Release Date: August 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue for the quarter was $147.3 million, which was in the upper range of the original guidance despite significant rate declines.
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Completion tool revenue grew by approximately 9%, driven by increased sales in the Northeastern Hainesville and international markets.
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International tools revenue increased by approximately 20% in the first half of 2025 compared to the first half of 2024.
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Wireline revenue increased by approximately 11% in Q2, with strong market share in the Northeast.
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The company is focused on increasing profitability through market share gains, R&D, and technological advances across service lines.
Negative Points
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Oil prices declined significantly, impacting revenue and earnings during the second quarter.
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53 rigs came out of the US market between March 28th and July 3rd, a decline of almost 10%, affecting revenue generation.
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Pricing pressure across all service lines, particularly in the Permian Basin, negatively impacted revenue.
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Cementing revenue decreased by approximately 9% due to activity and pricing declines.
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Coil tubing revenue decreased by approximately 16%, with a 23% decrease in coil tubing day's work.
Q & A Highlights
Q: You mentioned that some private E&Ps may temper their work. Is that based on discussions with customers or your view on commodity prices? A: It's not based on conversations but rather on our knowledge that if commodity prices move negatively, private operators typically react more quickly than public ones. This is more commodity price-driven for them.
Q: Do you have any visibility into Q4 regarding customer activity? A: We don't have specific visibility into Q4 changes, but we've had customer conversations indicating increased activity in Q1, which is standard with budget refreshes.
Q: Regarding international sales, how does the first half of 2025 compare to the second half of 2024? A: We had a 20% increase in the first half of 2025 over the first half of 2024. We expect to be up year-over-year, gaining traction in Argentina and the Middle East.
Q: Can you tell us more about the completion tools facility you mentioned? A: It's over 30,000 square feet, located next to our assembly and manufacturing location in Jacksboro. It will have multiple test capabilities and is expected to be the largest state-of-the-art completion tool testing facility in the U.S., opening next year.
Q: What products are seeing the most traction in international markets? A: We're seeing traction with our plugs and MCDV valves, with large volume orders.
Q: Is there any particular driver for the increased market share in the remedial wireline business? A: This was part of a strategic push to diversify our top line from the ups and downs of pump-down work, and our business leader has done a splendid job in this area.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
This article first appeared on GuruFocus
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