Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported a narrower adjusted net loss of 2 cents per share for Q4 2025, better than the Zacks Consensus Estimate of an 11-cent loss and an improvement from a 12-cent loss in the same quarter last year [1][9] - Total revenues reached $1.2 billion, exceeding the Zacks Consensus Estimate by 5%, primarily driven by strong performance in the Completion Services segment [2][9] - The board of directors increased the quarterly dividend by 25% to 10 cents per share, payable on March 16, 2026 [3] Segment Performance - **Drilling Services**: Revenues were $360.8 million, down 11.6% year-over-year, missing the estimate of $365 million. Operating income was $43 million, beating the estimate of $37.7 million [4] - **Completion Services**: Revenues increased by 7.8% year-over-year to $701.6 million, surpassing the estimate of $647 million. The operating loss narrowed to $3.6 million from a loss of $50.2 million in the previous year [5] - **Drilling Products**: Revenues decreased by 3.2% year-over-year to $83.8 million, missing the estimate of $85 million. Operating profit was $6.8 million, compared to a loss of $0.2 million in the prior year [6] - **Other Services**: Revenues fell by 71.3% year-over-year to $4.7 million, missing the estimate of $4.8 million [6] Financial Position - Capital expenditures for the quarter were $138.5 million, slightly down from $140.3 million in the prior year. As of December 31, 2025, cash and cash equivalents were $420.6 million, with long-term debt of $1.2 billion and a debt-to-capitalization ratio of 27.5% [8] - Total operating costs and expenses were $1.151 billion, down from $1.1935 billion in Q4 2024 [8] Q1 2026 Outlook - The company expects an average rig count in the low-to-mid 90s for the Drilling Services segment in Q1 2026, with adjusted gross profit anticipated to decline by less than 5% from Q4 2025 [11] - For Completion Services, adjusted gross profit is expected to be around $95 million, while Drilling Products segment's adjusted gross profit is anticipated to improve slightly [12] - Selling, general and administrative (SG&A) expenses are projected to be about $65 million, with total depreciation, depletion, amortization, and impairment expenses expected to be approximately $225 million for the upcoming quarter [13]

Core Viewpoint - Patterson-UTI Energy has reported a wider-than-expected adjusted net loss for Q2 2025, raising concerns about its performance leading up to the next earnings release [2][3]. Financial Performance - The company reported a second-quarter adjusted net loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a $0.04 loss, and a decline from a profit of $0.05 per share in the same quarter last year [2]. - Total revenues for the quarter were $1.2 billion, exceeding the Zacks Consensus Estimate by 0.3%, but down 9.6% year-over-year [3]. - The company returned $56 million to shareholders in Q2 2025, including $20 million in share repurchases [10]. Segmental Performance - **Drilling Services**: Revenues were $403.8 million, down 8.3% from $440.3 million in the prior year, but above the estimate of $365.1 million. Operating income was $40.6 million, down from $76.1 million year-over-year, yet above the estimate of $24.1 million [5]. - **Completion Services**: Revenues fell to $719.3 million, a decrease of 10.7% from $805.4 million year-over-year, and missed the estimate of $762.4 million. The operating loss was $29.2 million, compared to a profit of $10.7 million in the previous year [6]. - **Drilling Products**: Revenues increased by 2.7% to $88.4 million, surpassing the estimate of $85.8 million. Operating profit was $6.8 million, down 21.1% from the previous year, and below the estimate of $20.6 million [7]. - **Other Services**: Revenues dropped 52.7% to $7.8 million, but exceeded the estimate of $5.6 million. The operating loss was $2 million, compared to a profit of $0.4 million in the prior year [8]. Capital Expenditure & Financial Position - Capital expenditures for the quarter were $144.2 million, up from $130.5 million in the prior year [9]. - As of June 30, 2025, the company had cash and cash equivalents of $185.9 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26.7% [9]. Market Outlook - Estimates for Patterson-UTI have trended downward, with a consensus estimate shift of -33.33% over the past month [11]. - The company currently holds a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [13].