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Nine Energy Q1 2025 Earnings Report
Nine Energy Service reported its first quarter 2025 financial results, showing increased revenue and improved profitability despite a flat US rig count.
Key Takeaways
Nine Energy Service, Inc. reported first quarter 2025 revenues of $150.5 million, with a net loss of $(7.1) million, or $(0.18) per diluted share. The company's adjusted EBITDA was $16.5 million, reflecting improved profitability driven by market share gains and cost reductions.
Revenue increased by approximately 6% quarter over quarter, reaching $150.5 million, despite a flat average US rig count.
Sequential quarterly net loss improved by approximately 20% for the first quarter of 2025.
Sequential quarterly adjusted EBITDA increased by approximately 17% for the first quarter of 2025.
The company closed on a new $125 million senior secured ABL revolving credit facility on May 1, 2025, enhancing liquidity and extending revolving credit maturity.
Nine Energy
Nine Energy
Forward Guidance
The company anticipates a decline in Q2 revenue and earnings compared to Q1, primarily due to recent oil price declines and increased costs from tariffs.
Positive Outlook
- Prepared to pivot with market changes.
- Ready to capitalize on potential market growth in natural gas levered basins.
- Diversity in geography and commodities remains an important differentiator.
- Continued focus on executing strategy, technology development, and maintaining excellent service quality.
- New $125 million asset-based revolving credit facility improves financial flexibility and extends revolving credit maturity.
Challenges Ahead
- Recent decline in oil prices has created uncertainty for the energy industry.
- Increased costs due to tariffs are impacting the industry.
- Timing and totality of these impacts are still unknown.
- Beginning to see some activity declines.
- Pricing pressure, specifically in the Permian Basin, is being observed.