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what it is
Oil States makes specialized gear and services for oil and gas drilling and production worldwide.
how it gets paid
Last year Oil States Intl made $669M in revenue. Offshore Products - connector systems and subsea hardware was the main engine at $200M, or 30% of sales.
why growth slowed
Revenue fell 3.4% last year. Revenue was up 197% vs. prior year. Gross margin came in at 12.83% in the web data.
what just happened
Oil States posted $491M of revenue and $0.13 EPS.
At a glance
C++ balance sheet — some cracks in the foundation
30/100 earnings predictability — expect surprises
32.8x trailing p/e — you're paying up for this one
2.1% return on capital — nothing to write home about
-$0.18 fy2024 eps est
xvary composite: 48/100 — below average
What they do
Oil States makes specialized gear and services for oil and gas drilling and production worldwide.
Oil States wins in the hard-to-swap parts of drilling. Its offshore gear covers subsea pipeline products, marine winches, mooring systems, and drilling riser repair, so your customer is buying installed hardware, not a shelf item. Long-term debt is $16M, or 2% of capital, so the business is not leaning on leverage to stay alive.
How they make money
$669M
annual revenue · their business grew -3.4% last year
Offshore Products - connector systems and subsea hardware
$200M
0.0%
Offshore Products - rig equipment and riser repair
$100M
0.0%
Well Site Services - drilling services
$150M
3.4%
Well Site Services - rental, accommodations and logistics
$110M
3.4%
Tubular Services
$109M
3.4%
The products that matter
deepwater equipment manufacturing
Offshore Manufactured Products
$515M · 77% of revenue
it is the core business at $515M in revenue, and management said backlog here was $300M in the latest quarter. if offshore customers keep spending, this is where you see it first.
$300M backlog
onshore well-site services
Completion & Production Services
$154M · 23% of revenue
this segment generated $154M and was flat, which tells you the turnaround is not coming from onshore momentum right now.
flat growth
capital allocation watch
Buyback Capacity
$25M authorization
the company has a $25M buyback authorization, but management also guided to $60M–$65M of operating cash flow because working capital will soak up cash. that makes the buyback more optional than automatic.
cash matters
Key numbers
$7.87
share price
You are paying under $8 for a company with negative FY2024 EPS. That is the whole setup.
32.8x
trailing p/e
You pay 32.8 dollars for $1 of trailing earnings. That is a high tag for a margin-negative business.
14.6%
operating margin
The business keeps 14.6 cents of operating loss on every dollar of sales. That leaves little room for mistakes.
2.1%
return on capital
Each $100 invested in the business produced $2.10 of operating profit. That is thin.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 2 — safer than 80% of stocks
- price stability 10 / 100
- long-term debt $16M (2% of capital)
C++ — risk rank looks solid but balance sheet grade needs watching.
Total return vs. market
Return history isn't available for OIS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Oil States posted $491M of revenue and $0.13 EPS.
Revenue was up 197% vs. prior year. Gross margin came in at 12.83% in the web data.
$491M
revenue
$0.13
eps
12.83%
gross margin
the number that mattered
The $491M quarter mattered because it was up 197% vs. prior year, which showed the business can still swing hard with activity.
source: company earnings report, 2026
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What could go wrong
the #1 risk is offshore customer spending tied to oil prices.
high
offshore order slowdown
77% of revenue comes from offshore manufactured products, and the latest backlog was $300M. if customer budgets tighten, the biggest segment gets hit first.
concentrated exposure to the segment carrying the investment case
med
working capital eats the cash story
management guided to $60M–$65M of operating cash flow in 2026 because working capital needs are rising. that makes the $25M buyback authorization less powerful than it looks.
less room for repurchases and less balance sheet flexibility
med
price-taking competition
with only 2–3% market share against much larger peers like Schlumberger and Halliburton, Oil States does not control pricing. you own a participant, not the referee.
margin recovery can stall even if activity stays decent
low
profitability stays theoretical
net margin is -16.35% and return on equity is -17.45%. the stock already trades at more than 30x trailing earnings, so you are paying for improvement before it fully shows up.
multiple compression if margins do not recover
77% of revenue sits in offshore products, so a weaker spending cycle there would pressure both the $680M–$700M revenue guide and the $60M–$65M cash flow target.
source: institutional data · regulatory filings · risk analysis
Pay attention to
backlog
does offshore backlog stay near $300M
that is the clearest live read on whether the 77% offshore revenue mix is a strength or just concentration.
next earnings
Q1 2026 margin follow-through
one quarter of adjusted profitability is nice. you need to see whether the GAAP loss narrows and whether revenue holds near the $178M Q4 level.
cash flow
can they actually hit $60M–$65M
if working capital keeps building, the cash story weakens before the income statement gets a chance to improve.
valuation
does the stock still deserve 30x-plus earnings
a premium multiple on a cyclical business only holds while investors believe the margin recovery is real and near.
Analyst rankings
earnings predictability
30 / 100
low visibility. in human-speak, analysts do not trust this company to produce smooth quarterly numbers.
risk rank
2
that score says the stock is safer than many peers on paper, helped by just $16M of long-term debt.
price stability
10 / 100
the business may look safer than the chart. a 52-week range of $3–$14 tells you this stock still trades like a cyclical small cap.
source: institutional data
Institutional activity
institutional ownership data for OIS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$8
current price
n/a
target midpoint · n/a from current
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