Oil States International projected fourth-quarter revenue of $172 million to $184 million and adjusted EBITDA of $20 million to $23 million after reporting third-quarter results above its guidance.
The segment’s book-to-bill ratio was 1. 3 times, indicating bookings exceeded recognized revenue during the quarter.
Offshore and international activity represented 72% of consolidated revenue during the first nine months of 2026, compared with about 50% in 2023. Chief Executive Lloyd Hajdik cited demand prospects in Brazil, Guyana and Asia, but said crude prices remained elevated and volatile. He also said customer acceptance of managed-pressure-drilling systems was strong, with opportunities spanning both rental systems and equipment sales.
The backlog has required substantial working-capital investment. The company invested $10 million in capital expenditures year to date and received $13 million from asset sales.
Management forecast fourth-quarter free cash flow of $15 million to $25 million and said it expected working capital to be released during the period. It cautioned, however, that customer collections typically slow near year-end and that project delays can push cash receipts later. The company also said $15 million of assets held for sale was not expected to generate fourth-quarter cash proceeds.
Hajdik said the buyback did not mean the company was satisfied with its current portfolio and that management was becoming more aggressive in evaluating acquisition opportunities.
Downhole Technologies continues to face elevated costs for tungsten, explosive powders and copper, as well as limited availability of premium explosive powder. Hajdik said those pressures were still being managed but could begin to moderate in the first and second quarters of next year as access to explosive powders improves. He also warned that customer schedules, project timelines, geopolitical conditions and contract-award timing could continue to create quarter-to-quarter swings, while the company remained cautious about the timing of a broader recovery in the Middle East.