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Achieved a 1.2x book-to-bill ratio and a decade-high backlog of $451 million, driven by a strategic shift where offshore and international activity now represents over 70% of consolidated revenue.

Attributed sequential revenue and EBITDA growth to high-grading the technology portfolio and disciplined execution within the Completion and Production Services and Downhole Technologies segments.

Noted that while Middle East geopolitical conflict has caused near-term contract award delays, the fundamental demand for secure, diversified energy supply continues to support long-cycle deepwater investment.

Reported material improvement in Downhole Technologies due to stronger perforating and completion product sales, despite persistent headwinds from raw material cost increases and charge powder availability.

Emphasized that national oil companies are increasingly prioritizing deepwater resources as a more secure alternative to regions currently experiencing supply disruptions.

Highlighted that U.S. land activity rose modestly as operators maintained capital discipline, focusing on operational efficiency rather than aggressive production increases.

Anticipated that delayed drilling, connector, and production facility orders will be received in the second half of 2026, pushing some revenue recognition into 2027.

Projected full-year 2026 revenue between $640 million and $660 million, with adjusted EBITDA ranging from $77 million to $83 million based on current award timelines.

Expected a book-to-bill ratio of 1x or greater for the full year, supported by strong bidding visibility and the conversion of firm backlog.

Assumed that multi-year military product contracts will weight the 12-month backlog conversion rate to approximately 55%, compared to the historical 65-70% range.

Forecasted that the deepwater upcycle will accelerate between 2027 and 2030, supported by lower break-even costs and long-life reserves compared to land resource plays.

Retired the remaining $53 million of convertible senior notes on April 1, significantly strengthening the balance sheet and reducing debt to $18 million.

Identified elevated input costs for tungsten, explosive powder, and copper as a primary margin pressure for the Downhole Technologies segment.

Invested $27 million in working capital during the first half of 2026 to secure long-lead materials for military awards and manage rising raw material costs.

Targeted $19 million in remaining assets held for sale to further bolster liquidity and support opportunistic share repurchases.

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Management stated that new awards are margin-accretive to the existing backlog, with a current segment EBITDA target of 20%.

Suggested that as backlog grows and manufacturing absorption improves, margins could reach the low 20s by 2027.

Attributed the segment's strength to a revamp of the perforating product line and increased completion activity rather than broad market restructuring.

Expected demand to remain stable at Q2 levels through the second half of the year, supported by rising natural gas production and LNG export trends.

Projected full-year free cash flow of $35 million to $40 million, excluding potential incremental asset sales.

Anticipated that the $27 million inventory investment made in the first half will begin to unwind in the second half, serving as a critical cash flow driver.

Explained that military revenue is driven by 'large block' awards from the U.S. Navy every 3 to 5 years, with the current Block 6 awards set to ramp in 2027.

Noted that while large $100 million+ awards are periodic, the business maintains a baseline of $25 million to $30 million in annual ongoing orders.