Stonegate Capital Partners has initiated coverage on Nine Energy Services, Inc. (NYSEAM: NINE), focusing on the company's first-quarter 2026 results as a pivotal transition period following its emergence from Chapter 11 bankruptcy. According to the research note, the first quarter marked an important reset of the company's financial foundation, though comparability under GAAP was limited due to fresh-start accounting.
Adjusted EBITDA during the quarter was impacted by severe January and February weather conditions, as well as a $5.5 million non-cash inventory write-down that management did not add back. Despite these headwinds, the read-through from the quarter was positive, with management reporting no material customer or vendor losses. Pricing across technology and service offerings remained mostly unchanged quarter-over-quarter, with service-line pricing largely stable compared to 2025 exit rates.
Stonegate analysts emphasized that for an oilfield services company exiting restructuring, stable pricing is a critical indicator. It suggests that the margin pressure in the first quarter was driven by utilization disruption and timing issues rather than customer concessions or a loss of competitive share. The commercial stability demonstrated by Nine Energy Services indicates that the restructuring process did not impair the company's market relevance.
Looking ahead, Stonegate views the second-quarter guidance as a cleaner benchmark for assessing the company's post-emergence earnings power. The first quarter was distorted by fresh-start accounting, weather, and the inventory write-down, making it an unreliable measure of ongoing performance. Upside potential for the company is more closely tied to normalization of operations and a shift in service mix rather than a broad recovery in activity levels. Specifically, Stonegate identified the company's exposure to gas basins, completion tools, and international growth as the clearest levers for EBITDA improvement.
For more details, the full announcement with downloadable images and additional information is available here. Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers investment banking, equity research, and capital raising for public and private companies.
