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Nine Energy Service, Inc. (NINE) AI Stock Analysis
Nine Energy Service, Inc.
(NYSE MKT:NINE)
The score is held back primarily by weak cash flow (negative operating and free cash flow) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include a substantially improved balance sheet versus prior years and a very low P/E, while the latest earnings call points to continued near-term operational and margin headwinds despite pockets of operational strength.
Nine Energy Service, Inc. (NINE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $103.23M
- Dividend Yield
- ―
- Average Volume (3M)
- 59.19K
- Price to Earnings (P/E)
- 1.1
- Beta (1Y)
- -1.37
- Revenue Growth
- -7.15%
- EPS Growth
- ―
- Country
- US
- Employees
- 1,072
- Sector
- General
- Sector Strength
- 55
- Industry
- Oil & Gas Equipment & Services
Nine Energy Service, Inc. Business Overview & Revenue Model
Company Description
Nine Energy Service, Inc., headquartered in Houston, Texas, is a provider of onshore well completion solutions. The company primarily caters to the development of unconventional oil and gas resources throughout North American basins and globally. Its...
How the Company Makes Money
Nine Energy Service generates revenue primarily by providing oilfield services and selling completion-related products to oil and natural gas producers (E&P companies) on a per-job and/or per-unit basis tied to drilling and completion activity. Key r...
Nine Energy Service, Inc. Earnings Call Summary
The call presented a mix of encouraging operational wins (notably strong completion tools growth, cementing activity expansion, product commercialization and reasonable liquidity) alongside meaningful near-term challenges (an adjusted EBITDA miss, significant coiled tubing fleet disruptions representing ~17% of large-diameter capacity, inflation-driven margin compression, modest cash used in operations and elevated borrowings). Management expects Q3 to be flat to modestly down and is focused on cost control and execution while preserving key skilled crews and pursuing technology-led growth.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance for Q3 calls for revenue of $133 million to $143 million and management expects Q3 revenue and adjusted EBITDA to be flat to modestly down versus Q2 (Q2 revenue $141.8M; adjusted EBITDA $8.6M; adjusted gross profit $19.9M), driven largely by one large‑diameter coiled‑tubing unit remaining under repair and cost inflation; CT days worked rose ~16% in Q2 while blended day rates fell ~15%, CT revenue was down ~2% to $26.4M and CT consumables/labor/repairs increased ~12% QoQ, with one unit returned early Q3 and the second expected near year‑end. Management expects average U.S. rig count in Q3 to be relatively flat to slightly up versus Q2 (rigs: end Q1 543, end Q2 573) and noted pricing power typically improves as rig counts approach ~600. Liquidity at June 30 was $16.8M cash plus $30M ABL availability (total liquidity $46.8M) with $97.3M drawn at ~7% interest; Q2 net cash used in operations was $2.3M, average DSO 59 days, Q2 CapEx $4.8M (YTD $10.4M) and full‑year CapEx reaffirmed at $20–30M (now expected mid‑to‑lower end) with the company targeting H2 cash‑flow neutrality. Key Q2 service metrics included completion tools: 28,256 stages (+45%) and $37.1M revenue (+44%; international revenue +17% YTD); cementing: 1,155 jobs (+13% vs Q1) and $55.3M revenue (+3%; avg revenue per job −8%); and wireline: 6,414 stages (−7%) and $23.0M revenue (−4%; avg revenue per stage +3%).
Nine Energy Service, Inc. Financial Statement Overview
Summary
Reported earnings and capital structure have improved (positive equity and sharply lower debt), but fundamentals remain mixed: EBIT is still negative, gross margin is thin, and cash generation is the key weakness with negative operating cash flow and free cash flow in the TTM period.
Income Statement
56NeutralBalance Sheet
48NeutralCash Flow
36Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 536.00M | 561.91M | 554.10M | 609.53M | 593.38M | 349.42M |
| Gross Profit | 49.15M | 60.16M | 60.60M | 78.12M | 96.04M | -3.59M |
| EBITDA | 152.01M | 53.31M | 60.47M | 72.67M | 96.34M | 20.97M |
| Net Income | 67.87M | -51.32M | -41.08M | -32.21M | 14.39M | -64.58M |
Balance Sheet | ||||||
| Total Assets | 317.65M | 353.70M | 360.08M | 401.98M | 426.83M | 381.61M |
| Cash, Cash Equivalents and Short-Term Investments | 18.25M | 19.84M | 27.88M | 30.84M | 17.45M | 21.51M |
| Total Debt | 128.87M | 382.65M | 358.79M | 366.32M | 377.80M | 372.07M |
| Total Liabilities | 188.09M | 468.66M | 426.14M | 437.61M | 450.34M | 420.88M |
| Stockholders Equity | 129.57M | -114.96M | -66.06M | -35.63M | -23.51M | -39.27M |
Cash Flow | ||||||
| Free Cash Flow | -43.36M | -23.25M | -1.57M | 20.91M | -11.88M | -55.83M |
| Operating Cash Flow | -26.78M | -7.31M | 13.20M | 45.51M | 16.67M | -40.42M |
| Investing Cash Flow | -13.20M | -13.59M | -14.18M | -23.16M | -25.42M | -11.92M |
| Financing Cash Flow | 40.66M | 12.86M | -1.68M | -8.89M | 4.85M | 5.05M |
Nine Energy Service, Inc. Risk Analysis
Nine Energy Service, Inc. disclosed 64 risk factors in its most recent earnings report. Nine Energy Service, Inc. reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksNine Energy Service, Inc. Peers Comparison
Overall Rating
RNGR61Neutral
OIS54Neutral
ACDC50Neutral- NINE49Neutral
PUMP49Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| RNGR | 61Neutral | $351.50M | 22.94 | 4.87% | 1.70% | 6.08% | -38.85% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| OIS | 54Neutral | $579.10M | -4.75 | -17.81% | ― | -0.74% | -595.12% |
| ACDC | 50Neutral | $888.76M | -1.78 | -56.47% | ― | -16.18% | -32.58% |
| NINE | 49Neutral | $109.37M | 1.14 | 514.81% | ― | -7.15% | ― |
| PUMP | 49Neutral | $949.73M | 353.03 | 0.21% | ― | -6.04% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| NINE | Nine Energy Service, Inc. | 7.40 | -0.80 | -9.76% | |
| OIS | Oil States International | 8.88 | 2.73 | 44.39% | |
| PUMP | Propetro Holding | 6.99 | -3.18 | -31.27% | |
| RNGR | Ranger Energy Services | 14.11 | 0.71 | 5.32% | |
| ACDC | Profrac Holding Corp. Class A | 4.37 | -0.75 | -14.65% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 01, 2026