| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 91 | — | 17.8x | Top tier | |
Growth | 18 | 3.9% | 7.1% | Bottom tier | |
Quality | 34 | 0.8% | 4.5% | Bottom tier | |
Safety | 64 | 1.6x | 2.6x | Around median | |
Capital Return | 90 | — | 2.12% | Top tier | |
Momentum | 70 | 35.4% | 2.9% | Top tier | |
Sentiment | 77 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Precision Drilling Corporation operates drilling rigs and provides well services, with operations concentrated in Canada, the United States, and international markets, particularly Kuwait and Saudi Arabia. The company generates revenue from operating rigs at daily rates, contract-based rig reactivations and upgrades, as well as well services and surface equipment rentals within the C&P segment, while using Alpha technologies, robotics, and remote operations to improve drilling efficiency and deepen customer relationships.
In fiscal Q2 2026, revenue increased 11% year over year, driven by a 14% increase in North American operations, while international revenue declined 11%. Average activity was 61 rigs in Canada, 35 rigs in the United States, and 7 rigs internationally, while the C&P segment generated adjusted earnings before interest, taxes, depreciation, and amortization of C$14.4 million, exceeding the comparable-period result due to demand for well services in Canadian heavy oil regions.
Adjusted earnings before interest, taxes, depreciation, and amortization were C$97 million, or C$95 million before the impact of the recovery of share-based compensation, compared with C$108 million and C$112 million, respectively, in fiscal Q2 2025. The company recorded a net loss of C$1 million versus net income of C$16 million, and cash flow from operations was C$146 million. Normalized daily operating margin in Canada declined to C$13,300 from C$13,900, while the U.S. daily margin fell to US$6,210 from US$9,290 in the previous quarter due to reactivation costs.
Automated analysis for informational purposes only — not investment advice.
The analysts' average price target is $122, which is also both the highest and lowest target, with a consensus rating of “Buy”; this target is above the 52-week range high of $103.8, while the range low is $53.42. However, the absence of variation among the targets means the presented consensus does not offer a broad range of scenarios, while fiscal 2025 net income of $3.1 million and earnings per share of 0.14 make the price-to-earnings multiple less useful as a valuation anchor in the provided data compared with the contract book, cash flow, and debt reduction.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Precision Drilling's revenue increased 11% year over year, driven by a 14% increase in North American operations. Canada recorded a record average of 61 active rigs, an increase of 11 rigs from fiscal Q2 2025, while the U.S. average increased to 35 rigs from 33. The C&P segment also benefited from strong demand for well services in Canadian heavy oil regions and generated adjusted earnings before interest, taxes, depreciation, and amortization of C$14.4 million.
The company increased the number of active U.S. rigs from 32 in April 2026 to 42 on June 30, 2026, and completed seven major reactivations during fiscal Q2 2026. Crew preparation costs, equipment recertification, and startup plans reduced the U.S. daily margin to US$6,210 from US$9,290 in the previous quarter. Management expects a range of US$7,000 to US$8,000 in Q3, followed by a margin approaching US$10,000 in Q4 as reactivation activity declines.
Precision operated the Alpha robotic rig in Montney continuously for two and a half years through the July 29, 2026 call. The rig drilled 54 wells, handled more than 3 million feet of pipe without manual intervention, and recorded 17,000 hours without workers on the rig floor. The company also received a grant from Emissions Reduction Alberta to develop a robotic solution for a Super Triple 1200 rig and intends to open the Alpha remote operations center in Calgary in August 2026 to integrate with the Houston center.
In fiscal Q2 2026, the company secured a five-year contract for its idle rig in Kuwait, with a potential additional one-year extension according to the call details. The rig requires recertification and upgrades at an estimated capital cost of approximately C$12 million to C$15 million, with spending divided between 2026 and 2027. Management expects the rig to begin operating by mid-2027, increasing the active international fleet from seven rigs to eight rigs, with the investment recovered during the first two years of the contract.
The company is targeting a C$100 million debt reduction during fiscal 2026 and allocating up to 50% of free cash flow to share repurchases. By midyear, it had reduced debt by C$75 million and repurchased C$16 million of shares, including a C$50 million debt reduction and C$12 million of repurchases during Q2. The average cost of debt was 6.7%, and total liquidity exceeded C$502 million on July 29, 2026.
Precision received a reassessment notice related to 2018 in late July 2026 and announced that it would vigorously appeal it because the company and its advisers believe its tax position is appropriate. Management estimated the maximum potential liability at C$155 million plus interest, with a potential initial payment of approximately C$80 million to defend the position. Approximately C$40 million could become due in late 2026 or early 2027, with the remainder spread over 24 months, but any cash amounts paid would be refunded with interest if the company successfully defends its position.
