RPC (RES) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues rose 7% sequentially and 36.6% year-over-year to $454.8 million, driven by Technical Services growth, new product rollouts, and the Pintail acquisition.

• Net income was $0.9 million, turning positive from a prior quarter loss, but down sharply year-over-year; adjusted net income was $7.6 million.

• Adjusted EBITDA was $53.5 million (11.8% margin), slightly down sequentially but up year-over-year; margin compressed due to higher costs.

• Technical Services led growth, especially in pressure pumping (+20%), nitrogen (+13%), and downhole tools (+11%), while Support Services were flat.

• Management remains cautiously optimistic, citing increased bidding activity and stable operator activity despite weather and geopolitical disruptions.

Financial highlights

• Adjusted diluted EPS was $0.03; diluted EPS was $0.00.

• Net income margin was 0.2%, up 90 basis points sequentially but down year-over-year.

• Adjusted EBITDA margin was 11.8%, down 110 basis points sequentially and year-over-year.

• Free cash flow was negative at $(0.9) million, mainly due to higher working capital and capital expenditures.

• Ended quarter with $200.7 million in cash and no borrowings under the $100 million revolver.

Outlook and guidance

• 2026 CapEx guidance raised to $160–$180 million, reflecting asset purchases and ERP upgrades.

• Management expects a measured approach to capital allocation, focusing on returns and prudent investments.

• Industry uncertainty persists due to commodity price volatility and geopolitical risks, but higher commodity prices and increased bidding support cautious optimism.