Fundamental drivers – XBP’s Q2 2025 earnings were powered by a combination of top‑line and bottom‑line tailwinds. Higher commodity prices lifted the bill‑of‑materials cost pass‑through for its drilling and completion services, driving a ~18 % YoY increase in total revenue. Utilization rates climbed to an all‑time high of 92 % as offshore and onshore rigs returned to activity after the winter slowdown, delivering a 4.5 % lift in average day‑rate earnings. Meanwhile, the company’s disciplined cost‑control program—centered on tighter supply‑chain contracts and a 7 % reduction in SG&A—expanded operating margins from 12 % to 15 %. The quarterly EPS beat consensus by roughly 12 % and the company reaffirmed its FY 2025 guidance, reinforcing the upbeat sentiment score (10/10) attached to the release.
Technical & trading implications – The earnings beat sparked a sharp, volume‑driven rally, pushing XBP above its 50‑day SMA and establishing a bullish breakout above the $12.50 resistance level. The stock now trades in a tight ascending channel with the 200‑day SMA providing a strong support floor around $11.80. Relative strength is positive versus the broader energy index, and the RSI sits in the 62‑66 range—still bullish but not yet overbought. Traders could look for entry on pull‑backs to the 50‑day SMA or the $12.20 intraday support, targeting the next resistance near $13.30. Given the robust earnings backdrop and the technical upside bias, a short‑term long position aligns with the current market dynamics, but keep a stop just below $11.70 to guard against any reversal in oil‑price sentiment.