10-Q · April 28, 2026
Patterson-UTI reported Q1 2026 revenue of $1,117,331,000 and a diluted loss per share of $(0.06). Revenue beat estimates but the company generated a small operating loss (about $(14.3) million) and negative free cash…
Earnings analysis · 10-Q
PTEN earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Patterson-UTI reported Q2 revenue of $1.228 billion, up 9.9% sequentially, with growth across Drilling Services, Completion Services, and Drilling Products. Sequential profitability improved as Completion Services…
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Patterson-UTI reported Q2 revenue of $1.228 billion, up 9.9% sequentially, with growth across Drilling Services, Completion Services, and Drilling Products. Sequential profitability improved as Completion Services recovered from Q1 winter disruptions, but the company still recorded a $19.275 million net loss, including a $21.0 million Colombia exit charge and a $4.520 million minority-investment write-down. Management’s Q3 outlook is constructively directional—approximately 100 average U.S. rigs and higher adjusted gross profit in each operating segment—although first-half revenue and operating cash flow remain below the prior-year level.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Broad sequential revenue recovery
Q2 revenue rose $110.636 million, or 9.9%, sequentially to $1.228 billion from $1.117 billion. All three operating segments grew sequentially, led by Completion Services at $753.641 million, up 10.9%.
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Completion margins rebounded
Completion Services adjusted gross profit increased 25.3% sequentially to $122.925 million, from $98.101 million, as fracturing revenue rose $55.1 million on a 6% increase in pumping hours.
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Drilling Products accelerated
Drilling Products revenue increased 14.5% sequentially to $91.333 million and operating income increased 63.0% to $8.317 million, driven by $9.1 million of higher U.S. revenue.
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Rig activity and backlog support Q3
The company exited Q2 with 96 U.S. rigs operating versus a quarterly average of 92 and expects approximately 100 average U.S. rigs in Q3 2026. U.S. contract-drilling backlog was approximately $365 million at June 30.
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Liquidity remains ample
Liquidity remained substantial, with approximately $588 million of working capital, including $201 million of cash, and approximately $498 million available under the credit agreement at June 30, 2026.
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Sequential consolidated margin improvement
GAAP gross profit was approximately $64.193 million, or 5.2% of revenue, versus approximately $51.645 million, or 4.6%, in Q1. The operating loss narrowed to approximately $6.962 million from approximately $14.317 million sequentially.
What to watch
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Colombia exit charge weighs on results
The Colombia drilling exit created $21.0 million of incremental operating expense in Q2, including approximately $20.0 million in direct operating costs; management expects exit activity to be substantially completed over the next year.
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First-half activity remains below prior year
Despite Q2 recovery, first-half revenue declined to $2.345 billion from $2.500 billion a year earlier. Drilling Services revenue fell 11.2% and Completion Services revenue fell 3.5% year over year.
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Cash conversion and capex are pressured
Six-month operating cash flow fell to $119.940 million from $347.890 million, while capital expenditures were $273 million; this implies approximately negative $153.1 million of pre-financing free cash flow for the first half.
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Higher interest burden after refinancing
Long-term debt totaled $1.2 billion at June 30 after issuing $500 million of 6.05% notes due 2036 and redeeming approximately $483 million of 2028 notes. Quarterly net interest expense increased to $17.496 million from $14.720 million.
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Commodity and customer-spending volatility
Commodity-market conditions remain volatile: Q2 oil averaged $95.65 per barrel versus $72.74 in Q1, while Henry Hub natural gas averaged $2.95 per MMBtu versus $4.71. Management states customer spending and activity remain exposed to geopolitical, tariff, and macroeconomic conditions.
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No explicit Item 1A risk update provided
No separate Item 1A risk-factor update was included in the provided Q2 10-Q text. However, new operational risk is evidenced by the $21.0 million Colombia exit cost and the decision to leave that market.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. For Q3 2026, management expects approximately 100 average U.S. operating rigs, an exit rig count above that quarterly average, and higher adjusted gross profit in Drilling Services, Completion Services, and Drilling Products versus Q2 2026.
Earlier filings 4
10-K · February 10, 2026
Patterson-UTI positions itself as a leading onshore provider of drilling, completion and drilling products with a modernized fleet and integrated completion solutions. The 2025 MD&A shows a stabilized operational…
10-Q · April 29, 2025
Patterson-UTI reported quarterly revenue of $1,280,537,000 and diluted EPS of $0.00 for the three months ended March 31, 2025. Operating income declined sharply to $16,945,000 from $86,999,000 a year ago, but the…
10-Q · October 28, 2024
Patterson-UTI reported Q3 revenue of $1,357,222,000 (up from $1,011,452,000 YoY) but recorded an operating loss of $990,629,000 and diluted EPS of $(2.50) driven primarily by an $885,240,000 goodwill impairment in the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.