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Sep 30
Patterson-UTI Q3 2025 Earnings Report
Patterson-UTI reported a quarterly net loss despite steady operational activity across segments.
Key Takeaways
Patterson-UTI posted $1.2 billion in revenue for Q3 2025 with a net loss of $36 million. The company maintained stable activity levels across segments, with strong gross profit from drilling and completion services, although margin pressure and legacy legal costs weighed on earnings.
Revenue for the quarter reached $1.2 billion.
Reported net loss of $36 million; adjusted net loss was $21 million.
Drilling Services delivered $134 million in adjusted gross profit from 8,737 operating days.
Free cash flow for the nine months was $146 million, with capital expenditures of $144 million in Q3.
Patterson-UTI
Patterson-UTI
Patterson-UTI Revenue by Segment
Patterson-UTI Revenue by Geographic Location
Revenue by Segment
Drilling Services Revenue
CapyFin.comCompletion Services Revenue
CapyFin.comDrilling Products Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Patterson-UTI expects Q4 to show relative stability in drilling and improvement in international drilling product sales, though margin pressures persist in certain areas.
Positive Outlook
- Stable U.S. drilling activity expected in Q4.
- Completion Services gross profit expected to be ~$85 million.
- International drilling product revenue expected to improve.
- New technology deployments (Vertex™ and Emerald™ fleets) gaining traction.
- Strong free cash flow anticipated in Q4.
Challenges Ahead
- Drilling Services gross profit expected to decline ~5%.
- Completion Services facing seasonal pressure despite better YoY performance.
- Drilling Products impacted by earlier bit repair costs.
- No improvement in overall net income guidance.
- Legal accruals ($20 million) impacted Q3 operating expenses.