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RPC, Inc. Reports Strong Financial Results for Third Quarter 2025

RPC, Inc. (NYSE: RES), a respected player in the diversified oilfield services sector, has reported its financial outcomes for the third quarter ending September 30, 2025. The quarterly earnings indicate a positive shift, with revenues reaching approximately $447.1 million, reflecting a sequential increase of 6%. This growth points to a recovering trend in the oilfield services market, despite ongoing industry challenges.

Key Financial Highlights

In the latest quarter, RPC's net income escalated to $13.0 million, a substantial 28% rise compared to the previous quarter. The earnings per share for diluted shares stood at $0.06, and the net income margin saw a sequential increment of 50 basis points, landing at 2.9%. Furthermore, adjusted net income reported was $18.4 million, marking a 5% improvement from the prior quarter. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a positive trajectory, reaching $72.3 million, enhanced by operational efficiencies across various service lines. The adjusted EBITDA margin improved by 60 basis points, now standing at 16.2%.

Management Commentary on Performance

Ben M. Palmer, President and CEO of RPC, commented on the performance, citing significant recovery across most service segment revenue lines, with pressure pumping observing a remarkable 14% growth after a lull in the second quarter. The coiled tubing business under Cudd Pressure Control also demonstrated a 19% increase, aided by the introduction of a new large-diameter unit. Thru-Tubing Solutions saw robust demand for its downhole tools, which were underpinned by new product launches that resonate well with customer needs.

Despite this growth, Palmer acknowledged the reality of the current market conditions. With oil prices fluctuating below $60 a barrel and expectations of seasonal downturns as the holiday period approaches, the company remains cautious about the potential hurdles in the fourth quarter. The team is prioritizing cost management and prudent investment strategies to optimize business resilience against these challenges.

Industry Insights

According to data sourced from Baker Hughes, the U.S. rig count averaged 540 in Q3 2025, down from 571 in Q2, which reflects a minor contraction in market activity. The price of oil per barrel averaged $65.85, representing a slight increase of 1.7% from the previous quarter but a 14% decline year-over-year. Conversely, natural gas prices saw a yearly rise of approximately 44.8%, now averaging around $3.04 per Mcf.

Segment Performance Analysis

Breaking down the revenue contributions, the Technical Services segment, which includes essential services like pressure pumping and wireline, generated revenues of $422.2 million—up 6% sequentially. The Support Services segment brought in revenues of $24.9 million, reflecting a 4% increase, particularly benefitting from heightened activity with rental tools.

Cost management remains a focus, with total costs of revenues recorded at $334.7 million, up from $317.7 million due to heightened operational activities. Additionally, selling, general, and administrative expenses rose slightly to $44.6 million as the company adapted to increased employment-related costs and other adjustments.

Cash Flow and Dividends

On the balance sheet, cash and cash equivalents stood at $163.5 million, with no outstanding borrowings under RPC’s revolving credit facility. The net cash provided by operating activities reached $139.5 million for the year-to-date period. Importantly for shareholders, the Board has declared a quarterly cash dividend of $0.04 per share, scheduled for payment on December 10, 2025, to all common stockholders on record by November 10, 2025.

Conclusion

As RPC, Inc. navigates through the current market landscape, the positive financial results and strategic focus signal a robust framework poised for future growth, even amid uncertainties in the oil and gas sector. The ongoing monitoring of industry trends and customer demands will be pivotal as RPC continues to expand its offerings while maintaining fiscal discipline.

For a more detailed inquiry, RPC will conduct a conference call on October 30, 2025, providing an overview of its performance and strategic direction moving forward.