RPC (RES) Q3 2026 Earnings Call: Margin Expansion and $74.5M Impairment
Source Tradingkey
Key Takeaways
- RPC Inc. (NYSE: RES) reported Q3 2026 revenue of $468 million, up 1% sequentially despite relatively subdued completion activity.
- Adjusted EBITDA rose to $71.5 million from $66 million in Q2, while adjusted EBITDA margin expanded 100 basis points to 15.3%.
- Adjusted diluted EPS was $0.10. Adjustments totaled $0.30 per share, primarily reflecting a $74.5 million noncash impairment related to Pintail Wireline and acquisition-related employment costs.
- Coiled Tubing revenue increased 20% sequentially, while Snubbing rose 12% and Pressure Pumping, including acid, increased 3%. Wireline revenue declined 8%.
- Operating cash flow was $41 million. After $40 million of capital expenditures, free cash flow was $1 million, partly due to a $25 million working-capital increase.
- Management expects normal year-end seasonality to affect Q4 activity but is optimistic about 2027, while emphasizing that higher pricing and firm customer commitments are needed before reactivating additional Pressure Pumping capacity.
Key Financial Data
| Metric | Q3 2026 | Sequential change or context |
|---|---|---|
| Revenue | $468 million | Up 1% |
| Technical Services revenue | 95% of total | Up 1% |
| Support Services revenue | 5% of total | Up 3% |
| Adjusted EBITDA | $71.5 million | Up from $66 million |
| Adjusted EBITDA margin | 15.3% | Up 100 basis points |
| Adjusted diluted EPS | $0.10 | Adjustments totaled $0.30 per share |
| Cost of revenues, excluding D&A | $350 million | Up from $346 million |
| SG&A expense | $51 million | Versus $52 million in Q2 |
| Depreciation and amortization | $43 million | Similar to Q2 |
| Operating cash flow | $41 million | — |
| Capital expenditures | $40 million | — |
| Free cash flow | $1 million | Working capital increased by $25 million |
| Quarter-end cash | $177 million | $30 million note payable; no revolver borrowings |
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