PTEN earnings analysis
What we found in PTEN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 5.2%
- Operating margin
- -0.6%
- Segment
- Drilling Services revenue: $373.501 million (+6.2% sequentially from $351.717 million)
- Segment
- Completion Services revenue: $753.641 million (+10.9% sequentially from $679.587 million)
- Segment
- Drilling Products revenue: $91.333 million (+14.5% sequentially from $79.797 million)
- Segment
- Other revenue: $9.492 million (+52.4% sequentially from $6.230 million)
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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