Nine Energy Service 2025 Q2 Earnings Narrowed Losses and Strong Revenue

Nine Energy Service (NINE) reported Q2 2025 earnings on August 5, 2025, delivering revenue growth of 11.2% year-over-year but continuing to post a net loss, albeit narrower than the prior year. The company improved its earnings performance and reported results at the upper end of its guidance, despite a challenging market environment marked by falling oil prices and reduced rig counts.

Revenue
Total revenue for Nine Energy Service increased by 11.2% to $147.25 million in the second quarter of 2025, up from $132.40 million in the same period of 2024. Completion Tool revenue saw a notable 9% increase, while Wireline revenue grew by approximately 11% quarter over quarter. The revenue gains were driven by strong performances in international markets and gas-levered basins, reflecting the company's strategic focus on these areas amid a difficult operating landscape.

Earnings/Net Income
Nine Energy Service narrowed its losses in Q2 2025, reporting a net loss of $-10.39 million, down from $-14.04 million in the prior year—a 26% reduction. On a per-share basis, the company’s losses decreased to $0.25 from $0.40, representing a 37.5% improvement. While still unprofitable, this reduction in losses suggests the company is making progress in cost management and operational efficiency.

Price Action
The stock price of Nine Energy Service has declined across multiple timeframes, dropping 1.21% in the latest trading day, 11.60% over the past full trading week, and 15.44% month-to-date.

Post-Earnings Price Action Review
A backtest of the strategy to purchase Nine Energy Service shares following a revenue increase and hold for 30 days revealed poor performance, with a cumulative return of -39.2% over three years. The maximum drawdown reached -59.4%, underscoring the strategy's lack of profitability. Although the revenue growth could be seen as a positive signal, the stock's price fell in the short term, likely due to broader market pessimism and the company's ongoing challenges in a declining rig environment. The strategy of relying solely on revenue announcements appears insufficient for generating returns, especially in a volatile sector like oil and gas.

CEO Commentary
CEO Ann Fox emphasized natural gas as a long-term catalyst and highlighted the company’s focus on expanding internationally, investing in R&D, and gaining market share. She also noted the need to balance offensive and defensive strategies to maintain service quality while improving margins in a lower-rig environment. The company remains cautious, with expectations for Q3 revenue and earnings to decline as pricing pressures and reduced activity continue to impact performance.

Guidance
Nine Energy Service expects a decline in Q3 revenue and earnings compared to Q2, as the full effects of Q2 activity and pricing drops take hold. The company reaffirmed its full-year 2025 capital expenditures guidance of $15 to $25 million, with Q1–Q2 capex totaling $10.4 million. The company maintained $65.5 million in total liquidity, including $14.2 million in cash and $51.3 million in revolver availability, as of June 30, 2025.

Additional News
Within three weeks of the earnings report, Nine Energy Service was not linked to any significant mergers or acquisitions. There were no reported changes in C-level executive positions during this period. Additionally, the company did not announce any new share repurchase or dividend programs, maintaining its current financial strategy focused on liquidity management and operational efficiency.