Abstract
Patterson-UTI will release its quarterly results on February 04, 2026 Post Market; this preview consolidates the latest operational updates, consensus forecasts, and institutional perspectives to frame expectations for revenue, margins, and adjusted EPS in the context of rig activity and completion demand through October 21, 2025.
Market Forecast
Consensus expectations, aligned with the company’s latest guidance framework and aggregated estimates, point to revenue of USD 1.10 billion this quarter, an adjusted EPS of USD -0.12, and EBIT of USD -38.29 million, with year-over-year forecast growth rates of -11.57% for revenue, -18.19% for EPS, and 13.39% for EBIT. Forecasted profitability aims for stabilization as pricing and utilization find balance; margin guidance remains cautious with weaker net profit trends relative to completion and drilling mix, while gross profit and net profit margins are not explicitly guided on a year-over-year basis. Patterson-UTI’s main business outlook emphasizes steady contract coverage in drilling and tempered completion activity; the current highlight is the completion services arm anchoring revenue mix despite pricing pressure and basin-level shifts. The most promising segment is completion services, with last quarter revenue of USD 705.28 million and continued focus on utilization improvements, while year-over-year revenue growth is not specified in available data.
Last Quarter Review
Patterson-UTI’s previous quarter delivered revenue of USD 1.18 billion, a gross profit margin of 23.99%, GAAP net profit attributable to the parent company of USD -36.40 million, a net profit margin of -3.10%, and adjusted EPS of USD -0.10, with year-over-year movements reflecting a 13.36% decline in revenue and a -9.00% change in EPS. A key financial highlight was quarter-on-quarter improvement in GAAP net profit growth at 25.93%, signaling cost actions and operational sizing that mitigated downside despite softer activity. Main business highlights show completion services revenue of USD 705.28 million, drilling services revenue of USD 380.20 million, drilling products revenue of USD 85.88 million, and other revenue of USD 4.60 million; specific year-over-year growth by segment was not disclosed in the dataset.
Current Quarter Outlook
Completion Services
The completion services business is positioned to remain the largest contributor to consolidated revenue, supported by sustained demand across core U.S. basins and contract continuity with key customers. Utilization is the central lever: fleets that remained active through the quarter are expected to carry pricing relatively intact even as spot work shows cautious bidding. Management attention to fleet efficiency and repair capital allocation has helped hold gross profitability, and this dynamic should continue in the near term as crews are balanced to match available work. Risks sit in the cadence of job timing and the distribution of workdays, which can affect reported revenue and margins on shorter intervals. On a year-over-year basis, consensus expects pressure from lower activity in select basins and tighter customer budgets, though EBIT guidance implies improving operating discipline versus last year’s comparable period.
Contract Drilling Services
Drilling services are likely to benefit from stable rig counts, with Patterson-UTI reporting an average of 93.00 rigs operating in the United States in October, November, and December 2025. Contract coverage mitigates near-term volatility, but dayrate trajectories appear mixed, reflecting competition and regional demand differentials. Efficiency gains, including quicker mobilization and higher uptime, can offset softer pricing, helping preserve segment-level margins. The company’s updated operating cadence suggests that reported rig activity is consistent, limiting downside risk to revenue so long as customers maintain program continuity. The primary variable to watch is incremental rig reactivations or stack decisions, which will transmit directly into reported revenue and segment contribution.
Drilling Products
The drilling products segment offers incremental leverage to recovery in drilling intensity, with revenue last quarter at USD 85.88 million, indicating a smaller but strategically important contribution. Product mix—particularly higher-value consumables tied to complex well programs—can improve gross margin quality. The outlook depends on drilling program complexity and consumable throughput; where customers shift toward multi-well pads and longer laterals, consumables demand can rise even if headline rig counts are flat. Any moderation in customer capex could weigh on orders and inventory turns, which would affect segment-level profitability due to fixed manufacturing overhead absorption.
Stock Price Drivers This Quarter
Three factors are likely to exert the greatest influence on Patterson-UTI’s share price in this reporting window. The first is revenue and EBIT delivery against estimates—USD 1.10 billion and USD -38.29 million respectively—where any upside surprise would signal firmer pricing or better utilization than modeled. The second is margin commentary, particularly gross profit trajectory relative to completion fleet activity and drilling dayrates, which will shape expectations for adjusted EPS beyond the quarter. The third is rig activity continuity, evidenced by the average 93.00 rigs operating through year-end 2025; investors will parse whether this run-rate translates into stable early-2026 contract drilling revenue and supports a path to margin recovery. Qualitative guidance on customer budgets and crew deployment will be closely watched for indications of near-term improvement.
Analyst Opinions
Across recent institutional commentary, the majority view tilts bullish, reflecting expectations for stabilization and selective improvement. RBC Capital maintained a Buy rating, and Stifel Nicolaus reaffirmed a Buy stance, signaling confidence in Patterson-UTI’s ability to navigate pricing and utilization through early 2026. These opinions emphasize that consistent rig activity and operational discipline can bridge to healthier margins as completion demand normalizes and drilling dayrates settle into a defensible band. The bullish camp points to the company’s cost measures, improved quarter-on-quarter net profit trajectory, and the potential for EBIT to outperform if completion schedules become more consistent. With rig activity averaging 93.00 units during the fourth quarter of 2025, analysts view the base as sturdy enough to support revenue projections while offering upside if customers add programs or accelerate work scopes. Investors in this camp expect that any near-term EPS pressure at USD -0.12 will be transitory if the company sustains fleet efficiency and closes utilization gaps. The ratio of bullish to bearish assessments, based on collected views, is in favor of bullish sentiment, and the analysis here reflects that majority perspective, focusing on operational execution as the main validation point.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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