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Jun 30, 2025
Patterson-UTI Q2 2025 Earnings Report
Patterson-UTI posted a net loss in Q2 2025 due to an asset impairment but delivered solid operational performance with strong adjusted EBITDA.
Key Takeaways
Patterson-UTI generated $1.2 billion in revenue for Q2 2025 but reported a net loss of $49 million due to a non-cash asset impairment related to its Colombian operations. The Drilling Services, Completion Services, and Drilling Products segments delivered steady operational performance, supported by technology adoption and high utilization rates. The company expects free cash flow to accelerate in the second half of 2025 and raised its technology-driven investments outlook.
Total revenue of $1.2 billion, with $231 million in adjusted EBITDA
Net loss of $49 million due to $28 million non-cash asset impairment
Completion Services revenue of $719 million with strong natural gas basin activity
Drilling Services delivered 9,465 U.S. operating days with advanced automation adoption
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Patterson-UTI expects steady activity in Q3 2025, with improved adjusted gross profit in Drilling Products and steady Completion Services utilization. Capital expenditures are expected to remain below $600 million for the year.
Positive Outlook
- Free cash flow expected to accelerate in H2 2025
- Steady Completion Services utilization through Q3
- Technology-driven investments in automation and digital services expected to yield long-term returns
- Increased natural gas basin activity discussions for 2026
- Strong balance sheet with low leverage and liquidity for strategic flexibility
Challenges Ahead
- Oil market volatility impacting drilling and completions activity
- Customer caution due to macroeconomic uncertainties
- Permian Basin rig count moderating sequentially
- Lower industry drilling activity in U.S. impacting Drilling Products
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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