RPC Q2 Earnings Call Highlights

RPC’s second-quarter performance improved: Revenue rose 1% sequentially to $461 million, while adjusted EBITDA increased to $66 million and the margin expanded 250 basis points to 14.3%, supported by pricing, job mix, operating leverage and a sales-tax refund.

Technical Services offset weakness in wireline: ThruTubing Solutions, coiled tubing and snubbing delivered growth, while Pintail Wireline revenue fell 16% amid lower customer activity and aggressive competitor pricing.

RPC is also expanding its larger-diameter coiled-tubing capacity and selectively investing in newer, dual-fuel equipment.

RPC raised its 2026 capital-spending outlook to $170 million-$190 million for targeted growth investments, while maintaining a conservative balance sheet with approximately $180 million in cash and no revolver borrowings.

CEO Ben Palmer plans to retire by year-end 2026, and the board is searching for his successor.

RPC NYSE: RES reported second-quarter 2026 revenue of $461 million, up 1% sequentially, as growth in several technical-service lines and improved job mix supported a 250-basis-point increase in adjusted EBITDA margin.

Adjusted EBITDA rose to $66 million from $53.5 million in the first quarter, while adjusted diluted earnings per share were $0.08.

Chief Financial Officer Michael Schmit said EBITDA margin reached 14.3%, benefiting from modest pricing gains, improved job mix, operating leverage at several locations and a sales-tax refund.

President and CEO Ben Palmer said the company’s results reflected “strong execution, improved job mix, technology adoption, and contributions from targeted investments,” even as industry activity remained relatively subdued.

Technical Services, which accounted for 95% of quarterly revenue, increased 1% sequentially.

Support Services, representing the remaining 5%, increased 11%.

Downhole tools revenue at ThruTubing Solutions increased 10% sequentially, including growth of more than 20% in the Rocky Mountain region.

Palmer attributed the performance to demand for the company’s proprietary tools and to increasingly complex and longer well laterals.

The company expanded the availability and sizes of its MetalMax metal-on-metal power section, which Palmer said has increased its addressable market and market penetration.

He said the technology can reduce the number of trips operators need to make out of a well, reducing nonproductive time.

ThruTubing Solutions also completed several horseshoe wells in the Permian Basin exceeding 27,000 feet in recent weeks.

Cudd Pressure Control revenue rose 8% from the first quarter, led by coiled tubing, snubbing and well-control services.

Snubbing revenue increased 14%, aided by a new big-bore snubbing unit that began work in early June and later moved to a multi-project assignment.

Palmer said the unit is suited for cavern gas storage inspections, a regulatory-driven market that supports the company’s effort to diversify beyond well completions.

Coiled tubing revenue increased 6%, with the strongest growth in Elk City and additional gains in Pennsylvania and Michigan.

Utilization increased across the company’s larger-diameter units, with its 2 7/8-inch unit fully utilized.

RPC expects to have three 2 7/8-inch-capable coiled tubing units by year-end.

Two will result from reel-trailer upgrades to previously modernized units, while the third is associated with the previously delivered Trailblazer unit.

Palmer said the company’s current geographic focus for the upgraded units is South Texas, the Mid-Continent and the Permian Basin, although the equipment can be moved based on customer relationships and returns.

Wireline remained a challenging market.

Pintail Wireline revenue declined 16% sequentially due to redu...