RPC Q2 profit beats on Rental Tools activity growth

Overview

• U.S. oilfield services firm's Q2 revenue rose 1% but missed analyst expectations

• Adjusted net income for Q2 more than doubled and beat analyst expectations

• Company declared regular quarterly dividend of $0.04 per share

Outlook

• Company says improved pricing and activity visibility support targeted growth through modest CapEx increase

• RPC says oil price volatility keeps management cautious about future investments

• Company highlights strong balance sheet and ability to invest opportunistically

Result Drivers

• SUPPORT SERVICES GROWTH - Support Services segment revenues rose 11% sequentially, led by a 21% increase in Rental Tools activity

• TECHNICAL SERVICES MIXED - Technical Services segment saw modest revenue gains, with double-digit increases in Snubbing, Cementing, and Downhole Tools mostly offset by lower Wireline revenues

• IMPROVED JOB MIX - Cost of revenues declined despite higher sales, primarily due to improved job mix, specifically materials supplies within Pressure Pumping

Company press release: ID:nPn1FmYH6a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for RPC Inc is $6.10, about 19.1% above its July 29 closing price of $5.12

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• July 29 - ProPetro Q2 revenue rises 13%, slightly beats estimates

• July 29 - Patterson-UTI Energy Q2 revenue rises on higher drilling activity

• July 27 - Baker Hughes flags lower spending by oil and gas producers in 2026

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)