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Dec 31, 2024

Nine Energy Q4 2024 Earnings Report

Nine Energy reported a revenue increase but remained in net loss in Q4 2024.

Key Takeaways

Nine Energy Service posted Q4 2024 revenue of $141.4 million, marking a sequential increase. However, the company reported a net loss of $8.8 million. Gross profit stood at $16.5 million, with an adjusted EBITDA of $14.1 million. The cementing segment contributed significantly to revenue growth despite a flat US rig count.

Revenue increased 2% sequentially to $141.4 million.

GAAP net loss was $8.8 million, or $0.22 per share.

Gross profit was $16.5 million, while adjusted EBITDA reached $14.1 million.

Cementing revenue increased 7% quarter-over-quarter.

Total Revenue
$141M
Previous year: $144M
-1.8%
EPS
-$0.22
Previous year: -$0.3
-26.7%
Adjusted EBITDA
$14.1M
Depreciation & Amortization
$8.83M
Gross Profit
$16.5M
Previous year: $15.7M
+4.9%
Cash and Equivalents
$27.9M
Previous year: $30.8M
-9.6%
Total Assets
$360M
Previous year: $402M
-10.4%

Nine Energy

Nine Energy

Nine Energy Revenue by Segment

Forward Guidance

Nine Energy expects stable US activity levels in 2025 and aims to expand market share and reduce costs.

Positive Outlook

  • Sequential revenue and profitability increases expected in Q1 2025.
  • Stable US activity levels anticipated for 2025.
  • Company continues market share expansion in cementing and completion tools.
  • Cost-cutting initiatives remain a focus.
  • Technology innovation continues with new R&D and testing facility.

Challenges Ahead

  • Weak natural gas prices continue to impact demand.
  • US rig count remains a challenge for earnings growth.
  • Net losses persist despite revenue growth.
  • G&A expenses remain elevated.
  • Debt levels and interest expenses continue to be concerns.