Patterson-UTI Energy (PTEN) Q4 2025 earnings summary

Executive summary

• Delivered strong Q4 2025 results with robust operational execution, cost control, and technology-driven differentiation despite a challenging commodity environment.

• Achieved $416 million in adjusted free cash flow for 2025, with Q4 being the highest since the 2023 transformation.

• Fourth quarter 2025 revenue reached $1.2 billion, with adjusted EBITDA of $221 million and a net loss attributable to shareholders of $9 million.

• Increased quarterly dividend by 25% to $0.10 per share, reflecting confidence in ongoing free cash flow generation and a commitment to return at least 50% of adjusted free cash flow to shareholders.

• Continued focus on high-quality asset base and international expansion.

Financial highlights

• Q4 2025 revenue was $1.151 billion; adjusted EBITDA for Q4 was $221 million; net loss attributable to shareholders was $9 million ($0.02 per share).

• Adjusted free cash flow for 2025 totaled $416 million, down from $523 million in 2024.

• Q4 segment revenues: Drilling Services $361M, Completion Services $702M, Drilling Products $84M, Other $5M.

• Q4 adjusted gross profit: Drilling Services $132M, Completion Services $111M, Drilling Products $34M, Other $1M.

• Cash and equivalents at year-end were $421 million, up from $241 million at the end of 2024.

Outlook and guidance

• Q1 2026 guidance includes a $5–$10 million negative impact from winter weather, mainly in completion services.

• Drilling Services Q1 average rig count expected in low- to mid-90s; adjusted gross profit to decline by less than 5%.

• Completion Services Q1 adjusted gross profit expected at ~$95M, with slightly lower activity due to weather.

• Drilling Products Q1 adjusted gross profit expected to improve slightly, with international growth offsetting lower U.S. revenue.

• 2026 CapEx budget reduced by 15% to ~$500M gross, with net CapEx below $500M after asset sales.