AKITA announces 2025 annual results with net income of $13.9 million and debt repayment of $15 million

Executive Summary

• AKITA Drilling reported net income of $13.9 M for FY 2025, up 8% YoY, and adjusted funds flow from operations of $46.6 M, a 4% increase.
• The company repaid an additional $15 M of debt in 2025, bringing year‑end total debt to $35 M (down 30%).
• Initiated a Normal Course Issuer Bid (NCIB) in Aug 2025, purchasing and cancelling 752,572 shares at an average price of $2.09 per share.

Key Details

• Revenue: $200.9 M (2025) vs. $193.3 M (2024), +4%
• Operating & Maintenance Expenses: $148.2 M vs. $144.1 M, +3%
• Operating Margin: $52.8 M vs. $49.3 M, +7 M (+7%)
• Adjusted Funds Flow from Operations: $46.6 M vs. $44.7 M, +$1.9 M (+4%)
• Net Cash from Operating Activities: $44.0 M vs. $30.3 M, +45%
• Capital Expenditures: $31.6 M vs. $28.0 M, +13% (driven by Level IV inspections)
• Debt Repayment 2025: $15 M additional repayment; total debt $35 M (down from $50 M in 2024)
• NCIB Activity (Aug‑Dec 2025): 752,572 Class A non‑voting shares repurchased, avg. price $2.09/share

US Division Highlights

• Revenue: $128.1 M vs. $129.1 M, –1%
• Adjusted operating margin: $33.0 M vs. $31.5 M, +5%
• Operating days fell to 2,852 (‑6%) with utilization dropping to 52% (down from 55%).
• Non‑recurring drill‑pipe replacement revenue rose to $4.3 M (up from $0.8 M).

Canadian Division Highlights

• Revenue: $72.8 M vs. $64.2 M, +13%
• Operating days increased to 2,839 (+4%) with utilization at 46% (industry avg 43%).
• Adjusted operating margin essentially flat year‑over‑year ($31.4 M vs. $31.6 M).

Notable Quotes

“We achieved our debt target of $35 million and initiated the return of capital to shareholders through a normal course issuer bid… We believe that 2026 will be a strong year for AKITA, and our team is focused on executing our strategy to deliver that success.” – Colin Dease, President & CEO

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