Rpc Inc 10-Q for FY2026 Q1

Rpc Inc (RES)

10-Q 2026-05-08 For: 2026-03-31

Added on May 08, 2026

About this 10-Q

Rpc Inc filed this 10-Q on May 8, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $454.76M; up 36.6% from $332.88M a year earlier
Net income: $855K; down 92.9% from net income of $12.03M a year earlier
Diluted EPS: $0.00; compared with $0.06 a year earlier

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Delaware		58-1550825
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)


Title of each class:	Trading Symbol(s)	Name of each exchange on which registered:
Common stock, par value $0.10	RES	New York Stock Exchange


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

		Page No.
Part I. Financial Information

Item 1.	Financial Statements (Unaudited)

	Consolidated Balance Sheets – As of March 31, 2026, and December 31, 2025	3

	Consolidated Statements of Operations – For the three months ended March 31, 2026, and 2025	4

	Consolidated Statements of Comprehensive Income – For the three months ended March 31, 2026, and 2025	5

	Consolidated Statements of Stockholders’ Equity – For the three months ended March 31, 2026, and 2025	6

	Consolidated Statements of Cash Flows – For the three months ended March 31, 2026, and 2025	7

	Notes to Consolidated Financial Statements	8 –19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20 – 28

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28

Item 4.	Controls and Procedures	28

Part II. Other Information

Item 1.	Legal Proceedings	30

Item 1A.	Risk Factors	30

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities	30

Item 3.	Defaults upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	31

Item 6.	Exhibits	31

Signatures		32


	March 31,		December 31,
	2026		2025
ASSETS		(Unaudited)		(Note 1)
Cash and cash equivalents	$	200,730	$	209,974
Accounts receivable, net		374,693		327,668
Inventories		120,375		119,004
Income taxes receivable		1,701		6,302
Prepaid expenses		14,164		18,307
Other current assets		23,109		23,215
Total current assets		734,772		704,470
Property, plant and equipment, net		521,206		531,556
Operating lease right-of-use assets		22,209		24,094
Finance lease right-of-use assets		1,908		1,934
Goodwill		81,249		83,422
Other intangibles, net		96,742		97,499
Other assets		22,872		25,410
Total assets	$	1,480,958	$	1,468,385

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Accounts payable	$	160,765	$	119,757
Accrued payroll and related expenses		26,955		38,636
Accrued insurance expenses		8,438		7,194
Accrued state, local and other taxes		5,101		3,543
Income taxes payable		881		787
Unearned revenue		—		13,233
Current portion of operating lease liabilities		6,408		7,606
Current portion of finance lease liabilities and finance obligations		1,018		977
Current portion of notes payable		20,000		20,000
Accrued expenses and other liabilities		5,397		5,419
Total current liabilities		234,963		217,152
Accrued insurance expenses		16,134		15,570
Notes payable		30,000		30,000
Operating lease liabilities		16,314		17,762
Finance lease liabilities		970		1,041
Other long-term liabilities		10,937		10,814
Deferred income taxes		75,338		76,875
Total liabilities		384,656		369,214
Commitments and contingencies (Note 13)

STOCKHOLDERS’ EQUITY
Preferred stock, $0.10 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $0.10 par value, 349,000,000 shares authorized, 221,637,935 and 220,571,673 shares issued and outstanding in 2026 and 2025, respectively		22,164		22,057
Capital in excess of par value		—		—
Retained earnings		1,076,801		1,079,664
Accumulated other comprehensive loss		(2,663)		(2,550)
Total stockholders’ equity		1,096,302		1,099,171
Total liabilities and stockholders’ equity	$	1,480,958	$	1,468,385

2801 Buford Highway, Suite 300, Atlanta, Georgia 30329
(Address of principal executive offices)	(Zip code)


	Three months ended
	March 31,
	2026			2025
Revenues	$	454,755		$	332,877
COSTS AND EXPENSES:
Cost of revenues (exclusive of depreciation and amortization shown separately below)		355,585			243,895
Selling, general and administrative expenses		48,207			42,499
Acquisition related employment costs		7,292			—
Depreciation and amortization		42,854			35,623
Gain on disposition of assets, net		(1,803)			(1,526)
Operating income		2,620			12,386
Interest expense		(830)			(131)
Interest income		1,770			3,395
Other income, net		749			885
Income before income taxes		4,309			16,535
Income tax provision		3,454			4,505
Net income	$	855		$	12,030

Earnings per share
Basic	$	0.00		$	0.06
Diluted	$	0.00		$	0.06


		Three Months Ended March 31, 2026
													Accumulated
							Capital in						Other
		Common Stock					Excess of			Retained			Comprehensive
		Shares		Amount			Par Value			Earnings			Loss			Total
Balance, December 31, 2025		220,572		$	22,057		$	—		$	1,079,664		$	(2,550)		$	1,099,171
Stock issued for stock incentive plans, net		1,607			161			3,337			—			—			3,498
Stock purchased and retired		(541)			(54)			(3,337)			(61)			—			(3,452)
Net income		—			—			—			855			—			855
Cash dividends ($0.04 per share)		—			—			—			(8,865)			—			(8,865)
Acquisition related employment costs, net of taxes		—			—			—			5,208			—			5,208
Foreign currency translation		—			—			—			—			(113)			(113)
Balance, March 31, 2026		221,638		$	22,164		$	—		$	1,076,801		$	(2,663)		$	1,096,302


		Three Months Ended March 31, 2025
									Accumulated
					Capital in				Other
		Common Stock			Excess of		Retained		Comprehensive
		Shares	Amount		Par Value		Earnings		Loss		Total
Balance, December 31, 2024		214,942	$	21,494	$	—	$	1,059,625	$	(2,828)	$	1,078,291
Stock issued for stock incentive plans, net		1,501		150		2,629		—		—		2,779
Stock purchased and retired		(424)		(42)		(2,629)		(197)		—		(2,868)
Net income		—		—		—		12,030		—		12,030
Cash dividends ($0.04 per share)		—		—		—		(8,653)		—		(8,653)
Foreign currency translation		—		—		—		—		7		7
Balance, March 31, 2025		216,019	$	21,602	$	—	$	1,062,805	$	(2,821)	$	1,081,586


	Three Months Ended March 31,
	2026			2025
OPERATING ACTIVITIES
Net income	$	855		$	12,030
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		42,854			35,623
Stock-based compensation expense		3,498			2,779
Gain on disposition of assets, net		(1,803)			(1,526)
Deferred income tax benefit		(1,537)			(2,669)
Acquisition related employment costs		7,292			—
Other non-cash adjustments		56			27
(Increase) decrease in assets:
Accounts receivable		(47,077)			24,310
Income taxes receivable		4,601			4,243
Inventories		(1,439)			(2,138)
Prepaid expenses		4,143			2,955
Other current assets		33			165
Other non-current assets		453			414
(Decrease) increase in liabilities:
Accounts payable		41,326			7,546
Income taxes payable		94			2,564
Unearned revenue		(13,233)			(43,995)
Accrued payroll and related expenses		(11,664)			(3,358)
Accrued insurance expenses		1,244			(1,051)
Accrued state, local and other taxes		1,558			2,204
Other accrued expenses		(1,283)			(365)
Retirement plan liabilities		—			(1,328)
Long-term accrued insurance expenses		564			1,767
Other long-term liabilities		638			(332)
Net cash provided by operating activities		31,173			39,865

INVESTING ACTIVITIES
Capital expenditures		(32,105)			(32,270)
Proceeds from sale of assets		4,265			4,827
Net cash used for investing activities		(27,840)			(27,443)

FINANCING ACTIVITIES
Payment of dividends		(8,865)			(8,653)
Cash paid for common stock purchased and retired		(3,452)			(2,868)
Cash paid for finance lease		(260)			(152)
Net cash used for financing activities		(12,577)			(11,673)

Net (decrease) increase in cash and cash equivalents		(9,244)			749
Cash and cash equivalents at beginning of period		209,974			325,975
Cash and cash equivalents at end of period	$	200,730		$	326,724

Supplemental cash flows disclosure:
Income tax payments, net	$	185		$	193
Interest paid	$	746		$	43
Supplemental disclosure of noncash investing activities:
Capital expenditures included in accounts payable	$	7,111		$	4,916


		Fair Value	Estimated Useful Life
(in thousands)
Customer relationships	$	83,800	10
Trade names and trademarks		11,600	10
Intangible assets acquired	$	95,400


			March 31, 2026				December 31, 2025
	Estimated Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
(in thousands)
Finite-lived intangibles:
Customer relationships	10	$	93,800	$	(11,130)	$	93,700	$	(8,778)
Trade names and trademarks	10		15,119		(2,359)		12,819		(1,816)
Software licenses	3		5,350		(4,038)		5,350		(3,776)
		$	114,269	$	(17,527)	$	111,869	$	(14,370)


			Foreign
			Currency
			Translation
(in thousands)
Balance at December 31, 2025		$	(2,550)
Change during the period:
Before-tax amount			(113)
Balance at March 31, 2026		$	(2,663)


		Foreign
		Currency
		Translation
(in thousands)
Balance at December 31, 2024	$	(2,828)
Change during the period:
Before-tax amount		7
Balance at March 31, 2025	$	(2,821)


			Technical		Support
			Services		Services		Total
(in thousands)
2026
Revenues		$	434,282	$	20,473	$	454,755

Employment costs ⁽¹⁾			98,275		5,291		103,566
Materials and supplies			148,486		996		149,482
Maintenance & repairs			47,569		3,131		50,700
Fleet and transportation			18,873		856		19,729
Other cost of revenues ⁽²⁾			30,972		1,136		32,108
Cost of revenues (exclusive of depreciation and amortization)		$	344,175	$	11,410	$	355,585

Employment costs ⁽¹⁾			16,807		2,606		19,413
Enterprise shared services ⁽³⁾			9,592		446		10,038
Other selling, general and administrative expenses ⁽⁴⁾			9,020		1,486		10,506
Selling, general and administrative expenses		$	35,419	$	4,538	$	39,957

Segment depreciation and amortization			38,710		4,124		42,834
Segment operating income		$	15,978	$	401	$	16,379
Unallocated corporate expenses ⁽⁵⁾							8,270
Acquisition related employment costs							7,292
Gain on disposition of assets, net							(1,803)
Operating income						$	2,620


		Three months ended
		March 31,
		2026			2025
(in thousands)
Net income available for stockholders		$	855		$	12,030
Less: Adjustments for earnings attributable to participating securities			(328)			(213)
Net income used in calculating earnings per share		$	527		$	11,817

Weighted average shares outstanding (including participating securities)			221,331			215,691
Adjustment for participating securities			(7,574)			(3,769)
Shares used in calculating basic and diluted earnings per share			213,757			211,922


		March 31,			December 31,
		2026			2025
(in thousands)
Trade receivables:
Billed		$	310,142		$	281,918
Unbilled			69,324			46,817
Other receivables			2,809			5,955
Total			382,275			334,690
Less: allowance for credit losses			(7,582)			(7,022)
Accounts receivable, net		$	374,693		$	327,668



		Three Months Ended
		March 31,
	* *	2026		2025
(in thousands)
Beginning balance		$	7,022	$	7,906
Provision for current expected credit losses			573		130
Write-offs			(44)		(1,138)
Recoveries collected (net of expenses)			31		20
Ending balance		$	7,582	$	6,918


			Technical		Support
			Services		Services		Total
(in thousands)
2025
Revenues		$	311,844	$	21,033	$	332,877

Employment costs ⁽¹⁾			77,336		5,253		82,589
Materials and supplies			74,469		840		75,309
Maintenance & repairs			45,461		2,622		48,083
Fleet and transportation			10,151		805		10,956
Other cost of revenues ⁽²⁾			25,832		1,126		26,958
Cost of revenues (exclusive of depreciation and amortization)		$	233,249	$	10,646	$	243,895

Employment costs ⁽¹⁾			15,052		2,489		17,541
Enterprise shared services ⁽³⁾			9,859		469		10,328
Other selling, general and administrative expenses ⁽⁴⁾			7,418		1,427		8,845
Selling, general and administrative expenses		$	32,329	$	4,385	$	36,714

Segment depreciation and amortization			32,263		3,341		35,604
Segment operating income		$	14,003	$	2,661	$	16,664
Unallocated corporate expenses ⁽⁵⁾							5,804
Gain on disposition of assets, net							(1,526)
Operating income						$	12,386


		Technical			Support			Segment			Unallocated			Consolidated
		Services			Services			Total			Total			Total
(in thousands)
2026
Selling, general and administrative expenses		$	35,419		$	4,538		$	39,957		$	8,250		$	48,207
Depreciation and amortization			38,710			4,124			42,834			20			42,854
Capital expenditures ⁽¹⁾			23,543			7,543			31,086			1,019			32,105
Total assets, end of period ⁽²⁾		$	1,094,800		$	102,046		$	1,196,846		$	284,112		$	1,480,958
2025
Selling, general and administrative expenses		$	32,329		$	4,385		$	36,714		$	5,785		$	42,499
Depreciation and amortization			32,263			3,341			35,604			19			35,623
Capital expenditures ⁽¹⁾			22,543			8,401			30,944			1,326			32,270
Total assets, end of period ⁽²⁾		$	862,481		$	86,443		$	948,924		$	396,995		$	1,345,919


		Three months ended
		March 31,		March 31,
(In thousands)		2026		2025
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income		$	855	$	12,030
Adjustments:
Add: Income tax provision			3,454		4,505
Add: Interest expense			830		131
Add: Depreciation and amortization			42,854		35,623
Less: Interest income			1,770		3,395
EBITDA		$	46,223	$	48,894

Add: Acquisition related employment costs			7,292		—
Adjusted EBITDA		$	53,515	$	48,894

Revenues		$	454,755	$	332,877

Net income margin⁽¹⁾			0.2%		3.6%

Adjusted EBITDA margin⁽¹⁾			11.8%		14.7%


Period	Total Number of Shares (or Units) Purchased			Average Price Paid Per Share (or Unit)	Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (1)
January 1, 2026, to January 31, 2026	540,526	⁽²⁾	$	6.38	—	12,768,870
February 1, 2026, to February 28, 2026	—			—	—	12,768,870
March 1, 2026, to March 31, 2026	—			—	—	12,768,870
Total	540,526		$	6.38	—	12,768,870

Exhibit Number		Description
2.1		Membership Interest Purchase Agreement dated April 1, 2025 (portions of this Exhibit have been omitted) (incorporated herein by reference to Exhibit 2.1 to the Current Report on Form 8‑K filed on April 7, 2025).
3.1(a)		Restated certificate of incorporation of RPC, Inc. (incorporated herein by reference to Exhibit 3.1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 1999).
3.1(b)		Certificate of amendment of the certificate of incorporation of RPC, Inc. (incorporated by reference to Exhibit 3.1(b) to Registrant’s Quarterly Report on Form 10-Q filed on May 8, 2006).
3.1(c)		Certificate of amendment of the certificate of incorporation of RPC, Inc. (incorporated by reference to Exhibit 3.1(c) to the Registrant’s Quarterly Report on Form 10-Q filed on August 2, 2011).
3.2		Amended and Restated Bylaws of RPC, Inc. (incorporated herein by reference to Exhibit 3.2 to the Form 10-Q filed on October 30, 2025).
4		Form of Stock Certificate (incorporated herein by reference to Exhibit 4 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998).
10.1		Amendment To Membership Interest Purchase Agreement dated March 27, 2026.
10.2		Note Modification and Extension Agreement dated March 28, 2026.
31.1		Section 302 certification for Chief Executive Officer.
31.2		Section 302 certification for Chief Financial Officer.
32.1		Section 906 certifications for Chief Executive Officer and Chief Financial Officer.
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in exhibit 101)

		RPC, INC.

		/s/ Ben M. Palmer
Date: May 8, 2026		Ben M. Palmer
		President and Chief Executive Officer
		(Principal Executive Officer)

		/s/ Michael L. Schmit
Date: May 8, 2026		Michael L. Schmit
		Vice President, Chief Financial Officer and Corporate Secretary
		(Principal Financial and Accounting Officer)

THRU TUBING SOLUTIONS, INC.

By:	/s/ Ben M. Palmer
	Name: Ben M. Palmer
	Title: President


PINTAIL ALTERNATIVE ENERGY, L.L.C.

By:		/s/ Matthew T. Houston
		Name: Matthew T. Houston
		Title: Chief Executive Officer


HOUSTON COMPANIES, L.P.

By:		/s/ Matthew T. Houston
		Name: Matthew T. Houston
		Title: President

By:		Houston Companies GP, LLC, its General Partner

By:		/s/ Matthew T. Houston
		Name: Matthew T. Houston
		Title: Authorized Signatory

/s/ Matthew T. Houston
Name: Matthew T. Houston, in his individual capacity and in his capacity as Sellers’ Representative