Patterson-UTI Boosts Dividend by 25 Percent After Generating Strong Free Cash Flow
Houston, Wednesday, 4 February 2026.
Patterson-UTI increased its quarterly dividend by 25 percent following $416 million in full-year adjusted free cash flow, signaling operational confidence despite a $9 million fourth-quarter net loss.
Dividend Growth Amidst Mixed Quarterly Results
The Board of Directors declared a quarterly dividend of $0.10 per share, representing the stated 25 percent increase from the previous payout [1]. This dividend is scheduled for payment on March 16, 2026, to shareholders of record as of March 2, 2026 [1]. The decision to return more capital to shareholders comes alongside the release of the fourth-quarter results, where the company reported total revenue of $1.15 billion [1]. Although the company posted a net loss attributable to common stockholders of $9 million—equating to $0.02 per share—for the quarter ended December 31, 2025, adjusted EBITDA remained robust at $221 million [1].
Operational Resilience
Andy Hendricks, the Chief Executive Officer, characterized the period as a “strong fourth quarter,” noting that the company delivered steady results during a timeframe that is typically seasonally soft [1]. This operational resilience is reflected in the full-year cash generation metrics; for the twelve months ended December 31, 2025, Patterson-UTI generated $961 million in cash from operations [1]. This strong cash position supported the dividend hike despite the quarterly net loss.
Segment Performance and Operational Highlights
A closer look at the company’s segments reveals that Drilling Services generated $361 million in revenue for the fourth quarter, yielding an adjusted gross profit of $132 million [1]. Activity levels in the United States remained substantial, with U.S. Contract Drilling recording 8,596 operating days and maintaining an average of 93 active rigs throughout the period [1]. Meanwhile, the Completion Services segment contributed significantly to the top line, reporting $702 million in revenue and $111 million in adjusted gross profit [1].
International Expansion
The Drilling Products segment, while smaller in scale, added $84 million in revenue and $34 million in adjusted gross profit [1]. Notably, the company expanded its international footprint during the quarter by opening a new manufacturing facility in Saudi Arabia [1]. Looking ahead to the first quarter of 2026, management expects adjusted gross profit in this segment to improve slightly compared to the fourth quarter levels [1].
Annual Fiscal Overview and Market Outlook
On an annual basis, fiscal year 2025 revenue totaled $4.826 billion, a decrease of approximately 10.247 percent from the $5.377 billion reported in 2024 [1]. However, the company significantly narrowed its losses year-over-year. The net loss attributable to common stockholders for 2025 was $93.6 million, a sharp reduction from the substantial $968 million loss recorded in 2024 [1]. This improvement aligns with a strategy of capital discipline, as the company projects full-year 2026 capital expenditures to remain below $500 million [1].
Stock Performance and Analyst Sentiment
In the equity markets, Patterson-UTI (NASDAQ:PTEN) stock has seen recent upward movement, trading at $7.95 as of late December 2025, marking a gain of nearly 10 percent over a seven-day period [2]. Analyst sentiment remains cautiously optimistic; among 15 analysts covering the stock, the average rating is 4.00, with 68 percent recommending a “Buy” and 34 percent recommending a “Hold” [2]. The company is set to discuss these results further in a conference call scheduled for tomorrow, February 5, 2026 [1].