Precision Drilling Announces 2025 Fourth Quarter and Year End Unaudited Financial Results

Executive Summary

• Precision Drilling reported Q4 2025 revenue of $479 M (up 2% YoY) but a net loss attributable to shareholders of $42 M ($3.23 per share), driven by non‑cash decommissioning and drill‑pipe charges.
• Cash provided by operations was $126 M, enabling the company to repurchase $22 M of shares, reduce debt by $101 M for the year and increase cash balances by $47 M.
• For 2026 the company plans to spend $245 M on fleet/infrastructure upgrades, cut debt an additional $100 M and allocate up to 50% of free‑cash flow (pre‑debt) to share repurchases.

Key Details

• Financial Highlights – Q4 2025
• Revenue: $479 M vs. $468 M in Q4 2024.
• Adjusted EBITDA: $126 M (incl. $6 M share‑based compensation).
• Net loss attributable to shareholders: $(42 M), including a $67 M decommissioning charge for 31 rigs and a $17 M drill‑pipe charge.
• Cash provided by operations: $126 M; capital expenditures: $81 M (maintenance $56 M, upgrades $25 M).

• Share repurchases in quarter: 256,580 shares for $22 M.

• Annual 2025 Results

• Revenue: $1.844 B, down 3% YoY.
• Adjusted EBITDA: $490 M, down 6% YoY.
• Net earnings attributable to shareholders: $3 M ($0.14 per share) vs. $111 M in 2024.
• Debt reduction: $101 M; total debt at year‑end $679 M (down from $812 M).

• Capital spending: $263 M (upgrades $107 M, maintenance/infrastructure $157 M).

• Operational Highlights – Q4 2025

• Canada: 66 active rigs; revenue per utilization day C$35,241.
• U.S.: 37 active rigs (9% increase YoY); revenue per utilization day US$30,904.
• International: 7 active rigs; revenue per utilization day US$53,505.

• Service rig fleet: 145 rigs (down 9% YoY); operating hours 61,231.

• Capital Allocation Plan – 2026

• Planned capital spending: $245 M (maintenance/infrastructure $182 M; expansion/upgrades $63 M).
• Target debt reduction: $100 M.

• Share repurchase allocation: up to 50% of free cash flow before debt repayments.

• Strategic Outlook

• Expectation of higher U.S. rig utilization and continued demand for natural‑gas drilling amid improving LNG markets.
• Anticipated operating margins Q1 2026: Canada $14–15k per utilization day; U.S. $8–9k per utilization day.

Notable Quotes

• Carey Ford, President & CEO: “Our fourth quarter and full‑year 2025 results underscore the effectiveness of Precision’s High Performance, High Value strategy… We look to build on these trends in 2026, driving revenue growth through technology, operational excellence and deeper customer relationships while enhancing shareholder returns.”