Total Energy Services Inc. press release

Total Energy Services Inc. Announces Q4 2025 Results

2026-03-10

TSX - Toronto Stock Exchange · Oil · Natural Gas · Canada · Corporate Finance

Total Energy Services Inc. Announces Q4 2025 Results

CALGARY, Alberta, March 10, 2026 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended December 31, 2025.

Financial Highlights

($000’s except per share data, unaudited)

Three months ended

December 31 Year ended

December 31

2025 2024Change 2025 2024Change

Revenue$301,705$246,81622% $1,064,732$906,77617%

Operating income 25,511 15,89261% 93,240 79,84217%

EBITDA(1) 56,279 40,56539% 195,070 171,84514%

Cashflow 47,269 43,4139% 171,975 162,4356%

Net income 23,727 10,102135% 74,349 60,72522%

Attributable to shareholders 23,636 10,116134% 74,217 60,80122%

Per Share Data (Diluted)

EBITDA(1)$1.50$1.0444% $5.14$4.3319%

Cashflow$1.26$1.1213% $4.53$4.1010%

Attributable to shareholders:

Net income$0.63$0.26142% $1.95$1.5327%

Common shares (000’s)(4)

Basic 36,698 38,171(4%) 37,322 39,080(4%)

Diluted 37,632 38,828(3%) 37,968 39,662(4%)

December 31 December 31

Financial Position at 2025 2024Change

Total Assets $1,000,102$937,7087%

Long-Term Debt and Lease Liabilities (excluding current portion)75,236 79,171(5%)

Working Capital(2) 108,023 78,73737%

Net Debt(3) - 434(100%)

Shareholders’ Equity 601,311 571,0435%

Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.

Total Energy’s results for the three and 12 months ended December 31, 2025 represent record quarterly and annual financial results. Strong North American demand for natural gas compression and process equipment and the deployment of upgraded drilling and service rigs in Australia more than offset lower North American drilling and completion activity.

Contract Drilling Services (“CDS”)

Three months ended

December 31 Year ended

December 31

2025 2024 Change 2025 2024 Change

Revenue$88,002 $83,878 5% $332,685 $319,612 4%

EBITDA(1)$19,503 $18,556 3% $80,683 $75,970 6%

EBITDA(1)as a % of revenue 22% 22% - 24% 24% -

Operating days(2) 2,267 2,490 (9%) 9,311 10,177 (9%)

Canada 1,236 1,650 (25%) 5,488 6,604 (17%)

United States 144 122 18% 497 1,155 (57%)

Australia 887 718 24% 3,326 2,418 38%

Revenue per operating day(2), dollars$38,819 $33,686 15% $35,730 $31,405 14%

Canada 27,626 27,515 - 26,582 26,481 -

United States 27,993 35,787 (22%) 29,181 29,329 (1%)

Australia 56,172 47,511 18% 51,805 45,847 13%

Utilization 26% 26% - 27% 27% -

Canada 21% 24% (13%) 23% 23% -

United States 13% 11% 18% 11% 26% (58%)

Australia 57% 46% 24% 54% 44% 23%

Rigs, average for period 93 105 (12%) 93 104 (12%)

Canada 64 76 (17%) 64 77 (18%)

United States 12 12 - 12 12 -

Australia 17 17 - 17 15 13%

(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

(2) Operating days includes drilling and paid standby days.

Fourth quarter CDS segment activity in 2025 was consistent with activity in the fourth quarter of 2024. The acquisition of Saxon in March 2024 and subsequent reactivation of upgraded equipment at higher day rates was partially offset by a decrease in Canadian drilling activity. Increased fourth quarter segment EBITDA relative to 2024 was a result of improved Australian results more than offsetting a year over year decline in North American EBITDA. During the fourth quarter of 2025 ten idle drilling rigs in Canada were decommissioned, with no impairment expense being recognized as the estimated salvage value of such equipment is consistent with its net book value.

Rentals and Transportation Services (“RTS”)

Three months ended

December 31 Year ended

December 31

2025 2024 Change 2025 2024 Change

Revenue$19,572 $18,973 3% $79,823 $78,587 2%

EBITDA(1)$5,683 $7,794 (27%) $27,340 $31,752 (14%)

EBITDA(1)as a % of revenue 29% 41% (29%) 34% 40% (15%)

Revenue per utilized piece of equipment, dollars$15,198 $12,656 20% $59,181 $56,262 5%

Pieces of rental equipment 8,048 7,820 3% 8,048 7,820 3%

Canada 6,866 6,880 - 6,866 6,880 -

United States 1,182 940 26% 1,182 940 26%

Rental equipment utilization 16% 19% (16%) 17% 18% (6%)

Canada 13% 16% (19%) 15% 16% (6%)

United States 34% 38% (11%) 33% 34% (3%)

Heavy trucks 57 68 (16%) 57 68 (16%)

Canada 36 47 (23%) 36 47 (23%)

United States 21 21 - 21 21 -

(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

RTS segment revenue increased for the fourth quarter of 2025 compared to 2024 due to increased revenue per utilized piece resulting from a change in the mix of equipment operating that offset lower North American equipment utilization. The acquisition of 280 major rental pieces located in Oklahoma on June 10, 2025 also mitigated the year over year decline in industry activity levels in the United States. Despite a year over year increase in revenue per utilized piece of rental equipment, fourth quarter segment EBITDA decreased compared to 2024 given higher operating costs associated with the mix of equipment operating and competitive market conditions that did not allow for price increases necessary to offset cost inflation.

Compression and Process Services (“CPS”)

Three months ended

December 31 Year ended

December 31

2025 2024 Change 2025 2024 Change

Revenue$161,689 $116,397 39% $526,939 $413,944 27%

EBITDA(1)$27,913 $17,356 61% $80,907 $65,151 24%

EBITDA(1)as a % of revenue 17% 15% 13% 15% 16% (6%)

Horsepower of equipment on rent at period end 40,510 50,988 (21%) 40,510 50,988 (21%)

Canada 23,560 17,298 36% 23,560 17,298 36%

United States 16,950 33,690 (50%) 16,950 33,690 (50%)

Rental equipment utilization during the period (HP)(2) 77% 76% 1% 71% 76% (7%)

Canada 77% 72% 7% 69% 70% (1%)

United States 77% 78% (1%) 73% 79% (8%)

Sales backlog at period end, $ million$446.7 $189.0 136% $446.7 $189.0 136%

(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

(2) Rental equipment utilization is measured on a horsepower basis.

2025 fourth quarter CPS segment revenue was higher compared to 2024 due to increased North American fabrication sales and parts and service activity that was partially offset by lower compression rental fleet revenue following the sale of several active compression rental units. The year over year increase in fourth quarter segment EBITDA was a result of increased fabrication and parts and service activity, improved fabrication margins and the sale of compression rental units. The quarter end fabrication sales backlog increased to $446.7 million compared to the $189.0 million backlog at December 31, 2024. Sequentially the quarter-end fabrication sales backlog increased by $65.9 million, or 17%, compared to the $380.8 million backlog at September 30, 2025.

Well Servicing (“WS”)

Three months ended

December 31 Year ended

December 31

2025 2024 Change 2025 2024 Change

Revenue$32,442 $27,568 18% $125,285 $94,633 32%

EBITDA(1)$7,109 $3,191 123% $20,599 $14,535 42%

EBITDA(1)as a % of revenue 22% 12% 83% 16% 15% 7%

Service hours(2) 29,567 25,673 15% 115,373 92,980 24%

Canada 14,059 14,028 - 54,455 51,257 6%

United States 948 2,058 (54%) 6,645 11,301 (41%)

Australia 14,560 9,587 52% 54,273 30,422 78%

Revenue per service hour(2), dollars$1,097 $1,074 2% $1,086 $1,018 7%

Canada 942 956 (1%) 925 960 (4%)

United States 937 884 6% 923 883 5%

Australia 1,258 1,287 (2%) 1,268 1,165 9%

Utilization(3) 31% 28% 11% 31% 26% 19%

Canada 31% 28% 11% 30% 26% 15%

United States 9% 19% (53%) 15% 26% (42%)

Australia 55% 36% 53% 52% 29% 79%

Rigs, average for period 73 79 (8%) 73 79 (8%)

Canada 49 55 (11%) 49 55 (11%)

United States 12 12 - 12 12 -

Australia 12 12 - 12 12 -

(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

(2) Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby.

(3) The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.

Fourth quarter Well Servicing segment revenue increased in 2025 as compared to 2024 due to increased activity in Australia following the upgrade and reactivation of several service rigs over the past year. Increased revenue from Australian operations was partially offset by lower WS segment revenue in the United States. Segment EBITDA for the fourth quarter of 2025 was higher compared to 2024 due to the deployment of upgraded rigs in Australia that was partially offset by lower Canadian operating margins due to competitive market conditions. During the fourth quarter of 2025 six idle service rigs in Canada were decommissioned with no impairment expense being recognized.

Corporate

During the fourth quarter of 2025, Total Energy continued to execute on its 2025 capital expenditure program with $15.8 million of capital expenditures that was primarily directed towards the upgrade of drilling and service rigs in Australia and Canada. To December 31, 2025, $93.7 million of capital expenditures were funded, including approximately $16.6 million of capital commitments carried forward from 2024 and the acquisition of 280 pieces of rental equipment located in Oklahoma in June 2025 for $9.0 million.

Total Energy exited 2025 with $108.0 million of positive working capital, including $59.6 million of cash. At December 31, 2025 there was $120.0 million of available credit under the Company’s $175 million of revolving bank credit facilities and the interest rate on the Company’s outstanding bank debt was 4.08%.

$38.8 million was returned to shareholders during 2025 by way of dividends and share repurchases under the Company’s normal course issuer bid. Bank debt was also reduced by $55.9 million during the year and for the first time since the acquisition of Savanna Energy Services in 2017, cash on hand exceeded bank debt at December 31, 2025.

Outlook

Global economic and political uncertainty and commodity price volatility continue to weigh on industry sentiment, particularly in the United States where producers remain measured with their drilling and completion capital budgets. Offsetting this uncertainty are stable Australian industry conditions, continued strong North American demand for compression and process equipment and an improving Canadian outlook following the Trans Mountain pipeline expansion and the startup of the LNG Canada liquified natural gas export terminal. The CPS segment’s record $446.7 million fabrication sales backlog at December 31, 2025 provides visibility for the CPS segment’s business into 2027.

In January 2026 the Company determined to cease its well servicing operations in the United States and to dispose of the related operating equipment and real estate. The operating equipment was sold in February 2026 and an agreement to sell the real estate has been entered into, with closing expected to occur by June 30, 2026.

Despite continued market uncertainty, targeted opportunities to deploy capital exist. The Board of Directors of the Company has approved a $31.6 million increase to the Company’s 2026 capital budget to $87.4 million. This increase will be directed towards the substantial upgrade of two drilling rigs. One rig is a currently active Australian rig that will be taken out of service for approximately two months in mid-2026 to complete the upgrade following which it will be redeployed under a new long term contract. The second rig is an idle Canadian mechanical double rig that will be upgraded to an AC electric triple pad rig. This upgrade follows the upgrade of a similar idle Canadian rig in 2025 that commenced operations in November 2025 and whose performance has exceeded expectations. Demand for this class of rig is very strong and the Company will look to contract the rig near completion which is expected by the first quarter of 2027. Total Energy intends to finance its 2026 capital budget with cash on hand and cash flow.

Total Energy enters its 30th year in business with cautious optimism and a continued commitment to its founding principles of “Focus, Discipline and Growth” that have served it well over the past three decades and numerous industry cycles.

Conference Call

At 9:00 a.m. (Mountain Time) on March 11, 2026 Total Energy will conduct a conference call and webcast to discuss its fourth quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 715-9871 or (647) 932-3411. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until April 10, 2026 by dialing (800) 770-2030 (passcode 1002576).

Selected Financial Information

Selected financial information relating to the three months and the year ended December 31, 2025 and 2024 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and in the Company’s 2025 Annual Report.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)

(audited)

December 31 December 31

2025

2024

Assets

Current assets:

Cash and cash equivalents $59,637 $38,419

Accounts receivable 165,991 149,048

Inventory 127,022 104,091

Prepaid expenses and deposits 18,268 17,640

370,918 309,198

Property, plant and equipment 625,131 622,499

Deferred income tax asset - 1,958

Goodwill 4,053 4,053

$1,000,102 $937,708

Liabilities & Shareholders' Equity

Current liabilities:

Accounts payable and accrued liabilities $152,214 $125,106

Deferred revenue 89,826 47,225

Contingent consideration 2,796 2,878

Income taxes payable 7,518 4,508

Dividends payable 3,635 3,429

Current portion of lease liabilities 6,906 6,368

Current portion of long-term debt - 40,947

262,895 230,461

Long-term debt 55,000 70,000

Lease liabilities 20,236 9,171

Deferred income tax liability 60,660 57,033

Shareholders' equity:

Share capital 228,041 239,269

Contributed surplus 5,841 5,279

Accumulated other comprehensive loss (16,523) (11,219)

Non-controlling interest 377 245

Retained earnings 383,575 337,469

601,311 571,043

$1,000,102 $937,708

Consolidated Statements of Income

(in thousands of Canadian dollars except per share amounts)

Three months ended

December 31 Year ended

December 31

2025 2024 2025 2024

(unaudited) (unaudited) (audited) (audited)

Revenue$301,705 $246,816 $1,064,732 $906,776

Cost of services 236,508 190,267 820,366 681,359

Selling, general and administration 15,089 13,729 55,966 51,241

Other expense (income), net (136) 2,185 (1,368) 1,465

Share-based compensation 1,272 599 4,067 2,539

Depreciation 23,461 24,144 92,461 90,330

Operating income 25,511 15,892 93,240 79,842

Gain on sale of property, plant and equipment 7,307 529 9,369 1,673

Finance costs, net (1,026) (1,838) (4,947) (8,156)

Net income before income taxes 31,792 14,583 97,662 73,359

Current income tax expense 5,798 1,738 16,714 8,828

Deferred income tax expense 2,267 2,743 6,599 3,806

Total income tax expense 8,065 4,481 23,313 12,634

Net income$23,727 $10,102 $74,349 $60,725

Net income (loss) attributable to:

Shareholders of the Company$23,636 $10,116 $74,217 $60,801

Non-controlling interest$91 $(14) $132 $(76)

Earnings per share:

Basic earnings per share$0.64 $0.27 $1.99 $1.56

Diluted earnings per share$0.63 $0.26 $1.95 $1.53

Consolidated Statements of Comprehensive Income

(in thousands of Canadian dollars except per share amounts)

Three months ended

December 31 Year ended

December 31

2025 2024 2025 2024

(unaudited) (unaudited) (audited) (audited)

Net income$23,727 $10,102 $74,349 $60,725

Foreign currency translation (2,219) 7,016 (5,304) 14,287

Total other comprehensive income (loss) for the year (2,219) 7,016 (5,304) 14,287

Total comprehensive income$21,508 $17,118 $69,045 $75,012

Total comprehensive income (loss) attributable to:

Shareholders of the Company$21,417 $17,132 $68,913 $75,088

Non-controlling interest$91 $(14) $132 $(76)

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

Three months ended

December 31 Year ended

December 31

2025 2024 2025 2024

(unaudited) (unaudited) (audited) (audited)

Cash provided by (used in):

Operations:

Net income$23,727 $10,102 $74,349 $60,725

Add (deduct) items not affecting cash:

Depreciation 23,461 24,144 92,461 90,330

Share-based compensation 1,272 599 4,067 2,539

Gain on sale of property, plant and equipment (7,307) (529) (9,369) (1,673)

Finance costs, net 1,026 1,838 4,947 8,156

Unrealized (gain) loss on foreign currencies translation (809) 4,580 (3,643) 4,244

Current income tax expense 5,798 1,738 16,714 8,828

Deferred income tax expense 2,267 2,743 6,599 3,806

Income taxes paid (2,166) (1,802) (14,150) (14,520)

Cashflow 47,269 43,413 171,975 162,435

Changes in non-cash working capital items:

Accounts receivable (4,386) (1,755) (16,946) (11,444)

Inventory 9,943 12,268 (22,931) (5,912)

Prepaid expenses and deposits 2,742 (877) (628) (905)

Accounts payable and accrued liabilities (5,078) (8,054) 26,188 13,842

Deferred revenue 10,441 (6,252) 42,428 7,904

60,931 38,743 200,086 165,920

Investing:

Purchase of property, plant and equipment (15,786) (26,052) (93,712) (91,090)

Cash paid on acquisition - - - (47,350)

Proceeds on disposal of property, plant and equipment 20,521 610 24,431 2,315

Changes in non-cash working capital items (10,910) (12) (2,521) 3,248

(6,175) (25,454) (71,802) (132,877)

Financing:

Advances of long-term debt - - 30,000 65,000

Repayment of long-term debt (35,000) (25,516) (85,947) (47,050)

Repayment of lease liabilities (1,849) (1,824) (7,460) (6,958)

Payment of dividends (3,705) (3,453) (14,647) (13,743)

Repurchase of common shares (10,437) (3,621) (24,158) (21,474)

Shares issued on exercise of options - - 174 64

Partnership distributions - - - (200)

Interest paid (1,215) (2,335) (5,028) (18,198)

(52,206) (36,749) (107,066) (42,559)

Change in cash and cash equivalents 2,550 (23,460) 21,218 (9,516)

Cash and cash equivalents, beginning of year 57,087 61,879 38,419 47,935

Cash and cash equivalents, end of year$59,637 38,419 $59,637 $38,419

Segmented Information

The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labor required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labor required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.

As at and for the three months ended December 31, 2025 (unaudited, in thousands of Canadian dollars)

Contract Rentals and Compression Well Corporate Total

Drilling Transportation and Process Servicing (1)

Services Services Services

Revenue$ 88,002 $19,572 $161,689 $32,442 $- $301,705

Cost of services 65,663 11,891 135,807 23,147 - 236,508

Selling, general and administration 3,101 2,062 5,058 2,045 2,823 15,089

Other income - - - - (136) (136)

Share-based compensation - - - - 1,272 1,272

Depreciation 12,322 5,421 2,961 2,605 152 23,461

Operating income (loss) 6,916 198 17,863 4,645 (4,111) 25,511

Gain (loss) on sale of property, plant and equipment 265 64 7,089 (141) 30 7,307

Finance Income (costs), net 11 (50) (129) (14) (844) (1,026)

Net income (loss) before income taxes 7,192 212 24,823 4,490 (4,925) 31,792

Goodwill - 2,514 1,539 - - 4,053

Total assets 433,364 159,314 298,352 99,244 9,828 1,000,102