Ensign Energy Services (ESI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was CAD 418 million, down 4% year-over-year, with declines in Canada and international segments, while U.S. revenue remained flat.

• Adjusted EBITDA decreased 7% to CAD 94.8 million; net loss attributable to common shareholders was CAD 11.1 million, compared to net income of CAD 3.7 million in Q1 2025.

• Leadership transition with Trevor Russell appointed as CFO, succeeding Michael Gray, who remains as Executive Advisor until July.

• Total operating days declined 2% year-over-year, with Canadian drilling days down 15%, U.S. drilling days up 15%, and international drilling days up 1%.

• Funds flow from operations fell 9% to CAD 88 million; cash provided by operating activities dropped 16% to CAD 45.4 million.

Financial highlights

• Q1 2026 revenue was CAD 418 million, down 4% year-over-year from CAD 436.5 million.

• Adjusted EBITDA was CAD 94.8 million, a 7% decrease from Q1 2025.

• Net loss was CAD 11.1 million, or $(0.06) per share, versus net income of CAD 3.7 million, or $0.02 per share, in Q1 2025.

• Interest expense dropped 37% to CAD 12.9 million, aided by lower debt, rates, and a one-time recovery.

• General and administration expenses were CAD 14.7 million, 3.5% of revenue, down due to non-recurring prior year fees.

Outlook and guidance

• Maintenance capital budget for 2026 set at CAD 162 million, with CAD 79.5 million in selective upgrade capital.

• Targeting CAD 125 million in debt reduction for 2026, with flexibility to adjust based on industry conditions.

• Expecting to increase contract rates by 5%-10% in the back half of the year due to tightening rig supply.

• Canadian activity expected to remain steady, supported by infrastructure projects; U.S. activity stable to slightly improved; international activity steady with regional variations.

• Anticipate Canadian rig count to rise from 30 to 50 by late summer, with activity staying elevated.