Operating margins have deteriorated significantly from 12.5% in 2023Q4 to a thin 1.8% in 2026Q1, indicating that the company's fixed cost structure is failing to scale with recent revenue volume.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.75B | 1.63B | 1.41B | 1.62B | 1.6B | 864.93M | 598.3M | 1.22B | 1.72B | 1.6B | 728.97M | 1.26B | 2.34B | 1.86B | 1.95B | 1.81B | 1.1B | 587.86M | 876.98M | 690.23M | 596.63M | 427.64M | 339.79M | 270.53M | 209.03M | 264.94M | 184.22M | 230.5M | 244.3M | 245.8M | 200.8M |
| Revenue Growth % | 27.62% | 14.95% | -12.52% | 0.98% | 85.19% | 44.56% | -51.06% | -28.97% | 7.88% | 118.83% | -42.32% | -45.93% | 25.57% | -4.29% | 7.47% | 65.07% | 86.5% | -32.97% | 27.06% | 15.69% | 39.52% | 25.85% | 25.6% | 29.42% | -21.1% | 43.82% | -20.08% | -5.65% | -0.61% | 22.41% | 24.41% |
| Cost of Goods Sold | 1.55B | 1.39B | 1.04B | 1.09B | 1.09B | 663.26M | 480.74M | 919.6M | 1.18B | 1.05B | 607.89M | 986.14M | 1.49B | 1.18B | 1.11B | 992.7M | 606.1M | 393.81M | 503.63M | 368.18M | 287.04M | 227.49M | 193.66M | 168.77M | 143.36M | 148.57M | 107.06M | 102M | 90.1M | 82.9M | 77M |
| COGS % of Revenue | - | 85.71% | 73.26% | 67.36% | 67.93% | 76.68% | 80.35% | 75.23% | 68.74% | 65.87% | 83.39% | 78.03% | 63.88% | 63.3% | 56.86% | 54.85% | 55.28% | 66.99% | 57.43% | 53.34% | 48.11% | 53.2% | 56.99% | 62.38% | 68.58% | 56.08% | 58.11% | 44.25% | 36.88% | 33.73% | 38.35% |
| Gross Profit | 199.82M | 232.49M | 378.35M | 527.96M | 513.65M | 201.67M | 117.56M | 302.81M | 537.96M | 544.42M | 121.09M | 277.7M | 844.33M | 683.08M | 839.14M | 817.1M | 490.29M | 194.06M | 373.35M | 322.05M | 309.59M | 200.15M | 146.13M | 101.76M | 65.67M | 116.37M | 77.16M | 128.5M | 154.2M | 162.9M | 123.8M |
| Gross Margin % | 11.43% | 14.29% | 26.74% | 32.64% | 32.07% | 23.32% | 19.65% | 24.77% | 31.26% | 34.13% | 16.61% | 21.97% | 36.12% | 36.7% | 43.14% | 45.15% | 44.72% | 33.01% | 42.57% | 46.66% | 51.89% | 46.8% | 43.01% | 37.62% | 31.42% | 43.92% | 41.89% | 55.75% | 63.12% | 66.27% | 61.65% |
| Gross Profit Growth % | - | -38.55% | -28.34% | 2.79% | 154.7% | 71.54% | -61.18% | -43.71% | -1.19% | 349.61% | -56.4% | -67.11% | 23.61% | -18.6% | 2.7% | 66.66% | 152.65% | -48.02% | 15.93% | 4.02% | 54.68% | 36.96% | 43.6% | 54.96% | -43.57% | 50.82% | -39.95% | -16.67% | -5.34% | 31.58% | 26.46% |
| Operating Expenses | 147.25M | 175.64M | 280.81M | 283M | 225.71M | 185.38M | 427.2M | 417.1M | 327.93M | 318.2M | 360.03M | 433.97M | 443.4M | 405.39M | 394.57M | 335.02M | 251.44M | 227.11M | 6.37M | 180.01M | 131.79M | 102.44M | 100.34M | 85.36M | 73.75M | 75.18M | 52.63M | 117M | 130.4M | 131.3M | 105.6M |
| OpEx % of Revenue | - | 10.8% | 19.85% | 17.5% | 14.09% | 21.43% | 71.4% | 34.12% | 19.05% | 19.95% | 49.39% | 34.34% | 18.97% | 21.78% | 20.29% | 18.51% | 22.93% | 38.63% | 0.73% | 26.08% | 22.09% | 23.95% | 29.53% | 31.55% | 35.28% | 28.38% | 28.57% | 50.76% | 53.38% | 53.42% | 52.59% |
| Selling, General & Admin | 181.35M | 175.64M | 156.44M | 165.94M | 148.57M | 123.57M | 123.7M | 168.13M | 168.15M | 159.19M | 150.69M | 156.58M | 197.12M | 183.14M | 175.75M | 151.29M | 121.84M | 97.67M | 117.14M | 107.8M | 91.05M | 75.48M | 65.87M | 52.27M | 42.51M | 49.75M | 34.63M | 99.5M | 114M | 117.8M | 95.8M |
| SG&A % of Revenue | - | 10.8% | 11.06% | 10.26% | 9.28% | 14.29% | 20.67% | 13.75% | 9.77% | 9.98% | 20.67% | 12.39% | 8.43% | 9.84% | 9.04% | 8.36% | 11.11% | 16.61% | 13.36% | 15.62% | 15.26% | 17.65% | 19.39% | 19.32% | 20.33% | 18.78% | 18.8% | 43.17% | 46.66% | 47.93% | 47.71% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 124.38M | 117.06M | 77.13M | 61.8M | 303.5M | 248.97M | 159.78M | 159.01M | 209.34M | 277.39M | 246.28M | 0 | 0 | 183.74M | 129.6M | 129.44M | 118.4M | 72.21M | 40.74M | 26.96M | 34.47M | 33.09M | 31.24M | 25.43M | 18M | 17.5M | 16.4M | 13.5M | 9.8M |
| Operating Income | 52.58M | 56.85M | 97.54M | 244.95M | 287.94M | 16.29M | -309.63M | -114.29M | 210.03M | 226.22M | -238.94M | -156.28M | 400.93M | 286.81M | 448.49M | 482.08M | 238.84M | -33.05M | 144.17M | 142.04M | 177.8M | 97.71M | 45.79M | 16.4M | -8.08M | 41.19M | 24.53M | 11.5M | 23.8M | 31.6M | 18.2M |
| Operating Margin % | 3.01% | 3.5% | 6.89% | 15.14% | 17.98% | 1.88% | -51.75% | -9.35% | 12.2% | 14.18% | -32.78% | -12.37% | 17.15% | 15.41% | 23.06% | 26.64% | 21.78% | -5.62% | 16.44% | 20.58% | 29.8% | 22.85% | 13.48% | 6.06% | -3.87% | 15.55% | 13.32% | 4.99% | 9.74% | 12.86% | 9.06% |
| Operating Income Growth % | - | -41.71% | -60.18% | -14.93% | 1667.48% | 105.26% | -170.93% | -154.42% | -7.16% | 194.67% | -52.9% | -138.98% | 39.79% | -36.05% | -6.97% | 101.84% | 822.63% | -122.93% | 1.5% | -20.11% | 81.96% | 113.4% | 179.22% | 302.96% | -119.62% | 67.88% | 113.34% | -51.68% | -24.68% | 73.63% | 30% |
| EBITDA | 221M | 218.04M | 230.11M | 353.07M | 370.96M | 88.98M | -214.1M | 56.12M | 373.15M | 389.75M | -21.68M | 114.7M | 631.74M | 499.94M | 663.39M | 661.99M | 372.2M | 97.53M | 262.57M | 220.53M | 224.53M | 138.1M | 80.84M | 49.58M | 23.26M | 66.72M | 42.53M | 29M | 40.2M | 45.1M | 28M |
| EBITDA Margin % | 12.64% | 13.41% | 16.26% | 21.83% | 23.16% | 10.29% | -35.79% | 4.59% | 21.68% | 24.43% | -2.97% | 9.08% | 27.03% | 26.86% | 34.11% | 36.58% | 33.95% | 16.59% | 29.94% | 31.95% | 37.63% | 32.29% | 23.79% | 18.33% | 11.13% | 25.18% | 23.09% | 12.58% | 16.46% | 18.35% | 13.94% |
| EBITDA Growth % | 2.42% | -5.24% | -34.83% | -4.82% | 316.91% | 141.56% | -481.51% | -84.96% | -4.26% | 1897.43% | -118.91% | -81.84% | 26.36% | -24.64% | 0.21% | 77.86% | 281.64% | -62.86% | 19.06% | -1.78% | 62.58% | 70.83% | 63.05% | 113.14% | -65.14% | 56.89% | 46.65% | -27.86% | -10.86% | 61.07% | 30.23% |
| D&A (Non-Cash Add-back) | 168.42M | 161.19M | 132.57M | 108.12M | 83.02M | 72.69M | 95.53M | 170.41M | 163.12M | 163.54M | 217.26M | 270.98M | 230.81M | 213.13M | 214.9M | 179.91M | 133.36M | 130.58M | 118.4M | 78.49M | 46.73M | 40.39M | 35.05M | 33.18M | 31.34M | 25.54M | 18M | 17.5M | 16.4M | 13.5M | 9.8M |
| EBIT | 54.88M | 59.58M | 89.34M | 253.89M | 282.06M | 5.41M | -101.68M | -35.72M | 206.69M | 221.69M | -246.86M | -149.86M | 416.4M | 286.81M | 448.49M | 482.27M | 240.19M | -31.32M | 143.07M | 142.04M | 177.8M | 97.71M | 53.27M | 16.4M | -8.08M | 41.19M | 24.53M | -3.06M | 11.68M | 31.6M | 18.2M |
| Net Interest Income | 786K | 5.39M | 12.41M | 8.26M | 557K | -1.87M | 123K | 1.57M | 1.94M | 1.07M | -214K | -1.95M | -1.41M | -1.41M | -1.95M | -3.44M | -2.62M | -2.03M | -5.21M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 6.79M | 8.41M | 13.13M | 8.6M | 1.17M | 59K | 496K | 1.91M | 2.43M | 1.49M | 467K | 83K | 19K | 419K | 30K | 18K | 46K | 147K | 73K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 6M | 3.03M | 724K | 341K | 614K | 1.93M | 373K | 334K | 489K | 426K | 681K | 2.03M | 1.43M | 1.82M | 1.98M | 3.45M | 2.66M | 2.18M | 5.28M | 0 | 0 | 0 | 0 | 0 | 74K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -8.25M | -303K | 15.26M | 11.29M | 1.69M | 157K | 204K | 1.19M | 11.25M | 6.6M | -418K | -3.18M | -17.02M | -10.54M | 229K | -3.27M | -1.31M | -447K | -6.38M | -2.2M | 1.05M | 3.03M | 7.41M | 1.17M | -74K | -65K | 1.44M | 1.49M | 2M | 2.3M | 2.1M |
| Pretax Income | 44.32M | 56.55M | 112.8M | 256.24M | 289.63M | 16.45M | -309.43M | -113.1M | 221.28M | 232.82M | -239.36M | -153.04M | 399.39M | 276.27M | 442.62M | 478.81M | 237.53M | -33.5M | 137.78M | 139.83M | 178.85M | 100.74M | 53.2M | 17.57M | -8.15M | 41.12M | 25.98M | 13.2M | 25.8M | 33.9M | 20.3M |
| Pretax Margin % | 2.53% | 3.48% | 7.97% | 15.84% | 18.08% | 1.9% | -51.72% | -9.25% | 12.86% | 14.59% | -32.84% | -12.11% | 17.09% | 14.84% | 22.76% | 26.46% | 21.66% | -5.7% | 15.71% | 20.26% | 29.98% | 23.56% | 15.66% | 6.49% | -3.9% | 15.52% | 14.1% | 5.73% | 10.56% | 13.79% | 10.11% |
| Income Tax | 23.42M | 24.47M | 21.36M | 61.13M | 71.27M | 9.23M | -97.24M | -25.99M | 45.88M | 70.31M | -98.11M | -53.48M | 154.19M | 109.38M | 168.18M | 182.43M | 90.79M | -10.75M | 54.38M | 52.78M | 68.05M | 34.26M | 18.43M | 6.68M | -2.89M | 15.63M | 9.85M | 5M | 9.8M | 11.7M | 7M |
| Effective Tax Rate % | 52.83% | 43.27% | 18.93% | 23.86% | 24.61% | 56.12% | 31.43% | 22.98% | 20.73% | 30.2% | 40.99% | 34.94% | 38.61% | 39.59% | 38% | 38.1% | 38.22% | 32.1% | 39.47% | 37.75% | 38.05% | 34% | 34.64% | 38% | 35.49% | 38% | 37.92% | 37.88% | 37.98% | 34.51% | 34.48% |
| Net Income | 20.91M | 32.08M | 91.44M | 195.11M | 218.36M | 7.22M | -212.19M | -87.11M | 175.4M | 162.51M | -141.25M | -99.56M | 245.19M | 166.9M | 274.44M | 296.38M | 146.74M | -22.75M | 83.4M | 87.05M | 110.79M | 66.48M | 34.77M | 10.89M | -5.26M | 26.98M | 30.09M | 8.2M | 16M | 22.2M | 13.3M |
| Net Margin % | 1.2% | 1.97% | 6.46% | 12.06% | 13.63% | 0.83% | -35.47% | -7.13% | 10.19% | 10.19% | -19.38% | -7.88% | 10.49% | 8.97% | 14.11% | 16.38% | 13.38% | -3.87% | 9.51% | 12.61% | 18.57% | 15.55% | 10.23% | 4.03% | -2.52% | 10.18% | 16.33% | 3.56% | 6.55% | 9.03% | 6.62% |
| Net Income Growth % | -72.5% | -64.92% | -53.13% | -10.65% | 2925.68% | 103.4% | -143.59% | -149.66% | 7.93% | 215.06% | -41.87% | -140.61% | 46.91% | -39.19% | -7.4% | 101.97% | 745.16% | -127.27% | -4.19% | -21.43% | 66.65% | 91.19% | 219.22% | 307.09% | -119.49% | -10.32% | 266.93% | -48.75% | -27.93% | 66.92% | 23.15% |
| Net Income (Continuing) | 20.91M | 32.08M | 91.44M | 195.11M | 218.36M | 7.22M | -212.19M | -87.11M | 175.4M | 162.51M | -141.25M | -99.56M | 245.19M | 166.9M | 274.44M | 296.38M | 146.74M | -22.75M | 83.4M | 87.05M | 110.79M | 66.48M | 34.77M | 10.89M | -5.26M | 25.5M | 16.13M | -967K | 8.35M | 22.2M | 13.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.09 | 0.15 | 0.43 | 0.90 | 1.01 | 0.03 | -1.00 | -0.41 | 0.82 | 0.75 | -0.66 | -0.47 | 1.14 | 0.77 | 1.27 | 1.35 | 0.67 | -0.10 | 0.38 | 0.40 | 0.50 | 0.30 | 0.16 | 0.05 | -0.03 | 0.12 | 0.14 | 0.04 | 0.07 | 0.10 | 0.12 |
| EPS Growth % | -72.8% | -65.12% | -52.22% | -10.89% | 2914.93% | 103.35% | -143.9% | -150% | 9.33% | 213.64% | -40.43% | -141.23% | 48.05% | -39.37% | -5.93% | 101.49% | 770% | -126.32% | -5% | -20% | 66.67% | 87.5% | 223.89% | 297.6% | -120.83% | -14.29% | 266.49% | -47.24% | -26.79% | -17.58% | 23.2% |
| EPS (Basic) | - | 0.15 | 0.43 | 0.90 | 1.01 | 0.03 | -1.00 | -0.41 | 0.82 | 0.75 | -0.66 | -0.47 | 1.14 | 0.77 | 1.28 | 1.36 | 0.67 | -0.10 | 0.38 | 0.40 | 0.52 | 0.31 | 0.16 | 0.05 | -0.03 | 0.13 | 0.14 | 0.04 | 0.07 | 0.10 | 0.12 |
| Diluted Shares Outstanding | 221.33M | 219.36M | 211.36M | 212.93M | 213.33M | 212.99M | 212.49M | 212.22M | 212.75M | 214.3M | 214.23M | 210.27M | 212.26M | 216.73M | 216.8M | 220.25M | 219.81M | 216.69M | 220.2M | 220.07M | 220.61M | 223.27M | 221.43M | 220.58M | 210.23M | 217.97M | 214.54M | 213.44M | 221.25M | 224.44M | 215.98M |
| Basic Shares Outstanding | 221.33M | 219.36M | 211.36M | 213.35M | 213.33M | 212.99M | 212.49M | 212.22M | 212.75M | 214.3M | 214.23M | 210.27M | 211.21M | 215.5M | 215.24M | 217.68M | 217.48M | 216.69M | 217.27M | 217.62M | 214.9M | 213.7M | 213.38M | 212.1M | 210.23M | 213.43M | 211.56M | 213.44M | 221.25M | 221.49M | 215.98M |
| Dividend Payout Ratio | - | 109.48% | 37.65% | 17.71% | 3.96% | - | - | - | 57.62% | 26.66% | - | - | 37.36% | 52.6% | 41.56% | 15.97% | 14.07% | - | 27.97% | 22.37% | 11.73% | 10.18% | 9.8% | 26.38% | - | 11.62% | 13.14% | 48.78% | 25.62% | 6.76% | - |
Cyclical margin compression risk
According to the provided quarterly income statements, RES experienced a notable revenue swing, reaching $454.8 million in 2026Q1, which represents a 36.6% year-over-year growth rate, yet this top-line expansion appears disconnected from the company's ability to generate consistent bottom-line profitability during the same period.
The recent revenue acceleration suggests that the company is successfully capturing market share or benefiting from temporary pricing tailwinds in the Permian Basin. However, investors should monitor whether this growth is sustainable or merely a reflection of volatile spot-market activity that fails to translate into meaningful earnings growth.
As reported in financial statements, the company's gross margin plummeted to -16.9% in 2025Q4 before recovering to 12.4% in 2026Q1, highlighting a high degree of sensitivity to input cost fluctuations and an inability to maintain pricing power in a competitive oilfield services environment.
The extreme volatility in gross margins suggests that RES acts as a price taker, struggling to pass through inflationary pressures to E&P customers. This lack of margin stability implies that the company's profitability is highly vulnerable to even minor shifts in proppant or labor costs.
Based on the income statement data, operating margins have compressed significantly from 12.5% in 2023Q4 to a thin 1.8% in 2026Q1, indicating that the company's fixed cost structure is not scaling efficiently with the recent increases in top-line revenue volume.
The inability to expand operating margins despite revenue growth suggests that the company is facing significant overhead pressure or inefficiencies in its service delivery model. This trend warrants further investigation into whether the current fleet utilization levels are sufficient to cover the underlying depreciation and maintenance costs.
As indicated by the quarterly filings, net income has fluctuated wildly, dropping to $855,000 in 2026Q1 from a high of $40.3 million in 2023Q4, which suggests that reported earnings are heavily influenced by non-operating items and cyclical operational swings rather than core business performance.
The sharp decline in EPS growth, reaching -93.0% in 2026Q1, appears to reflect a business model that struggles to maintain profitability during periods of intense industry competition. Investors should be cautious of relying on headline earnings, as the company's net margin of 0.2% suggests it is operating dangerously close to a break-even point.
Data from recent periods suggests that while RES maintains a strong balance sheet, its core income statement performance is deteriorating, with net margins falling from 10.2% in 2023Q4 to near-zero levels, raising questions about the long-term viability of its current service-based revenue model.
Short-sellers might focus on the company's inability to maintain profitability during periods of revenue growth, which may indicate a structural decline in the competitiveness of its aging fleet. The reliance on transactional, project-based revenue leaves the company exposed to sudden downturns in E&P capital expenditure budgets.
Quick answers to the most common questions about buying RES stock.
For fiscal year 2025, RPC, Inc. (RES) reported total revenue of $1.63B. This represents a 710.0% increase compared to $200.8M in 1996.
RPC, Inc. (RES) is profitable, generating $32.1M in net income for the fiscal year ending 2025 with a net profit margin of 2.0%.
RPC, Inc. (RES) reported an operating income of $56.9M, resulting in an operating profit margin of 3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
RPC, Inc. (RES) generated $232.5M in gross profit for the year, representing a gross profit margin of 14.3%. This demonstrates the company's core pricing power and production efficiency.