Calfrac Well Services (CFW) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $305.4 million, down 17% year-over-year, mainly due to normalized pricing in Argentina and lower North American activity.

• Adjusted EBITDA was $50.1 million (16% margin), a 9% decrease from Q1 2025, but with improved North American margins due to cost management and higher crew utilization.

• Net income rose to $18.9 million ($0.19 per diluted share), up 142% from $7.8 million ($0.09 per share) in Q1 2025.

• Cash flow from operating activities was $47.5 million, a significant improvement from a $7.1 million outflow in Q1 2025.

• Capital expenditures totaled $14.1 million, focused on maintenance and equipment upgrades, especially in Argentina.

Financial highlights

• Gross profit for Q1 2026 was $32.3 million, down from $39.5 million in Q1 2025.

• Selling, general, and administrative expenses were $14.3 million, down from $15.7 million year-over-year.

• Long-term debt at quarter-end was $158.5 million, down 22% from December 31, 2025.

• Cash and cash equivalents decreased to $1.4 million from $6.7 million at year-end 2025.

Outlook and guidance

• North American activity expected to remain stable, with potential for increased demand due to higher commodity prices following the Strait of Hormuz closure.

• Canadian customers remain cautious, but elevated commodity prices could drive increased activity over time.

• Argentina operations expected to benefit from sustained unconventional development and improved macroeconomic conditions.

• Focus remains on maximizing free cash flow, deleveraging, and investing in next-generation pumping technology.