Stonegate Capital Partners initiated coverage on Nine Energy Services (NYSE:NINE) after its emergence from bankruptcy, calling 1Q26 a transition quarter. GAAP comparability was constrained by Chapter 11 emergence and fresh-start accounting, while adjusted EBITDA faced headwinds from severe early-2026 weather and a $5.5M non-cash inventory write-down.
Management reported no material customer or vendor losses and largely stable pricing versus both prior quarter and 2025 exit rates. Stonegate views 2Q26 guidance as a cleaner benchmark for post-emergence earnings power, highlighting gas-basin exposure, completion tools, and international growth as key EBITDA levers.
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AI-generated analysis. Not financial advice.
Positive
Emergence from bankruptcy and reset financial foundation in 1Q26
No material customer or vendor losses reported post-restructuring
Service-line pricing stable versus prior quarter and 2025 exit rates
2Q26 guidance identified as cleaner benchmark for earnings power
Gas-basin exposure, completion tools, international growth seen as EBITDA levers
Negative
1Q26 GAAP comparability limited by Chapter 11 and fresh-start accounting
Adjusted EBITDA burdened by severe Jan/Feb weather
$5.5M non-cash inventory write-down not added back to EBITDA
Key Figures
Inventory write-down:$5.5M
1 metrics
Inventory write-down$5.5M1Q26 non-cash inventory write-down not added back to adjusted EBITDA
Market Reality Check
Price:$10.34Vol:Volume 14,275 is 0.41x it...
low vol
$10.34Last Close
VolumeVolume 14,275 is 0.41x its 20-day average of 34,917, indicating muted trading interest ahead of this coverage note.low
TechnicalShares at $10.34 are trading above the 200-day MA of $2.03 and sit 3.36% below the 52-week high of $10.70 after a large rebound from the $0.2897 low.
Peers on Argus
NINE slipped 0.58% while peers were mixed: KLXE -2.49%, DWSN -10.09%, DTI -1.95%...
2 Up
NINE slipped 0.58% while peers were mixed: KLXE -2.49%, DWSN -10.09%, DTI -1.95%, versus STAK +8.74% and RCON +4.63%. The lack of a consistent direction suggests this coverage initiation and post‑bankruptcy positioning are more stock‑specific than sector‑driven.
Announced timing for Q1 2026 earnings release and conference call logistics.
Pattern Detected
Recent news around Q1 2026 earnings and call scheduling saw small positive price moves, suggesting modestly constructive reactions to operational updates.
Recent Company History
Over the past few months, Nine Energy Service has focused on communicating its post‑restructuring financial profile. On Apr 14, 2026, the company set the timeline for its Q1 2026 earnings release and conference call, which was followed by a modestly positive price reaction. On May 13, 2026, Nine reported split predecessor/successor Q1 results, detailed adjusted EBITDA and liquidity, and provided Q2 revenue and EBITDA guidance, again with a small positive move. Today’s coverage initiation builds on those disclosures about post‑emergence earnings power and balance sheet reset.
Market Pulse Summary
This announcement underscores Nine Energy Service’s transition quarter after emerging from Chapter 1...
Analysis
This announcement underscores Nine Energy Service’s transition quarter after emerging from Chapter 11, with Stonegate highlighting that 1Q26 results were distorted by fresh‑start accounting, severe weather, and a $5.5M non‑cash inventory write‑down not added back to EBITDA. The note points to 2Q guidance as a better gauge of earnings power and stresses stable pricing and customer/vendor relationships. Investors may focus on margin normalization, utilization recovery, and execution in gas‑weighted basins and international markets.
Key Terms
gaap, chapter 11, fresh-start accounting, adjusted ebitda, +1 more
5 terms
gaapfinancial
"GAAP comparability was limited by Chapter 11 emergence and fresh-start accounting"
GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.
chapter 11regulatory
"GAAP comparability was limited by Chapter 11 emergence and fresh-start accounting"
Chapter 11 is a U.S. bankruptcy process that lets a financially distressed company keep operating while it reorganizes its debts and business plan under court supervision. Think of it as a formal pause that allows the company to renegotiate payments, shed contracts or assets, and seek a path to profitability instead of being liquidated; investors watch it because it can change the value and priority of claims, equity dilution, or the likelihood of recovery.
fresh-start accountingfinancial
"GAAP comparability was limited by Chapter 11 emergence and fresh-start accounting"
An accounting method used after a company completes a major restructuring or emerges from bankruptcy that resets the values on its balance sheet to current, “fresh” amounts rather than carrying forward old book values. Think of it like wiping a chalkboard clean and writing new asset and debt numbers based on current market value; this can change reported profits, asset lives and equity levels, so investors should treat post-reset results carefully when comparing performance or valuing the business.
adjusted ebitdafinancial
"while adjusted EBITDA was burdened by severe January/February weather"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
ebitdafinancial
"while adjusted EBITDA was burdened by severe January/February weather"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
AI-generated analysis. Not financial advice.
Dallas, Texas--(Newsfile Corp. - May 18, 2026) - Nine Energy Services (NYSE: NINE): Stonegate Capital Partners Initiatiates Coverage on Nine Energy Services (NYSE: NINE). NINE's 1Q26 print marked an important transition quarter as the Company emerged from bankruptcy and reset its financial foundation. GAAP comparability was limited by Chapter 11 emergence and fresh-start accounting, while adjusted EBITDA was burdened by severe January/February weather and a $5.5M non-cash inventory write-down that management did not add back. The read-through was positive, management stated NINE had no material customer or vendor losses, and pricing across technology and service offerings was mostly unchanged q/q, with service-line pricing largely stable versus 2025 exit rates. For an OFS company exiting restructuring, stable pricing matters because it indicates 1Q margin pressure was driven by utilization disruption and timing rather than customer concessions or competitive share loss.
To view the full announcement, including downloadable images, bios, and more, click here.
Key Takeaways:
2Q guidance is the cleaner benchmark for post-emergence earnings power. 1Q was distorted by fresh-start accounting, weather, and a $5.5M inventory write-down.
Commercial stability was a critical indicator. No material customer/vendor losses and stable pricing suggest restructuring did not impair market relevance.
Upside is more tied to normalization and mix than broad activity recovery. Gas-basin exposure, completion tools, and international growth provide the clearest EBITDA levers.
Click image above to view full announcement.
About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.
What does Stonegate's May 18, 2026 coverage initiation mean for Nine Energy Services (NYSE:NINE)?
Stonegate’s initiation signals renewed analyst focus on Nine Energy Services after its bankruptcy emergence. According to Stonegate, NINE has reset its financial foundation, with commercial stability and clear EBITDA levers shaping views on its post-emergence earnings power and investment case.
How did Nine Energy Services (NINE) perform in its 1Q26 transition quarter after bankruptcy?
1Q26 was a transition quarter with limited GAAP comparability due to Chapter 11 emergence and fresh-start accounting. According to Stonegate, adjusted EBITDA was pressured by severe January/February weather and a $5.5M non-cash inventory write-down that management did not add back.
Why is 2Q26 guidance important for Nine Energy Services (NYSE:NINE) investors?
2Q26 guidance is viewed as a cleaner benchmark for NINE’s post-emergence earnings power. According to Stonegate, 1Q26 results were distorted by accounting changes, weather disruptions, and the $5.5M inventory write-down, making upcoming guidance more informative for investors.
What factors negatively affected Nine Energy Services' adjusted EBITDA in Q1 2026 (NINE)?
Adjusted EBITDA in Q1 2026 was burdened by harsh January and February weather and a $5.5M non-cash inventory write-down. According to Stonegate, management chose not to add back this write-down, further weighing on reported adjusted EBITDA for the quarter.
Did Nine Energy Services (NYSE:NINE) lose customers or vendors after its restructuring?
Management reported no material customer or vendor losses following restructuring. According to Stonegate, this commercial stability, combined with largely unchanged pricing versus the prior quarter and 2025 exit rates, suggests the bankruptcy process did not significantly impair NINE’s market relevance.
How stable was pricing for Nine Energy Services (NINE) following its emergence from bankruptcy?
Pricing across technology and service offerings was mostly unchanged quarter over quarter, with service-line pricing stable versus 2025 exit rates. According to Stonegate, this stability indicates that 1Q margin pressure stemmed more from utilization and timing than from pricing concessions.
What EBITDA growth drivers does Stonegate highlight for Nine Energy Services (NYSE:NINE)?
Stonegate highlights gas-basin exposure, completion tools, and international growth as the clearest EBITDA levers. According to Stonegate, upside appears more tied to normalization and business mix improvements than to a broad recovery in overall oilfield service activity levels.
