Did Patterson-UTI beat earnings in Q4 2025?

Yes, Patterson-UTI beat on all three key metrics: revenue of $1.18B beat estimates by 0.4%, adjusted EPS of -$0.05 beat by 37%, and EBITDA of $219M beat by 6%.

What did Patterson-UTI say about 2026 guidance?

Management expects 2026 capex below $500M (net of asset sales), another strong year of adjusted FCF, and reaffirmed commitment to return at least 50% of adjusted FCF to shareholders.

How many rigs did Patterson-UTI operate in Q4 2025?

Patterson-UTI averaged 93 active rigs in the United States during Q4 2025, with cost controls exceeding management expectations.

PATTERSON UTI ENERGY (PTEN)·Q4 2025 Earnings Summary

Patterson-UTI Delivers Triple Beat as Cost Controls Shine in Q4

February 5, 2026 · by Fintool AI Agent

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Patterson-UTI Energy (NASDAQ: PTEN) posted a clean triple beat in Q4 2025, with revenue, EPS, and EBITDA all coming in ahead of analyst expectations. The oilfield services company highlighted that cost controls exceeded expectations during the quarter, helping offset continued headwinds from a challenging commodity price environment.

Did Patterson-UTI Beat Earnings?

Yes — a triple beat across all key metrics.

Metric	Q4 2025 Actual	Consensus	Surprise
Revenue	$1,176M	$1,171M	+0.4%
Adjusted EPS	-$0.05	-$0.09	+37%
Adjusted EBITDA	$219M	$206M	+6%

*Values retrieved from S&P Global

Patterson-UTI's ability to beat expectations despite a declining rig count environment speaks to management's focus on operational efficiency and cost discipline. The company reported that Q4 2025 generated the strongest adjusted free cash flow of the year.

What Changed From Last Quarter?

Cost controls exceeded expectations — the headline story of the quarter.

Key operational shifts from Q3 2025:

Metric	Q3 2025	Q4 2025	Change
Revenue	$1,171M	$1,176M	+0.4%
EBITDA	$170M	$219M	+29%
EBITDA Margin	14.4%	18.6%	+420bps
Active US Rigs	~95	93	-2 rigs

*Values retrieved from S&P Global

The margin expansion is particularly notable. After EBITDA margins compressed to 14.4% in Q3, the Q4 rebound to 18.6% demonstrates the impact of cost initiatives.

Completion Services saw less seasonal weakness than expected, with less white space during the quarter. Natural gas-powered assets, including the Emerald™ 100% natural gas-powered and dual fuel fleets, remained fully utilized.

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What Did Management Guide?

Patterson-UTI provided constructive forward commentary with specific capital allocation commitments:

2026 Capital Expenditures:

Expect capex below $500 million (net of asset sales)
Lower than 2025 levels, reflecting scaled investment approach

Free Cash Flow:

Q4 2025 delivered the strongest adjusted FCF quarter of 2025
Expect another year of strong adjusted FCF in 2026

Shareholder Returns:

Committed to return at least 50% of adjusted FCF to shareholders annually
Through Q3 2025, the company had returned more than 85% of adjusted FCF since beginning of 2024
$0.08 quarterly dividend maintained for 13 consecutive quarters

Completion Services:

Roughly 2 million HHP expected to deploy in Q1 2026
Minimal spare capacity after maintenance cycles
Tier II decommissioning to continue through 2026

How Strong Is the Balance Sheet?

Patterson-UTI maintains an investment-grade credit rating from all three major agencies (Moody's, S&P, Fitch), a relative rarity in the oilfield services sector.

Metric	Value
Net Debt/EBITDA	~1.2x
Cash Position	$187M
Total Liquidity	$682M
Interest Coverage	14x
Next Senior Note Maturity	2028

The company has no near-term debt maturities and significant liquidity headroom, positioning it well for continued shareholder returns even in a prolonged downturn.

How Did the Stock React?

Patterson-UTI shares have recovered from the October 2025 lows near $5.10, trading around $7.44 heading into earnings — up ~46% from the 52-week low but still 20% below the 52-week high of $9.30.

Price Metric	Value
Current Price	$7.44
52-Week High	$9.30
52-Week Low	$5.10
Market Cap	$2.87B
50-Day Avg	$6.29
200-Day Avg	$5.97

*Values retrieved from market data as of January 27, 2026

The stock has been trending higher since the December lows, with shares now trading well above both the 50-day and 200-day moving averages — a bullish technical signal heading into this earnings release.

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Segment Performance: What Drove the Quarter?

Patterson-UTI operates across three segments, with Drilling Services contributing the majority of profitability:

Segment	LTM Adjusted Gross Profit	% of Total
Drilling Services	$611M	51%
Completion Services	$415M	35%
Drilling Products	$151M	13%

Drilling Services: Averaged 93 active US rigs in Q4 2025. Cash generation per active rig remained steady at ~$3.6M annually (EBITDA less capex).

Completion Services: Fleet high-grading continues with 100% natural gas-powered fleets increasingly favored by customers. Simulfrac now represents ~28% of active fleets industry-wide, up from 17% in 2024.

Drilling Products (Ulterra): Market share on PTEN-operated rigs up >10% since acquisition. Revenue per industry rig up 40% since early 2023.

What Should Investors Watch Going Forward?

Near-term catalysts:

Q1 2026 deployment of ~2M HHP and fleet utilization trends
Commodity price trajectory and customer drilling activity
Continued Tier II decommissioning and fleet mix improvement
Pace of shareholder returns vs. 50% FCF commitment

Key risks:

Continued softness in US drilling activity
Commodity price volatility impacting customer budgets
Industry overcapacity in completion services
Natural gas price weakness affecting frac demand

Management credibility: The company has maintained its dividend for 13 consecutive quarters and returned 85%+ of adjusted FCF to shareholders through 2024-2025, exceeding the stated 50% minimum target. This track record supports confidence in forward guidance.

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Data sources: Patterson-UTI Q4 2025 Investor Presentation, S&P Global estimates and actuals