Third Quarter 2026
Filed Oct 29, 2026RPC, Inc. Reports Third Quarter 2026 Financial Results And Declares Regular Quarterly Cash Dividend
Revenue, adjusted net income and Adjusted EBITDA increased sequentially, but a $74.5 million non-cash Pintail impairment drove a GAAP net loss of $41.9 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $467.7M | 1% | – |
| Cost of revenues, three months ended September 30, 2026GAAP | $349.8M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $50.81M | – | – |
| Impairment charges, three months ended September 30, 2026GAAP | $74.46M | – | – |
| Acquisition related employment costs, three months ended September 30, 2026GAAP | $7.29M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $42.66M | – | – |
| Operating (loss) income, three months ended September 30, 2026GAAP | −$53.77M | – | – |
| Adjusted operating income, three months ended September 30, 2026non-GAAP | $27.98M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$533K | decrease of 21% | – |
| Interest income, three months ended September 30, 2026GAAP | $1.51M | decrease of 2% | – |
| (Loss) income before income taxes, three months ended September 30, 2026GAAP | −$51.91M | – | – |
| Income tax (benefit) provision, three months ended September 30, 2026GAAP | −$9.98M | – | – |
| Net (loss) income, three months ended September 30, 2026GAAP | −$41.93M | – | – |
| Diluted (loss) earnings per share, three months ended September 30, 2026GAAP | $(0.20) | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $22.79M | – | – |
| Adjusted diluted earnings per share, three months ended September 30, 2026non-GAAP | $0.10 | – | – |
| Net (loss) income margin, three months ended September 30, 2026GAAP | (9.0%) | – | – |
| Adjusted net income margin, three months ended September 30, 2026non-GAAP | 4.9% | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $71.53M | 8% | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 15.3% | increased 100 basis points | – |
| Total revenues, nine months ended September 30, 2026GAAP | $1.38B | – | – |
| Operating (loss) income, nine months ended September 30, 2026GAAP | −$36.38M | – | – |
| Net (loss) income, nine months ended September 30, 2026GAAP | −$29.00M | – | – |
| Diluted (loss) earnings per share, nine months ended September 30, 2026GAAP | $(0.14) | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $47.68M | – | – |
| Adjusted diluted earnings per share, nine months ended September 30, 2026non-GAAP | $0.22 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $191.0M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 13.8% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $115.7M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | −$110.7M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $5.00M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Technical Services, three months ended September 30, 2026Higher activity in Coiled Tubing and Nitrogen; increases in Coiled Tubing, Nitrogen and Snubbing were partially offset by lower Wireline revenues. | $444.2M | 1% | – |
| Support Services, three months ended September 30, 2026Higher activity in Rental Tools and the fixed-cost nature of this service line. | $23.50M | 3% | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Payment of dividends totaled $26.6 million year-to-date.
- Share repurchases totaled $3.5 million year-to-date, related to tax withholdings for restricted stock vesting.
- The Board of Directors declared a regular quarterly cash dividend of $0.04 per share, payable on December 10, 2026, to common stockholders of record at the close of business on November 10, 2026.
What drove it
- Revenues improved on continued strength across several service lines.
- Cudd Pressure Controls' Coiled Tubing, Nitrogen, and Snubbing revenues each grew double digits.
- Support Services revenue growth was led by Patterson Rental Tools, which increased 7%.
- Drilling and completion activity improved during the year, resulting in higher customer activity levels in several service lines.
- Adjusted profitability improved across much of the portfolio.
Concerns
- Pintail's persistent pricing weakness, lower activity and cost pressure resulted in $74.5 million of non-cash impairment charges.
- The impairment included $58.3 million related to Pintail's Other intangible assets, net and $16.2 million related to Property, plant and equipment.
- Inflationary pressures in labor, trucking and fuel continued to create cost pressures.
- Working capital was a significant use of cash, primarily due to higher accounts receivable, timing of collections and strategic inventory purchases including key components in short supply.
- Free cash flow was $5.0 million year-to-date through 3Q:26.
What to watch
- Pintail Wireline pricing, activity and cost pressure, including the possibility of further impairments.
- Customer drilling and completion activity levels.
- Labor, trucking and fuel cost pressures.
- Working-capital requirements associated with accounts receivable and inventory.
- Execution of the declared $0.04 per-share quarterly dividend.
Balance sheet and cash flow
- Cash and cash equivalents were $177.1 million at the end of the third quarter, compared with $209,974 (In thousands) at December 31, 2025.
- The Company had no outstanding borrowings under its $100 million revolving credit facility during the quarter.
- Current portion of notes payable was $10,000 (In thousands) and Notes payable was $20,000 (In thousands) at September 30, 2026.
- Accounts receivable, net was $387,094 (In thousands) at September 30, 2026, compared with $327,668 (In thousands) at December 31, 2025.
- Inventories were $140,502 (In thousands) at September 30, 2026, compared with $119,004 (In thousands) at December 31, 2025.
- Net cash provided by operating activities was $115.7 million year-to-date through 3Q:26.
- Free cash flow was $5.0 million year-to-date through 3Q:26.
- Repayment of debt was $(20,000) (In thousands) for the nine months ended September 30, 2026.
Analysis
Third-quarter revenue was $467.7 million, up 1% sequentially. Technical Services revenue was $444.2 million, up 1%, as higher Coiled Tubing, Nitrogen and Snubbing activity was partly offset by lower Wireline revenue. Support Services revenue was $23.5 million, up 3%, led by Rental Tools. Management stated that drilling and completion activity improved during the year and that current oil prices supported a more favorable operating environment.
Reported GAAP earnings were dominated by a $74.5 million non-cash impairment of Pintail. The charge drove operating loss of $53.8 million and net loss of $41.9 million, versus operating income of $14.8 million and net income of $12.1 million in 2Q:26. The impairment reflected Pintail's persistent pricing weakness, lower activity and cost pressure, and consisted of $58.3 million for Other intangible assets, net and $16.2 million for Property, plant and equipment.
Underlying sequential profitability improved. Adjusted operating income was $28.0 million versus $22.1 million in 2Q:26, adjusted net income was $22.8 million versus $17.8 million, and Adjusted EBITDA was $71.5 million versus $66.0 million. Adjusted EBITDA margin increased to 15.3% from 14.3%, while adjusted net income margin increased to 4.9% from 3.9%. Management attributed the improvement to profitability gains across much of its portfolio, although it also cited continuing labor, trucking and fuel inflation.
Cash and cash equivalents were $177.1 million at quarter end, following a $20.0 million principal payment on a note payable and working-capital needs associated with increased activity. For the nine months ended September 30, net cash from operating activities was $115.7 million and free cash flow was $5.0 million, with working capital a significant use of cash. The company paid $26.6 million of dividends and $3.5 million of share repurchases year-to-date, had no outstanding revolver borrowings during the quarter, and declared a $0.04 per-share dividend payable December 10, 2026.
The release provided no quantitative operating outlook. The principal reported operating issues are Pintail's pricing, activity and cost pressure, broader inflationary costs, and working-capital demands. Key reported positives are sequential revenue growth, stronger adjusted profitability, no outstanding revolving-credit borrowings and the continued quarterly dividend.
Management, verbatim
The breadth of our service offerings, strong balance sheet and disciplined capital allocation strategy continue to position RPC to respond to changing customer activity levels while pursuing opportunities that enhance long-term shareholder returns,
Ben M. Palmer, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Quantitative gross margin was not reported.
- Quantitative operating-expense guidance was not provided.
- Tax-rate guidance was not provided.
- Prior outlook was not provided.
- Quarterly operating cash flow and quarterly free cash flow were not reported.
- A gross-profit line item was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.