Pason Systems (PSI) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated revenue reached $100.8 million, up 5% year-over-year, driven by strong North American Drilling and Completions segments, with record Revenue per Industry Day of $1,078 reflecting technology adoption and pricing power.

• Adjusted EBITDA rose to $35.7 million (35.4% margin), up 13% year-over-year, highlighting operating leverage from a mostly fixed cost base.

• Net income attributable to shareholders increased 11% year-over-year to $14.1 million ($0.18/share).

• Quarterly dividend of $0.13 per share declared, with $11.5 million returned to shareholders via dividends and share repurchases.

• Diversified revenue streams, with non-drilling segments contributing over 20% of consolidated revenue for the first time in 2025.

Financial highlights

• North American Drilling revenue grew 7% year-over-year to $67.1 million, with record revenue per Industry Day of $1,078, up 5% year-over-year.

• International Drilling revenue declined 4% to $13.1 million, with activity particularly lower in Argentina.

• Completions segment revenue increased 3% to $15.9 million, despite a 4% decline in active frac spreads; revenue per IWS day rose 11%.

• Solar and Energy Storage revenue was stable at $4.8 million year-over-year.

• Free cash flow for Q2 2026 was $3.5 million, down from $5.3 million a year earlier due to higher capital expenditures.

Outlook and guidance

• Targeting to double revenue from 2023 levels over five to seven years, focusing on scaling completions, new technologies, and international expansion.

• Capital expenditures for 2026 expected between $60 million and $70 million, focused on organic growth and technology investments.

• Management anticipates continued outperformance versus underlying North American land drilling activity, supported by technology adoption and automation trends.

• Free cash flow conversion in Completions expected to improve as capital intensity decreases over time.

• Growth drivers include increased adoption of completions technology, higher revenue per industry day, and expansion into adjacent markets.