Oil States International is no longer a United States land-completions shop pretending to be a diversified oilfield name. The second-quarter print is the first full period under Lloyd Hajdik after Cindy Taylor retired in May, and it tests whether a decade-high offshore backlog plus a cleaned-up land footprint can produce cash rather than just bookings. Offshore Manufactured Products backlog now stands at $451 million, the highest print since the last deepwater cycle. Sequential revenue recovered, yet operating cash still ran negative as inventory built for military and downhole work. The market capitalizes the name below stated book after the remaining convertible notes left the capital structure in April.
The mix shift is real and already visible in the destination split. More than seventy percent of first-half revenue came from offshore and international work, a step up from about half three years earlier. Downhole Technologies posted $40 million of revenue. That is the strongest quarter since the middle of 2023. Adjusted EBITDA rose to $19 million on the sequential rebound, even as it still trailed the year-ago print. The tension is that earnings quality improved while cash conversion did not. Inventory absorbed the recovery, and that is the part of the print the multiple still doubts.
Management guides full-year revenue between $640 million and $660 million. Free cash flow is framed at $35 million to $40 million if inventory unwinds. Third-quarter revenue is framed only slightly above the just-reported run-rate, which is not the posture of a company that thinks the backlog is about to flood the income statement. Whether the second half converts a military-heavy book into cash, rather than more inventory, is the question that decides if this is a re-rating or just a cleaner cycle stock.