Patterson-UTI Energy (PTEN) Q1 2026 earnings summary

Executive summary

• Q1 2026 featured strong operational execution and technology-driven performance, but reported a net loss attributable to common shareholders of $24.6 million, with revenues declining 12.7% year-over-year to $1.12 billion.

• Adjusted EBITDA was $205 million, down from $251 million in Q1 2025, reflecting lower activity across all segments.

• Management emphasized disciplined capital allocation, ongoing technology investment, and shareholder returns, with a positive outlook for U.S. shale activity as commodity prices rise.

• A quarterly dividend of $0.10 per share was declared and paid, with a similar dividend approved for Q2 2026.

Financial highlights

• Q1 2026 revenue was $1.117 billion–$1.12 billion; net loss attributable to common shareholders was $24.6 million ($0.06 per share).

• Adjusted EBITDA totaled $205 million, including $3 million in early contract termination revenue.

• Adjusted gross profit was $268.2 million, down from $319.1 million in Q1 2025.

• Cash and equivalents at March 31, 2026, were $337 million, with no borrowings on a $500 million revolver.

• Capital expenditures were $116.6 million, down from $161.8 million year-over-year.

Outlook and guidance

• Drilling Services Q2 adjusted gross profit expected at ~$130 million, including $5 million in rig reactivation/mobilization costs; average active rig count projected at 90, with potential to exit Q2 at 92–95 rigs.

• Completion Services Q2 adjusted gross profit expected at ~$105 million, with near full utilization and continued investment in high-grade, lower-emission equipment.

• Drilling Products Q2 adjusted gross profit expected to decline slightly due to Middle East challenges and Canadian spring breakup.

• G&A for Q2 expected at ~$67 million; depreciation and related expenses at ~$220 million.

• Board approved a $0.10/share quarterly dividend.