Key Highlights

  • Adjusted diluted EPS of USD 0.10 matched the consensus estimate, while GAAP loss per share was USD 0.20.
  • Revenue of USD 467.7 million rose 1% sequentially but fell just below the consensus estimate of USD 469.12 million.
  • A non-cash Pintail wireline Impairment of USD 74.5 million drove a net loss of USD 41.9 million.
  • Adjusted EBITDA reached USD 71.5 million, up 8% sequentially, with the Margin widening 100 basis points to 15.3%.

RPC, Inc. (NYSE:RES) reported third quarter 2026 adjusted Diluted Earnings per Share of USD 0.10, in line with a consensus estimate of USD 0.10 and up from USD 0.08 in the second quarter. Revenue of USD 467.7 million increased from USD 460.9 million in the prior quarter and USD 447.1 million a year earlier, but sat slightly below a consensus estimate of USD 469.12 million. GAAP results showed a net loss of USD 41.9 million, or USD 0.20 per share, against Net Income of USD 12.1 million in the second quarter.

Impairment and Margin Details

The GAAP loss reflects USD 74.5 million of non-cash impairment charges on Pintail, the wireline business, of which USD 58.3 million related to intangible assets and USD 16.2 million to property, plant and equipment. Management cited persistent pricing weakness, lower activity and cost pressure. Adjusted net income was USD 22.8 million, or a margin of 4.9%, versus USD 17.8 million in the prior quarter. Adjusted EBITDA rose to USD 71.5 million from USD 66.0 million, and the company said the impairment trims quarterly Depreciation and amortization by about USD 3 million.

Technical Services revenue rose to USD 444.2 million with Operating Income of USD 28.9 million, while Support Services revenue of USD 23.5 million produced operating income of USD 3.6 million, up 56%. Chief Executive Officer Ben Palmer noted coiled tubing revenue rose 20% sequentially and snubbing rose 12%, while wireline fell 8% and downhole tools slipped 2%. By revenue share, pressure pumping was 30.8%, downhole tools 24.6% and wireline 17.5%.

Capital Spending, Cash and Seasonal Caution

Cash and cash equivalents were USD 177.1 million, down USD 32.9 million year to date, with no borrowings on the USD 100 million revolving Credit facility. Operating Cash Flow was USD 41 million in the quarter, and free cash flow was about USD 1 million after USD 40 million of Capital spending, as Working Capital rose USD 25 million on inventory purchases and collection timing. The Board declared a regular quarterly Dividend of USD 0.04 per share, payable December 10, 2026.

The chief financial officer projected 2026 capital expenditures of USD 155 million to USD 175 million, with some equipment deliveries previously planned for 2026 now moving into 2027. The company said it remains cautious on year end seasonality, and that coiled tubing results benefited from an exceptionally strong Job and equipment mix that is hard to replicate. Management also pointed to Inflation in labor, trucking and fuel.

Metrics to Track Into 2027

Several items from management give dated or numeric markers. The first is the fourth quarter seasonal slowdown, with management saying holiday impacts look less severe than in recent years. The second is the adjusted EBITDA margin of 15.3%, which followed 14.3% in the second quarter.

Cash conversion is third: year to date operating cash flow of USD 115.7 million compares with free cash flow of just USD 5.0 million. The fourth is the equipment timing, as 2027 capital spending is projected at a level similar to 2026 if no further slippage occurs. The December 10 dividend payment, with a November 10 record date, is also scheduled.