Patterson-UTI Revenue Rises to $1.342 Billion as It Returns to Profit in Third Quarter
Key Facts
Patterson-UTI Energy reported revenue of $1.342 billion in the third quarter ended September 30, 2026, and net income attributable to common shareholders of $28.353 million, according to its results statement published via Nasdaq. Revenue was higher than $1.228 billion in the second quarter and $1.176 billion in the same period last year. The company returned to profitability after posting a net loss of $19.602 million in the previous quarter. Diluted earnings per share were $0.07, compared with a diluted loss of $0.05 in the second quarter. Describing the result as a beat would require specifying the earnings-per-share measure and consensus source; the comparison here is therefore limited to the actual figures in the company's statement.
Adjusted EBITDA rose to $263.888 million, compared with $231.886 million in the second quarter and $218.654 million a year earlier. In Drilling Services, revenue was $417.367 million, versus $373.501 million in the previous quarter. The segment's adjusted gross profit increased to $148.914 million from $113.882 million. The figures reflect concurrent improvement in revenue and adjusted profitability for Drilling Services during the quarter. Completion Services and Drilling Products also provided additional revenue support, while their outlooks differed.
Completion Services revenue was $808 million, and the segment posted adjusted gross profit of $133 million, supported by a mid-single-digit increase in pricing compared with the second quarter, the company said. But operating performance faced temporary constraints from sand supply in South Texas and trucking delays in the Permian Basin. The company said the issues increased nonproductive time for some fleets. Drilling Products revenue was $110 million, with adjusted gross profit of $51 million. Revenue in the business increased 21% sequentially, which the company described as its strongest quarterly performance since acquiring Ulterra in 2023.
Patterson-UTI expects adjusted gross profit of $140 million for Completion Services in the fourth quarter, with activity near the third-quarter level and further pricing improvement. It said seasonal and holiday effects are expected to be less severe than in previous fourth quarters. By contrast, the company expects adjusted gross profit for Drilling Products to decline 5% to 10% from the third quarter. It attributed the expected decline to lower drilling activity in Saudi Arabia amid geopolitical turmoil. The divergence in segment outlooks is a feature of management's guidance for the coming period.
The company returned about $62 million to shareholders in the third quarter, including $24 million through share repurchases, and declared a quarterly cash dividend of $0.10 per share. The dividend is payable to shareholders of record on December 1, 2026, and will be paid on December 15. Net cash provided by operating activities was $420.876 million in the first nine months of 2026, compared with $563.693 million in the corresponding period of 2025. The chief executive said rising U.S. demand for onshore drilling and completion services is supporting stronger pricing and returns. He added that the company expects free cash flow to remain strong in the fourth quarter and rise meaningfully in 2027 compared with 2026.
As part of efforts to reduce fuel costs, management said about 90% of the active fleet will be capable of using natural gas by the end of 2026. It also said company discussions suggest additional rigs could be reactivated and demand for Completion Services could increase in 2027. The company's shares closed at $12.60 on October 28, according to EL7 data. The conference call to discuss results for the quarter ended September 30 was scheduled for October 29, 2026, at 9:00 a.m. Central Time. The company's outlook combines an expected improvement in Completion Services with anticipated pressure on Drilling Products, alongside close attention to onshore services demand over the coming year.