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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.
Nine Energy
Nine Energy
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.