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SEC filingOil States International, Inc. reported a net loss of $109.4 million for FY 2025, a significant decline from a net loss of $11.3 million in FY 2024. Revenues decreased 3% to $669.0 million, driven by lower U.S. land-based activity and the exit of underperforming service offerings. The company incurred substantial non-cash impairment charges of $121.1 million, primarily in its Downhole Technologies segment, due to market conditions and restructuring actions. Despite the net loss, operating cash flow was strong at $105.1 million, and the company materially delevered by purchasing $70.8 million of its 2026 Notes. The Offshore Manufactured Products segment showed resilience with an 8% revenue increase and backlog growth to $435 million.
Oil States International reported a challenging FY 2025 with a consolidated net loss of $109.4 million, compared to a net loss of $11.3 million in FY 2024. The significant deterioration was primarily driven by $121.1 million in non-cash asset impairment charges and $11.6 million in restructuring costs, concentrated in U.S. land-based operations. Revenues declined 3% year-over-year to $669.0 million. Despite the net loss, the company generated strong operating cash flow of $105.1 million, which enabled debt reduction through the purchase of $70.8 million principal amount of its 2026 Notes. The results reflect a bifurcated market: growth in offshore and international activity was offset by a severe downturn in U.S. land operations, competitive pressures, and increased tariffs.
Consolidated revenues of $669.0 million decreased $23.6 million from the prior year. Product revenues increased 8% to $436.4 million, led by higher demand for offshore connector, crane, and drilling products. Service revenues fell 20% to $232.6 million due to the exit of underperforming U.S. land-based service offerings and lower activity. Geographically, offshore and international revenues represented 73% of the total (up from 65%), while U.S. land revenues declined to 27%. The Offshore Manufactured Products segment grew revenues by 8% to $431.1 million, driven by project-driven products. The Completion and Production Services segment revenues fell 30% to $114.5 million, and Downhole Technologies segment revenues decreased 6% to $123.3 million.
Gross margin declined to 19.9% in FY 2025 from 22.6% in FY 2024. The decrease was driven by a $20.8 million inventory impairment charge and higher product costs, partially offset by lower service costs due to restructuring. Operating loss was $98.0 million, compared to an operating loss of $1.7 million in the prior year. Excluding impairment and restructuring charges, operating results improved by $13.5 million year-over-year, benefiting from cost reduction measures and lower depreciation. The Downhole Technologies segment was the primary drag on profitability, reporting an operating loss of $124.3 million due to $112.7 million in impairment charges related to long-lived assets and inventory.
Cash flow from operations was $105.1 million, a significant increase from $45.9 million in FY 2024, driven by working capital improvements including a $44.8 million increase in deferred revenue. Capital expenditures were $31.2 million, resulting in free cash flow of $94.0 million (calculated as operating cash flow minus capital expenditures). The company used $90.2 million in financing activities, primarily for debt repurchases and share buybacks. As of December 31, 2025, cash and cash equivalents were $69.9 million, total debt was $55.1 million (current portion $53.4 million, long-term $1.7 million), and total liabilities were $310.2 million. Stockholders' equity stood at $573.2 million.
The company's primary near-term liquidity need is the repayment of $52.7 million in 2026 Notes maturing April 1, 2026, which it intends to fund with cash on-hand and/or borrowings under its new $75.0 million revolving credit facility. Management believes existing resources are sufficient for the next twelve months. Strategic priorities include optimizing U.S. land operations, capitalizing on offshore backlog growth ($435 million at year-end), and managing exposure to trade tariffs and raw material costs. Key risk factors disclosed include cyclical dependence on oil and gas industry activity, regulatory changes (environmental, tax), competitive pricing pressures, and potential impacts from geopolitical conflicts and global economic conditions. No specific quantitative financial guidance for FY 2026 was provided in the filing.