Precision Drilling Posts C$531.652 Million in Third-Quarter Revenue, Up 15%
Key Facts
Precision Drilling reported revenue of C$531.652 million in the third quarter of 2026, up 15.0% from C$462.250 million in the year-earlier period. The company said growth in North American drilling activity and higher average daily drilling rates in the United States supported revenue, offsetting weaker international results. Basic and diluted earnings per share were C$1.65, compared with a loss of C$0.51 per share a year earlier. Adjusted EBITDA also rose to C$125.116 million from C$117.632 million, an increase of 6.4%. The company released its results after the market close on October 27 and scheduled a conference call and webcast for the following day.
According to Seeking Alpha's earnings results item, earnings per share of C$1.65 missed analysts' estimate by C$0.45, while revenue exceeded the estimate by C$1.94 million. The comparison is based on estimates reported by Seeking Alpha; the company's published results did not include analyst consensus figures. Based on its reported results, revenue increased by about C$69 million from the third quarter of 2025, rising from C$462.250 million to C$531.652 million. Revenue and operating profit growth coincided with net income attributable to shareholders swinging from a loss to a profit during the period. The quarter's results therefore combined a clear year-over-year improvement in operating metrics with a miss on earnings per share against the market estimates cited by the source.
The company detailed the regions' contributions to revenue growth: Canadian revenue increased by C$33 million, while U.S. revenue rose by C$42 million. It attributed the increase in Canada to higher oil prices and the resulting stronger demand for drilling activity and well services. In the United States, revenue was supported by increased rig utilization, higher average daily rates and growth in technology revenue. These increases were partly offset by a C$6 million decline in international results. The company said the international decline was linked to the rig mix and unpaid days resulting from planned recertification work.
Adjusted EBITDA was C$125.116 million, compared with C$117.632 million in the same period of 2025. The company said improved activity in North America was the main driver of the annual increase. However, higher costs to restart rigs in the United States and lower international margins limited the gains. Revenue also reflected a stronger contribution from the Canadian and U.S. markets, which more than offset the decline recorded internationally. This reflects differing sources of growth across regions: Canadian support came from drilling and services demand, while U.S. growth was tied to utilization, pricing and technology revenue.
Cash generated from operations was C$71 million in the quarter, down from C$76 million a year earlier, the company said. Despite the decline in operating cash flow, the company repurchased C$31 million of common shares during the period. It also raised its 2026 capital budget to a range of C$275 million to C$285 million, from C$265 million. The company said the adjustment will allow it to meet long-lead delivery requirements and account for a pending upgrade opportunity. That opportunity could involve contracting several rigs through 2029 for a large Canadian producer, according to the company's statement.
On international activity, Precision said it expects the idle rig in Kuwait to return to work in mid-2027 under a five-year contract, after planned recertification work and upgrades. This comes amid the decline in third-quarter international results, which the company attributed to the rig mix and unpaid recertification days. PDS closed at 99.96 on October 27, according to EL7 data, with no currency specified in the price record. Before the results were announced, Investing.com reported that TD Cowen raised its rating on October 20 from "Hold" to "Buy" and increased its price target from C$111 to C$150. The data provided do not include a measure of the share's movement after the results announcement.
The company is scheduled to hold its third-quarter results conference on October 28, 2026, at 11:00 a.m. Mountain Time, or 1:00 p.m. Eastern Time. The conference follows the release of results after the market closed the previous day. The meeting is expected to address quarterly results and the company's operating and investment outlook, according to the announced conference schedule. The revised capital budget and the rig upgrade opportunity are also among the items the company cited in its results statement. The statement did not specify another subsequent date in the information available.