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- **Revenue Growth**: Sequential revenue increase of 6% to $447.1 million, driven by downhole tools (+5%), coiled tubing, and wireline.
- **Innovative Products**: A10 downhole motor achieves 100+ runs with major operators, unplugged technology reduces bridge plug reliance.
- **Financial Health**: Adjusted EBITDA margin improves to 16.2%, free cash flow $21.7 million after CapEx.
- **Strategic Shifts**: Pressure pumping now 27.9% of revenue, focus on less capital-intensive services.
- **Market Resilience**: Diversified geographic exposure and return-based fleet management.


**【CEO Summary Section】**
- **Revenue Growth and Service Line Performance**: Q3 2025 revenue increased 6% sequentially to $447.1 million, driven by strong performance in downhole tools (+5%), coiled tubing, and wireline. Service lines outside pressure pumping accounted for 72% of revenue, with Thru-Tubing Solutions leading innovation.
- **Product Innovations**: The A10 downhole motor achieved over 100 runs with major operators, offering smaller size, reduced output, and improved efficiency for longer laterals. The unplugged technology reduces reliance on bridge plugs, enhancing operational efficiency.
- **Pressure Pumping Strategy**: Cudd Pressure Control reduced nonproductive time and deployed a new 100% natural gas frac pump for testing. Fleets are managed with a return-based framework, with a cautious approach to capital-intensive investments.
- **Market Positioning**: The company is diversifying into less capital-intensive services (e.g., geoexchange wells) and leveraging geographic exposure across Rocky Mountain and Southeast regions.

**【CFO Financial Commentary】**
- **Financial Metrics**: Adjusted EBITDA rose 60 basis points to 16.2%, driven by cost control and activity growth. Operating cash flow year-to-date was $139.5 million, with free cash flow of $21.7 million after CapEx of $117.8 million.
- **Tax and Dividends**: Effective tax rate was 42.6% due to acquisition-related costs. Dividends totaled $26.3 million year-to-date, with a focus on maintaining liquidity and flexibility for acquisitions.
- **Capital Allocation**: 2025 capital spending guidance is $170-190 million for maintenance, IT upgrades, and strategic purchases. The company plans to liquidate a $50 million seller finance note and expects a one-time tax impact from a terminated SERP.

**【Q&A Highlights】**
- **Q4 Outlook**: Management anticipates cautious activity levels, with potential holiday-related slowdowns but flexibility to adapt to market conditions. The company remains focused on cost management and return-driven decisions.
- **Product Differentiation**: The A10 motor's design enhances reliability and efficiency for operators, translating to market share gains.
- **Strategic Shifts**: Pressure pumping now represents 27.9% of revenue, down from historical levels, reflecting a pivot to higher-margin services.


RPC, Inc. (RES) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RES

RES fundamentals

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