Freedom Capital Markets has reiterated a Hold recommendation and kept a $6.20 price target on RPC Inc. (NYSE:RES) following the oil services company’s fourth-quarter 2025 financial report.
In its assessment, Freedom said RPC’s adjusted earnings for Q4 2025 came in materially below both consensus expectations and the firm’s own forecast.
RPC reported revenue of $426 million for the quarter, a figure that slightly exceeded analyst forecasts while representing a 5% sequential decline. The company’s adjusted diluted earnings per share for the period were $0.04, short of the projected $0.06. Freedom characterized the earnings miss as significant and noted that the results influenced the company’s stock performance following the release.
Year-on-year revenue growth observed in the quarter was primarily attributable to RPC’s acquisition of Pintail Alternative Energy LLC. Freedom highlighted that the acquisition lifted reported revenues and altered RPC’s revenue mix, a change that affects comparisons with prior periods.
Looking ahead, the research firm signaled expectations that negative trends for RPC will continue into 2026. Based on that outlook and the quarter’s results, Freedom reiterated that the post-earnings decline in RPC shares does not present a buying opportunity and maintained its neutral stance on the stock.
This assessment leaves market participants and analysts monitoring RPC’s next moves closely. Observers will be watching subsequent updates from the company for signs that results or revenue composition are stabilizing, and for management actions intended to address the shortfall in adjusted earnings.
Summary
Freedom Capital Markets kept its Hold rating and $6.20 price target on RPC after Q4 2025 results. Revenue of $426 million slightly beat estimates but fell 5% sequentially, while adjusted EPS of $0.04 missed the $0.06 projection. Growth was influenced by the Pintail acquisition, and Freedom expects negative trends to persist into 2026, viewing the share decline as not a buying opportunity.
Key points
- Freedom Capital reiterates Hold and maintains a $6.20 price target on RPC Inc. following Q4 2025 results.
- Q4 revenue was $426 million, marginally above forecasts but down 5% sequentially; adjusted EPS was $0.04 versus a $0.06 projection.
- The Pintail Alternative Energy acquisition drove year-on-year revenue growth and changed RPC’s revenue mix; expectations are for negative trends to continue into 2026.
Risks and uncertainties
- The adjusted earnings shortfall introduces near-term execution risk for RPC and uncertainty for investors assessing the company’s earnings trajectory.
- Changes to revenue mix from the Pintail acquisition create comparability risks when evaluating future quarter-to-quarter performance.
- Freedom’s expectation of persistent negative trends into 2026 raises the risk that the company may face continued top-line or margin pressure through the next year.