CES Energy Solutions (CEU) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of CAD 623 million (US$623.2 million), with a 16.6% EBITDA/EBITDAC margin, driven by strong U.S. and Canadian performance, market share gains, and service intensity despite lower rig counts and market volatility.

• U.S. revenue reached $409.4 million, Canadian revenue hit a third-quarter record of CAD 213.8 million, with 66% of revenue from the U.S. and 34% from Canada.

• Returned $45.4 million to shareholders in Q3 through dividends and share repurchases, with a quarterly dividend of $0.0425 per share declared.

• Continued strong performance in production chemicals, with PureChem and JCABM Catalyst expanding market share and profitability.

• Over 2,700 employees, 13 lab facilities, and more than 100 patents and trademarks.

Financial highlights

• LTM Q3 2025 revenue reached $2.44 billion, with Q3 revenue of CAD 623 million, and adjusted gross margin at 27.1%.

• Adjusted EBITDA/EBITDAC was CAD 103.3 million (16.6% margin) in Q3, and $394.6 million for LTM Q3 2025.

• Cash flow from operations was CAD 52 million in Q3; free cash flow at CAD 27 million.

• Working capital surplus at September 30, 2025, was $713.9 million, exceeding total debt by $203.6 million.

• Dividend payout ratio at 13%-15%, with $356 million in share buybacks since July 2018.

Outlook and guidance

• Expects continued revenue, market share, and margin expansion, with stable free cash flow and constructive end markets due to global energy demand and increased service intensity.

• 2025 capex estimated at ~$80 million, rising to $85–90 million in 2026, focused on expansion in high-growth plays.

• Revenue from recent RFP wins and new US production chemical business to accelerate in 2026.

• U.S. upstream activity expected to accelerate in the second half of 2026; 2025 seen as a year of growth and positioning.