Oil States International, Inc. (OIS): Business Model Canvas [Dec-2025 Updated]

You're looking to understand exactly how a specialized energy equipment maker is positioning itself for the next cycle, and honestly, after twenty years in this game, I see Oil States International, Inc. (OIS) making some clear, deliberate moves. Their Business Model Canvas shows a company doubling down on high-spec offshore engineering, which drove 75% of their Q3 2025 revenue, while they actively manage down U.S. land services-a pivot reflected in the $3.6 million in restructuring costs last quarter. With a strong $399 million backlog and $140 million in liquidity as of September 30, 2025, the core value is clearly in proprietary tech and long-cycle manufactured products, not just day-to-day service work. Dive below to see how their key partnerships and cost structure support this high-value, international focus.

Oil States International, Inc. (OIS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Oil States International, Inc. (OIS) relies on to deliver its specialized manufactured products and services, especially in the high-value offshore sector as of late 2025. These aren't just casual agreements; they are critical to securing and executing major projects.

The strength of the Offshore Manufactured Products segment, which reported revenues of $108.6 million in the third quarter of 2025, is directly tied to these alliances. The segment's backlog stood at $363 million as of June 30, 2025, showing the forward visibility these partnerships help secure.

Here's a breakdown of the key external relationships driving that segment's performance:

• Strategic alliance with Seadrill for integrating the MPD IRJ system.
• Collaboration with Halliburton for deepwater MPD equipment and services.
• Reliance on key suppliers for specialized materials like gun-steel, navigating tariff impacts.
• Engagements with engineering firms for new energy technology development.
• Contracts with global logistics and shipping providers for international delivery.

The collaboration with Seadrill is a major focus, combining Seadrill's operational knowledge with Oil States International, Inc.'s engineering expertise to build a Managed Pressure Drilling (MPD) package. This initiative aims to standardize and enhance safety for offshore MPD operations using Oil States International, Inc.'s MPD Integrated Riser Joint (IRJ) system.

The partnership with Halliburton, announced in late 2023, focuses on combining award-winning technology sets to offer innovative deepwater MPD solutions. This combination helps operators with easier handling and streamlined installation of MPD equipment, control systems, and services.

You can see the financial context of the segment most impacted by these deepwater/offshore partnerships:

The company noted that its backlog as of December 31, 2024, was $311 million, with expectations that approximately 70% of that would be recognized as revenue during 2025.

Regarding the supply chain, the risk of tariffs on imported materials was explicitly noted as a factor affecting operations, though specific cost percentages for gun-steel were not detailed in the latest filings.

The overall company financial performance in Q3 2025 provides the backdrop for these activities:

• Consolidated Revenues: $165,180 thousand.
• Adjusted EBITDA: $20,804 thousand.
• Cash Flows from Operations: $31,000 thousand.

Oil States International, Inc. also mentioned returning capital to stakeholders by purchasing $6 million principal amount of convertible senior notes and $4 million of common stock in Q3 2025.

For the engineering firms and logistics providers, the structure involves securing contracts for joint development and ensuring reliable international project delivery, which supports the Offshore Manufactured Products segment's global reach.

Finance: draft 13-week cash view by Friday.

Oil States International, Inc. (OIS) - Canvas Business Model: Key Activities

You're looking at the core actions Oil States International, Inc. (OIS) is taking to drive revenue and manage its portfolio right now, late in 2025. It's a story of shifting focus, balancing legacy work with new long-cycle opportunities. The numbers tell you where the real effort is going.

Manufacturing highly engineered capital equipment for offshore projects is clearly the engine room. This segment is where the long-cycle, higher-margin work lives. Offshore and international activities drove 75% of the Q3 revenue, showing the strategic pivot is well underway. The segment's own performance in Q3 2025 saw revenues hit $108.6 million with an Adjusted Segment EBITDA margin of 21%.

The execution on that manufacturing strength is visible in the backlog. Oil States International, Inc. is executing a backlog of $399 million in Offshore Manufactured Products as of Q3 2025. That $399 million figure is the highest backlog level the company has seen since June 2015. Bookings in that quarter were robust at $145 million, which resulted in a book-to-bill ratio of 1.3x. Honestly, that backlog provides a solid base for revenue acceleration into 2026.

Simultaneously, the company is actively restructuring and optimizing U.S. land-based operations to cut costs. This isn't just talk; you see the charges reflecting the moves. In Q3 2025, net income included $4 million in charges, the majority tied to this U.S. land restructuring. The segment recorded U.S. facility exit and severance charges totaling $2.7 million in that quarter alone. But the moves are paying off on the margin front; the segment's Adjusted EBITDA margin expanded from 13% in Q3 2024 to 29% in Q3 2025. It's about trimming the fat where activity is soft.

When you look at providing completion and production services in select basins, you see the direct impact of that U.S. land softness. The Completion and Production Services segment brought in revenues of $27.5 million for the third quarter. Still, the cost structure alignment helped, as Adjusted Segment EBITDA for the segment was $8.0 million in Q3 2025.

Here's a quick look at how the core operational segments stacked up in Q3 2025:

Finally, the commitment to research and development of new technologies continues, linking heritage expertise to future energy needs. This is about securing that long-term competitive edge. You see this R&D translating into industry recognition:

• Received a 2025 Spotlight on New Technology® Award for the TowerLok™ Wind Tower Connector.
• Completed the manufacture of its third Merlin™ Mineral Riser system, which is designed for a water depth of 6,000 meters.
• The Merlin™ system is specifically targeted for deepsea mineral harvesting, supporting the lower-carbon energy mix.

The company generated $31 million in cash flow from operations in Q3 2025, doubling the prior quarter, which shows these activities are now generating real cash. Finance: draft 13-week cash view by Friday.

Oil States International, Inc. (OIS) - Canvas Business Model: Key Resources

The Key Resources for Oil States International, Inc. (OIS) as of late 2025 are heavily weighted toward tangible assets, intellectual property, and human capital, underpinned by a strong financial position.

Physical infrastructure includes global manufacturing and service facilities. Oil States International, Inc. actively invested in expanding its manufacturing capabilities and capacity in Batam, Indonesia, during the first quarter of 2025 to keep pace with growing international customer demand. This physical footprint supports the delivery of products across its segments.

Intellectual property is a critical differentiator, particularly in the deepwater sector. This resource base includes proprietary technology patents, exemplified by the completion of the third Merlin™ Mineral Riser system, engineered for a water depth of 6,000 meters. The company also focuses on its workforce, maintaining a highly skilled engineering and technical workforce, supported by internal efforts like Training and Development programs.

Financial strength provides the operational flexibility to pursue strategic growth and manage market cycles. As of September 30, 2025, Oil States International, Inc. maintained a strong liquidity position totaling $140 million. This liquidity, combined with strong operational cash generation, allowed for shareholder returns, including the purchase of $6 million principal amount of convertible senior notes and $4 million of common stock during the third quarter of 2025.

Contractual visibility is secured through long-term contracts and a substantial backlog. The backlog reached $399 million as of September 30, 2025, marking its highest level since June 2015. This figure was significantly bolstered by robust third-quarter bookings, which totaled $145 million, partly driven by long-term, military product contract awards.

The composition of the backlog reflects a strategic pivot, with the Offshore Manufactured Products segment being a primary driver of this resource strength. The segment's revenue for the third quarter of 2025 was $108.6 million.

• Offshore and international projects accounted for 75% of consolidated revenues in Q3 2025.
• Cash Flow from Operations generated in Q3 2025 was $31 million.
• Free Cash Flows generated in Q3 2025 were $23.2 million.
• The backlog increased sequentially by 10% in the third quarter.

Oil States International, Inc. (OIS) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Oil States International, Inc. (OIS) is pushing in late 2025. These aren't just marketing terms; they are backed by where the money is coming from and the strategic moves they are making, like exiting certain U.S. land activities.

High-specification, engineered solutions for complex deepwater environments represent the strongest part of the current business. The Offshore Manufactured Products segment is the clear revenue driver, bringing in $108.6 million in revenue for the third quarter of 2025. This segment also boasts a significant backlog of $399 million as of September 30, 2025, showing sustained demand for these complex engineered products. To give you a concrete example of this value proposition in action, the first quarter of 2025 included a contract award exceeding $25 million specifically for a deepwater production facility project in Brazil. That's the kind of high-value, engineered work they are prioritizing.

For Operational efficiency and reliability in Managed Pressure Drilling (MPD), the value proposition is tied to the Downhole Technologies segment, though it faced headwinds. In Q3 2025, this segment reported revenue of $29 million but registered an Adjusted Segment EBITDA loss of $0.7 million. This indicates the challenge in delivering that specific value proposition profitably amid market conditions, even as the company focuses capital elsewhere.

The offering of Specialized consumable products for well construction and completion is captured by the Completion and Production Services segment. This segment generated revenues of $27.5 million and an Adjusted Segment EBITDA of $8 million in the third quarter of 2025. This shows a smaller but still contributing revenue stream based on specialized service delivery.

Oil States International, Inc. is also leveraging its engineering base for Technology for non-oilfield sectors, including military and offshore wind (TowerLok™). The company explicitly serves the industrial and military sectors. A key validation of this non-energy focus was receiving a 2025 Spotlight on New Technology® award from the Offshore Technology Conference for their TowerLok™ Wind Tower Connector Technology. This technology is a clear example of transferring core engineering competence outside of traditional oilfield work.

Finally, the move toward Cost-efficient service delivery from a leaner U.S. land-based structure is evidenced by strategic restructuring. The company reported charges totaling $3.6 million in Q3 2025 associated primarily with the continued exit of certain U.S. land-based operations and facilities. This action directly supports a leaner structure by shedding less profitable or strategically misaligned assets.

Here's a quick look at how the segments contributing to these value propositions performed in Q3 2025:

The overall consolidated revenue for the third quarter of 2025 was $165.2 million, with an Adjusted EBITDA of $20.8 million. The company generated $30.7 million in cash flows from operations during that same period.

Oil States International, Inc. (OIS) - Canvas Business Model: Customer Relationships

You're looking at how Oil States International, Inc. (OIS) manages its connections with the energy producers who buy its equipment and services. The focus here is clearly on deep, project-based engagement rather than transactional sales.

Dedicated engineering support for complex, long-cycle offshore projects is a core element, which makes sense given the nature of the work. Oil States International, Inc. (OIS) saw 75% of its consolidated revenues generated from offshore and international projects in the third quarter of 2025. This type of work generally comprises longer cycle, higher-margin content. The commitment to these long-cycle projects is visible in the growing backlog, which reached $399 million in the third quarter of 2025.

This engineering focus ties directly into high-touch, consultative sales for capital equipment. You see this in the large, specific orders that build that backlog. For instance, first quarter 2025 bookings included a contract award exceeding $25 million for a deepwater production facility project in Brazil. The company's bookings in the third quarter of 2025 hit $145 million, a 29% quarter-over-quarter increase.

For the more standardized work, the Completion and Production Services segment relies on efficient execution. This segment recorded revenues of $28 million in the third quarter of 2025. The success of their optimization efforts in this area is clear in the margin performance, with the adjusted segment EBITDA margin reaching 29% in the third quarter of 2025.

The relationship structure is heavily weighted toward established, large-scale customers, which supports the long-cycle nature of the business. The strategic shift is evident in the revenue concentration:

• Offshore and international projects accounted for 72% of consolidated revenues in the second quarter of 2025.
• This figure rose to 75% of consolidated revenues in the third quarter of 2025.

The financial performance across the segments in the third quarter of 2025 illustrates where these customer relationships are strongest:

The company generated $31 million in cash flows from operations in the third quarter of 2025. This strong cash generation helps support the capital required for these long-cycle, project-based customer commitments.

Oil States International, Inc. (OIS) - Canvas Business Model: Channels

Direct sales force targeting major and national oil companies globally is a primary channel, evidenced by the strategic focus on offshore and international markets. As of the third quarter of 2025, Oil States International, Inc. reported that 75% of its consolidated revenues were generated from offshore and international projects. This segment, primarily served by the Offshore Manufactured Products division, saw quarterly bookings of $145 million in Q3 2025, indicating strong direct engagement for capital equipment sales. The company's backlog totaled $399 million as of September 30, 2025.

Manufacturing and service centers strategically located internationally form a critical part of the delivery channel. Oil States Industries operates manufacturing, service, and sales locations in twelve countries, totaling more than 25 locations globally. These hubs are positioned within major offshore basins to support engineered capital equipment and aftermarket services. For instance, in Q3 2025, the Offshore Manufactured Products segment generated revenues of $108.6 million.

Direct engagement with military and industrial procurement offices is a channel supported by the backlog for manufactured products. Management noted in the Q3 2025 earnings call that third quarter bookings were augmented by long-term, military product contract awards. These military orders are described as typically multiyear delivery contracts, which impacts near-term backlog conversion rates.

Regional service locations for U.S. land-based Completion Services represent a more localized channel, though the company is actively optimizing these operations. The Completion and Production Services segment reported revenues of $27.5 million in the third quarter of 2025. Specific regional service locations for Oil States Energy Services (OSES) include sites in Louisiana (Houma, Broussard, New Iberia), Oklahoma (Oklahoma City), Wyoming (Rock Springs), North Dakota (Williston), and Colorado (Berthoud).

Here's a quick look at the geographic and revenue distribution that defines the channel strategy as of late 2025:

The company's physical presence includes manufacturing and service facilities in key international regions. The following list details some of the international service and sales locations:

• Asia: Indonesia, Thailand, India, Singapore, Malaysia.
• Middle East: Dubai, Abu Dhabi (United Arab Emirates).
• Europe & Eurasia: Spain (Las Palmas).
• South America: Brazil (Macaé, Rio de Janeiro).
• North America (International): Canada (Red Deer, AB).

The U.S. land-based service locations are grouped by region, such as the Gulf Coast and Rockies, supporting the Completion and Production Services segment. The strategic move away from U.S. land, which saw restructuring charges totaling $3.6 million in Q3 2025, is reflected in the segment's lower revenue compared to the dominant offshore manufactured products channel.

Oil States International, Inc. (OIS) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Oil States International, Inc. (OIS) as of the end of Q3 2025. The customer base has clearly tilted toward longer-cycle, more stable international work, which is a significant strategic shift from prior years.

The primary customer groups are large entities in the energy space, but the mix is changing. Oil States International, Inc. serves customers in the energy, industrial, and military sectors globally. The company sells its products and services to national oil and natural gas companies, major international oil companies, and independent exploration and production firms.

The current focus heavily favors the international and offshore arenas, reflecting a multiyear strategy to secure higher-margin, longer-cycle projects. This is where the bulk of the current revenue is coming from, which you can see in the Q3 2025 breakdown.

The customer segments can be detailed as follows:

• Major, national, and independent oil and natural gas companies.
• Offshore and international operators, representing a confirmed 75% of Q3 2025 consolidated revenues.
• U.S. land-based operators in active shale basins (a declining focus).
• Military and industrial sectors for specialized engineered products.

The shift away from domestic land activity is evident when comparing recent figures to 2024. For instance, in Q2 2025, offshore and international markets accounted for 72% of total revenues, up from 64% in Q2 2024, while U.S. land revenue contribution fell from 36% to 28%. This trend continued into Q3 2025, with the CEO noting U.S. shale-driven activity slowed further.

Here's a look at the revenue contribution by the three operating segments in Q3 2025, which directly maps to the customer types served:

The Offshore Manufactured Products segment, which captures a large portion of the international/offshore revenue, reported revenues of $108.6 million in Q3 2025. The company explicitly stated that 75% of its consolidated revenues came from offshore and international projects in that quarter. This means the remaining revenue from the other two segments, totaling $56.5 million ($27.5M + $29M), is a mix that includes the remaining domestic land business and other international/industrial sales.

The military sector is a notable, though smaller, customer group. Quarterly bookings for the Offshore Manufactured Products segment in Q3 2025 were 'boosted by strong military orders,' contributing to a backlog increase. The company's overall description includes serving the military sector.

For the U.S. land-based operators, the focus is clearly on cost reduction and optimization rather than growth. The Completion and Production Services segment continued management actions in its U.S. land-based businesses, including service location consolidation and workforce reductions, which began in 2024 and continued into 2025. This segment's Q3 2025 revenue was $27.5 million.

Key customer priorities that drive Oil States International, Inc.'s value proposition include:

• Operational efficiency to minimize downtime.
• Safety and reliability, especially in challenging offshore environments.
• Long-cycle project investments, favored by operators over shorter-cycle domestic work.

Finance: draft 13-week cash view by Friday.

Oil States International, Inc. (OIS) - Canvas Business Model: Cost Structure

You're looking at the cost side of Oil States International, Inc. (OIS) as of late 2025, and it's clear that maintaining their global footprint is a major driver of expenses. The company is actively managing this structure, especially by shifting away from U.S. land operations.

High fixed costs stem from maintaining global manufacturing and engineering facilities. While a precise dollar figure for total fixed costs isn't broken out, the strategic shift is evident in the charges taken to align the cost structure with sales, particularly in the Completion and Production Services segment. This segment cut costs substantially by shutting down or relocating U.S. land sites and dropping weaker service lines.

Material costs present a significant headwind, especially for gun-steel used in the Downhole Technologies segment. Tariffs have dramatically increased this input cost. The tariff rate on imported goods jumped from 25% a few years ago to nearly 98% in Q3 2025. This tariff shock drove a sharp cost spike, contributing to the Downhole Technologies segment reporting an operating loss of $4.7 million and an Adjusted Segment EBITDA loss of $1 million in Q3 2025.

Restructuring charges related to the U.S. land exits were a notable, one-time cost event in the third quarter. Oil States International, Inc. reported operating income that included charges totaling $3.6 million for the three months ended September 30, 2025. This aligns with the segment-level data showing that the Completion and Production Services segment recorded $3 million in restructuring charges, and the U.S. land-driven service locations/offerings exit resulted in segment charges totaling $2.7 million in Q3 2025.

Here's a quick breakdown of the major charges impacting the Q3 2025 operating results:

Investment in new technologies is a cost component tied to future value, exemplified by the company's commitment to its industry-leading managed pressure drilling or MPD system. Labor costs are embedded within operating expenses and severance charges, reflecting the specialized, technical workforce. For instance, the company reduced headcount as part of its U.S. land optimization efforts, which resulted in severance charges totaling $0.3 million at the Corporate level in Q3 2025.

The company's overall cost management focus helped lift the Completion and Production Services segment's Adjusted EBITDA margin from 13% to 29% over the past four quarters through Q3 2025, despite weaker U.S. land activity.

• Offshore Manufactured Products Segment Adjusted Segment EBITDA Margin (Q3 2025): 21%
• Completion and Production Services Segment Adjusted Segment EBITDA Margin (Q3 2025): 29%
• Downhole Technologies Segment Adjusted Segment EBITDA (Q3 2025): Loss of $1 million

Oil States International, Inc. (OIS) - Canvas Business Model: Revenue Streams

You're looking at how Oil States International, Inc. (OIS) brings in money, which is key to understanding its stability, especially with the current mix of energy markets. The revenue streams are clearly segmented across manufactured products and services, showing a strategic pivot toward longer-cycle work.

The company's Q3 2025 performance highlights the strength in its manufactured products division, which is clearly the largest revenue driver right now. This segment is benefiting from strong demand, particularly from military orders, which helped boost bookings significantly.

Here is the breakdown of the primary revenue sources based on the third quarter of 2025 results:

The consolidated revenue for the third quarter of 2025 was reported at $165.2 million. It's important to note that 75% of this consolidated revenue was generated from offshore and international projects, reflecting the multiyear strategy to lean into longer-cycle businesses.

The strength in bookings within the Offshore Manufactured Products segment is a major indicator for future revenue visibility. You can see this in the order intake:

• Offshore Manufactured Products segment quarterly bookings totaled $145 million.
• This resulted in a book-to-bill ratio of 1.3x for the quarter.
• The backlog growth was a 10% sequential increase.

Looking ahead, the company has provided guidance that sets the expectation for the full fiscal year. The full-year 2025 revenue guidance is projected to be between $700 million and $735 million. This outlook is supported by the strong backlog and the continued strategic focus on higher-margin areas.

Another critical component feeding into the revenue picture, though not explicitly quantified in the Q3 revenue line, involves long-term contract awards. Specifically, strong military orders were cited as a driver for the robust bookings in the Offshore Manufactured Products segment. This type of long-term commitment helps smooth out the volatility often seen in the shorter-cycle land-based service business. Furthermore, the company generated $31 million in cash flows from operations in Q3 2025, with expectations that the full-year cash flow from operations will reach $100 million plus.

Finance: draft 13-week cash view by Friday.