Sasha Jovanovic
4 min read
Oil States International jumped 5.7% to about US$9.60 in Friday trading after posting its Q3 2026 results. At first glance that move looks like a simple relief rally. The story is sharper than that.
The company just reported roughly US$170m in quarterly revenue and moved to US$3.1m of net income, supported by roughly US$20m of adjusted earnings before interest, tax, depreciation and amortisation. Traders are reacting to a good quarter. Longer term investors are weighing something bigger: a growing offshore-driven backlog and fresh buyback firepower against a still unprofitable trailing twelve month record.
Love the offshore backlog story at Oil States International, but wary of a still unprofitable trailing record? Screen for companies that pair contract visibility with cleaner earnings profiles in the list of solid balance sheet and fundamentals stocks (24 results).
Q3 2026 Earnings Summary
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Total Revenue (Q3 2026 vs Q3 2025): US$169.8m vs. US$165.2m (up about 3%)
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Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): US$3.1m vs. US$1.8m (up about 70%)
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Basic EPS (Q3 2026 vs Q3 2025): US$0.05 vs. US$0.03 (up about 70%)
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Offshore/Manufactured Products Backlog (Q3 2026 vs Q3 2025): US$482m vs. roughly US$398m (up about 21%)
Offshore orders just pushed Oil States’ backlog to a 12-year high. Ask Charlie what Oil States’ 12-year-high backlog really signals.
Oil States Offshore Backlog Starts To Do The Talking
Bullish investors argue that Oil States International only wins if offshore and military work translate into stronger profitability rather than just higher order books.
“The main thing that has to go right is that Oil States International converts its long-cycle offshore and military backlog into margins similar to recent segment EBITDA levels, while managing input cost pressures and contract timing risks.”
The latest quarter edges that thesis forward. Offshore or Manufactured Products backlog reached US$482m with a 1.3x book to bill, and segment EBITDA margin held at 18%. Completion & Production Services printed a 26% margin. That combination shows early proof of backlog depth plus solid, if not yet breakout, profitability.
One Narrative disagrees with today’s price. → See where this Narrative says Oil States International should trade.
Oil States Bear Case: Backlog Risk Still Lingers
The bearish view argues that Oil States International could be stuck with a big order book that arrives late and earns less than hoped.
“Although Oil States International reports a decade high Offshore Manufactured Products backlog of $451 million and a 1.2x book to bill in 2Q26, the lowered 2026 revenue and EBITDA guidance indicates that award timing and execution risk on these long cycle projects could still limit how much of that backlog converts into near term revenue and earnings.”
