The following discussion and analysis should be read together with our condensed consolidated financial statements and notes to those statements included elsewhere in this Quarterly Report on Form 10-Q and our consolidated financial statements and notes to those statements included in our 2025 Annual Report on Form 10-K, as amended by our 2025 Annual Report on Form 10-K/A, in order to understand factors, such as charges, financing transactions and changes in tax regulations, which may impact comparability from period to period. We provide a broad range of manufactured products and services to customers in the energy, military and industrial sectors through our Offshore Manufactured Products, Completion and Production Services and Downhole Technologies segments. Demand for our products and services is cyclical and substantially dependent upon activity levels in the oil and gas industry, particularly our customers’ willingness to invest capital in the exploration for and development of crude oil and natural gas reserves. Our customers’ capital spending programs are generally based on their cash flows and their outlook for near-term and long-term commodity prices, making demand for our products and services sensitive to expectations regarding future crude oil and natural gas prices, as well as economic growth, commodity demand and estimates of resource production and regulatory pressures. 22 Recent Developments Brent and WTI crude oil and natural gas pricing trends were as follows: Average Price(1) for quarter ended Average Price(1) for year ended December 31 Year March 31 June 30 September 30 December 31 Brent Crude (per bbl) 2026(2) $ 80.72 $ 102.63 2025 75.87 $ 68.07 $ 69.03 $ 63.65 $ 69.14 WTI Crude (per bbl) 2026(2) $ 72.74 $ 95.65 2025 71.78 $ 64.57 $ 65.78 $ 59.62 $ 65.39 Henry Hub Natural Gas (per MMBtu) 2026 $ 4.71 $ 2.95 2025 4.14 $ 3.19 $ 3.03 $ 3.73 $ 3.52 ________________ (1)Source: U.S. Energy Information Administration (spot prices). (2)On July 28, 2026, the spot price per barrel of Brent and WTI crude oil closed at $85.51 and $80.91, respectively. The spot price per barrel of Brent crude oil averaged $103 in the second quarter of 2026, an increase of $39, or 61%, from the fourth quarter of 2025 following the escalation of military actions in the Middle East in late-February 2026. Despite the increases in crude oil prices, these evolving military actions have resulted in customer delays in project awards, cost increases and supply-chain and logistical constraints in the Middle East region, which have negatively impacted demand for our products and services in the area and limited our access to and increased the price of certain raw materials and other products used in our operations during the first half of 2026. The conflict has also resulted in damage to crude oil refining and storage facilities and severely limited tanker access to the region, causing operators to shut in or limit crude oil production. Continuation or expansion of these military hostilities and export constraints in the Middle East will likely negatively impact our results of operations over the balance of 2026 and possibly beyond. As a major oil producer, Iran’s involvement has heightened concerns over potential supply disruptions and transportation risks, contributing to significant volatility in global oil and natural gas prices. In particular, the restriction or cessation of maritime traffic through the Strait of Hormuz has significantly depressed global supply of oil and natural gas, resulting in increased volatility and overall elevated prices, as well as causing overall disruptions in global commodities markets. While the ultimate impact and magnitude of these disruptions is currently unknown, a prolonged interruption to the global commodities markets has the potential to materially adversely affect our business and operations and those of our suppliers and customers. Further, in late April 2026, the United Arab Emirates (“UAE”) announced that it was withdrawing from OPEC, and as a result, would no longer be subject to OPEC imposed production controls. While no other countries have yet followed the UAE in leaving OPEC, increased oil and gas production from the UAE, along with any other country that may leave OPEC, could increase global oil and gas supply, resulting in lower oil and gas prices. In addition, the imposition of broad based trade tariffs by the United States has led to ongoing uncertainty regarding the future effect of reciprocal and other trade tariffs on the global economy. These factors have negatively impacted the demand for and pricing of our products and services provided to the U.S. land-based market and have increased the cost of certain products we manufacture in the United States. We implemented certain initiatives in 2025, which have continued into 2026, to optimize our operations and improve future returns. These actions were concentrated in our U.S. land-focused service operations and included: the consolidation, relocation and exit of certain operating locations; the exit of certain service offerings; the exit of previously closed facilities; and reductions in our U.S. workforce. We also assessed the carrying value of certain long-lived and other assets based on the industry outlook regarding overall demand for and pricing of our products and services, market competitiveness and management decisions. As a result of these events, actions and assessments, our reported pre-tax results for the first six months of 2026 included $4.1 million of costs associated primarily with facility exits as well as $1.4 million in non-cash asset impairment charges. On January 28, 2026, we entered into an amended and restated cash-flow based credit agreement (the “Cash Flow Credit Agreement”) providing for original aggregate lender commitments of up to: $75.0 million under a revolving credit facility (the “Revolving Credit Facility”) and $50.0 million under a multi-draw term loan facility, which was available for a six-month period (the “Term Loan Facility”). The Cash Flow Credit Agreement replaced our existing asset-based credit agreement (the “ABL Agreement”). Subsequent to June 30, 2026, the Company repaid $20.0 million of outstanding borrowings under the Revolving Credit Facility with borrowings under the Term Loan Facility, and the remaining lender commitments under 23 the Term Loan Facility lapsed on July 28, 2026. See Note 4, “Long-Term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the Cash Flow Credit Agreement. On April 1, 2026, we retired $52.7 million of outstanding principal of our 4.75% convertible senior notes (the “2026 Notes”) with a combination of $50.5 million of cash and the issuance of 529,428 shares of our common stock. With the election by substantially all holders of the outstanding 2026 Notes to convert the instruments into shares of our common stock at maturity, we recognized a pre-tax loss of $3.6 million on the extinguishment of the 2026 Notes at a premium in the second quarter of 2026. Overview Current and expected future pricing for crude oil and natural gas, inflationary and tariff-driven cost increases, and expectations regarding the regulatory environment in the regions in which we operate are factors that will continue to influence our customers’ willingness to invest capital in their businesses. Expectations for the longer-term price for Brent crude oil will continue to influence our customers’ spending related to global offshore and international drilling and development and, thus, a significant portion of the activity of our Offshore Manufactured Products segment. Crude oil and natural gas prices and levels of demand for crude oil and natural gas are likely to remain highly volatile due to numerous factors, including, but not limited to: geopolitical conflicts in the Middle East, Europe and South America, along with associated international tensions; the moderate perceived risk of a global economic recession; the levels of domestic or international crude oil and natural gas production; technological advancements; consolidation of oil and gas producers; changes in governmental rules and regulations; sanctions; tariffs; the willingness of operators to invest capital in the exploration for and development of resources; use of alternative fuels; improved vehicle fuel efficiency; timing of capital investments in alternative energy sources; a more sustained movement to electric vehicles; and the potential for ongoing supply/demand imbalances. Our Offshore Manufactured Products segment provides technology-driven, highly-engineered products and services for offshore oil and natural gas drilling, completion and production systems and facilities globally, as well as certain products and services to the military and industrial markets. This segment is particularly influenced by global spending on deepwater drilling and production, which is primarily driven by our customers’ longer-term commodity demand forecasts and outlook for crude oil and natural gas prices. Approximately 91% of our Offshore Manufactured Products segment’s sales in the first six months of 2026 were driven by our customers’ capital spending for products and services used in exploratory and developmental drilling, greenfield offshore production infrastructure, and subsea pipeline tie-in and repair system applications, along with upgraded equipment for existing offshore drilling rigs and other vessels (referred to herein as “project-driven products and services”). Deepwater oil and gas development projects typically involve significant capital investments and multi-year development plans. Such projects are generally undertaken by larger exploration, field development and production companies (primarily international oil companies and state-run national oil companies) using relatively conservative crude oil and natural gas pricing assumptions. Given the long lead times associated with field development, we believe some of these deepwater projects, once approved for development, are generally less susceptible to change based on short-term fluctuations in the price of crude oil and natural gas. Deepwater oil and gas development projects may also be impacted by federal legislative and regulatory actions, including the OBBBA, which mandates that the Bureau of Ocean Energy Management conduct at least two offshore lease sales annually, of a minimum of 80 million acres (if available), in the Central and Western Gulf of America Planning Areas for the next 15 years. Additionally, we are investing in research and product development (and have been awarded select contracts and are bidding on additional projects) to facilitate the development of alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities. Backlog reported by our Offshore Manufactured Products segment increased to $451 million as of June 30, 2026 from $435 million as of December 31, 2025. Bookings totaled $114 million in the second quarter of 2026, yielding a quarterly book-to-bill ratio of 1.2x (1.1x year-to-date). The following table sets forth backlog as of the dates indicated (in millions). Backlog as of Year March 31 June 30 September 30 December 31 2026 $ 430 $ 451 — — 2025 357 363 $ 399 $ 435 2024 305 300 313 311 24 Our Completion and Production Services segment provides services in the United States (including the Gulf of America) and internationally. Over recent years, the segment has exited the majority of its U.S. land-based service operations in response to reductions in activity levels and highly competitive market conditions. The Completion and Production Services segment’s results, are sensitive to near-term fluctuations in commodity prices, particularly crude oil prices, given the short-term, call-out nature of its operations. We primarily supply rental equipment and service personnel utilized in the completion of, and initial production from, new and recompleted wells in our operations. Our Downhole Technologies segment provides oil and gas perforation systems, downhole tools and services in support of completion, intervention, wireline and well abandonment operations. This segment designs, manufactures and markets its consumable engineered products to oilfield service as well as exploration and production companies. Product and service offerings for this segment include innovations in perforation technology through patented and proprietary systems combined with advanced modeling and analysis tools. This expertise has led to the optimization of perforation hole size, depth, and quality of tunnels, which are key factors for maximizing the effectiveness of hydraulic fracturing. Additional offerings include frac plugs, toe valves and other elastomer products, which are focused on zonal isolation for hydraulic fracturing of horizontal wells, and a broad range of consumable products, such as setting tools and bridge plugs, that are used in completion, intervention and decommissioning applications. Hydraulic fracturing activity, and, in turn, our Downhole Technologies segment’s results, are sensitive to commodity prices, particularly WTI crude oil prices, given that lower activity may result in reduced demand for our consumable products. Demand drivers for the Downhole Technologies segment include continued trends toward longer lateral lengths, increased frac stages and more perforation clusters to target increased unconventional well productivity. Demand for our completion-related products and services within our Downhole Technologies segment and our Completion and Production Services segment are impacted by numerous factors, including changes in the total number of wells drilled in the United States, total footage drilled, the number of drilled wells that are completed and changes in the completion (“frac”) count. The following table sets forth a summary of the U.S. drilling rig count, as measured by Baker Hughes Company, as of and for the periods indicated. As of July 24, 2026 Average for the Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 United States Rig Count: Land – Oil 436 406 451 400 460 Land – Natural gas and other 136 133 105 134 105 Offshore 15 15 15 17 14 587 554 571 551 579 The U.S. energy industry is primarily focused on crude oil and liquids-rich exploration and development activities in U.S. shale plays utilizing horizontal drilling and completion techniques. We use a variety of domestically produced and imported raw materials and component products, including steel, in the manufacture of our products. Beginning in the first quarter of 2025, the United States imposed new or additional tariffs, through executive orders, on a variety of imported raw materials and products, including steel and aluminum. In response to the U.S. tariffs on steel and aluminum, the European Union and several other countries, including Canada and China, have threatened and/or imposed retaliatory tariffs. In the first quarter of 2026, the U.S. Supreme Court struck down broad tariffs previously imposed through executive orders under the International Emergency Economic Powers Act of 1977 on a wide range of imported goods. In response, President Trump implemented a 10% import surcharge on a broad range of goods under Section 122 of the Trade Act of 1974, which expired on July 24, 2026 pursuant to the statute's 150-day limitation. President Trump also implemented 10% to 12.5% tariffs on imports from sixty economies under Section 301 of the Trade Act of 1974. These tariffs, effective July 24, 2026, target various categories of imports, including certain raw materials used in our operations, such as steel, aluminum and copper. We continue to monitor the effects of the ever-evolving global trade landscape, including with respect to sanctions, tariffs, Chinese export restrictions on tungsten-related and other products used by us, existing trade agreements, anti-dumping and countervailing duty regulations and more. We cannot predict with certainty the duration of tariffs currently in place, the impact of any new or increased tariffs, or the impact of any retaliatory tariffs. If we encounter difficulty in procuring raw materials and component products, or if the prices we pay for these products remain at current levels or increase and we are unable to pass corresponding cost increases on to our customers, our financial position, cash flows and results of operations would be adversely affected. Furthermore, uncertainty with respect to potential costs in the drilling and completion of oil and gas wells could cause our customers to delay or cancel planned projects which, if this occurred, would adversely affect our financial position, cash flows and results of operations. 25 Other factors that can affect our business and financial results include but are not limited to: the general global economic environment; competitive pricing pressures; customer consolidations; labor market constraints; supply chain and logistic disruptions; inflation in wages, materials, parts, equipment and other costs; climate-related and other regulatory changes; geopolitical conflicts and tensions; management’s implementation of strategic decisions; public health crises; natural disasters; industrial accidents; trade restrictions; adoption of new or increases in tariffs; and changes in tax laws in the United States and in the international markets in which we operate. We continue to monitor the global economy, the prices of and demand for crude oil and natural gas, and the resultant impact on the capital spending plans and operations of our customers in order to plan and manage our business. Human Capital For more information on our health and safety policy and other workforce policies, please see “Part I, Item 1. Business – Human Capital” in our Annual Report on Form 10-K for the year ended December 31, 2025, as amended by our Annual Report filed on Form 10-K/A. 26 Selected Financial Data This selected financial data should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related notes included in “Part I, Item 1. Financial Statements” of this Quarterly Report on Form 10-Q and “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and related notes included in “Part II, Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2025, as amended by our Annual Report on Form 10-K/A, in order to understand factors, such as charges and credits, which may impact comparability of the selected financial data. Unaudited Consolidated Results of Operations The following summarizes our consolidated results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Variance 2026 2025 Variance Revenues: Products $ 98,753 $ 107,342 $ (8,589) $ 191,333 $ 207,893 $ (16,560) Services 57,906 58,064 (158) 110,689 117,451 (6,762) 156,659 165,406 (8,747) 302,022 325,344 (23,322) Costs and expenses: Product costs 77,724 83,936 (6,212) 152,091 164,265 (12,174) Service costs 40,227 41,404 (1,177) 77,449 83,752 (6,303) Cost of revenues (exclusive of depreciation and amortization expense presented below) 117,951 125,340 (7,389) 229,540 248,017 (18,477) Selling, general and administrative expenses 23,127 22,981 146 43,151 45,511 (2,360) Depreciation and amortization expense 8,061 11,898 (3,837) 16,250 23,923 (7,673) Impairments of operating lease assets — 1,358 (1,358) — 1,358 (1,358) Impairment of assets held for sale — — — 1,384 — 1,384 Other operating income, net (4,192) (1,448) (2,744) (4,293) (4,381) 88 144,947 160,129 (15,182) 286,032 314,428 (28,396) Operating income 11,712 5,277 6,435 15,990 10,916 5,074 Interest expense, net (508) (1,692) 1,184 (1,683) (3,270) 1,587 Other income (expense), net (3,281) 636 (3,917) (3,133) 774 (3,907) Income before income taxes 7,923 4,221 3,702 11,174 8,420 2,754 Income tax provision (2,013) (1,410) (603) (4,156) (2,451) (1,705) Net income $ 5,910 $ 2,811 $ 3,099 $ 7,018 $ 5,969 $ 1,049 Net income per share: Basic $ 0.10 $ 0.05 $ 0.12 $ 0.10 Diluted 0.10 0.05 0.12 0.10 Weighted average number of common shares outstanding: Basic 58,479 59,154 58,132 59,661 Diluted 58,627 59,154 58,541 59,661 27 Unaudited Segment Results of Operations We manage and measure our business performance in three operating segments: Offshore Manufactured Products, Completion and Production Services and Downhole Technologies. Supplemental financial information by operating segment for the three and six months ended June 30, 2026 and 2025 is summarized below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Variance 2026 2025 Variance Revenues: Offshore Manufactured Products Project-driven: Products $ 51,954 $ 68,653 $ (16,699) $ 103,841 $ 127,777 $ (23,936) Services 32,420 27,907 4,513 63,130 52,331 10,799 84,374 96,560 (12,186) 166,971 180,108 (13,137) Military and other products 8,350 10,026 (1,676) 17,172 19,074 (1,902) 92,724 106,586 (13,862) 184,143 199,182 (15,039) Completion and Production Services 24,274 29,424 (5,150) 45,772 63,943 (18,171) Downhole Technologies 39,661 29,396 10,265 72,107 62,219 9,888 $ 156,659 $ 165,406 $ (8,747) $ 302,022 $ 325,344 $ (23,322) Operating income (loss): Offshore Manufactured Products $ 13,936 $ 16,989 $ (3,053) $ 28,348 $ 31,265 $ (2,917) Completion and Production Services(1) 3,917 1,877 2,040 7,407 5,380 2,027 Downhole Technologies(2) 2,737 (3,992) 6,729 2,292 (6,116) 8,408 Corporate(3) (8,878) (9,597) 719 (22,057) (19,613) (2,444) $ 11,712 $ 5,277 $ 6,435 $ 15,990 $ 10,916 $ 5,074 _______________ (1)During the three and six months ended June 30, 2025, we recognized charges of $2.2 million and $3.1 million, respectively, within the Completion and Production Services segment, associated primarily with the exit of service locations. (2)During the three and six months ended June 30, 2025, we recognized charges of $1.2 million within the Downhole Technologies segment, associated primarily with the exit of a leased facility. (3)During the three and six months ended June 30, 2026, we recognized: facility exit charges of $1.4 million and $3.9 million, respectively, associated with assets held for sale; a $4.1 million gain associated with the sale of a previously idled facility; and $1.7 million of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer. Additionally, during the six months ended June 30, 2026, we recognized a non-cash impairment charge of $1.4 million associated with assets held for sale. For further discussion of charges recognized during the three and six months ended June 30, 2026 and 2025, see Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. 28 Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 We reported net income for the three months ended June 30, 2026 of $5.9 million, or $0.10 per share. The reported second quarter net income included net charges of $2.5 million ($2.5 million after tax, or $0.04 per share) associated with debt extinguishment, executive transition and the continued exit of U.S. land-based facilities, partially offset by a gain on facility disposal. These results compare to net income for the three months ended June 30, 2025 of $2.8 million, or $0.05 per share, which included net charges of $3.3 million ($2.6 million after tax, or $0.04 per share) associated primarily with the exit of U.S. land-based facilities and personnel reductions, partially offset by gains associated with debt extinguishment. Our results of operations for the second quarter of 2026 reflect the impact of management’s decisions to exit certain land-based locations and service offerings in the United States, a transitory decrease in capital investments by our offshore and international customers and disruptions resulting from the military conflict in Iran. Revenues. Consolidated total revenues in the second quarter of 2026 decreased $8.7 million, or 5%, from the second quarter of 2025 due primarily to our exit of underperforming service offerings and facilities over the past 15 months and lower project-driven product sales. Excluding the impact of exited operations, consolidated revenues decreased $2.5 million, or 2%, year-over-year. Consolidated product revenues in the second quarter of 2026 decreased $8.6 million, or 8%, from the second quarter of 2025, with the impact of lower project-driven product sales partially offset by higher customer demand for completion and perforating products. Consolidated service revenues in the second quarter of 2026 were comparable to the second quarter of 2025, with higher project-driven service activity offset by the impact of our exit of certain underperforming U.S. land-based service offerings and lower customer activity in the Middle East. The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the three months ended June 30, 2026 and 2025 (in thousands): Offshore Manufactured Products Completion and Production Services Downhole Technologies Total Three Months Ended June 30 2026 2025 2026 2025 2026 2025 2026 2025 Project-driven: Products $ 51,954 $ 68,653 $ — $ — $ — $ — $ 51,954 $ 68,653 Services 32,420 27,907 — — — — 32,420 27,907 Total project-driven 84,374 96,560 — — — — 84,374 96,560 Military and other products 8,350 10,026 — — — — 8,350 10,026 Short-cycle: Products — — — — 38,449 28,663 38,449 28,663 Services — — 24,274 29,424 1,212 733 25,486 30,157 Total short-cycle — — 24,274 29,424 39,661 29,396 63,935 58,820 $ 92,724 $ 106,586 $ 24,274 $ 29,424 $ 39,661 $ 29,396 $ 156,659 $ 165,406 By destination: Offshore and international $ 86,608 $ 99,620 $ 12,244 $ 11,478 $ 12,741 $ 8,016 $ 111,593 $ 119,114 U.S. land 6,116 6,966 12,030 17,946 26,920 21,380 45,066 46,292 $ 92,724 $ 106,586 $ 24,274 $ 29,424 $ 39,661 $ 29,396 $ 156,659 $ 165,406 As a percentage of total: Offshore and international 71 % 72 % U.S. land 29 % 28 % Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the second quarter of 2026 decreased $7.4 million, or 6%, compared to the level reported in the second quarter of 2025. Consolidated product costs in the second quarter of 2026 decreased $6.2 million, or 7%, from the second quarter of 2025 correlated primarily with the reduction in revenues. Consolidated service costs in the second quarter of 2026 decreased $1.2 million, or 3%, from the second quarter of 2025, due to strategic actions implemented in our U.S. land-based operations to improve reported results. 29 Selling, General and Administrative Expense. Selling, general and administrative expense was $23.1 million in the second quarter of 2026. This compares to an expense of $23.0 million in the second quarter of 2025, with the impact of implemented cost reduction measures partially offset by $1.7 million of executive transition costs associated with the pending retirement of our former President and Chief Executive Officer and higher short-term incentive compensation accruals. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion of executive transition costs. Depreciation and Amortization Expense. Depreciation and amortization expense decreased $3.8 million, or 32%, in the second quarter of 2026 compared to the prior-year quarter due primarily to the impact of asset impairments recorded in the fourth quarter of 2025. Note 10, “Segments and Related Information,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment. Impairments of Operating Lease Assets. In the second quarter of 2025, management continued its restructuring efforts to reduce costs in its U.S. land-based operations. As a result of these decisions, our Completion and Production Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion. Other Operating Income, Net. Other operating income, net primarily includes gains and losses recognized on the sale of property and equipment and costs related to assets held for sale within Corporate in 2026. In the second quarter of 2026, we recognized $1.4 million of facility exit costs associated with assets held for sale within Corporate and a gain of $4.1 million in connection with the sale of a facility classified within assets held for sale. During the second quarter of 2025, we recognized gains of $2.6 million associated with the sale of assets. Operating Income (Loss). Our consolidated operating income was $11.7 million in the second quarter of 2026, which included $1.7 million in executive transition costs and $1.4 million in charges associated with the continued exit of our U.S. land-based facilities. This compares to second quarter 2025 consolidated operating income of $5.3 million, which included $1.4 million in operating lease asset impairment charges and $2.3 million of charges associated with facility exits and other management actions. Excluding these charges, operating income increased by $5.8 million year-over-year, with the impact of the $3.8 million decrease in depreciation and amortization expense and an incremental increase of $1.9 million in gains on the sale of assets, partially offset by the impact of the decline in revenue. Other Income (Expense), Net. On April 1, 2026, we retired $52.7 million of outstanding principal of the 2026 Notes, with a combination of $50.5 million in cash and the issuance of 529,428 shares of our common stock. With the election by substantially all holders of the outstanding 2026 Notes to convert the instruments into shares of our common stock at maturity, we recognized a pre-tax loss of $3.6 million associated with the extinguishment of the 2026 Notes at a premium in the second quarter of 2026. See Note 4, “Long-Term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the extinguishment of the 2026 Notes. Interest Expense, Net. Net interest expense totaled $0.5 million in the second quarter of 2026, due to the retirement of the 2026 Notes on April 1. This compares to $1.7 million in the same period of 2025. Income Tax. For the three months ended June 30, 2026, our income tax provision was $2.0 million, which included the impact of changes in valuation allowance recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $7.9 million. This compares to an income tax provision of $1.4 million, which included the impact of changes in valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $4.2 million for the three months ended June 30, 2025. Other Comprehensive Income. Reported comprehensive income is the sum of reported net income and other comprehensive income. Other comprehensive income was $0.7 million in the second quarter of 2026 compared to other comprehensive income of $9.1 million in the second quarter of 2025 due to fluctuations in currency exchange rates compared to the U.S. dollar which are used to translate certain of the international operations of our operating segments. For the three months ended June 30, 2026 and 2025, currency translation adjustments recognized as a component of other comprehensive income were primarily attributable to the United Kingdom and Brazil. During both the second quarter of 2026 and 2025, the exchange rates for the British pound and the Brazilian real strengthened compared to the U.S. dollar. 30 Segment Operating Results Offshore Manufactured Products Revenues. Our Offshore Manufactured Products segment revenues decreased $13.9 million, or 13%, in the second quarter of 2026 compared to the second quarter of 2025 due to lower project-driven product sales, partially offset by the impact of higher service activity. Operating Income. Our Offshore Manufactured Products segment reported operating income of $13.9 million in the second quarter of 2026. This compares to operating income in the second quarter of 2025 of $17.0 million. The $3.1 million decline in operating income was driven primarily by the revenue decline. Backlog. Backlog in our Offshore Manufactured Products segment totaled $451 million as of June 30, 2026, with second quarter 2026 bookings of $114 million and a quarterly book-to-bill ratio of 1.2x. Completion and Production Services Revenues. Our Completion and Production Services segment revenues decreased $5.2 million, or 18%, in the second quarter of 2026 compared to the prior-year period, driven by the exit of underperforming U.S. land-based service offerings and facilities and lower customer activity in the Middle East. Excluding the impact of exited operations, revenues increased $1.1 million, or 5%, year-over-year. Operating Income. Our Completion and Production Services segment reported operating income of $3.9 million in the second quarter of 2026. This compares to operating income of $1.9 million in the second quarter of 2025, which included charges totaling $2.2 million associated primarily with the exit of service locations. Excluding these 2025 charges, the Completion and Production Services segment’s operating income declined $0.1 million from the prior-year period, due primarily to a $2.2 million reduction in gains on the sale of assets, substantially offset by a $1.6 million reduction in depreciation and amortization expense and strategic actions implemented to improve reported results. Downhole Technologies Revenues. Our Downhole Technologies segment revenues increased $10.3 million, or 35%, in the second quarter of 2026 from the prior-year period, driven by higher demand for perforating and completion products following our new product introductions. Operating Income (Loss). Our Downhole Technologies segment reported operating income of $2.7 million in the second quarter of 2026. This compares to an operating loss of $4.0 million in the second quarter of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility. Excluding these 2025 charges, the Downhole Technologies operating results improved $5.5 million year-over-year, driven primarily by the reported increase in revenues and a $2.5 million reduction in depreciation and amortization expense. Corporate Operating Loss. Corporate expenses totaled $8.9 million in the second quarter of 2026, which included a $4.1 million gain recognized on the sale of a previously idled facility, $1.7 million of executive transition costs and $1.4 million in charges associated with ongoing actions to monetize assets held for sale. This compares to Corporate expenses of $9.6 million in the second quarter of 2025. Excluding the 2026 charges and credits, Corporate expenses increased $0.4 million year-over-year due primarily to higher short-term incentive compensation accruals. 31 Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 We reported net income for the six months ended June 30, 2026 of $7.0 million, or $0.12 per share. The reported net income included net charges of $6.6 million ($6.6 million after tax, or $0.11 per share) associated primarily with the continued exit of certain of our U.S. land-based facilities, debt extinguishment and executive transition, partially offset by a gain on facility disposal. These results compare to net income for the six months ended June 30, 2025 of $6.0 million, or $0.10 per share, which included net charges of $4.2 million ($3.3 million after tax, or $0.06 per share) associated with the restructuring of certain of our U.S. land-based operations, facility consolidations and closures, and personnel reductions, partially offset by gains associated with debt extinguishment. Our results of operations for the first six months of 2026 reflect the impact of management’s decisions to exit certain land-based locations and service offerings in the United States, a transitory decrease in capital investments by our offshore and international customers, disruptions resulting from the military conflict in Iran and increased U.S. trade tariffs. Revenues. Consolidated total revenues in the first six months of 2026 decreased $23.3 million, or 7%, from the first six months of 2025 driven primarily by our exit of underperforming service offerings and locations over the past 18 months. Excluding the impact of exited operations, consolidated revenues declined $5.6 million, or 2%, year-over-year. Consolidated product revenues in the first six months of 2026 decreased $16.6 million, or 8%, from the first six months of 2025, due to lower project-driven connector, valve and crane product sales partially offset by higher perforating and completion product revenues. Consolidated service revenues in the first six months of 2026 decreased $6.8 million, or 6%, from the first six months of 2025. This decrease was driven by the exit of underperforming U.S. land-based service offerings and lower customer activity in the Middle East, partially offset by higher project-driven service activity. The following table provides supplemental disaggregated revenue from contracts with customers by operating segment for the six months ended June 30, 2026 and 2025 (in thousands): Offshore Manufactured Products Completion and Production Services Downhole Technologies Total Six Months Ended June 30 2026 2025 2026 2025 2026 2025 2026 2025 Project-driven: Products $ 103,841 $ 127,777 $ — $ — $ — $ — $ 103,841 $ 127,777 Services 63,130 52,331 — — — — 63,130 52,331 Total project-driven 166,971 180,108 — — — — 166,971 180,108 Military and other products 17,172 19,074 — — — — 17,172 19,074 Short-cycle: Products — — — — 70,320 61,042 70,320 61,042 Services — — 45,772 63,943 1,787 1,177 47,559 65,120 Total short-cycle — — 45,772 63,943 72,107 62,219 117,879 126,162 $ 184,143 $ 199,182 $ 45,772 $ 63,943 $ 72,107 $ 62,219 $ 302,022 $ 325,344 By destination: Offshore and international $ 171,011 $ 184,861 $ 23,200 $ 24,868 $ 22,056 $ 15,622 $ 216,267 $ 225,351 U.S. land 13,132 14,321 22,572 39,075 50,051 46,597 85,755 99,993 $ 184,143 $ 199,182 $ 45,772 $ 63,943 $ 72,107 $ 62,219 $ 302,022 $ 325,344 As a percentage of total: Offshore and international 72 % 69 % U.S. land 28 % 31 % Cost of Revenues (exclusive of Depreciation and Amortization Expense). Our consolidated total cost of revenues (exclusive of depreciation and amortization expense) in the first six months of 2026 decreased $18.5 million, or 7%, compared to the first six months of 2025. Consolidated product costs in the first six months of 2026 decreased $12.2 million, or 7%, compared to the first six months of 2025 due primarily to reduction in revenues. Consolidated service costs in the first six months of 2026 decreased $6.3 million, or 8%, compared to the first six months of 2025, due to lower revenue levels and the strategic actions implemented in our U.S. land-based operations to improve reported results. 32 Selling, General and Administrative Expense. Selling, general and administrative expense totaled $43.2 million in the first six months of 2026, which compares to expense of $45.5 million in the first six months of 2025. This year-over-year decrease is primarily associated with reduced personnel levels and commissions, partially offset by $1.7 million in executive transition costs. Depreciation and Amortization Expense. Depreciation and amortization expense in the first six months of 2026 decreased $7.7 million, or 32%, compared to the prior-year period due primarily to the impact of asset impairments recorded in the fourth quarter of 2025. Note 10, “Segments and Related Information,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q presents depreciation and amortization expense by segment. Impairment of Operating Lease Assets. In the first six months of 2025, management continued its restructuring efforts to reduce costs in its U.S. land-based operations. As a result of these decisions, our Completion and Production Services and Downhole Technologies segments recognized non-cash impairment charges totaling $1.4 million in connection with its exit of leased locations. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion. Impairment of Assets Held for Sale. During the first six months of 2026, management made a decision to sell additional equipment, which was reclassified to assets held for sale. The carrying value of these assets held for sale were reduced to their estimated fair value, resulting in the recognition of a $1.4 million non-cash impairment charge. See Note 2, “Charges and Credits,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion. Other Operating Income, Net. Other operating income, net primarily includes gains and losses recognized on the sale of property and equipment and costs related to assets classified as held for sale within Corporate in 2026. During the first six months of 2026, we recognized $3.9 million of facility exit costs associated with assets held for sale within Corporate. Gains recognized on the sale of assets during the first six months of 2026 and 2025 each totaled $4.8 million. Operating Income. Our consolidated operating income was $16.0 million in the first six months of 2026, which included charges totaling $4.1 million associated with the continued exit of our U.S. land-based facilities, $1.7 million of executive transition costs and $1.4 million in non-cash asset impairment charges. This compares to a consolidated operating income of $10.9 million in the first six months of 2025, which included $1.4 million in operating lease asset impairment charges as well as charges totaling $3.2 million associated with facility consolidations and exits and other management actions. Excluding these charges, operating results improved by $7.6 million year-over-year, driven by a $7.7 million decrease in depreciation and amortization expense and implemented cost reduction measures, partially offset by the impact of the decline in revenue. Interest Expense, Net. Net interest expense totaled $1.7 million in the first six months of 2026, which compares to $3.3 million in the first six months of 2025. The year-over-year decline in net interest expense was driven by the April 1, 2026 retirement of the 2026 Notes. Other Income (Expense), Net. On April 1, 2026, we retired $52.7 million of outstanding principal of the 2026 Notes at a premium and recognized an associated pre-tax loss of $3.6 million. Income Tax. For the first six months of 2026, our income tax provision was $4.2 million, which included the impact of changes in valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $11.2 million. This compares to an income tax provision of $2.5 million, which included the impact of certain discrete tax items and other non-deductible expenses, on pre-tax income of $8.4 million for the first six months of 2025. Other Comprehensive Income (Loss). Reported comprehensive income is the sum of reported net income and other comprehensive income (loss). Other comprehensive loss was $0.5 million in the first six months of 2026 compared to other comprehensive income of $14.6 million in the first six months of 2025 due to fluctuations in foreign currency exchange rates compared to the U.S. dollar for certain of the international operations of our operating segments. For the first six months of 2026 and 2025, currency translation adjustments recognized as a component of other comprehensive income (loss) were primarily attributable to the United Kingdom and Brazil. During the first six months of 2026, the exchange rate for the British pound weakened compared to the U.S. dollar while the Brazilian real strengthened compared to the U.S. dollar. This compares to the first six months of 2025, when the exchange rates for both the British pound and the Brazilian real strengthened compared to the U.S. dollar. 33 Segment Operating Results Offshore Manufactured Products Revenues. Our Offshore Manufactured Products segment revenues declined $15.0 million, or 8%, in the first six months of 2026 compared to the first six months of 2025 due primarily to lower sales of project-driven connector, valve and crane products, partially offset by higher service activity. Operating Income. Our Offshore Manufactured Products segment reported operating income of $28.3 million in the first six months of 2026. This compares to operating income of $31.3 million in the first six months of 2025. The $2.9 million decline in operating income was driven primarily by the revenue decline. Backlog. Backlog in our Offshore Manufactured Products segment totaled $451 million as of June 30, 2026 compared to $435 million as of December 31, 2025. Bookings during the first six months of 2026 were $199 million, yielding a book-to-bill ratio of 1.1x. Completion and Production Services Revenues. Our Completion and Production Services segment revenues decreased $18.2 million, or 28%, in the first six months of 2026 compared to the first six months of 2025, driven primarily by the exit of underperforming U.S. land-based service offerings and facilities. Excluding the impact of exited operations, revenues decreased $0.5 million year-over-year. Operating Income. Our Completion and Production Services segment reported operating income of $7.4 million in the first six months of 2026. This compares to operating income of $5.4 million in the first six months of 2025, which included charges totaling $3.1 million associated with facility consolidations and exits. Excluding the 2025 charges, the Completion and Production Services segment’s operating results declined $1.1 million from the prior-year period, due primarily to a $4.1 million reduction in gains on the sale of assets, partially offset by a $3.4 million reduction in depreciation and amortization expense. Downhole Technologies Revenues. Our Downhole Technologies segment revenues increased $9.9 million, or 16%, in the first six months of 2026 from the first six months of 2025, driven by higher demand for perforating and completion products following our new product introductions. Operating Income (Loss). Our Downhole Technologies segment reported an operating income of $2.3 million in the first six months of 2026. This compares to an operating loss of $6.1 million reported in the first six months of 2025, which included charges totaling $1.2 million primarily associated with the exit of a leased facility. Excluding the 2025 charges, the Downhole Technologies segment operating results improved $7.2 million year-over-year, driven by a $5.0 million reduction in depreciation and amortization expense and contributions from the revenue increase. Corporate Operating Loss. Corporate expenses totaled $22.1 million in the first six months of 2026, which included a $4.1 million gain recognized on the sale of a previously idled facility, costs totaling $3.9 million associated with ongoing actions to monetize assets held for sale, $1.7 million of executive transition costs and a $1.4 million impairment of assets held for sale. This compares to Corporate expenses of $19.6 million in the first six months of 2025. Excluding these items, Corporate expenses decreased $0.3 million year-over-year. 34 Liquidity, Capital Resources and Other Matters Our primary liquidity needs are to fund operating and capital expenditures, new product development, general working capital needs and debt repayment. In addition, capital has been used to fund share repurchases and strategic business acquisitions. Our primary sources of funds are cash on-hand, cash flow from operations and proceeds from borrowings under our Cash Flow Credit Agreement, and, less frequently, capital markets transactions and additional contributions from asset sales. Operating Activities Cash flows used in operations totaled $8.1 million during the first six months of 2026, compared to $24.3 million generated by operations during the first six months of 2025. During the first six months of 2026, $34.6 million was used to fund net working capital increases, primarily due to an increase in inventories, a decrease in accounts payable and payment of accrued short- and long-term cash incentive compensation, partially offset by the favorable impact of a decrease in accounts receivable. During the first six months of 2025, $6.1 million was used to fund net working capital increases, which includes a decrease in accounts payable and payment of accrued short- and long-term cash incentive compensation, as well as a decrease in accounts receivable. Investing Activities Net cash provided by investing activities during the first six months of 2026 totaled $0.9 million, compared to $6.9 million used in investing activities during the first six months of 2025, with proceeds from asset sales offsetting capital expenditures in 2026. Capital expenditures totaled $7.1 million and $19.5 million during the first six months of 2026 and 2025, respectively. These investments were offset by proceeds from the sale of property, equipment and assets held for sale of $8.0 million and $12.6 million during the first six months of 2026 and 2025, respectively. Financing Activities On January 28, 2026, we entered into the Cash Flow Credit Agreement (further discussed below), which replaced our existing ABL Agreement. During the first six months of 2026, net cash of $43.3 million was used in financing activities, which included the use of $50.5 million in cash to retire our 2026 Notes, net borrowings of $18.6 million under our Cash Flow Credit Agreement, the purchase of 583,541 shares of our common stock for $5.1 million, shares added to treasury stock as a result of net share settlements associated with the vesting of stock awards and payment of financing cost related to the Cash Flow Credit Agreement. This compares to $29.1 million of cash used in financing activities during the first six months of 2025, which included the purchase of $14.8 million principal amount of our outstanding 2026 Notes for $14.3 million in cash, the repurchase of $12.0 million of our common stock and shares added to treasury stock as a result of net share settlements associated with the vesting of stock awards. As of June 30, 2026, we had cash and cash equivalents totaling $19.8 million, $18.6 million in borrowings outstanding under our Cash Flow Credit Agreement and other debt of $2.0 million. Our reported interest expense included amortization of deferred financing costs of $0.9 million during the first six months of 2026. For the first six months of 2026, our contractual cash interest expense was $1.4 million, or approximately 7% of the average principal balance of debt outstanding. We believe that cash on-hand, cash flow from operations and borrowing capacity available under the Cash Flow Credit Agreement will be sufficient to meet our liquidity needs in the coming twelve months. If our plans or assumptions change, or are inaccurate, we may need to raise additional capital from other sources. Our ability to obtain capital to repay debt, for general liquidity needs and for additional projects to implement our growth strategy over the longer term will depend upon our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global banking and financial markets and other factors, many of which are beyond our control. For companies like ours that support the energy industry, disruptions affecting the availability of capital have in the past and may in the future negatively impact the value of our common stock and may reduce our ability to access capital in the bank and capital markets or result in such capital being available on less favorable terms, which could negatively affect our liquidity. 35 Stock Repurchase Program. In October 2024, our Board of Directors authorized $50.0 million for repurchases of our common stock, par value $0.01 per share, through October 2026. Subject to applicable securities laws, such purchases will be at such times and in such amounts as we deem appropriate. During the six months ended June 30, 2026, $5.1 million in repurchases of common stock were made under this program. The amount remaining under our share repurchase authorization as of June 30, 2026 was $19.6 million. Revolving Credit and Term Loan Facilities. On January 28, 2026, we entered into an amended and restated cash-flow based credit agreement with Wells Fargo Bank, National Association, as administrative agent and the lenders and other financial institutions from time to time party thereto. The Cash Flow Credit Agreement provides for aggregate lender commitments of up to: $75.0 million under the Revolving Credit Facility and $50.0 million under the multi-draw Term Loan Facility, which was available for a six-month period. Subsequent to June 30, 2026, we repaid $20.0 million of outstanding borrowings under the Revolving Credit Facility with borrowings under the Term Loan Facility. The remaining lender commitments under the Term Loan Facility lapsed on July 28, 2026. The Cash Flow Credit Agreement replaced the ABL Agreement discussed below and matures in January 2030. See Note 4, “Long-Term Debt,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for further information regarding the Cash Flow Credit Agreement. Prior to entering into the Cash Flow Credit Agreement, our senior secured credit facility provided for a $100.0 million asset-based revolving credit facility under which credit availability was subject to a borrowing base calculation. As of June 30, 2026, we had $18.6 million borrowings outstanding under the Cash Flow Credit Agreement and $16.7 million of outstanding letters of credit. As of July 28, 2026, we had $26.2 million in borrowings outstanding under the Cash Flow Credit Agreement and $15.9 million of outstanding letters of credit, leaving $52.9 million available to be drawn. 2026 Notes. We issued $135.0 million aggregate principal amount of the 2026 Notes pursuant to an indenture, dated as of March 19, 2021 (the “2026 Indenture”), between us and Computershare Trust Company, National Association, as successor trustee. On April 1, 2026, we retired $52.7 million of outstanding principal of the 2026 Notes, with a combination of $50.5 million of cash and the issuance of 529,428 shares of our common stock (with a fair value of $5.9 million). With the election by substantially all holders of the outstanding 2026 Notes to convert the instruments into shares of our common stock at maturity, we recognized a pre-tax loss of $3.6 million associated with the extinguishment of the 2026 Notes at a premium in the second quarter of 2026. Our total debt represented 3% and 9% of our combined total debt and stockholders’ equity as of June 30, 2026 and December 31, 2025, respectively. Contingencies and Other Obligations. We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters. See Note 11, “Commitments and Contingencies,” to the Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional discussion. Off-Balance Sheet Arrangements. As of June 30, 2026, we had no off-balance sheet arrangements. Critical Accounting Policies For a discussion of the critical accounting policies and estimates that we use in the preparation of our condensed consolidated financial statements, see “Part II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. These estimates require significant judgments, assumptions and estimates. We have discussed the development, selection, and disclosure of these critical accounting policies and estimates with the audit committee of our Board of Directors. There have been no material changes to the judgments, assumptions and estimates upon which our critical accounting estimates are based. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, which are adopted by us as of the specified effective date. Management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption. 36