Pason Reports Third Quarter 2025 Results and Declares Quarterly Dividend

Executive Summary

• Pason Systems reported Q3 2025 revenue of C$101.0 million, a 5% YoY decline, and net income of C$12.5 million (C$0.16 per share), down 48% from the prior year period.
• Adjusted EBITDA fell to C$38.5 million (38.1% of revenue) versus C$44.1 million a year earlier; free cash flow improved to C$18.7 million.
• The Board declared a quarterly dividend of C$0.13 per share payable on 31 Dec 2025, and the company repurchased C$3.0 million of shares in the quarter.

Key Details

• Revenue Breakdown (Q3 2025 vs. Q3 2024)
• North American Drilling: C$68.8 M (‑7%)
• International Drilling: C$12.5 M (‑18%)
• Completions: C$14.6 M (+17%)
• Solar & Energy Storage: C$5.1 M (+30%)

• Total Consolidated Revenue: C$101.0 M (‑5%)

• Profitability

• Adjusted EBITDA: C$38.5 M (38.1% of revenue) vs. C$44.1 M (41.7%).

• Net income attributable to Pason: C$12.5 M (C$0.16 per share) vs. C$24.2 M (C$0.30 per share).

• Cash Flow & Capital

• Cash from operations: C$29.4 M (‑3% YoY).
• Net capital expenditures: C$10.7 M (‑22%).
• Free cash flow: C$18.7 M (+12% YoY).

• Total cash on hand: C$75.6 M; no interest‑bearing debt.

• Shareholder Returns

• Quarterly dividend declared: C$0.13 per share (total C$10.1 M for Q3).
• Share repurchases: C$3.0 M in the quarter.

• FY‑to‑date shareholder returns: C$49.6 M (dividends C$30.6 M + repurchases C$19.0 M).

• Operational Highlights

• Revenue per Industry Day rose 1% to C$1,071, setting a quarterly record despite lower Canadian activity share.
• Completions segment generated 30 IWS active jobs (up from 28) with revenue per IWS day of C$5,393.

• Solar & Energy Storage unit grew due to higher control‑system deliveries; operating expense was C$5.3 M.

• Guidance & Outlook

• Expected 2025 capital expenditures: C$55–60 M (similar in 2026).
• Dividend policy maintained at C$0.13 per share.
• Management reaffirmed focus on technology expansion, international growth, and disciplined capital allocation.

Notable Quotes

• President & CEO Jon Faber: “Our ability to out‑perform industry activity continues to be demonstrated – revenue grew 40% over six years while North American rig counts fell 32%, underscoring the strength of our product adoption and market positioning.”

Materiality Assessment: Material – Neutral (the release contains significant financial results, dividend declaration, and operational commentary that are material to investors).