OMS Energy Technologies: A Breakout Year That’s More Than Just a Share Price Story

OMS Energy Technologies Inc. (NASDAQ: OMSE) has quickly moved from an overlooked industry name to a notable performer; a shift reflected in its investors sentiment is mainly underpinned by solid FY2025 results. Crucially, these results show that the company’s earnings momentum is built on real operational improvements rather than accounting-driven gains seen in the previous year.

A key factor distorting FY2024 results was a US$49.4 million bargain purchase gain linked to the company’s management buyout. This arose because OMS acquired assets at a price significantly below their fair value, resulting in an accounting gain that boosted reported net profit to US$84.5 million.

Excluding this non-recurring item, underlying net profit for FY2024 was around US$35.0 million. FY2024 figures are presented on a combined basis for illustrative purposes, providing a clearer benchmark for evaluating FY2025 performance, and highlights that the company’s growth last year was driven by genuine improvements in its business.

For the fiscal year ended 31 March 2025, OMS recorded revenue of US$203.6 million, an increase of 12.2% from US$181.4 million in FY2024. This growth was led by the specialty connectors and pipes segment, which rose to US$143.1 million on stronger demand from key customers.

Gross margin expanded to 33.9% from 29.6% in FY2024, driven by higher sales volume, improved product mix, and cost efficiency. Operating profit rose to US$59.9 million from US$43.4 million in FY2024, underscoring significant operating leverage. Net profit came in at US$47.0 million, a clear increase from the adjusted FY2024 level, while operating cash flow improved to US$40.5 million, demonstrating stronger cash generation from core operations.

Revenue contributions remained well-balanced. Specialty connectors and pipes continued to dominate, while premium threading services generated US$36.8 million and ancillary engineering services contributed US$15.0 million. The surface wellhead and Christmas tree equipment segment recorded US$8.7 million, slightly lower due to project delays in Indonesia and the Middle East, with those deferred revenues expected in FY2026.

OMS enters FY2026 with clear growth visibility, supported by an improving upstream spending environment and expanding customer demand. Its 11 manufacturing facilities across Asia Pacific, the Middle East and North Africa provide logistical flexibility and customer proximity, advantages that should sustain margins and competitiveness. The company’s cash position rose to US$75.8 million, giving it more capacity to fund expansion and meet contract demand.

When adjusted for the one-off gain in FY2024, OMS’s FY2025 results represent a significant step forward. Revenue, margins, operating profit, and cash flow all improved materially, showing a business growing on its own fundamentals rather than one-time events.

The market’s recent re-rating of OMS reflects that reality: investors are recognising a company with improving scale, stronger profitability, and a clearer pathway to sustained growth in a recovering oilfield services cycle.