0001104659-26-021480
SEC filingRPC, Inc. reported revenues of $1.63 billion for fiscal year 2025, generating net income of $32.1 million. Operating income was $44.7 million, with a gross profit of $400 million calculated from revenues of $1.63 billion and cost of revenues of $1.23 billion. The company generated $201.3 million in net cash from operating activities, but used $273.7 million for investing activities primarily due to capital expenditures of $148.4 million and the $153.4 million purchase of Pintail Completions. This resulted in a net decrease in cash of $116.0 million, ending the period with $126.4 million in cash and equivalents. Technical Services represented 94.4% of total revenues at $1.54 billion, while Support Services contributed 5.6% at $90.5 million. The company maintained a strong balance sheet with total assets of $1.47 billion and stockholders' equity of $1.10 billion.
RPC, Inc. reported fiscal year 2025 revenues of $1.63 billion, representing a 15.0% increase from the $1.41 billion reported in 2024. Net income was $32.1 million, up 14.2% from $28.1 million in the prior year. Operating income reached $44.7 million, a 15.5% increase from $38.7 million in 2024. The company generated $201.3 million in operating cash flow, though this was offset by significant investing activities including $148.4 million in capital expenditures and the $153.4 million acquisition of Pintail Completions. The balance sheet remained strong with total assets of $1.47 billion and stockholders' equity of $1.10 billion as of December 31, 2025.
Revenue growth was driven primarily by the Technical Services segment, which contributed $1.54 billion or 94.4% of total revenues, up 15.8% year-over-year. Within Technical Services, pressure pumping represented 29.8% of total revenues ($485.0 million), down from 41.5% in 2024 due to competitive pressures. Downhole tools contributed 24.2% ($393.8 million), wireline services 19.4% ($315.5 million, significantly boosted by the Pintail acquisition), coiled tubing 9.3% ($151.5 million), and cementing 6.4% ($104.7 million). Support Services contributed $90.5 million or 5.6% of revenues, with rental tools representing 4.1% ($66.7 million). One customer accounted for approximately 15% of total revenues in 2025.
Gross profit was $400 million based on revenues of $1.63 billion and cost of revenues of $1.23 billion, representing a gross margin of 24.5%. Operating expenses included $175.6 million in selling, general and administrative expenses, $20.3 million in acquisition-related employment costs, $18.3 million in pension settlement charges, and $161.2 million in depreciation and amortization. These expenses, partially offset by an $8.2 million gain on disposition of assets, resulted in operating income of $44.7 million and an operating margin of 2.7%. Interest expense of $3.0 million was more than offset by interest income of $8.4 million and other income of $6.4 million, leading to pre-tax income of $56.5 million and a net income margin of 2.0% after $24.5 million in income taxes.
Operating activities generated $201.3 million in cash, primarily from net income of $32.1 million adjusted for $161.2 million in depreciation and amortization and $20.3 million in acquisition-related employment costs. Investing activities used $273.7 million, including $148.4 million in capital expenditures, $153.4 million for the Pintail acquisition, partially offset by $19.5 million from asset sales and $33.1 million from benefit plan financing. Financing activities used $43.6 million, including $35.1 million in dividend payments. The net cash decrease was $116.0 million, ending with $126.4 million in cash and equivalents. Total current assets were $704.5 million against current liabilities of $217.2 million, indicating strong liquidity. Total debt (notes payable) was $50.0 million ($20.0 million current, $30.0 million long-term).
The company operates in a highly competitive oilfield services industry where demand is influenced by oil and natural gas prices, with average prices of $65.58 per barrel and $3.52 per mcf in 2025. The U.S. rig count decreased 6.3% to 562, and well completions decreased approximately 1% to 11,809. Management's strategy focuses on operating discipline, selective growth investments, and conservative capital allocation. The company maintains a share buyback program and continues paying regular quarterly dividends but does not intend to steadily grow dividends or target a specific payout ratio. Key risks include industry cyclicality, price competition, and regulatory changes affecting equipment requirements and customer activity levels.