Nine Energy Service reported $8.6 million in adjusted EBITDA for Q2, below expectations due to Coiled Tubing equipment issues and cost pressures.
Nine Energy Service posted second-quarter revenue of $141.8 million, aligning with guidance, but adjusted EBITDA fell to $8.6 million, missing estimates. The shortfall was driven by outages in two large-diameter Coiled Tubing units, representing 17% of the fleet, alongside inflation and margin compression.
Completion Tools revenue rose 44% sequentially to $37.1 million, partially offsetting the weakness. The company ended the quarter with $46.8 million in liquidity and expects cash-flow neutrality in the second half. Third-quarter revenue is forecast between $133 million and $143 million, with flat to slightly lower EBITDA.
The U.S. rig count increased to 573 from 543 during the quarter, reflecting modest industry activity improvement, according to the company.