Total Energy Services lifts third-quarter net income per share to C$0.59
Key Facts
On November 10, Total Energy Services reported consolidated results for the three months ended September 30, 2026, posting net income attributable to shareholders of C$0.59 per share, compared with C$0.38 a year earlier, an increase of 55%. Revenue was C$342.995 million, versus C$260.702 million in the same period of 2025, up 32%, according to the company’s table. Earnings before interest, taxes, depreciation and amortization rose to C$51.415 million from C$42.907 million, an increase of 20%. The company reports its results under International Financial Reporting Standards. The figures reflect growth in the company’s operating activities, alongside increased manufacturing orders and improved results in its compression and processing and contract drilling segments.
Compression and processing was the larger revenue source of the two segments cited, generating C$170.548 million in the third quarter, up 36% year over year. The company attributed the segment’s strength to higher manufacturing sales in North America, parts and service activity, and improved manufacturing margins. In contract drilling, revenue also rose 36% to C$112.188 million. The company said higher equipment utilization and increased operating rates for upgraded equipment supported the segment’s revenue and earnings. Total company revenue grew at a similar pace, placing the two businesses at the center of quarterly growth.
The company’s growth extended through the first nine months of 2026, with revenue reaching C$986.854 million, up 29% from the same period of 2025, while net income rose to C$72.581 million from C$50.622 million, or 43%. In the third quarter alone, the company generated record cash flow from operating activities of C$112.6 million. It ended September with cash of C$93.4 million, exceeding bank debt by C$88.4 million at that date. It returned C$18.8 million to shareholders during the quarter through dividends and share repurchases. It also reduced bank debt by C$20 million during the period and, after the end of September, repaid the remaining C$5 million on its revolving facilities, saying it currently has no bank debt.
Improved results and liquidity accompanied a C$120.1 million capital investment program for 2026, of which the company spent C$31.7 million in the third quarter. Spending focused on rig upgrades, manufacturing expansion and increasing the rental fleet. In manufacturing, the sales backlog stood at C$733.8 million on September 30, compared with C$380.8 million on the same date in 2025. The backlog increased by C$179.3 million, or 32%, from C$554.5 million on June 30, 2026. The company said the record order backlog gives its manufacturing business visibility into 2028, providing an indicator of the volume of work booked for coming periods.
The quarterly results included C$15.9 million in stock-based compensation expense, which the company said weighed on financial results and attributed to an increase in its market capitalization since the start of the year. By contrast, the company said it has a positive outlook for the coming Canadian winter drilling season and that all of its high-capacity singles, AC doubles and triples rigs are committed under contracts. The new service rig being built for Australia is scheduled to begin operating in the second quarter of 2027. The company’s U.S. facility expansion is also expected to be completed in the first quarter of 2027, and it said the project is on schedule and on budget. The company scheduled a conference call and webcast to discuss the results for November 12, 2026, at 9:00 a.m. Alberta time, corresponding to 10:00 a.m. Eastern time.