RPC (RES) Q2 2026 Earnings Call Transcript
Thursday, July 30, 2026 at 9:00 a.m. ET CALL PARTICIPANTS President and Chief Executive Officer - Ben Palmer Chief Financial Officer - Michael L. Schmit TAKEAWAYS Revenue -- $461 million, a 1% sequential increase driven by improved Technical Services execution and an 11% rise in Support Services. Adjusted EBITDA -- $66 million, up from $53.5 million in the prior quarter, reflecting operational leverage and a favorable sales tax refund.
How this was made
The 30-second read
Why it matters
Traders can update models for 2026 capex intensity and service-line mix, while also reassessing near-term demand risk from wireline declines and management’s stance on fleet reactivation.
Market read
Fresh earnings datapoints and a raised capex range are actionable for positioning, while segment divergence (wireline down, snubbing/coiled tubing up) shapes the risk outlook.
What to watch
Free cash flow is still low year to date ($4M) despite operating cash flow, and working capital timing is flagged as a factor, which can complicate near-term valuation support.
Background
RPC’s Q2 2026 earnings call covers segment performance, margin drivers, liquidity, capex guidance, and CEO succession plans.
Ticker impact
RPC reported Q2 2026 results with revenue $461M, adjusted EBITDA $66M, and raised 2026 capex guidance to $170M-$190M.
Near-term bias modestly positive on guidance and margin improvement, offset by wireline weakness and CEO succession uncertainty.
Key decision inputs are newly disclosed: sequential revenue and EBITDA margin expansion, raised capex range, and explicit comments on not reactivating idled fleets at current pricing. Offsetting negatives include a 16% sequential wireline decline tied to customer activity and aggressive competitor pricing.
Market effects
Signals continued shift toward higher-technology downhole tools (snubbing, coiled tubing, ThruTubing) while wireline faces pricing pressure.
Highlights Rocky Mountain ThruTubing growth and Permian execution (horseshoe wells over 27,000 feet), which may influence regional service demand expectations.
Geopolitical and commodity-price volatility is cited as a driver of operator uncertainty, reinforcing demand sensitivity across upstream spending cycles.
Counterpoint
Margin and EBITDA improvement may be partly mix-driven, while wireline weakness and reduced pump hours suggest underlying demand softness could reassert quickly.
Key entities
- companyRPC, Inc.
Reported Q2 2026 revenue $461M, adjusted EBITDA $66M, raised 2026 capex guidance to $170M-$190M, and discussed CEO retirement by end of 2026.
- executiveBen Palmer
CEO announced intent to retire as President and CEO and step down from the board by end of 2026.
- executiveMichael L. Schmit
CFO discussed liquidity, working capital timing, and reiterated forward-looking risk framing.
