DALLAS, TX -- May 18, 2026 -- Nine Energy Services (NYSEAM: NINE): Stonegate Capital Partners Initiatiates Coverage on Nine Energy Services (NYSEAM: NINE). NINE’s 1Q26 print marked an important transition quarter as the Company emerged from bankruptcy and reset its financial foundation. GAAP comparability was limited by Chapter 11 emergence and fresh-start accounting, while adjusted EBITDA was burdened by severe January/February weather and a $5.5M non-cash inventory write-down that management did not add back. The read-through was positive, management stated NINE had no material customer or vendor losses, and pricing across technology and service offerings was mostly unchanged q/q, with service-line pricing largely stable versus 2025 exit rates. For an OFS company exiting restructuring, stable pricing matters because it indicates 1Q margin pressure was driven by utilization disruption and timing rather than customer concessions or competitive share loss.
Quarterly Results: NINE reported 1Q26 revenue of $130.0M and adjusted EBITDA of $3.0M, with EBITDA burdened by the $5.5M inventory write-down. Revenue was modestly below $132.2M in 4Q25, though comparability is limited by restructuring, fresh-start accounting, and early-quarter weather. The operating read-through is that EBITDA pressure reflected weather, utilization disruption, and the write-down - not pricing erosion, customer losses, or weaker service-line relevance. Operations normalized in March, and management expects that cadence to continue into 2Q, making 2Q guidance the cleaner benchmark for post-emergence EBITDA conversion. Liquidity was $46.9M at quarter-end, including $11.2M of cash and $35.7M of revolver availability, with $90.4M drawn at March 31 and another $5.0M drawn in April.
End Markets / Activity: Near-term U.S. land activity remains measured, with 2Q customer plans largely unchanged and rig counts flat; management framed the 2Q improvement as operational normalization, while 2H26 upside is tied to incremental rigs and DUC completions converting into field work. Gas-directed activity remains the clearest basin-specific opportunity, with natural gas averaging approximately $4.70 in 1Q26 versus $3.73 in 4Q25, Haynesville adding approximately 25 rigs over the past four quarters to end 1Q26 at 55 rigs, and NINE opening a new wireline facility in the basin. Completion tools remain a key growth lever, supported by more than 500,000 Scorpion Composite Plugs sold, while international tools remain relevant, with minimal Middle East impact in 1Q/early 2Q and 2025 revenue growth of approximately 14% sequentially, driven primarily by the UAE, Argentina, and Saudi Arabia.
Guidance: NINE guided 2Q26 revenue to $136M–$146M and adjusted EBITDA to $10M-$15M, driven by normalized operations and cleaner post-emergence reporting rather than a material rig-count change. Full-year capex is expected at $20M-$30M, with a meaningful portion tied to catch-up investment; management also framed cash generation as a 2027+ normalization opportunity, with 2026 still affected by bankruptcy-related noise.
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SOURCE: Stonegate, Inc.
