Pason Reports Fourth Quarter 2025 Results and Declares Quarterly Dividend

Executive Summary

• Pason Systems reported FY 2025 total revenue of C$419.3 M, a modest 1% increase year‑over‑year despite lower drilling activity.
• Adjusted EBITDA fell to C$153.4 M (36.6% of revenue), down 5% YoY; net income dropped sharply to C$53.2 M (C$0.68 per share) from C$121.5 M the prior year.
• The Board declared a quarterly cash dividend of C$0.13 per share (to be paid March 31, 2026), and the company returned C$62.7 M to shareholders via dividends and share repurchases in FY 2025.

Key Details

• Revenue Highlights
• Q4 2025 revenue: C$108.7 M (↑1% YoY).
• FY 2025 revenue: C$419.3 M (↑1% YoY).

• Segment breakdown FY 2025:

  • North American Drilling: C$274.5 M (‑3%).
  • International Drilling: C$52.1 M (‑14%).
  • Completions: C$59.0 M (+12%).
  • Solar & Energy Storage: C$33.7 M (+87%).

• Profitability

• Adjusted EBITDA FY 2025: C$153.4 M (36.6% of revenue), down 5% YoY.

• Net income attributable to Pason FY 2025: C$53.2 M (C$0.68 per share), ↓56% YoY.

• Cash Flow & Capital Allocation

• Cash from operations FY 2025: C$117.7 M (‑4%).
• Net capital expenditures FY 2025: C$54.3 M (‑21%).
• Free cash flow FY 2025: C$63.3 M (+17% YoY).

• Shareholder returns FY 2025: C$40.7 M dividend + C$22.0 M share repurchases = C$62.7 M total.

• Quarter‑Specific Metrics

• Q4 2025 Adjusted EBITDA: C$38.1 M (35.1% of revenue), down from C$42.1 M YoY.
• Q4 2025 Net income: C$8.0 M (C$0.10 per share), ↓52% YoY.

• Solar & Energy Storage Q4 2025 revenue: C$16.2 M (+124% YoY).

• Balance Sheet

• Total cash (cash + short‑term investments) at 31 Dec 2025: C$77.1 M (‑5% YoY).
• Working capital declined to C$90.4 M (‑25%).

• No interest‑bearing debt reported.

• Dividend Declaration

• Quarterly dividend of C$0.13 per share, payable 31 Mar 2026 to shareholders of record 17 Mar 2026.

• Conference Call

• Management discussion scheduled for 27 Feb 2026 at 9:00 a.m. MT; webcast available online.

Notable Quotes

“Our eighth consecutive year of revenue growth outpacing the decline in North American land drilling activity demonstrates the resilience and diversification of our business model.” – President & CEO Jon Faber

Materiality Assessment: Material – Neutral (the release contains full FY 2025 financial results, significant changes to earnings and cash flow, and a dividend declaration that are material to investors, though performance is mixed).