CES Energy Solutions (CEU) investor relations material

Executive summary

• Achieved record quarterly revenue of CAD 664.5 million (Q4 2025), up nearly 5% from Q1 2025 and 10% year-over-year, with full-year revenue reaching CAD 2.5 billion, a 6% increase year-over-year.

• Set all-time high quarterly EBITDA of CAD 113.2 million (17% margin), and annual EBITDA of CAD 404.6 million (16.2% margin).

• Net income for Q4 2025 rose 63% year-over-year to CAD 68.3 million; annual net income increased 7% to CAD 204.7 million.

• Announced a 29% increase in quarterly dividend to CAD 0.055 per share, effective April 2026.

• Returned CAD 174.9 million to shareholders in 2025 through dividends and share repurchases, repurchasing 7.5% of outstanding shares.

Financial highlights

• Q4 2025 revenue: CAD 665 million, up 10% year-over-year and 62% sequentially from Q3.

• Q4 Adjusted EBITDAC: CAD 113.2 million (17.0% margin), up from CAD 103.3 million in Q3 and CAD 103.2 million in Q4 2024.

• Q4 free cash flow: CAD 78 million, up from CAD 27 million in Q3 and CAD 35 million in Q4 2024; annual free cash flow was CAD 166.5 million.

• Working capital surplus at year-end 2025: CAD 693 million, exceeding total debt by CAD 197 million.

• Total debt to trailing twelve months EBITDA at 1.23x, within the 1-1.5x target range.

Outlook and guidance

• Expects constructive end markets driven by global energy transition, LNG, and AI-related power demand.

• 2026 CapEx guidance of CAD 85-90 million, split evenly between maintenance and expansion.

• Anticipates continued growth in drilling fluids and production chemical markets, with margins expected to remain at the higher end of guidance.

• Business model and capital structure expected to support continued strong free cash flow and shareholder returns.

• Expects full realization of awarded revenues by end of Q2 2026.