Total Energy Services Inc. Announces Q4 2025 Results

Executive Summary

• Total Energy Services reported record quarterly and annual financial results for the three‑month and twelve‑month periods ended December 31, 2025.
• Revenue grew 22% YoY to C$301.7 M (quarter) and 17% YoY to C$1.06 B (year); net income more than doubled YoY to C$23.7 M (quarter) and increased 22% YoY to C$74.3 M (year).
• EBITDA rose 39% YoY to C$56.3 M (quarter) and 14% YoY to C$195.1 M (year); cash flow from operations improved to C$47.3 M for the quarter.

Key Details

• Revenue: C$301,705 k (Q4 2025) vs. C$246,816 k (Q4 2024); C$1,064,732 k (FY 2025) vs. C$906,776 k (FY 2024).
• Operating Income: C$25,511 k (Q4 2025) vs. C$15,892 k (Q4 2024); C$93,240 k (FY 2025) vs. C$79,842 k (FY 2024).
• EBITDA: C$56,279 k (Q4 2025) vs. C$40,565 k (Q4 2024); C$195,070 k (FY 2025) vs. C$171,845 k (FY 2024).
• Net Income: C$23,727 k (Q4 2025) vs. C$10,102 k (Q4 2024); C$74,349 k (FY 2025) vs. C$60,725 k (FY 2024).
• Diluted EPS: $0.63 (Q4 2025) vs. $0.26 (Q4 2024); $1.95 (FY 2025) vs. $1.53 (FY 2024).

Segment Performance

• Contract Drilling Services (CDS): Q4 revenue C$88,002 k (+5% YoY); EBITDA C$19,503 k (+3%). Utilization fell in Canada but rose in Australia (+24%).
• Rentals & Transportation Services (RTS): Q4 revenue C$19,572 k (+3%); EBITDA down 27% to C$5,683 k due to higher cost mix despite higher revenue per equipment piece. Acquired 280 rental pieces in Oklahoma for $9.0 M.
• Compression & Process Services (CPS): Q4 revenue C$161,689 k (+39%); EBITDA C$27,913 k (+61%). Fabrication sales backlog grew to C$446.7 M (up 136%).
• Well Servicing (WS): Q4 revenue C$32,442 k (+18%); EBITDA C$7,109 k (+123%). Australian service hours up 52%; U.S. activity down 54%.

Corporate Highlights

• Capital expenditures in Q4 2025: $15.8 M (primarily rig upgrades in Australia & Canada). FY 2025 total capex funded: $93.7 M, including $16.6 M carried forward and $9.0 M for Oklahoma rental acquisition.
• Working capital positive at $108.0 M; cash on hand $59.6 M; revolving credit availability $120.0 M of a $175 M facility.
• Dividends & share repurchases returned $38.8 M to shareholders in 2025; bank debt reduced by $55.9 M, resulting in cash exceeding debt at year‑end.

Outlook & Strategic Actions

• Management expects continued demand for compression and process equipment in North America and stable conditions in Australia.
• In Jan 2026 the company will cease U.S. well‑servicing operations; equipment sold Feb 2026, real‑estate sale expected by 30 Jun 2026.
• Board approved a $31.6 M increase to the 2026 capital budget (total $87.4 M) for major upgrades of two drilling rigs—one Australian rig (2‑month outage mid‑2026) and one idle Canadian double‑rig conversion to an AC electric triple‑pad rig. Funding will come from cash on hand and operating cash flow.

Conference Call

• A conference call/webcast is scheduled for 9:00 a.m. MT on 11 Mar 2026; CEO Daniel Halyk will host.

Notable Quotes

“We entered 2025 with a strong backlog and delivered record quarterly results, underscoring the resilience of our diversified service platform across North America and Australia.” – Daniel Halyk, President & CEO