Nine Energy Service Announces First Quarter 2026 Results (Form 8-K)

Nine Energy Service Announces First Quarter 2026 Results

HOUSTON - Nine Energy Service, Inc. ("Nine" or the "Company") (NYSE American: NINE) reported revenues of $88.4 million, net income of $107.9 million, or $2.65 per diluted share and $2.65 per basic share, and adjusted EBITDA of $0.9 million for the predecessor period. Nine reported revenues of $41.6 million, net loss of $(1.3) million, or $(0.09) per diluted share and $(0.09) per basic share, and adjusted EBITDA of $2.1 million for the successor period.

"The first quarter was an unusual and complex period from a financial reporting perspective," said Ann Fox, President and Chief Executive Officer of Nine Energy Service. "During the quarter, we entered and successfully emerged from Chapter 11 and implemented fresh start accounting effective March 5, resulting in several required reporting changes, including the revaluation of our assets. In addition, net income and adjusted EBITDA for our predecessor period was negatively impacted by a $5.5 million non-cash inventory write-down. Importantly, we believe these items are now largely behind us, and we expect improved financial results beginning in the second quarter. Following this process, the Company has been transformed in meaningful ways, and I am confident that Nine is now in a stronger financial position as we begin our next chapter of growth."

"Shifting to the market, the U.S. rig count remained stable throughout the quarter; however, weather-related disruptions led to operational inefficiencies early in the quarter and negatively impacted revenue and earnings during our predecessor period, most notably within our Wireline division. As conditions normalized, operating efficiency improved, leading to stronger monthly run rates as the quarter progressed. Pricing across our service lines remained largely stable compared to exit rates at the end of 2025."

"The macro environment continues to be highly dynamic. Recent improvement in oil prices has increased optimism for U.S. land activity in the second half of the year relative to expectations at the end of 2025. Should commodity prices remain at current levels in conjunction with a more constructive outlook, incremental rig additions and the completion of DUCs are possible. Thus far in in the second quarter, customer activity plans remain largely unchanged, and overall U.S. rig counts have been flat."

"Natural gas prices were supportive, averaging $4.71 in the first quarter compared to $3.73 in the fourth quarter of 2025. Natural gas-weighted basins, including the Haynesville, continue to represent an attractive opportunity for Nine. We are focused on ensuring the organization is well positioned to capture incremental activity in these basins. We recently opened a new wireline facility in the Haynesville and look to leverage our established customer relationships and long track record of success to help drive profitable market share gains."

"Looking ahead to the second quarter, we expect continued operational normalization and efficiency gains as well as normalized financial reporting. As a result, we anticipate sequential improvement in revenue and earnings compared to the predecessor and successor periods."

"I believe Nine is well positioned operationally with financial flexibility, which will allow us to execute on our strategic priorities while navigating a dynamic market environment. We remain focused on disciplined execution and profitable growth and we are confident in the long-term value potential of Nine."

Operating Results

During the predecessor period, the Company reported revenues of $88.4 million, gross profit of $2.0 million and adjusted gross profit^B of $7.8 million. During the successor period, the Company reported revenues of $41.6 million, gross profit of $3.8 million and adjusted gross profit^B of $6.0 million.

During the predecessor period, the Company reported general and administrative ("G&A") expense of $13.1 million and depreciation and amortization expense ("D&A") of $5.9 million. During the successor period, the Company reported G&A expense of $4.6 million and D&A expense of $2.3 million.

The income tax provision recorded for the predecessor period was approximately $0.1 million. The income tax benefit recorded for the successor period was approximately $0.1 million. The income tax provision/(benefit) recorded for both periods was primarily attributed to state and non-U.S. income taxes.

Liquidity and Capital Expenditures

During the predecessor period, the Company reported net cash used in operating activities of $10.0 million. During the successor period, the Company reported net cash used in operating activities of $2.4 million. Capital expenditures for the predecessor period totaled $1.9 million and $3.7 million for the successor period. The Company's full-year 2026 capital expenditures guidance is $20 to $30 million.

As of March 31, 2026, Nine's cash and cash equivalents were $11.2 million, and the Company had $35.7 million of availability under its revolving credit facility, resulting in a total liquidity position of $46.9 million as of March 31, 2026. On March 31, 2026, the Company had $90.4 million of borrowings under its revolving credit facility. On April 28, 2026, the Company borrowed an additional $5.0 million under the revolving credit facility.

^ABSee end of press release for definitions of these non-GAAP measures. These measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income (loss), gross profit or any other measure determined in accordance with GAAP. Certain items excluded from these measures are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets. Our computation of these measures may not be comparable to other similarly titled measures of other companies.

Conference Call Information

The call is scheduled for Thursday, May 14, 2026, at 9:00 am Central Time. Participants may join the live conference call by dialing U.S. (Toll Free): (877) 524-8416 or International: (412) 902-1028 and asking for the "Nine Energy Service Earnings Call". Participants are encouraged to dial into the conference call ten to fifteen minutes before the scheduled start time to avoid any delays entering the earnings call.

For those who cannot listen to the live call, a telephonic replay of the call will be available through May 28, 2026 and may be accessed by dialing U.S. (Toll Free): (877) 660-6853 or International: (201) 612-7415 and entering the passcode of 13759688.

About Nine Energy Service

Nine Energy Service is an oilfield services company that offers completion solutions within North America and abroad. The Company brings years of experience with a deep commitment to serving clients with smarter, customized solutions and world-class resources that drive efficiencies. Serving the global oil and gas industry, Nine continues to differentiate itself through superior service quality, wellsite execution and cutting-edge technology. Nine is headquartered in Houston, Texas with operating facilities in the Permian, Eagle Ford, Haynesville, SCOOP/STACK, Niobrara, Barnett, Bakken, Marcellus, Utica and Canada.

For more information on the Company, please visit Nine's website at nineenergyservice.com.