RPC, Inc. Reports Fourth Quarter And Full Year 2025 Financial Results

Core Insights - RPC, Inc. reported a net loss of $3.1 million for Q4 2025, a significant decline from a net income of $13.0 million in Q3 2025, reflecting a challenging macro environment and reduced customer activity [6][11][14] - The company's total revenues for Q4 2025 were $425.8 million, down 5% sequentially, with notable declines in both Technical Services and Support Services segments [8][11][20] - For the full year 2025, RPC's revenues increased by 15% year-over-year to $1.6 billion, primarily due to the acquisition of Pintail Completions [11][12] Financial Performance - Q4 2025 revenues were $425.8 million, a decrease of 5% from Q3 2025, with Technical Services down 4% and Support Services down 18% [8][20] - The cost of revenues increased slightly to $336.6 million, attributed to expensing wireline cable purchases previously capitalized [9][11] - Selling, general and administrative expenses rose to $47.7 million, up from $44.6 million, mainly due to higher employment-related costs [10][11] Segment Analysis - In the Technical Services segment, revenues decreased by 4%, with Thru Tubing Solutions downhole tools declining by 9% due to reduced activity in certain regions [6][8] - The Support Services segment experienced an 18% sequential revenue decline, primarily due to a 22% drop in rental tools [6][20] - RPC's focus remains on disciplined execution and leveraging its diversified offerings to navigate the challenging market conditions [6][11] Industry Context - The average U.S. rig count increased to 548 in Q4 2025, up 1.5% from Q3 2025, but down 6.5% year-over-year [7] - Crude oil prices averaged $59.79 per barrel in Q4 2025, a decline of 9.2% from Q3 2025 and 15.3% from Q4 2024 [7] - Natural gas prices rose to $3.69 per Mcf, reflecting a 21.4% increase from the previous quarter and a 51.9% increase year-over-year [7]