Total Energy Services (TOT) investor relations material

Executive summary

• Q1 2026 revenue rose 25% year-over-year to $314.9 million, with net income up 28% to $24.2 million, driven by strong North American demand for compression/process equipment and upgraded rig deployments in Australia and Canada.

• EBITDA increased by CAD 4.7 million (9%) to $55.2 million, and cashflow grew 21% to $54.3 million compared to Q1 2025, supported by higher activity and improved margins in CPS and upgraded rigs.

• Non-cash share-based compensation expense increased by $6.5 million due to a 52% share price rise, partially offset by a $2.9 million gain on asset sales.

Financial highlights

• Diluted EPS was $0.65, up 33% year-over-year, with consolidated gross margin at 22%, down 260 basis points due to higher CPS revenue mix.

• Total assets increased 7% to $1.07 billion, and shareholders’ equity rose 4% to $623.6 million as of March 31, 2026.

• Net debt decreased, with $91.4 million cash on hand exceeding bank debt by $46.4 million.

• Cash provided by operating activities was $62.7 million, up from $57.6 million in Q1 2025.

• $2.9 million gain on sale of property, plant, and equipment from U.S. well servicing asset sales.

Outlook and guidance

• Record $446.9 million fabrication sales backlog in CPS segment provides visibility into 2027; U.S. fabrication capacity expansion to nearly double by Q1 2027.

• Expect improved Australian performance post-wet season and continued strong demand for high-spec rigs in Canada.

• Anticipate increased U.S. drilling activity and additional reactivation costs as more rigs are deployed.

• Higher global oil and LNG prices due to Middle East hostilities may boost North American activity if sustained.

• Ongoing evaluation of M&A and organic growth opportunities, with disciplined capital allocation.