Strong liquidity and cash generation
Quarter-end cash of approximately $210 million, no borrowings on $100 million revolver, $50 million seller-finance note payable; operating cash flow of $201.3 million and free cash flow of $52.9 million in FY2025; continued dividend payments totaling $35.1 million YTD (including $8.8 million in Q4).
Product innovation and market share gains in Thru Tubing
Successful rollout of A-10 downhole motor and ongoing expansion of Metal Max power section have driven incremental share gains and allowed expansion into new markets; UnPlug technology adoption steadily increasing, reducing need for bridge plugs and improving drill-out times.
Selective service-line outperformance
Cudd Pressure Control revenues up 1% sequentially with snubbing up 13% and coiled-tubing new 2 7/8-inch unit well utilized; increases in Spinnaker cementing and Patterson Tubular Services storage & inspection businesses noted.
Positive adjusted profitability despite headwinds
Adjusted EBITDA remained positive at $55.1 million and adjusted diluted EPS of $0.04 for the quarter, demonstrating ongoing underlying profitability even with sequential declines.
Balance-sheet flexibility and disciplined capital allocation
Full-year capex of $148 million focused on maintenance and selective investments; change in wireline accounting reduced reported CapEx; 2026 capex guidance of $150–$180 million with management emphasizing scrutiny and the ability to adjust spend based on activity; M&A and buybacks remain optional uses of capital.