Precision Drilling (PDS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 11% year-over-year to $453 million, led by robust Canadian heavy oil drilling and improved U.S. rig utilization, offsetting weaker international results and lower Canadian upfront capital payments.

• Year-to-date revenue up 8%, with expanded contract book and increased activity in both Canada and the U.S.

• Adjusted EBITDA declined 10% to $97 million due to higher U.S. rig reactivation costs, lower international margins, and $3 million in restructuring charges, partially offset by a $2 million share-based compensation recovery.

• Net loss attributable to shareholders was $1 million, compared to net earnings of $16 million in Q2 2025, mainly due to an $11 million increase in depreciation from revised useful life estimates.

• Strategic focus on differentiated services, customer relationships, cash flow generation, and capital returns.

Financial highlights

• Q2 2026 revenue: $453 million (+11% YoY); Adjusted EBITDA: $97 million (-10% YoY); Net loss: $1 million (vs. $16 million net earnings in Q2 2025).

• Cash provided by operations: $146 million; capital spending: $76 million; net capital spending: $64 million.

• Basic EPS: $(0.09) vs. $1.21 in Q2 2025; diluted EPS: $(0.52) vs. $1.07.

• Working capital at quarter-end: $147 million; cash: $66 million; long-term debt: $626 million.

• Capital expenditures totaled $76 million in Q2; year-to-date $141 million; full-year expectation $265 million.

Outlook and guidance

• Canadian Q3 rig count expected in low to mid-70s, up from 63 prior year; margins guided at $12,000–$13,000/day.

• U.S. Q3 rig count expected in low 40s, with margins $7,000–$8,000/day; Q4 margins expected to approach $10,000/day.

• International rig count to remain at seven until mid-2027, when an eighth rig in Kuwait is reactivated under a new five-year contract; margins to remain pressured by Middle East costs.

• Full-year 2026 capex budget at $265 million; depreciation $320 million; effective tax rate 25–30%.

• Debt reduction target of $100 million and up to 50% of free cash flow allocated to share repurchases in 2026.