Company: NINE
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001532286-25-000016
Chunk: 41

Company: Nine Energy Service, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 U.S. and other countries or retaliatory trade measures; instability, acts of war or terrorism in oil producing countries or regions, particularly the Middle East, Russia, South America and Africa; actions of the members of OPEC and other oil exporting nations that relate to or impact oil production or supply; weather conditions; the effect of energy, monetary, and trade policies of the U.S.; changes to energy regulations and policies, including those of the U.S. Environmental Protection Agency and other governmental bodies; and overall North American oil and natural gas supply and demand fundamentals, including the pace at which export capacity grows. We expect that U.S. activity levels will be impacted by commodity prices and many of the same factors expected to impact commodity prices, including the production of OPEC and other oil exporting nations and governmental policies, such as tariffs. We cannot predict the scope or extent of such impacts. Furthermore, although as noted above, our customers’ activity and spending levels, and thus demand for our services and products, are strongly influenced by current and expected oil and natural gas prices, even with price improvements in oil and natural gas, operator activity may not materially increase, as operators remain focused on operating within their capital plans and uncertainty remains around supply and demand fundamentals.

We remain cautiously optimistic on the long-term outlook for the energy sector, and we believe there is potential upside for North American activity levels, especially in natural gas basins. We plan to play both offense and defense to improve revenue and margins in a lower rig count environment. This includes gaining market share with current and new customers, growing our international tools business, continuing research and development and technology advances, construction of our new completion tools facility, and potential expansion into new geographies. We are nimble and diversified in both our service and technology offerings and commodity exposure, which we believe has and will continue to allow us to navigate uncertain markets, while still being able to capitalize on any potential growth opportunities both domestically and internationally.

Results of Operations

Results for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024 

 Three Months Ended June 30,  20252024ChangePercentage Change (in thousands, except percentage change)Revenues$147,251 $132,401 $14,850 11 %Cost of revenues (exclusive of depreciation and amortization shown separately below)121,439 112,048 9,391 8 %Adjusted gross profit$25,812 $20,353 $