RES: Q2 TAKE THREE

RPC, Inc. (RES) is navigating industry headwinds like lower commodity prices and macro uncertainty by focusing on efficiency gains and cost control. The Q2 acquisition of Pintail Completions added scale and a stronger customer base. Its operating segments saw strong operating income growth, but net income declined due to higher acquisition-related employment costs. Free cash flow also dropped in 6M 2025.

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Outlook and Acquisition Effects : RPC, Inc (RES) identified the negative factors, i.e., lower commodity prices and macro uncertainties, plaguing the oilfield services industry. In this environment, the company will look to focus on gaining efficiencies and achieving cost improvements by passing on increased supplier costs.

In Q2, pressure pumping pricing was affected by weaker activity, pricing pressure, non-productive time, and customer startup delays. So, the Pintail acquisition in April was operationally important as it added scale, a blue-chip customer base, and helped diversify its portfolio.

Segment Performance and Margin: Quarter-over-quarter, RPC's (RES) revenues increased significantly, by 26%, in Q2 following the acquisition of Pintail Completions. However, excluding the effect of the acquisition, core revenue declined by 3%. Its adjusted EBITDA margin expanded by 90 basis points from Q1.

The company’s Technical Services segment operating income increased by 51% quarter-over-quarter, while operating income in the Support Services segment improved by 74% from Q1 to Q2. Despite that, the company's net income decreased by 15.6% as acquisition-related employment costs were added to its cost structure. Read more about the company in our previous article here .

RES's FCF Decreased : RES incurred $30 million of debt (notes payable) as of June 30. This, along with a cash balance of $162 million and a $100 million revolving credit facility, allowed for the maintenance of a dividend payment of $0.04 per share. Cash flow from operations nearly halved in 6M 2025, while free cash flow decreased by 69% in the past year.

Thanks for reading the RES Take Three, designed to give you three critical takeaways from RES's earnings report. Soon, we will present a second update on RES earnings, highlighting its current strategy, news, and notes we extracted from our deeper dive.

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