Revenue for the quarter reached $1.12 billion, exceeding the consensus estimate of $1.08 billion by $40 million. Earnings per share were –$0.06, a $0.04 improvement over the expected –$0.10. The upside on both metrics was driven by disciplined cost management and a favorable mix shift toward higher‑spec, technology‑driven rigs that command stronger pricing power, offsetting the broader pressure on the U.S. land‑drilling market.
Segment results underscored the company’s strategic focus. Drilling Services generated $352 million in revenue with an adjusted gross profit of $134 million, while Completion Services produced $680 million in revenue and $98 million in adjusted gross profit. Drilling Products contributed $80 million in revenue and $33 million in adjusted gross profit. Strong demand in core drilling and completion services, combined with the company’s investment in the Emerald Fleet and Apex rigs, helped sustain profitability in the face of winter‑storm disruptions that impacted completion operations.
Comparing to prior periods, the quarter’s revenue fell 12% from $1.28 billion in Q1 2025 and 3% sequentially from $1.15 billion in Q4 2025. Net income swung to a $24.6 million loss from a $1 million profit in Q1 2025 and a $9.1 million loss in Q4 2025, illustrating the cyclical nature of the drilling business and the impact of the company’s transition to a higher‑spec platform.
Management guided for Q2 2026 with an average U.S. rig count of approximately 90 rigs in Drilling Services and an exit rate that may be higher than the prior quarter. Adjusted gross profit is expected to be about $130 million for Drilling Services and $105 million for Completion Services, signaling confidence that the market will rebound as commodity prices improve and the company’s technology investments mature.
"We delivered another quarter of solid operating results, as our businesses successfully navigated a challenging commodity environment to start the year," said CEO Andy Hendricks. "We continue to prioritize equipment and technology investments that improve demand for our drilling and completion businesses and help manage costs. We expect the benefits of these investments to build over time, particularly as U.S. land drilling and completion activity improves."
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