Total Energy Services Inc. Announces Q3 2025 Results

Executive Summary

• Total Energy Services Inc. reported Q3‑2025 consolidated financial results, showing revenue of C$260.7 M (+8% YoY) and a record CPS segment backlog of C$380.8 M (+101% YoY).
• Net income fell to C$14.6 M (−26% YoY), driven by lower operating income, foreign‑currency impacts, and higher share‑based compensation.
• Capital expenditures for the quarter were C$17.2 M, primarily on rig upgrades in Australia and Canada; cash balance rose to C$57.1 M with $85.0 M of available credit under a $175 M revolving facility.

Key Details

• Financial Highlights (Three months ended Sep 30, 2025)
• Revenue: C$260,702 K (+8% YoY)
• Operating income: C$19,352 K (‑29% YoY)
• EBITDA: C$42,907 K (‑15% YoY) – $1.13 per diluted share
• Cash flow from operations: C$41,362 K (‑14% YoY) – $1.09 per diluted share

• Net income attributable to shareholders: C$14,584 K (‑26% YoY) – $0.38 per diluted share

• Nine‑month comparison (ended Sep 30, 2025)

• Revenue: C$763,027 K (+16% YoY)
• EBITDA: C$138,791 K (+6% YoY) – $3.64 per diluted share

• Net income attributable to shareholders: C$50,581 K (‑0.2% YoY) – $1.33 per diluted share

• Segment Performance

• Contract Drilling Services (CDS) – Revenue C$82,374 K (‑5% YoY); operating days down 18%; utilization fell to 25% (‑14%).
• Rentals & Transportation Services (RTS) – Revenue C$21,041 K (+8% YoY); EBITDA down 7%; equipment count up 1% (8,050 pieces). Acquisition of 280 rental pieces in Oklahoma for C$9.0 M on June 10 2025.
• Compression & Process Services (CPS) – Revenue C$125,801 K (+14% YoY); EBITDA down 22%; backlog rose to C$380.8 M (+101%). Foreign‑currency impact of –C$1.8 M and low‑margin fabrication projects reduced profitability.

• Well Servicing (WS) – Revenue C$31,486 K (+24% YoY); EBITDA down 4%; service hours up 19%, driven by Australian rig upgrades; U.S. revenue fell sharply.

• Balance Sheet & Liquidity

• Total assets: C$1,015,387 K (+8% YoY)
• Long‑term debt (excluding current portion): C$98,197 K (↑24%)
• Working capital: C$113,535 K (+44%) – positive for the first time in years.
• Cash & cash equivalents: C$57,087 K (up from C$38,419 K)

• Revolving credit facility: $85.0 M available of $175 M limit

• Capital Expenditures & Investments

• Q3 capex: C$17.2 M, mainly rig upgrades in Australia and Canada.
• FY‑2025 capex commitments total C$119.0 M (budget C$102.4 M + carry‑forward C$16.6 M).

• Completed upgrade of an idle mechanical double drilling rig to a state‑of‑the‑art AC electric triple‑pad rig in Alberta; now operating in the Montney formation.

• Dividends & Share Repurchases

• FY‑2025 dividends and share repurchases: C$24.7 M returned to shareholders.

• Outlook & Guidance

• Oil price weakness expected to continue pressuring North American drilling activity; Australian market remains stable.
• CPS backlog of C$380.8 M provides visibility into H2‑2026.

• Expansion of CPS fabrication capacity in Weirton, WV slated for completion Q1 2027.

• Conference Call – November 13 2025 at 9:00 a.m. MT; CEO Daniel Halyk will host.

Notable Quotes

“Our upgraded rig fleet and strong Australian activity are delivering tangible results, while we remain focused on managing cost pressures and currency impacts across our North American operations.” – Daniel Halyk, President & CEO.