Nine Energy Service's Q2 2025: Key Contradictions on Q4 Visibility, Private Operator Dynamics, Tariff Impacts, and International Growth

Visibility into Q4, private operator behavior, impact of tariffs on service sector costs, and international sales traction and growth are the key contradictions discussed in Nine Energy Service's latest 2025Q2 earnings call.



Revenue and Activity Trends:
- Nine Energy Service reported revenue of $147.3 million for Q2 2025, within the original guidance range of $138 million to $148 million, despite significant rig declines.
- The decline in commodity prices, increased costs from tariffs, and global economic uncertainty led to reduced U.S. activity and CapEx plans, impacting revenue and earnings.

International Sales Growth:
- Nine Energy Service's first half International Tools revenue increased by approximately 20% compared to the first half of 2024.
- Growth was driven by increased sales of multi-cycle barrier valves into the Middle East and overall plug sales, aligning with the company's strategy for growing market share in international markets.

Wireline and Completion Tool Revenue:
- Wireline revenue grew by approximately 11% in Q2, mainly due to increased sales in the Northeast and Haynesville, and market share gains on the remedial side.
- Completion Tool revenue increased by approximately 9%, driven by sales in the Northeast and Haynesville, as well as increased International Tool sales.

Cost Management and Efficiency:
- The company has taken significant sustainable costs out of the business over the past year, including fleet management improvements, employee reductions, and vendor consolidations.
- These efforts are aimed at reducing costs without impeding the quality of the company's technology, service, and safety.