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PTEN Q3 Earnings Loss Narrower Than Expected, Sales Beat
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Key Takeaways
Patterson-UTI posted a Q3 adjusted loss of $0.06 per share, outperforming consensus estimates.
Revenues rose above expectations on stronger Completion Services despite a 14% yearly decline.
The board declared an unchanged quarterly dividend of $0.08 per share, payable on Dec. 15.
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a third-quarter 2025 adjusted net loss of 6 cents per share, which was narrower than the Zacks Consensus Estimate of a 10-cent loss. This was driven by a 48.7% year-over-year reduction in costs and expenses. However, the bottom line declined from the prior year’s breakeven level. This year-over-year deterioration was primarily due to the poor contributions from the Drilling Products segments.
Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 1%. This was due to higher-than-expected revenues from Completion Services. Revenues of Completion Services beat the consensus mark by 2%. However, the top line decreased 14% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from Drilling Services, Completion Services and Other Services segments.
PTEN’s board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of Dec. 1, 2025. The payout, which is unchanged from the previous quarter, will be made on Dec. 15.
Patterson-UTI Energy, Inc. Price, Consensus and EPS Surprise
Drilling Services: Revenues in this segment totaled $380.2 million, down 10% from the prior-year quarter’s figure of $421.6 million. However, the top line marginally beat our estimation of $380.1 million.
Operating income amounted to $37.1 million compared with a loss of $34.4 million in the third quarter of 2024. Moreover, the figure beat our operating income estimate of $23.9 million. U.S. Contract Drilling operating days totaled 8,737 in the third quarter, with an average of 95 rigs deployed.
Completion Services: This segment’s revenues of $705.3 million dropped about 15% from the year-ago quarter’s figure of $831.6 million. However, the metric beat our estimation of $677 million.
Operating loss totaled $27.7 million against a loss of $908.7 million in the third quarter of 2024. However, the result was wider than our model’s projected loss of $18.9 million.
Drilling Products: This segment’s revenues of $85.9 million decreased about 4% from the year-ago quarter’s figure of $89.1 million. Additionally, the amount missed our estimation of $88.8 million.
Operating profit reached $5.8 million, indicating a 36% decrease compared with the third quarter of 2024. The number also missed our estimate of $13 million.
Other Services: Revenues amounted to $4.6 million, down 69% from the year-ago quarter’s figure of $15 million. Moreover, the figure missed our estimation of $10.6 million.
Operating profit amounted to $810,000 in contrast to a loss of $3.6 million in the third quarter of 2024. Additionally, the figure beat our estimation of an operating loss of $0.2 million.
PTEN’s Capital Expenditure & Financial Position
In the reported quarter, PTEN spent $144.5 million on capital programs compared with $180.6 million in the prior-year period.
As of Sept. 30, 2025, the company had cash and cash equivalents worth $186.9 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 27.3%.
This Zacks Rank #3 (Hold) company returned $64 million to its shareholders in the third quarter of 2025. During the same period, it repurchased $34 million worth of shares.
The company reported total operating costs and expenses of $1204 million compared with $2347.9 million in the third quarter of 2024.
For the fourth quarter, the company anticipates that its average rig count in the Drilling Services segment will remain in line with the third quarter, reflecting stable activity levels through the end of the year. Adjusted gross profit for this segment is expected to decrease approximately 5% compared with the third quarter.
In the Completion Services segment, the company projects adjusted gross profit to be around $85 million for the fourth quarter. Activity levels are expected to be more stable compared with the fourth quarter of last year, with less seasonality impact.
In the Drilling Products segment, the company expects a slight improvement in adjusted gross profit compared with the third quarter. Performance is anticipated to remain steady in both the United States and Canada, with higher revenues and adjusted gross profit from international operations.
Adjusted gross profit in the Other segment for the fourth quarter is expected to remain flat compared with the third quarter.
The company expects selling, general and administrative expenses to remain relatively consistent with the third quarter. Depreciation, depletion, amortization and impairment expenses are projected to be approximately $225 million.
PTEN’s capital expenditures for the fourth quarter are estimated to be around $140 million. For the full-year 2025, the company now anticipates total capital expenditures to be under $600 million, excluding the $33 million from asset sales realized through the third quarter. This revised estimate marks a reduction from earlier projections.
The company is dedicated to returning at least 50% of its annual free cash flow to shareholders through dividends and share repurchases.
Important Earnings at a Glance
While we have discussed PTEN’s third-quarter results in detail, let us take a look at three other key reports in this space.
Denver, CO-based oil and gas equipment and services company, Liberty Energy Inc. (LBRT - Free Report) , posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio, TX-based oil and gas refining and marketing company, Valero Energy Corporation (VLO - Free Report) , posted third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston, TX-based oil and gas equipment and services company, Halliburton Company (HAL - Free Report) , posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.
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PTEN Q3 Earnings Loss Narrower Than Expected, Sales Beat
Key Takeaways
Patterson-UTI Energy, Inc. (PTEN - Free Report) reported a third-quarter 2025 adjusted net loss of 6 cents per share, which was narrower than the Zacks Consensus Estimate of a 10-cent loss. This was driven by a 48.7% year-over-year reduction in costs and expenses. However, the bottom line declined from the prior year’s breakeven level. This year-over-year deterioration was primarily due to the poor contributions from the Drilling Products segments.
Total revenues of $1.2 billion beat the Zacks Consensus Estimate by 1%. This was due to higher-than-expected revenues from Completion Services. Revenues of Completion Services beat the consensus mark by 2%. However, the top line decreased 14% year over year. This underperformance can be attributed to the decrease in year-over-year revenue contribution from Drilling Services, Completion Services and Other Services segments.
PTEN’s board of directors declared a quarterly dividend of 8 cents per share to its common shareholders of record as of Dec. 1, 2025. The payout, which is unchanged from the previous quarter, will be made on Dec. 15.
Patterson-UTI Energy, Inc. Price, Consensus and EPS Surprise
Patterson-UTI Energy, Inc. price-consensus-eps-surprise-chart | Patterson-UTI Energy, Inc. Quote
Segmental Performances of Patterson
Drilling Services: Revenues in this segment totaled $380.2 million, down 10% from the prior-year quarter’s figure of $421.6 million. However, the top line marginally beat our estimation of $380.1 million.
Operating income amounted to $37.1 million compared with a loss of $34.4 million in the third quarter of 2024. Moreover, the figure beat our operating income estimate of $23.9 million. U.S. Contract Drilling operating days totaled 8,737 in the third quarter, with an average of 95 rigs deployed.
Completion Services: This segment’s revenues of $705.3 million dropped about 15% from the year-ago quarter’s figure of $831.6 million. However, the metric beat our estimation of $677 million.
Operating loss totaled $27.7 million against a loss of $908.7 million in the third quarter of 2024. However, the result was wider than our model’s projected loss of $18.9 million.
Drilling Products: This segment’s revenues of $85.9 million decreased about 4% from the year-ago quarter’s figure of $89.1 million. Additionally, the amount missed our estimation of $88.8 million.
Operating profit reached $5.8 million, indicating a 36% decrease compared with the third quarter of 2024. The number also missed our estimate of $13 million.
Other Services: Revenues amounted to $4.6 million, down 69% from the year-ago quarter’s figure of $15 million. Moreover, the figure missed our estimation of $10.6 million.
Operating profit amounted to $810,000 in contrast to a loss of $3.6 million in the third quarter of 2024. Additionally, the figure beat our estimation of an operating loss of $0.2 million.
PTEN’s Capital Expenditure & Financial Position
In the reported quarter, PTEN spent $144.5 million on capital programs compared with $180.6 million in the prior-year period.
As of Sept. 30, 2025, the company had cash and cash equivalents worth $186.9 million and long-term debt of $1.2 billion. The company’s debt-to-capitalization was 27.3%.
This Zacks Rank #3 (Hold) company returned $64 million to its shareholders in the third quarter of 2025. During the same period, it repurchased $34 million worth of shares.
The company reported total operating costs and expenses of $1204 million compared with $2347.9 million in the third quarter of 2024.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson’s Q4 Outlook
For the fourth quarter, the company anticipates that its average rig count in the Drilling Services segment will remain in line with the third quarter, reflecting stable activity levels through the end of the year. Adjusted gross profit for this segment is expected to decrease approximately 5% compared with the third quarter.
In the Completion Services segment, the company projects adjusted gross profit to be around $85 million for the fourth quarter. Activity levels are expected to be more stable compared with the fourth quarter of last year, with less seasonality impact.
In the Drilling Products segment, the company expects a slight improvement in adjusted gross profit compared with the third quarter. Performance is anticipated to remain steady in both the United States and Canada, with higher revenues and adjusted gross profit from international operations.
Adjusted gross profit in the Other segment for the fourth quarter is expected to remain flat compared with the third quarter.
The company expects selling, general and administrative expenses to remain relatively consistent with the third quarter. Depreciation, depletion, amortization and impairment expenses are projected to be approximately $225 million.
PTEN’s capital expenditures for the fourth quarter are estimated to be around $140 million. For the full-year 2025, the company now anticipates total capital expenditures to be under $600 million, excluding the $33 million from asset sales realized through the third quarter. This revised estimate marks a reduction from earlier projections.
The company is dedicated to returning at least 50% of its annual free cash flow to shareholders through dividends and share repurchases.
Important Earnings at a Glance
While we have discussed PTEN’s third-quarter results in detail, let us take a look at three other key reports in this space.
Denver, CO-based oil and gas equipment and services company, Liberty Energy Inc. (LBRT - Free Report) , posted a third-quarter 2025 adjusted net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. Moreover, the bottom line decreased sharply from the year-ago quarter’s profit of 45 cents. The company's underperformance can be attributed to macroeconomic headwinds accompanied by a slowdown in the industry’s frac activity and market pricing pressure.
As of Sept. 30, Liberty Energy had approximately $13.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $253 million represented a debt-to-capitalization of 10.9%.
San Antonio, TX-based oil and gas refining and marketing company, Valero Energy Corporation (VLO - Free Report) , posted third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.
The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.
Houston, TX-based oil and gas equipment and services company, Halliburton Company (HAL - Free Report) , posted third-quarter 2025 adjusted net income per share of 58 cents, beating the Zacks Consensus Estimate of 50 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 73 cents due to softer activity in North America.
As of Sept. 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 41.1.