In particular, the restriction or cessation of maritime traffic through the Strait of Hormuz has significantly depressed the global supply of oil and natural gas, resulting in increased volatility and overall elevated prices, as well as causing overall disruptions in global commodities markets. While the ultimate impact and magnitude of these disruptions is currently unknown, a prolonged interruption to the global commodities markets has the potential to materially adversely affect our business and operations and those of our suppliers and customers. Further, in April 2026, the United Arab Emirates (“UAE”) announced that it was withdrawing from OPEC, and as a result, would no longer be subject to OPEC imposed production controls. While no other countries have yet followed the UAE in leaving OPEC, increased oil and gas production from the UAE, along with any other country that may leave OPEC, could increase global oil and gas supply, resulting in lower oil and gas prices.

Previous wording

We implemented certain initiatives in 2025, which have continued into 2026, to optimize our operations and improve future returns. These actions were concentrated in our U.S. land-focused service operations and included: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; the exit of previously closed facilities; and reductions in our U.S. workforce. We also assessed the carrying value of certain long-lived and other assets based on the industry outlook regarding overall demand for and pricing of our products and services, market competitiveness and management decisions. As a result of these events, actions and assessments, our reported pre-tax results for the first six months of 2026 included $4.1 million of costs associated primarily with facility exits as well as $1.4 million in non-cash asset impairment charges.

Current wording

We implemented certain initiatives in 2025, which have continued into 2026, to optimize our operations and improve future returns. These actions were concentrated in our U.S. land-focused service operations and included: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; the exit of previously closed facilities; and reductions in our U.S. workforce. We also assessed the carrying value of certain long-lived and other assets based on the industry outlook regarding overall demand for and pricing of our products and services, market competitiveness and management decisions. As a result of these events, actions and assessments, our reported pre-tax results for the first nine months of 2026 included $6.3 million of costs associated primarily with facility exits as well as $1.4 million in non-cash asset impairment charges.

Previous wording

On January 28, 2026, we entered into an amended and restated cash-flow based credit agreement (the “Cash Flow Credit Agreement”) providing for original aggregate lender commitments of up to: $75.0 million under a revolving credit facility (the “Revolving Credit Facility”) and $50.0 million under a multi-draw term loan facility, which was available for a six-month period (the “Term Loan Facility”). The Cash Flow Credit Agreement replaced our existing asset-based credit agreement (the “ABL Agreement”). Subsequent to June 30, 2026, the Company repaid $20.0 million of outstanding borrowings under the Revolving Credit Facility with borrowings under the Term Loan Facility, and the remaining lender commitments under the Term Loan Facility lapsed on July 28, 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 Cash Flow Credit Agreement.

Current wording

On January 28, 2026, we entered into an amended and restated cash-flow based credit agreement (the “Cash Flow Credit Agreement”) providing for original aggregate lender commitments of up to: $75.0 million under a revolving credit facility (the “Revolving Credit Facility”) and $50.0 million under a multi-draw term loan facility, which was available for a six-month period (the “Term Loan Facility”). The Cash Flow Credit Agreement replaced our existing asset-based credit agreement (the “ABL Agreement”). In July 2026, we borrowed $20.0 million under the Term Loan Facility, and the remaining lender commitments under the Term Loan Facility lapsed. See Note 4, “Long-Term Debt,” to the Unaudited Condensed

Previous wording

Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including, but not limited to: geopolitical conflicts in the Middle East, Europe and South America, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; technological advancements; consolidation of oil and gas producers; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances.

Current wording

Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including, but not limited to: geopolitical conflicts in the Middle East and Europe, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; technological advancements; consolidation of oil and gas producers; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances.

Previous wording

Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas drilling, completion and production systems and facilities globally, as well as certain products and services to the military and industrial 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. Approximately 91% of our Offshore Manufactured Products segment’s sales in the first six months of 2026 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. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. 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. 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. 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.

Current wording

Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas drilling, completion and production systems and facilities globally, as well as certain products and services to the military and industrial 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. Approximately 90% of our Offshore Manufactured Products segment’s sales in the first nine months of 2026 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. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. 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. 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. 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.

Previous wording

Backlog reported by our Offshore Manufactured Products segment increased to $451 million as of June 30, 2026 from $435 million as of December 31, 2025. Bookings totaled $114 million in the second quarter of 2026, yielding a quarterly book-to-bill ratio of 1.2x (1.1x year-to-date). The following table sets forth backlog as of the dates indicated (in millions).

Current wording

Backlog reported by our Offshore Manufactured Products segment increased to $482 million as of September 30, 2026 from $435 million as of December 31, 2025. Bookings totaled $135 million in the third quarter of 2026, yielding a quarterly book-to-bill ratio of 1.3x (1.2x year-to-date). The following table sets forth backlog as of the dates indicated (in millions).

Previous wording

The following summarizes our consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts):

Current wording

The following summarizes our consolidated results of operations for the three and nine months ended September 30, 2026 and 2025 (in thousands, except per share amounts):

Previous wording

We manage and measure our business performance in three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Supplemental financial information by operating segment for the three and six months ended June 30, 2026 and 2025 is summarized below (in thousands):

Current wording

We manage and measure our business performance in three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Supplemental financial information by operating segment for the three and nine months ended September 30, 2026 and 2025 is summarized below (in thousands):

Previous wording

(1)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.

Current wording

(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.

Previous wording

(2)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.

Current wording

(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.

Previous wording

(3)During the three and six months ended June 30, 2026, we recognized: facility exit charges of $1.4 million and $3.9 million, respectively, associated with assets held for sale; a $4.1 million gain associated with the sale of a previously idled facility; and $1.7 million of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer. Additionally, during the six months ended June 30, 2026, we recognized a non-cash impairment charge of $1.4 million associated with assets held for sale.

Current wording

(4)During the three and nine months ended September 30, 2026, we recognized: facility exit and other charges of $2.2 million and $6.1 million, respectively, primarily associated with assets held for sale; and $3.3 million and $5.0 million, respectively, of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer. Additionally, during the nine months ended September 30, 2026, we recognized a non-cash impairment charge of $1.4 million associated with assets held for sale and a $4.1 million gain associated with the sale of a previously idled facility. During the three and nine months ended September 30, 2025, we recognized severance charges of $0.3 million within Corporate operations

Previous wording

For further discussion of charges recognized during the three and six months ended June 30, 2026 and 2025, see Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Current wording

For further discussion of charges and credits recognized during the three and nine months ended September 30, 2026 and 2025, see Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Previous wording

We reported net income for the three months ended June 30, 2026 of $5.9 million, or $0.10 per share. The reported second quarter net income included net charges of $2.5 million ($2.5 million after tax, or $0.04 per share) associated with debt extinguishment, executive transition and the continued exit of U.S. land-based facilities, partially offset by a gain on facility disposal. These results compare to net income for the three months ended June 30, 2025 of $2.8 million, or $0.05 per share, which included net charges of $3.3 million ($2.6 million after tax, or $0.04 per share) associated primarily with the exit of U.S. land-based facilities and personnel reductions, partially offset by gains associated with debt extinguishment.

Current wording

We reported net income for the three months ended September 30, 2026 of $3.1 million, or $0.05 per share. The reported third quarter net income included net charges of $5.5 million ($5.4 million after tax, or $0.09 per share) associated primarily with executive transition and the continued exit of U.S. land-based facilities. These results compare to net income for the three months ended September 30, 2025 of $1.9 million, or $0.03 per share, which included charges of $3.6 million ($2.8 million after tax, or $0.05 per share) associated primarily with the exit of U.S. land-based facilities and personnel reductions.

Previous wording

Our results of operations for the second quarter of 2026 reflect the impact of management’s decisions to exit certain land-based locations and service offerings in the United States, a transitory decrease in capital investments by our offshore and international customers and disruptions resulting from the military conflict in Iran.

Current wording

Our results of operations for the third quarter of 2026 reflect the impact of delays in capital investments by our offshore and international customers, disruptions resulting from the military conflict in Iran and management’s decisions to exit certain land-based locations and service offerings in the United States.

Previous wording

Revenues. Consolidated total revenues in the second quarter of 2026 decreased $8.7 million, or 5%, from the second quarter of 2025 due primarily to our exit of underperforming service offerings and facilities over the past 15 months and lower project-driven product sales. Excluding the impact of exited operations, consolidated revenues decreased $2.5 million, or 2%, year-over-year.

Current wording

Revenues. Consolidated total revenues in the third quarter of 2026 increased $4.6 million, or 3%, from the third quarter of 2025 due primarily to higher customer demand for perforating and completion products partially offset by lower project-driven product sales and our exit of underperforming service offerings and facilities over the past 15 months. Excluding the impact of exited operations, consolidated revenues increased $6.9 million, or 4%, year-over-year.

Previous wording

Consolidated product revenues in the second quarter of 2026 decreased $8.6 million, or 8%, from the second quarter of 2025, with the impact of lower project-driven product sales partially offset by higher customer demand for completion and perforating products. Consolidated service revenues in the second quarter of 2026 were comparable to the second quarter of 2025, with higher project-driven service activity offset by the impact of our exit of certain underperforming U.S. land-based service offerings and lower customer activity in the Middle East.

Current wording

Consolidated product revenues in the third quarter of 2026 increased $3.4 million, or 3%, from the third quarter of 2025, with the impact of higher customer demand for perforating and completion products substantially offset by lower project-driven product sales. Consolidated service revenues in the third quarter of 2026 increased $1.2 million, or 2%, from the third quarter of 2025, with higher project-driven service activity substantially offset by the impact of our exit of certain underperforming U.S. land-based service offerings and lower customer activity in the Middle East.

Previous wording

Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the second quarter of 2026 decreased $7.4 million, or 6%, compared to the level reported in the second quarter of 2025.

Current wording

Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the third quarter of 2026 increased $1.4 million, or 1%, compared to the level reported in the third quarter of 2025.

Previous wording

Consolidated product costs in the second quarter of 2026 decreased $6.2 million, or 7%, from the second quarter of 2025 correlated primarily with the reduction in revenues. Consolidated service costs in the second quarter of 2026 decreased $1.2 million, or 3%, from the second quarter of 2025, due to strategic actions implemented in our U.S. land-based operations to improve reported results.

Current wording

Consolidated product costs in the third quarter of 2026 increased $3.1 million, or 4%, from the third quarter of 2025 due to the increase in revenues and a shift in product mix. Consolidated service costs in the third quarter of 2026 decreased $1.7 million, or 4%, from the third quarter of 2025, due primarily to strategic actions implemented in our U.S. land-based operations to improve reported results.

Previous wording

Selling, General and Administrative Expense. Selling, general and administrative expense was $23.1 million in the second quarter of 2026. This compares to an expense of $23.0 million in the second quarter of 2025, with the impact of implemented cost reduction measures partially offset by $1.7 million of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer and higher short-term incentive compensation accruals. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion of executive transition costs.

Current wording

Selling, General and Administrative Expense. Selling, general and administrative expense was $24.0 million in the third quarter of 2026, which included $3.3 million of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer. This compares to an expense of $20.8 million in the third quarter of 2025. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion of executive transition costs.

Previous wording

Depreciation and Amortization Expense. Depreciation and amortization expense decreased $3.8 million, or 32%, in the second quarter of 2026 compared to the prior-year quarter due primarily to the impact of asset impairments recorded in the fourth quarter of 2025. 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.

Current wording

Depreciation and Amortization Expense. Depreciation and amortization expense decreased $4.1 million, or 34%, in the third quarter of 2026 compared to the prior-year quarter due primarily to the impact of asset impairments recorded in the fourth quarter of 2025. 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.

Previous wording

Other Operating Income, Net. Other operating income, net primarily includes gains and losses recognized on the sale of property and equipment and costs related to assets held for sale within Corporate in 2026. In the second quarter of 2026, we recognized $1.4 million of facility exit costs associated with assets held for sale within Corporate and a gain of $4.1 million in connection with the sale of a facility classified within assets held for sale. During the second quarter of 2025, we recognized gains of $2.6 million associated with the sale of assets.

Current wording

Other Operating Income, Net. Other operating income, net primarily includes gains and losses recognized on the sale of property and equipment and costs related to assets held for sale within Corporate in 2026. In the third quarter of 2026, we recognized $2.2 million of costs primarily related to the continued exit of facilities offset by gains totaling $0.9 million recognized in connection with the disposal of assets held for sale. During the third quarter of 2025, we recognized gains of $1.4 million associated with the sale of assets.

Previous wording

Operating Income (Loss). Our consolidated operating income was $11.7 million in the second quarter of 2026, which included $1.7 million in executive transition costs and $1.4 million in charges associated with the continued exit of our U.S. land-based facilities. This compares to second quarter 2025 consolidated operating income of $5.3 million, which included $1.4 million in operating lease asset impairment charges and $2.3 million of charges associated with facility exits and other management actions. Excluding these charges, operating income increased by $5.8 million year-over-year, with the impact of the $3.8 million decrease in depreciation and amortization expense and an incremental increase of $1.9 million in gains on the sale of assets, partially offset by the impact of the decline in revenue.

Current wording

Operating Income (Loss). Our consolidated operating income was $6.3 million in the third quarter of 2026, which included $3.3 million in executive transition costs and $2.2 million in charges primarily associated with the continued exit of facilities. This compares to third quarter 2025 consolidated operating income of $4.7 million, which included $3.6 million of charges associated with facility exits and other management actions. Excluding these charges, operating income increased by $3.5 million year-over-year, driven primarily by a $4.1 million decrease in depreciation and amortization expense partially offset by a $0.6 million reduction in gains on the sale of assets.

Previous wording

Interest Expense, Net. Net interest expense totaled $0.5 million in the second quarter of 2026, due to the retirement of the 2026 Notes on April 1. This compares to $1.7 million in the same period of 2025.

Current wording

Interest Expense, Net. Net interest expense decreased $0.5 million in the third quarter of 2026, compared to the same period of 2025, driven primarily by the reduction in the level of outstanding debt.

Previous wording

Income Tax. For the three months ended June 30, 2026, our income tax provision was $2.0 million, which included the impact of changes in valuation allowance recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $7.9 million. This compares to an income tax provision of $1.4 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 $4.2 million for the three months ended June 30, 2025.

Current wording

Income Tax. For the three months ended September 30, 2026, our income tax provision was $2.1 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 $5.3 million. This compares to an income tax provision of $1.4 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 $3.3 million for the three months ended September 30, 2025.

Previous wording

Other Comprehensive Income. Reported comprehensive income is the sum of reported net income and other comprehensive income. Other comprehensive income was $0.7 million in the second quarter of 2026 compared to other comprehensive income of $9.1 million in the second quarter of 2025 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. For the three months ended June 30, 2026 and 2025, currency translation adjustments recognized as a component of other comprehensive income were primarily attributable to the United Kingdom and Brazil. During both the second quarter of 2026 and 2025, the exchange rates for the British pound and the Brazilian real strengthened compared to the U.S. dollar.

Current wording

Other Comprehensive Loss. Reported comprehensive income is the sum of reported net income and other comprehensive loss. Other comprehensive loss was $0.6 million in the third quarter of 2026 compared to other comprehensive loss of $1.3 million in the third quarter of 2025 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. For the three months ended September 30, 2026 and 2025, currency translation adjustments recognized as a component of other comprehensive loss were primarily attributable to the United Kingdom and Brazil. During the third quarter of 2026, the exchange rate for the British pound was flat compared to the U.S. dollar while the Brazilian real weakened compared to the U.S. dollar. In the third quarter of 2025, the exchange rate for the British pound weakened compared to the U.S. dollar while the Brazilian real strengthened compared to the U.S. dollar.

Previous wording

Revenues. Our Offshore Manufactured Products segment revenues decreased $13.9 million, or 13%, in the second quarter of 2026 compared to the second quarter of 2025 due to lower project-driven product sales, partially offset by the impact of higher service activity.

Current wording

Revenues. Our Offshore Manufactured Products segment revenues decreased $4.2 million, or 4%, in the third quarter of 2026 compared to the third quarter of 2025 due to lower project-driven product sales, partially offset by the impact of a $4.4 million increase in service activity.

Previous wording

Operating Income. Our Offshore Manufactured Products segment reported operating income of $13.9 million in the second quarter of 2026. This compares to operating income in the second quarter of 2025 of $17.0 million. The $3.1 million decline in operating income was driven primarily by the revenue decline.

Current wording

Operating Income. Our Offshore Manufactured Products segment reported operating income of $14.8 million in the third quarter of 2026. This compares to operating income in the third quarter of 2025 of $17.6 million. The $2.8 million decline in operating income was driven primarily by the revenue decline and an unfavorable shift in product and service mix.

Previous wording

Backlog. Backlog in our Offshore Manufactured Products segment totaled $451 million as of June 30, 2026, with second quarter 2026 bookings of $114 million and a quarterly book-to-bill ratio of 1.2x.

Current wording

Backlog. Backlog in our Offshore Manufactured Products segment totaled $482 million as of September 30, 2026, with third quarter 2026 bookings of $135 million and a quarterly book-to-bill ratio of 1.3x.

Previous wording

Revenues. Our Completion and Production Services segment revenues decreased $5.2 million, or 18%, in the second quarter of 2026 compared to the prior-year period, driven by the exit of underperforming U.S. land-based service offerings and facilities and lower customer activity in the Middle East. Excluding the impact of exited operations, revenues increased $1.1 million, or 5%, year-over-year.

Current wording

Revenues. Our Completion and Production Services segment revenues decreased $4.4 million, or 16%, in the third quarter of 2026 compared to the prior-year period, driven primarily by the exit of underperforming U.S. land-based service offerings and facilities and lower customer activity in the Middle East. Excluding the impact of exited operations, revenues declined $2.1 million, or 8%, year-over-year.

Previous wording

Operating Income. Our Completion and Production Services segment reported operating income of $3.9 million in the second quarter of 2026. This compares to 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. Excluding these 2025 charges, the Completion and Production Services segment’s operating income declined $0.1 million from the prior-year period, due primarily to a $2.2 million reduction in gains on the sale of assets, substantially offset by a $1.6 million reduction in depreciation and amortization expense and strategic actions implemented to improve reported results.

Current wording

Operating Income. Our Completion and Production Services segment reported operating income of $3.5 million in the third quarter of 2026. This compares to 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. Excluding these 2025 charges, the Completion and Production Services segment’s operating income declined $0.1 million from the prior-year period, with a $1.7 million reduction in depreciation and amortization expense, substantially offset by a $1.4 million reduction in gains on the sale of assets.

Previous wording

Revenues. Our Downhole Technologies segment revenues increased $10.3 million, or 35%, in the second quarter of 2026 from the prior-year period, driven by higher demand for perforating and completion products following our new product introductions.

Current wording

Revenues. Our Downhole Technologies segment revenues increased $13.2 million, or 45%, in the third quarter of 2026 from the prior-year period, driven by higher demand for perforating and completion products – due in part to recent product introductions.

Previous wording

Operating Income (Loss). Our Downhole Technologies segment reported operating income of $2.7 million in the second quarter of 2026. This compares to 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. Excluding these 2025 charges, the Downhole Technologies operating results improved $5.5 million year-over-year, driven primarily by the reported increase in revenues and a $2.5 million reduction in depreciation and amortization expense.

Current wording

Operating Income (Loss). Our Downhole Technologies segment reported operating income of $2.1 million in the third quarter of 2026. This compares to an operating loss of $4.7 million in the third quarter of 2025. The $6.8 million year-over-year improvement was driven primarily by the reported increase in revenues and a $2.5 million reduction in depreciation and amortization expense.

Previous wording

Operating Loss. Corporate expenses totaled $8.9 million in the second quarter of 2026, which included a $4.1 million gain recognized on the sale of a previously idled facility, $1.7 million of executive transition costs and $1.4 million in charges associated with ongoing actions to monetize assets held for sale. This compares to Corporate expenses of $9.6 million in the second quarter of 2025. Excluding the 2026 charges and credits, Corporate expenses increased $0.4 million year-over-year due primarily to higher short-term incentive compensation accruals.

Current wording

Operating Loss. Corporate expenses totaled $14.1 million in the third quarter of 2026, which included $3.3 million of executive transition costs and $1.6 million in charges associated primarily with ongoing actions to monetize assets held for sale. This compares to Corporate expenses of $9.1 million in the third quarter of 2025 which included $0.3 million of severance charges. Excluding charges, Corporate expenses were comparable to the prior-year period.

Previous wording

We reported net income for the six months ended June 30, 2026 of $7.0 million, or $0.12 per share. The reported net income included net charges of $6.6 million ($6.6 million after tax, or $0.11 per share) associated primarily with the continued exit of certain of our U.S. land-based facilities, debt extinguishment and executive transition, partially offset by a gain on facility disposal. These results compare to net income for the six months ended June 30, 2025 of $6.0 million, or $0.10 per share, which included net charges of $4.2 million ($3.3 million after tax, or $0.06 per share) associated with the restructuring of certain of our U.S. land-based operations, facility consolidations and closures, and personnel reductions, partially offset by gains associated with debt extinguishment.

Current wording

We reported net income for the nine months ended September 30, 2026 of $10.1 million, or $0.17 per share. The reported net income included net charges of $12.1 million ($11.9 million after tax, or $0.21 per share) associated primarily with the continued exit of certain of our U.S. land-based facilities, executive transition and debt extinguishment, partially offset by a gain on facility disposal. These results compare to net income for the nine months ended September 30, 2025 of $7.9 million, or $0.13 per share, which included net charges of $7.8 million ($6.1 million after tax, or $0.10 per share) associated with the restructuring of certain of our U.S. land-based operations, facility consolidations and closures, and personnel reductions, partially offset by gains associated with debt extinguishment.

Previous wording

Our results of operations for the first six months of 2026 reflect the impact of management’s decisions to exit certain land-based locations and service offerings in the United States, a transitory decrease in capital investments by our offshore and international customers, disruptions resulting from the military conflict in Iran and increased U.S. trade tariffs.

Current wording

Our results of operations for the first nine months of 2026 reflect the impact of management’s decisions to exit certain land-based locations and service offerings in the United States, delays in capital investments by our offshore and international customers, disruptions resulting from the military conflict in Iran and increased U.S. trade tariffs.

Previous wording

Revenues. Consolidated total revenues in the first six months of 2026 decreased $23.3 million, or 7%, from the first six months of 2025 driven primarily by our exit of underperforming service offerings and locations over the past 18 months. Excluding the impact of exited operations, consolidated revenues declined $5.6 million, or 2%, year-over-year.

Current wording

Revenues. Consolidated total revenues in the first nine months of 2026 decreased $18.7 million, or 4%, from the first nine months of 2025 driven primarily by our exit of underperforming service offerings and locations in 2025. Excluding the impact of exited operations, consolidated revenues increased $1.3 million.

Previous wording

Consolidated product revenues in the first six months of 2026 decreased $16.6 million, or 8%, from the first six months of 2025, due to lower project-driven connector, valve and crane product sales partially offset by higher perforating and completion product revenues. Consolidated service revenues in the first six months of 2026 decreased $6.8 million, or 6%, from the first six months of 2025. This decrease was driven by the exit of underperforming U.S. land-based service offerings and lower customer activity in the Middle East, partially offset by higher project-driven service activity.

Current wording

Consolidated product revenues in the first nine months of 2026 decreased $13.2 million, or 4%, from the first nine months of 2025, due to lower project-driven crane, connector, drilling and valve product sales partially offset by higher perforating and completion product revenues. Consolidated service revenues in the first nine months of 2026 decreased $5.5 million, or 3%, from the first nine months of 2025. This decrease was driven by the exit of underperforming U.S. land-based service offerings and lower customer activity in the Middle East, partially offset by higher project-driven service activity. Excluding the impact of exited operations, consolidated service revenues increased $14.5 million, or 9%, year-over-year.

Previous wording

The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the nine months ended September 30, 2026 and 2025 (in thousands):