Nine Energy Service 2025 Q1 Earnings Revenue Grows 5.9% Amid Narrowed Losses

Nine Energy Service (NINE) reported its fiscal 2025 Q1 earnings on May 7th, 2025. The company achieved a total revenue of $150.47 million, reflecting a 5.9% increase from the previous year. Despite the positive revenue growth, Nine Energy reported a net loss of $7.06 million, which marked an improvement from the $8.05 million loss in the same quarter last year. The earnings per share loss narrowed to $0.18 from $0.24, showing a 25% improvement. However, the company anticipates a challenging Q2 due to market uncertainties.

Revenue

Nine Energy Service generated a total revenue of $150.47 million in Q1 2025. The service segment led with $116.63 million, followed by the cement segment at $57.17 million. Coiled tubing contributed $29.86 million, while wireline and tools segments added $29.60 million and $33.84 million, respectively. This diversified revenue mix underscores the company’s strategic focus on market share gains and cost reductions.

Earnings/Net Income

Nine Energy Service reported a net loss of $7.06 million for Q1 2025, which is an improvement compared to the $8.05 million net loss in Q1 2024. The company narrowed its earnings per share loss from $0.24 to $0.18, indicating a positive trend in financial performance.

Price Action

The stock price of Nine Energy Service has experienced significant declines, with an 18.21% drop during the latest trading day, a 26.15% fall over the past week, and a 36.10% decrease month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Nine Energy Service shares after a revenue drop quarter-over-quarter and holding for 30 days has consistently underperformed over the past five years. The annualized return is -12.4%, with the highest return only reaching 3.4% during this period. This performance significantly lags behind the market benchmark, highlighting the need for alternative investment approaches or further analysis. The consistent underperformance suggests that investors need to exercise caution and consider other strategies when evaluating Nine Energy Service for their portfolios.

CEO Commentary

"Despite the average US rig count remaining flat quarter over quarter, we increased our revenue by approximately 6%, with revenue coming in the upper end of the originally provided guidance," said Ann Fox, President and Chief Executive Officer, Nine Energy Service. "We had a strong quarter relative to the market as we continued to execute our strategy of market share gains and cost reductions. This was evident in our coiled tubing division where we increased revenue by approximately 16% quarter over quarter. I am extremely proud of our team’s ability to simultaneously grow revenue and reduce costs, enabling us to organically increase profitability."

Guidance

"We anticipate Q2 revenue and earnings will be down compared to Q1. The recent decline in oil prices, in conjunction with increased costs due to tariffs, has created uncertainty for the energy industry and the timing and totality of these impacts are still unknown. We have begun to see some activity declines, as well as pricing pressure, specifically in the Permian Basin following the decline in oil prices."

Additional News

In recent developments, Nine Energy Service announced changes to its board of directors on March 5, 2025, reflecting its ongoing strategic adjustments. Furthermore, the company received a notice from the NYSE regarding continued listing requirements on May 2, 2025, indicating a need to address compliance issues. Additionally, Nine Energy Service successfully closed a new $125 million senior secured asset-based revolving credit facility on May 1, 2025, enhancing its financial flexibility and liquidity position. These strategic moves highlight the company's efforts to strengthen its leadership and financial foundation amidst challenging market conditions.