Pulse Seismic Inc. Reports Strong Q2 2025 Financial Results and Declares Special and Regular Quarterly Dividends

Executive Summary

• Pulse Seismic Inc. reported strong financial results for the first half of 2025, driven by a 71% increase in revenue compared to the three-year annual average, fueled by increased traditional data sales and energy sector M&A activity.
• The Company declared a regular quarterly dividend of $0.0175 per share and a special dividend of $0.20 per share, totaling approximately $11.0 million, to be paid on August 20, 2025.
• Operational highlights include a significant expansion in the seismic data library, robust cash flow generation, and the completion of a Normal Course Issuer Bid (NCIB) share repurchase program.

Key Details

• Dividends Declared:
  • Regular quarterly dividend: $0.0175 per common share (a 17% increase over Q1 2025's $0.015/share).
  • Special dividend: $0.20 per common share.
  • Total dividend value: Approximately $11.0 million based on 50,755,057 shares outstanding.
  • Payment Date: August 20, 2025.
  • Record Date: August 13, 2025.
  • Designation: Eligible dividend for Canadian income tax purposes.
• Financial Performance (Six Months Ended June 30, 2025):
  • Revenue: $41.1 million (compared to $15.1 million in 2024).
  • Net Earnings: $22.9 million ($0.45 per share basic and diluted).
  • EBITDA: $35.3 million ($0.69 per share basic and diluted).
  • Shareholder Free Cash Flow: $27.2 million ($0.53 per share basic and diluted).
  • EBITDA Margin: 86%.
• Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $18.3 million (compared to $6.3 million in 2024).
  • Net Earnings: $9.6 million ($0.19 per share basic and diluted).
  • EBITDA: $15.2 million ($0.30 per share basic and diluted).
  • Shareholder Free Cash Flow: $11.7 million ($0.23 per share basic and diluted).
• Balance Sheet & Liquidity:
  • Cash and Cash Equivalents: $25.9 million.
  • Available Liquidity: $5.0 million on revolving demand credit facility.
  • Working Capital: $24.2 million.
  • Total Assets: $36.5 million.
  • Shareholders’ Equity: $29.2 million.
  • Trailing 12-Month (TTM) EBITDA: $40.1 million.
• Capital Allocation & Share Repurchases:
  • NCIB Renewal: Renewed on February 24, 2025.
  • Shares Purchased/Cancelled (6 months): 80,600 shares at an average price of $2.43 per share.
  • Total Cost of Repurchases: Approximately $197,000.
  • Capital Return Strategy: Distributed 84% of 2025 free cash flow in dividends.
• Operational Metrics:
  • Seismic Library Size:
    • 2D Data: 829,207 kilometers.
    • 3D Data: 65,310 square kilometers.
  • Capital Expenditures (6 months): $0 for seismic data; $0 for property and equipment.
• Outlook & Industry Context:
  • M&A activity in the energy sector has surpassed analyst expectations and is expected to remain strong.
  • Drilling forecasts indicate a ~7% increase in wells to be drilled in 2025 (6,604 wells) compared to 2024.
  • LNG Canada’s export facility is now operational, potentially increasing drilling activity and natural gas prices.
  • Alberta land sales are at roughly half the level of the same period in 2024, while BC land sales resumed in Q3 2024.

Notable Quotes

• “In the first half of 2025 the Company has benefited from increases in traditional data sales as well as energy sector M&A, generating revenue of $41.1 million, an EBITDA margin of 86% and $27.2 million of shareholder free cashflow.” — Neal Coleman, President and CEO
• “Pulse’s Board of Directors today declared the second special dividend of 2025... In the last 24 months, special dividends of $0.80 have been declared, in addition to the regular dividend which has increased annually and is currently set at $0.07 per year.” — Neal Coleman, President and CEO