Oil States International Inc (OIS) 2025 Q3 法說會逐字稿

Thank you for standing by. My name is Jordan, and I'll be a conference operator today. At this time, I'd like to welcome everyone to the Oil State's 3rd quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press one again.

感謝您的耐心等待。我叫喬丹，今天我將擔任會議接線生。此時此刻，我謹代表石油之州歡迎各位參加2025年第三季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講結束後，將進行問答環節。在此期間，如果您想提問，只需按下星號鍵，然後按下電話鍵盤上的數字 1 即可。如果您想撤回您的問題，請再按 1。

Thank you. I'd now like to turn the call over to Ellen Pennington, Vice President of Human Resources and senior counsel. Please go ahead.

謝謝。現在我想把電話交給人力資源副總裁兼資深法律顧問艾倫‧彭寧頓。請繼續。

Thank you, Jordan. Good morning and welcome to Oilate's 3rd quarter 2025 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hajek, Oil State's executive Vice President and Chief Financial Officer. Before we begin, we would like to to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our 2024 Form 10k, along with other recent SEC filings. This call is being webcast and can be accessed at Allstate's website. A replay of the conference call will be available 2 hours after the completion of this call and will continue to be available for 12 months. I'll now turn the call over to Cindy.

謝謝你，喬丹。早上好，歡迎參加 Oilate 2025 年第三季財報電話會議。今天的電話會議將由我們的總裁兼執行長辛迪泰勒和石油州執行副總裁兼財務長勞埃德哈傑克主持。在開始之前，我們想提醒聽眾一些前瞻性陳述。如果今天的發言包含歷史資訊以外的信息，請注意，我們依賴聯邦法律提供的安全港保護。任何人都不應假定這些前瞻性陳述在本季度後期或更長時間後仍然有效。任何此類言論都應結合影響我們業務的許多因素來考慮，包括我們在 2024 年 10-K 表格中披露的風險，以及其他最近提交給美國證券交易委員會的文件。本次電話會議正在進行網路直播，可透過Allstate網站存取。本次電話會議結束後 2 小時，即可收聽會議錄音，錄音將保留 12 個月。現在我將把電話轉給辛蒂。

Thank you.

謝謝。

Good morning and thank you for joining our conference call today where we will discuss our third quarter 2025 results and provide our thoughts on market trends in addition to discussing our company specific strategy and outlook. In a quarter marked by lower crude oil prices, uncertainty about the oil, macro and fluctuating US trade policies, US shale-driven activity slowed further, while offshore and international markets demonstrated resilience, benefiting from long cycle project investments. With this backdrop, the company performed well, finishing the quarter within our guided EBITDA range, but with weaker contributions from our US operations due to completion activity declines experienced during the quarter.

早安，感謝各位參加今天的電話會議，我們將討論2025年第三季業績，並對市場趨勢發表看法，同時也將討論我們公司的具體策略和展望。在本季度，原油價格走低，石油市場前景不明朗，宏觀經濟情勢動盪，美國貿易政策也出現波動，美國頁岩油氣活動進一步放緩，而海上和國際市場則展現出韌性，受益於長期專案投資。在此背景下，公司表現良好，本季 EBITDA 達到預期目標，但由於本季完工活動減少，美國業務的貢獻有所減弱。

Our consolidated results in the 3rd quarter were driven by backlog growth achieved over recent quarters, along with solid execution of existing projects. Remains well positioned to benefit going forward, as only gas operators favor capital allocation to offshore projects with higher production, slower decline curves, and lower break even.

第三季綜合業績的成長得益於近幾季積壓訂單的成長，以及現有項目的穩健執行。由於只有天然氣業者才會將資本配置到產量更高、產量下降曲線更慢、損益平衡點更低的近海項目上，因此該公司仍處於有利地位，預計將在未來受益。

Prices during the 3rd quarter, 75% of our consolidated revenues were generated from offshore and international projects, a percentage that is up both sequentially and year over year.

第三季度，我們合併收入的 75% 來自海外和國際項目，這一比例環比和同比均有所增長。

This continued shift in revenue mix reflects our multi-year strategy to grow our offshore and international project-driven content, which generally comprises longer cycle, higher margin work.

收入結構的持續轉變反映了我們多年來發展離岸和國際專案驅動型內容的策略，這些內容通常包括週期較長、利潤較高的工作。

Our offshore manufactured products segment continued to deliver strong performance. Revenues increased 2% sequentially, while adjusted segment EBITDA rose 6% due to product and service mix.

我們的海外製造產品業務部門持續保持強勁的業績表現。營收季增 2%，而由於產品和服務組合的變化，調整後的分部 EBITDA 成長了 6%。

Backlog increased to $399 million again allowing us to achieve our highest level since June 2015.

積壓訂單再次增加至 3.99 億美元，使我們達到了自 2015 年 6 月以來的最高水準。

Robust bookings of $145 million which represents a 29% quarter over quarter increase, was boosted by strong military orders, yielding a quarterly book to bill ratio of 1.3 times. The strength and diversity of our backlog supports our outlook for total company incremental revenue and earnings growth as we move into 2026.

強勁的訂單金額達到 1.45 億美元，環比增長 29%，這主要得益於強勁的軍方訂單，使得季度訂單出貨比達到 1.3 倍。我們積壓訂單的實力和多樣性支撐了我們對公司2026年總收入和利潤成長的預期。

Land completion activity declined significantly during the period, with the average US frac spread count down 11% sequentially. The US activity reductions stem from weaker crude oil prices and OpEx's decision to rapidly unwind over 2 million barrels per day of previous production cuts.

在此期間，土地完工活動顯著下降，美國平均壓裂作業數量較上季下降 11%。美國石油活動減少的原因是原油價格走弱，OpEx公司決定迅速取消先前每天超過200萬桶的減產措施。

Our completion and production services and downhole tech technology segments which represent a smaller portion of our business mix, experience sequential quarter revenue declines of 6% and 1% respectively, primarily due to the significant industry-wide reduction in US land-based activity.

我們的完井和生產服務以及井下技術業務板塊在我們業務組合中所佔比例較小，其季度收入分別環比下降 6% 和 1%，這主要是由於美國陸上油氣行業的普遍大幅減少。

Sustained margin benefits stemming from our US land-based optimization efforts which were initiated in 2024 and have continued in 2025. Have led to year over year EBITDA growth in our completion and production services segment despite weaker industry activity levels.

我們從 2024 年開始，並在 2025 年繼續推進美國陸上業務優化工作，從而獲得了持續的利潤收益。儘管行業活動水平疲軟，但我們的完井和生產服務部門仍實現了 EBITDA 的同比增長。

During the third quarter, we grew our cash flow from operations to $31 million an increase of 105% sequentially, and we generated $23 million dollars of free cash flow.

第三季度，我們的營運活動現金流成長至 3,100 萬美元，較上季成長 105%，自由現金流為 2,300 萬美元。

Our ongoing deleveraging efforts should unlock additional equity value for our stockholders as we pay off our convertible senior notes at their maturity in April of 2026. We are committed to optimizing our operations and making targeted investments in our highest performing businesses while leveraging cutting edge technologies to drive growth. Our industry leading managed pressure drilling our NPD system exemplifies this commitment to improve operational safety and performance levels. During the quarter, Oates was honored with 2. Energy Workforce and Technology Council safety awards, including the President's Gold Award for Health Safety and Environment incident rate Improvement during the 2023 to 2024 period and the fail-safe Technology Award for advancing safer NPD operations in collaboration with Sea Drill, a global leader in high-spe offshore drilling rigs. Along with our safety culture, we remain focused on three core priorities growing our offshore and international presence, managing volatility inherent in US land activity, and driving meaningful cash flow generation.

隨著我們在 2026 年 4 月到期時償還可轉換優先票據，我們正在持續努力降低槓桿率，這將為我們的股東釋放更多股權價值。我們致力於優化運營，對業績最佳的業務進行有針對性的投資，同時利用尖端技術推動成長。我們業界領先的受控壓力鑽井技術，以及我們的新產品開發系統，體現了我們致力於提高作業安全性和性能水平的承諾。本季度，奧茨榮獲 2 項榮譽。能源勞動力和技術委員會安全獎項，包括總統金獎（表彰在 2023 年至 2024 年期間改善健康、安全和環境事故率）以及故障安全技術獎（表彰與高速海上鑽井平台的全球領導者 Sea Drill 合作推進更安全的 NPD 操作）。除了我們的安全文化之外，我們還專注於三個核心優先事項：發展我們的海上和國際業務，管理美國陸上活動固有的波動性，以及推動有意義的現金流產生。

Lloyd will now review our operating results along with our financial position in more detail.

勞埃德銀行接下來將更詳細地檢視我們的經營績效和財務狀況。

Thanks Cindy. Good morning, everyone.

謝謝你，辛蒂。各位早安。

During the 3rd quarter, we generated revenues of $165 million and adjusted consolidated EBITDA of $21 million.

第三季度，我們實現了 1.65 億美元的收入，調整後的合併 EBITDA 為 2,100 萬美元。

Netcom totaled $2 million or $0.03 per share.

Netcom 的總收入為 200 萬美元，即每股 0.03 美元。

Which included facility exit, severance, and other charges totaling $4 million the majority of which related to our US land restructuring efforts. Our adjusted net income total $5 million or $0.08 per share after excluding these charges.

其中包括設施退出費、遣散費和其他費用，總計 400 萬美元，其中大部分與我們在美國的土地重組工作有關。扣除這些費用後，我們調整後的淨收入總計為 500 萬美元，即每股 0.08 美元。

Our offshore manufactured products segment generated revenues of $109 million.

我們的海外製造產品業務部門創造了 1.09 億美元的收入。

An adjusted segment EBITDA of $22 million in the third quarter.

第三季調整後分部 EBITDA 為 2,200 萬美元。

Justice segment I margin was 21% in the third quarter.

第三季度，司法部門 I 的利潤率為 21%。

In our completion and production services segment.

在我們的完工和生產服務領域。

We generated revenues of $28 million and adjusted segment of $8 million in the third quarter.

第三季度，我們實現了 2,800 萬美元的收入，調整後分部收入為 800 萬美元。

We achieved an adjusted segment IBA margin of 29%.

我們實現了經調整後的分部 IBA 利潤率為 29%。

During the quarter, the segment recorded facility exit and other restructuring charges totaling $3 million.

本季度，該業務部門錄得設施退出和其他重組費用總計 300 萬美元。

In our downhole technology segment, we generated revenues of $29 million and an adjusted segment, I loss of $1 million in the quarter.

在我們的井下技術部門，本季我們創造了 2,900 萬美元的收入，經調整後，該部門虧損 100 萬美元。

Due to the impact of higher costs due to tariffs and lower international activity levels.

由於關稅上漲導致成本上升以及國際貿易活動減少的影響。

Turning to cash flow, we generated $31 million of cash flow from operations in the third quarter, double the amount we generated in the second quarter.

再來看現金流，我們第三季從經營活動產生了 3,100 萬美元的現金流，是第二季產生的現金流的兩倍。

Our cash flows were used to fund $8 million of net cap backs.

我們的現金流量用於支付 800 萬美元的淨資本回饋。

During the quarter, we repurchased $4 million of our common stock under our share repurchase authorization. In addition, we purchased $6 million of our convertible senior notes at a slight discount.

本季度，我們根據股票回購授權回購了價值 400 萬美元的普通股。此外，我們還以略微折扣的價格購入了價值 600 萬美元的可轉換優先票據。

Further, is a testament to our strong financial position, as of September 30th, we maintain a solid cash on hand position with no borrowings outstanding under the under our asset-based revolving credit facility.

此外，這也證明了我們強勁的財務狀況，截至 9 月 30 日，我們保持著充足的現金儲備，並且在我們以資產為基礎的循環信貸安排下沒有任何未償還的借款。

Given our strong free cash flow outlook, we intend to remain opportunistic with additional purchases of our common stock and convertible senior notes, and we will continue to prioritize returns to stockholders.

鑑於我們強勁的自由現金流前景，我們打算繼續抓住機會，增購我們的普通股和可轉換優先票據，並將繼續優先考慮股東回報。

Now Cindy will offer some market outlook and concluding comments.

現在辛迪將對市場前景進行一些展望並作總結性評論。

Recent economic volatility and continued uncertainty around trade tariffs, we continue to see solid demand for our offshore and international products and services. Our backlog is at a decade-high level, and we anticipate continued strength in future bookings with our 4th quarter book to bill ratio again expected to exceed 1 time. Industry analysts have suggested that while US land-based activity may remain subdued into 2026, offshore and international markets are expected to improve. Analysts point to a growing global emphasis on exploration and offshore development as operators seek more cost.

近期經濟波動以及貿易關稅方面的持續不確定性，我們仍然看到市場對我們的離岸和國際產品及服務有強勁的需求。我們的積壓訂單量達到了十年來的最高水平，我們預計未來的訂單量將繼續保持強勁勢頭，第四季度的訂單出貨比預計將再次超過 1 倍。產業分析師認為，雖然美國陸上石油活動可能在 2026 年仍將保持低迷，但海上和國際市場預計將會改善。分析師指出，隨著營運商尋求降低成本，全球越來越重視勘探和海上開發。

Efficient lower carbon resources which place oil states in the center of this secular growth opportunity given our business mix and global base of operations.

鑑於我們的業務組合和全球營運基地，高效的低碳資源將使石油國家處於這一長期成長機會的中心。

Regarding our outlook, based on what we know today, our fourth quarter consolidated revenues should increase 8% to 13% sequentially, and our 4th quarter adjusted EBITDA is expected to range from $21 to $22 million. Our cash flows from operations were very strong in the 3rd quarter and are expected to improve in the 4th quarter, bringing the annual amount to $100 million plus.

關於我們的展望，根據我們目前掌握的信息，我們第四季度合併收入應環比增長 8% 至 13%，第四季度調整後 EBITDA 預計在 2100 萬美元至 2200 萬美元之間。第三季我們的經營活動現金流非常強勁，預計第四季將有所改善，使年度金額達到 1 億美元以上。

Our business mix and capital allocation strategies are purpose driven. We are investing in innovation that provides meaningful technology advancements to the industry, driving solid results through project execution, generating significant cash flows that strengthens our balance sheet while returning cash to our stockholders through share buybacks. The decisions we make are focused on building a stronger, more resilient company. That drives meaningful results for those we serve. Our business mix positions us strategically for market opportunities that develop. We have continued the journey to shift our business mix with a focus on generating differentiated cash flow conversion rates and an industry leading free cash flow yield by advancing next generation technologies, building backlog with strong margins, executing with discipline. Reducing debt and returning cash to stockholders, we believe that we offer a compelling investment opportunity that completes our prepared comments. Jordan, would you open up the call for questions and answers at this time, please?

我們的業務組合和資本配置策略都是以目標為導向的。我們投資於能夠為產業帶來有意義的技術進步的創新，透過專案執行推動穩健的成果，產生可觀的現金流，從而增強我們的資產負債表，同時透過股票回購將現金回饋給股東。我們所做的決定都旨在打造一個更強大、更有韌性的公司。這能為我們所服務的對象帶來實際的好處。我們的業務組合使我們能夠從策略上把握未來出現的市場機會。我們持續推動業務組合轉型，專注於透過推進下一代技術、建立高利潤率的訂單儲備以及嚴格執行，實現差異化的現金流轉換率和行業領先的自由現金流收益率。我們相信，透過減少債務並向股東返還現金，我們提供了一個極具吸引力的投資機會，以上就是我們準備好的評論。Jordan，請問現在是否可以開放問答環節？

(Operator instruction)

（操作說明）

Jim Rollinson from Raymond James.

來自 Raymond James 的 Jim Rollinson。

Hey, good morning, Sydney and Lloyd.

嘿，悉尼和勞埃德，早安。

Hi Jim.

嗨，吉姆。

Cindy, as I kind of listened through earning season so far this quarter, the drillers offshore drillers I should say, are all kind of talking about a kind of mid late next year rebound and and maybe near term bottom in activity. The guys in the infrastructure side of things are kind of talking about FIDs picking up next year and beyond and. And obviously you guys had a great bookings quarter and I think your commentary suggests that should continue, but would love to just get kind of color on on you know how conversations are going, kind of the flow of conversations, maybe margin profile and and impact of tariffs there and and just kind of timing of how this backlog kind of rolls off as you go forward.

辛迪，就我目前在本季財報季的觀察來看，應該說是海上鑽井公司，都在談論明年中後期可能會反彈，而且活動量可能在短期內觸底。基礎設施方面的人員正在討論明年及以後FID（最終投資決定）將會增加。顯然，你們的預訂量季度表現非常出色，我認為你們的評論表明這種情況應該會繼續下去，但我很想了解一下你們的討論進展如何，討論的走向，利潤率情況，關稅的影響，以及積壓訂單將如何逐步減少。

Thank you for the question. I think it's a fantastic one. I mean, what you're hearing from offshore exposed companies is that we've had a good year, but throughout the year with lower crude prices, some of the optimism for spending has shifted to the right a bit. That's both for contracting rigs as well as kind of new incremental projects which hits everybody to a certain degree, and that's why we kind of highlighted that we had a good base bookings quarter, but it was augmented by military and so I just want to say that's kind of consistent with what you're hearing on the oil and gas side of the market.

謝謝你的提問。我覺得這真是太棒了。我的意思是，從那些業務涉及海外的公司那裡聽到的消息是，我們今年的業績不錯，但由於全年原油價格走低，人們對支出的樂觀情緒有所回落。這既包括承包鑽井平台，也包括一些新的增量項目，這些項目在某種程度上影響著所有人。這就是為什麼我們強調我們有一個良好的基礎預訂季度，但這主要是由於軍事項目。所以我想說，這與你在石油和天然氣市場聽到的情況基本一致。

There is Every thought that we're going to have an improved year in 2026, especially because some of this has slipped to the right. As it relates to our 4th quarter, we are going to, again, I told you I think we're going to have a book to build north of one that's predicated on projects that are very close to the award stage, and that is both production infrastructure for us and kind of NPD type systems. Those are the drivers and so it's always a question of the macro versus company specific. But our company specific looks good, but maybe not quite as robust as we thought coming into the year with crude prices at 60. Now all those just shift to the right and therefore 26 starts looking better. So I do think that what we're seeing is consistent. We just had a better bookings year possibly than others for various reasons. Maybe it's the best way I'll look at that.

很多人都認為 2026 年情況會好轉，尤其是有些事情已經朝著好的方向發展。至於我們的第四季度，我再次告訴你們，我認為我們將要建立超過一個季度的業務，這些業務都基於非常接近授標階段的項目，這既包括我們的生產基礎設施，也包括新產品開發系統。這些就是驅動因素，所以始終是宏觀因素與公司具體因素之間的問題。但我們公司的具體情況看起來不錯，但可能沒有我們年初原油價格為 60 美元時預期的那麼強勁。現在所有這些數字都向右移動，因此 26 看起來更好了。所以我認為我們目前看到的現像是一致的。由於各種原因，我們今年的預訂量可能比往年好。或許這是我看待這個問題的最佳方式。

I'm going to pivot to what I think was your second question, which was the tariff situation, and because so much of our projects that are value add in the US go into international plays, there is less impact on our primary segment, which is the offshore manufactured product segment, where it's hit us harder and you see that in Results this quarter was on the down, the consumable side of the business, the downhole technologies, which is largely on the perforating side because we import guns still like we believe most other companies do in the space from foreign sources, particularly China.

我要轉而回答我認為是你的第二個問題，也就是關稅狀況。由於我們在美國的許多增值項目都銷往國際市場，因此對我們主要業務板塊——海外製造產品板塊——的影響較小。該板塊受到的衝擊更大，正如你在本季度業績中所看到的，業務的消耗品部分，即井下技術（主要是射孔技術）出現了下滑，因為我們仍然像該領域的大多數其他公司一樣，從國外（特別是中國）進口射孔槍。

You heard, some of the issues that Cactus and others are dealing with. They commented on the 95% tariff rate and big increases that hit. In June, the exact same thing happened to us and somewhat unexpectedly, so the 3rd quarter unequivocally hit us on the downhill side with higher tariff costs. We, like everybody else is trying to manage through and understand it, and there was, a kind of a temporary agreement between the US and China yesterday, but it really had a very small impact on the overall tariff rate. We believe it.

你聽到了，Cactus 和其他人正在面臨的一些問題。他們評論了高達 95% 的關稅稅率和大幅上漲的影響。6 月份，同樣的事情也發生在了我們身上，而且有些出乎意料，因此第三季度由於關稅成本上升，我們無疑陷入了下坡路。我們和其他人一樣，都在努力應對和理解這件事。昨天美國和中國之間達成了一項臨時協議，但這對整體關稅稅率的影響非常小。我們相信這一點。

Our 98% rate came down to 88% per perspective, and if you go back two or three years, that tariff rate was 25%. So these are material increases in guns still costs. Now it is also our belief that everybody has the same supply sources which are generally foreign. We're all experiencing the same thing. But there's also been a buildup of inventory as activity has slowed, so I think the industry has to work through the pre-tariff inventory, but then it is my view, if the tariffs hold, they're going to have to be passed on to customers. It's one of timing.

從各個角度來看，我們的稅率從 98% 降至 88%，而如果回顧兩三年前，當時的稅率是 25%。所以這些都是槍枝成本的實質成長。現在我們也認為，大家的供應來源都一樣，通常都來自國外。我們都經歷著同樣的事情。但隨著市場活動放緩，庫存也隨之積壓，所以我認為該行業必須消化關稅實施前的庫存，但我的看法是，如果關稅維持不變，那麼這些成本最終將不得不轉嫁給消費者。關鍵在於時機。

That's the best impact or information I can give you. It tariffs are really not an issue for the completion and production services segment, so not a great impact to us, but it certainly has hit the consumable side of the downhole technologies piece of the business if that answers your question.

這就是我能給你的最好資訊或影響了。關稅對完井和生產服務部門來說其實不是問題，所以對我們影響不大，但如果這回答了你的問題，那麼它肯定對井下技術業務的消耗品方面造成了衝擊。

It absolutely does appreciate all that color and maybe just to follow-up there Cindy on on downhole technologies if you kind of back up the tariff impact, would you have because it was the first quarter you've had negative even down that segment since COVID, I'm assuming that was almost all, I mean the activity was lower, sure, but your margins and CPS stayed very strong given all the things you've been working on for the past year plus. I'm assuming that tariffs were almost the entire extent of what drove that negative and so, and then maybe any question or thoughts you have on the timing of how long that takes to actually blow through the inventory that sits there and then pass through like when do you get back to positive events.

我們非常欣賞所有這些色彩，Cindy，關於井下技術，如果你能解釋一下關稅的影響，因為這是自新冠疫情以來，你們在這個領域首次出現負增長，我假設這幾乎是全部原因了。我的意思是，業務活動確實減少了，但是考慮到你們過去一年多以來所做的所有工作，你們的利潤率和每股成本仍然非常強勁。我假設關稅幾乎是造成這種負面影響的全部原因，那麼，關於庫存需要多長時間才能真正消化掉，以及何時才能恢復到積極的市場行情，您可能有什麼疑問或想法嗎？

Yes, you're absolutely correct in your assessment. Now I will add to that, however, that even our plug demand was very weak in the quarter, not negative even, but in other words, there was no offset for the other portion of the consumables that we have in the mix or not sufficient offset, I'll call it. And we're, we believe we may even see improved demand even in 4th quarter is always weak because of holidays, everybody knows that we think we're going to see a little bit of an improved demand on the plug side simply because of inventory.

是的，您的評估完全正確。不過，我還要補充一點，本季我們的插電需求非常疲軟，甚至沒有出現負成長，但換句話說，我們組合中的其他消耗品部分沒有得到任何補償，或者說補償不足。我們相信，即使在第四季度（由於假日，第四季度通常比較疲軟），需求也可能會有所改善。大家都知道，我們認為由於庫存增加，插頭方面的需求會略有改善。

Drawdowns during the quarter. So it's a little bit of a combination, but if I look at a negative impact, yes, I'm going to put it on tariffs and then to your point, how long it takes, I'm guessing it'll be early next year, I think the strategy for us is the same, which is leverage and grow your international content and therefore have greater. Overall demand and cost absorption and as you say, we've got to start passing through the tariff impact if it's not mitigated or reduced from the levels that we have now and we're like everybody else, we're looking at every supply source around the world, both domestically and internationally to get the cost down. You've heard those comments from Other people in the space, but it's not immediate. We're also evaluating. Do we just start doing gun assemblies in our Bata facility in Indonesia so that we can support the international demand that we have with a lower tariff burden. Again, give us probably 6 months to work through some of these things, but we're doing our best not to allow it to, deter activity too much from a consolidated basis, for the company.

本季回撤幅度。所以這有點像是多種因素的綜合作用，但如果我考慮負面影響，是的，我會把它歸咎於關稅，至於你提到的需要多長時間，我估計要到明年年初，我認為我們的策略是一樣的，那就是利用和發展我們的國際內容，從而擁有更大的優勢。整體需求和成本吸收情況，正如你所說，如果關稅不能從目前的水平上緩解或降低，我們就必須開始轉嫁關稅的影響。我們和其他人一樣，正在世界各地尋找各種供應來源，包括國內和國際供應，以降低成本。你可能從業內其他人那裡聽過類似的說法，但這種情況不會立即出現。我們也在進行評估。我們是否應該在印尼的巴塔工廠開始組裝槍支，以便能夠以較低的關稅負擔來滿足國際需求？再次提醒，我們可能需要 6 個月的時間來處理這些問題，但我們正在盡最大努力，不讓這些問題對公司的整體營運造成太大阻礙。

Appreciate all that color.

欣賞這繽紛的色彩。

Thank you, Cindy.

謝謝你，辛蒂。

Thank you, Jim.

謝謝你，吉姆。

Stephen Genarro from Steel.

來自鋼鐵人樂團的史蒂芬傑納羅。

Thanks, good morning everybody.

謝謝大家，大家早安。

How are you?

你好嗎？

The, I guess two things for me, Cindy. The first, you, you've made. Oh, you've done a lot on the US land side to kind of high grade the portfolio and control and cut costs were necessary. Can you talk about When we think about the margin side of that business, especially CMP.

我想對我來說，有兩件事，辛蒂。第一個，是你，是你創造的。哦，你們在美國土地方面做了很多工作，以提高資產組合的質量，控製成本，削減成本是必要的。您能否談談當我們考慮該業務的利潤率方面，特別是CMP方面？

Do you think we're seeing the full impact of that in the margins? Yeah, I know it gets masked by kind of underlying activity, etc. But do you think you're starting to see the full impact of that? How does that unfold over the next 12 months?

你認為我們已經在邊緣地帶看到了這種影響的全部後果嗎？是的，我知道它會被一些潛在的活動等等掩蓋起來。但你認為你開始看到它的全部影響了嗎？接下來12個月裡，事態將如何發展？

You're, it's a very good comment, and I, I'll just tell everybody I think we'll be through a lot of this transition by the end of the year, which makes the results a little bit cleaner going forward once we get the. Finalization, I'll call it. You realize we're moving equipment all over the place, going into new basins, new customers, closing facilities, incurring severance, and again I do pray that we get kind of most of this out of the system by the end of the year and have clean margins going forward, but once we do.

你的評論非常好，我只想告訴大家，我認為到今年年底，我們將完成大部分的過渡工作，這將使我們在取得進展後，未來的結果會更加清晰。我姑且稱之為最終定稿。您知道我們正在到處搬遷設備，進入新的盆地，開發新客戶，關閉工廠，支付遣散費，我再次祈禱我們能在年底前把這些事情大部分都處理掉，並在未來擁有良好的利潤，但一旦我們做到了。

We expect, depending on timing of work and everything else, caveat that goes with it, high 20s to low 30s margins. And so again, I think that is in the context of 2024. Lloyd, correct me if I'm not wrong, being in the high 10s EA margins. So what you see, yeah, the revenue is going to be a bit lower, and we'll give you very specific guidance on that as we move forward into 2026, but it will be at higher margins and greater free cash flow because the business is, this is part, yeah, an IBA drag, but more importantly it's a cash flow drag and so we're really making step changes in that segment. Focused specifically on free cash flow generation over the long-term.

我們預計，根據工作進度和其他所有因素（但需注意），利潤率將在 20% 到 30% 之間。所以，我認為這都是在2024年的背景下進行的。Lloyd，沒記錯的話，EA利潤率應該在10%以上。所以你看，收入確實會略有下降，我們會在展望 2026 年時給出非常具體的指導，但利潤率會更高，自由現金流也會更大，因為這項業務，這部分是 IBA 的拖累，但更重要的是，它是現金流的拖累，所以我們正在該領域進行真正的變革。專注於長期自由現金流的產生。

Thanks. And just two other things. One is a follow-up to that and again I thought of underlying activity levels, have we seen, we, I think this is right, but we've seen the majority of the revenue impact already, right, from businesses that have been pared down or or or divested as you high grade the portfolio.

謝謝。還有兩件事。一是後續問題，我又想到了潛在的活動水平，我們是否已經看到，我認為沒錯，我們已經看到了大部分收入影響，對吧，來自那些在對投資組合進行高級化調整時被縮減或剝離的業務。

The majority, yes.

是的，大多數人是這樣。

Okay, good, the other, the other quick one is I think, at the end of last year, I think you said in the I think the number was 70% of the backlog was going to convert over the next 12 months. I think that was right from last year. You're, you've had very good overflow this year. Do you expect, is it fair to assume that your current backlog is in a similar spot from a realization perspective over the next 12 months, or is that it elongated at all? How should we think about that?

好的，另一個問題，另一個簡單的問題是，我想，在去年年底，你說過，我認為積壓訂單的 70% 將在未來 12 個月內轉換。我認為去年的情況就是這樣。今年你們的溢流狀況非常好。您認為，從實現的角度來看，您目前的積壓工作在未來 12 個月內是否會處於類似的狀態，或者說，積壓工作是否會延長？我們該如何看待這個問題？

It's a little bit elongated with the military awards that we got. Those are typically multi-year kind of delivery that span over a period of time, the awards we expect to get in Q4 will probably leverage that back towards the, longer-term kind of trends that you see on product rollout. Look at a point in time, the point in time with the military would be down just a little bit in terms of that percentage roll off in the forward 12 or 15 months. That can change obviously with the mix of things coming in the backlog and what we expect in Q4 moves it back the other direction if that makes sense.

加上我們獲得的軍功勳章，表格稍微長了一些。這些通常是需要多年才能完成的交付項目，我們預計在第四季度獲得的獎項可能會反過來推動產品推出方面出現的長期趨勢。從某個時間點來看，就軍隊而言，未來 12 或 15 個月的百分比下降幅度可能會略微偏小。顯然，隨著積壓訂單中各種事項的組合變化，這種情況可能會改變，而我們對第四季度的預期可能會使情況朝著相反的方向發展，如果這樣說得通的話。

Yes, okay, perfect. I think that's all for me.

好的，沒問題。我想這就是我要說的全部了。

Thank you.

謝謝。

All right, thank you, Stephen.

好的，謝謝你，史蒂芬。

Joshua Jane from Daniel Energy Partners.

來自丹尼爾能源合作夥伴公司的約書亞·簡。

Thanks. Good morning.

謝謝。早安.

Good morning.

早安.

1st question for you, I'm going to stick on the offshore theme. A number of the customers you deal with have exposure to both US land and offshore, and as there's been sort of a massive wave of EMP consolidation over the last couple of years. When you talk to those.

我的第一個問題，我想繼續討論離岸主題。您所接觸的許多客戶都涉及美國陸地和海上業務，而且在過去幾年裡，EMP（電子製造設備）產業出現了一波大規模的整合浪潮。當你和他們交談時。

In their capital. Do you do you view this as a structural shift offshore versus US land spending, and do you think this consumes a greater share of their budgets moving forward, or is this just sort of what happens in a weak commodity environment as offshore break evens have continued to come down?

在他們的首都。您認為這是美國陸地支出相對於海外支出的結構性轉變嗎？您認為這會在未來佔用他們預算的更大比例嗎？還是這只是在大宗商品疲軟的環境下，隨著海外損益平衡點持續下降而發生的自然現象？

I do think it's more of a secular trend, and of course we have a mix of customers that some do have both exposure to US land and offshore. Others like Petrobras as an example, is much more just focused on offshore deep water and so it's a mix there.

我認為這更像是一種長期趨勢，當然，我們的客戶群也比較多元化，有些客戶既有美國陸地業務，也有海外業務。以巴西石油公司（Petrobras）為例，其他公司則更專注於近海深水區，因此情況較為複雜。

I just do, there's always different reasons for the investments that are made, but We can all debate whether we're at tier 1 acreage, tier 2 acreage. It all comes down to what are the breakevs and how attractive are they are $60 to $70 a barrel, right, which is kind of the environment we see going forward, but you get below $60 and I think those marginal investments tend to shift just a bit.

我確實這麼認為，投資的原因總是多種多樣的，但我們都可以討論我們擁有的是一級地塊還是二級地塊。這一切都取決於突破口是什麼，以及它們有多吸引人。每桶60到70美元的價格，對吧？這大概就是我們未來會看到的市場環境。但如果價格跌破60美元，我認為這些邊際投資往往會有些變動。

I made those comments on my call and.

我在電話中發表了這些評論。

The flip side is, there's kind of lower A costs, shorter time to first production on land, so there's oftentimes reasons to drill wells on land without question, but they also the decline curves are much higher. So it's really hard to isolate on one versus the other for someone that has dual exposure. I just think that the macro trend with greater success in deep water, they are longer lived reserves, and the time from discovery to first production has shortened that that just definitely seems to be a trend, more of a secular trend in our view.

另一方面，陸上鑽井的 A 成本相對較低，首次投產時間也較短，因此通常有許多理由毫不猶豫地在陸上鑽井，但陸上鑽井的產量遞減曲線也高得多。所以對於同時接觸這兩種因素的人來說，很難將其中一個因素與另一個因素區分開來。我認為，宏觀趨勢是，深水油氣儲量更大，儲量壽命更長，從發現到首次投產的時間也縮短了，這絕對是一種趨勢，在我們看來，這更像是一種長期趨勢。

And of course a lot of the decisions we make are based on product differentiation, history in the marketplace, technology differentiators, and we just have a lot more, quite frankly, that we deliver to the offshore and international market. It's much harder to not have commoditization on US land. That's just reality and so we are trying to really focus on areas that we think bring value to the company and bring value to our shareholders.

當然，我們所做的許多決定都是基於產品差異化、市場歷史、技術差異化等等，坦白說，我們向海外和國際市場提供的產品和服務也更多。在美國，要避免土地商品化要困難得多。這就是現實，所以我們正努力專注於那些我們認為能為公司帶來價值、為股東帶來價值的領域。

So on that point, Cindy, could you expand a little bit more? You highlighted some of the safety awards, at least one of which was around. NPD, could you elaborate a bit more on some of the products that have been driving your backlog build offshore, and I assume a lot of them have to do with not only safety but making operations more efficient for the customers. We hear about efficiencies a lot in US land, but maybe just speak to the things you're doing there and the specific products that have really driven this outside of the military rewards, the strength in the in the backlog offshore.

辛迪，關於這一點，你能否再詳細解釋一下？你重點介紹了一些安全獎項，其中至少有一個獎項還在。NPD，能否詳細說明一下導致您們海外訂單積壓的一些產品？我猜想其中許多產品不僅與安全有關，而且與提高客戶的營運效率有關。我們經常聽到美國國內的效率問題，但也許可以談談你們在那裡所做的事情，以及除了軍事獎勵之外，真正推動這一發展的具體產品，以及海外積壓訂單的實力。

We have some Honestly just ongoing recurring backlog that comes from our key connector products in many basins. We have crane operations. There's a number I call it just base orders, but what is really augmented our orders outside of the military awards that really came. In Q3 has been production infrastructure, most of which it's high technology. It's our leading flex joint technology you know very well, the industry knows very well, and much of that has gone into the demand environment in Brazil. Not surprisingly, Petrobras has by far a leading position in offshore activity and investment. And so that is really kind of what has led. Now we are augmenting that with new technology, including the NPD systems we brought to market early last year. It's working well, getting strong customer acceptance, and we expect that to continue to grow. There is the hope that we'll get incremental new demand from things like the mineral recovery system that we have in place for subsea minerals recovery. We've had pilots that have been in backlog, but not much this year, and then we, as we have that offshore wind kit. We're still bidding and quoting and Working with companies on budgets and planning, but nothing's really come into bear at this point in time. So it could be some upside outside of our standard oil and gas and military awards long-term, but right now I just think ongoing recurring demand that the general industry consumes married with production infrastructure investments.

說實話，我們有一些持續不斷的積壓訂單，這些訂單主要來自我們在多個流域的關鍵連接器產品。我們有起重機作業。有一些我稱之為基本命令，但實際上，除了軍事獎勵之外，我們還獲得了額外的命令。第三季主要集中在生產基礎設施方面，其中大部分是高科技產品。這是我們領先的柔性連接技術，您非常了解，業內人士也非常了解，而這很大程度上已經融入了巴西的需求環境。不出所料，巴西石油公司在海上活動和投資領域佔據絕對領先地位。所以，事情就是這樣發展起來的。現在，我們正在利用新技術來增強這一點，包括我們去年初推向市場的 NPD 系統。目前效果很好，獲得了客戶的強烈認可，我們預計這種成長勢頭會持續下去。我們希望透過諸如我們已建立的海底礦物回收系統等措施，獲得逐步成長的新需求。我們之前有一些飛行員專案積壓，但今年積壓的不多，而且我們還有離岸風電設備。我們仍在投標、報價，並與各公司合作制定預算和計劃，但目前為止還沒有任何實質進展。因此，從長遠來看，除了我們標準的石油天然氣和軍事獎勵之外，可能會有一些好處，但就目前而言，我認為只是整個行業持續的、經常性的需求，再加上生產基礎設施的投資。

Okay, thanks. And then I'd like to sneak in one quick US land question if I might just thinking about the cycle. So it's been talked about a little bit on the call, but your ability to expand margins in a pretty tough market has been impressive over the last 12 to 18 months.

好的，謝謝。然後，如果我沒理解錯的話，我想快速問一個關於美國土地的問題，因為我正在思考這個週期。在電話會議上已經稍微談到了這一點，但在過去 12 到 18 個月裡，你們在相當艱難的市場中擴大利潤率的能力令人印象深刻。

Michael, just when I think about customers living within cash flow, but at some point they don't want their production to roll. It'll be interesting to see what level of activity is necessary to maintain production, but How do you view where we are and how do you avoid cutting too much in the US land business to make sure that when the business improves you can take advantage of knowing that, there seems to be a structural shift towards natural gas activity over the next 3 to 5 years that's going to be coming and then I'll turn it back. Thanks.

邁克爾，我正想著客戶們如何在現金流範圍內生活，但到了某個時候，他們卻不希望生產繼續下去。看看維持生產需要多大的活動水平將會很有意思，但是您如何看待我們目前的處境，以及如何避免在美國陸上業務上過度削減，以確保當業務好轉時，您能夠利用這一點，因為我知道未來 3 到 5 年內，天然氣業務似乎將出現結構性轉變，然後我會扭轉局面。謝謝。

Yeah, no, I think it's a great question, and what we have done is this is not a 1 year decision. It's been a multi-year look back. And where have our technology held up? Where have our margins held up, and importantly, what has been the free cash flow generation at 560 rigs working or 1,000 rigs working, and we are being selective and saying, some of the businesses are so commoditized now they weren't really generating returns in.

是的，我認為這是一個很好的問題，而我們所做的，並非是在一年內做出的決定。這是一次長達數年的回顧。我們的技術發展到什麼程度了？我們的利潤率保持得如何？更重要的是，在 560 台鑽孔機或 1000 台鑽孔機同時運轉的情況下，自由現金流產生了多少？我們有所選擇，因為有些業務現在已經高度商品化，實際上並沒有產生回報。

Much higher rig count environments and they're certainly not doing in low. So the point is that trend going to be different if the rig count goes up 100 rigs or completion count? We concluded the answer is not for selected product lines. So this is not a view of US land, never coming back. It is a view of what product lines we want to offer to the US land market long-term. And that's really what it was because you can look at our margins that there's really good margins in selected businesses. Most of those are in our extended reach technology, our Gulf of Mexico operations, and our international. They were less so around, you all knew we got into flowback thinking it was a a cash flow generating a return. Well, it turned out not to be a very good business, and we don't want to be in that business, right? And so I think that's kind of more we're being not getting out of land, we're just being very selective about the ones we pursue long-term.

在鑽井平台數量較高的環境下，他們肯定無法在低鑽井平台上取得成功。所以關鍵在於，如果鑽機數量增加100台或完井數量增加100台，這種趨勢會有所不同嗎？我們得出結論，答案並非適用於特定產品線。所以這並不是美國土地一去不復返的觀點。這是我們希望長期向美國土地市場提供的產品線的願景。事實的確如此，因為你可以看到我們的利潤率，某些特定業務的利潤率確實很高。其中大部分涉及我們的遠端技術、墨西哥灣業務和國際業務。他們當時不太活躍，你們都知道我們陷入了現金流回流的困境，以為它能產生現金流和回報。結果證明這不是個好生意，我們也不想再做這種生意了，對吧？所以我覺得，我們更多的是沒有放棄土地，只是對那些我們打算長期投資的土地非常挑剔而已。

Understood.

明白了。

Thank you.

謝謝。

I'll turn to that.

我會轉而研究那個。

Jim Wallace son from Raymond James.

雷蒙德詹姆斯公司的兒子吉姆華萊士。

Sorry to come back in, but Cindy, I want to make sure I heard something right. Did you say with your guidance that you guided 4 key revenues and even done and that was a little bit lower maybe than than what the full year original guidance was a lot of guidances have come down throughout the year. But did I hear you right that your cash flow from operations is supposed to be $100 million for the full year?

不好意思再進來，辛迪，我想確認我沒聽錯。您之前說過，在您的指導下，您預測了 4 項關鍵收入，而且實際完成的金額可能比全年最初的預期略低，今年許多公司的業績預期都下調了。但我沒聽錯吧，您說的全年經營活動現金流應該是 1 億美元？

We had a, in our view, a very strong Q3, and we're going to have an even stronger Q4. They, we in our project businesses that are long-term, the timing of receivables and inventory purchases, ebbs and flows, we are confident when we say.

我們認為第三季業績非常強勁，第四季業績將會更加強勁。對於我們這些長期專案業務中的客戶而言，應收帳款和庫存採購的時間表、潮起潮落，我們對此充滿信心。

That it'll be $100 million plus for the year, which is a very significant number, as you know.

如你所知，今年的收入將超過 1 億美元，這是一個非常可觀的數字。

Yeah, so just doing math on that, you've done $55 million year-to-date, so it kind of implies a $45 million plus 4Q number and Lloyd, correct me if I'm wrong, but your CapEx is supposed to be a little bit on the lower end in 4Q. So like it puts you on track for a very big 4Q free cash flow number and probably something, north of $75 million for the year. Do I have that math right?

是的，簡單計算一下，你們今年迄今已經完成了 5500 萬美元，這意味著第四季度的數字將達到 4500 萬美元以上。勞埃德，如果我沒記錯的話，你們第四季的資本支出應該會略低。這樣一來，第四季的自由現金流有望大幅成長，全年自由現金流可能超過 7,500 萬美元。我的計算對嗎？

You do.

你做。

Okay, just want to make sure I wasn't missing something because that didn't register when you first said it so I went back and looked at the numbers and then I had a holy cow moment. So appreciate that.

好的，我只是想確認一下我有沒有漏掉什麼，因為你第一次說的時候我沒聽懂，所以我回去看了看數字，然後我才恍然大悟。非常感謝。

Great.

偉大的。

Question. It is a great question.

問題。這是一個很好的問題。

Thank you.

謝謝。

There are no further questions, I would now like to turn the call back over to Cindy Taylor for closing remarks.

沒有其他問題了，現在我想把電話交還給辛蒂泰勒，請她做總結發言。

Oh, I appreciate it, Jordan, and thanks to all of you for your time today.

哦，謝謝你，喬丹，也感謝各位今天抽出時間。

We believe we are focused on the right in markets. We're getting leaner by design, and we're being more selective about our capital allocation priorities. With that backdrop, we expect to see higher IAO margins and enhanced cash flows as we move into 2026, all efforts that should benefit our stockholders. Thanks for dialing in today and have a great weekend.

我們相信我們在市場中採取了正確的策略。我們正在有意識地精簡機構，並且在資本配置優先事項方面更加謹慎。在此背景下，我們預計到 2026 年，IAO 的利潤率將提高，現金流將增強，所有這些努力都將使我們的股東受益。感謝您今天撥入電話，祝您週末愉快。

This concludes the meeting, you may now disconnect.

會議到此結束，您可以斷開連線了。