Ensign Energy Services (ESI) Q1 2026 earnings summary

Executive summary

• Leadership transition with Trevor Russell appointed as CFO, succeeding Michael Gray, who remains as Executive Advisor until July.

• Q1 2026 revenue was $418.0 million, down 4% year-over-year, with declines in Canada and international segments, while U.S. revenue remained flat.

• Adjusted EBITDA decreased 7% to $94.8 million; net loss attributable to common shareholders was $11.1 million, compared to net income of $3.7 million in Q1 2025.

• Funds flow from operations fell 9% to $88.0 million; cash provided by operating activities dropped 16% to $45.4 million.

• Total operating days declined 2% year-over-year, with Canadian drilling days down 15%, U.S. drilling days up 15%, and international drilling days up 1%.

Financial highlights

• Q1 2026 revenue was $418.0 million, down 4% year-over-year from $436.5 million.

• Adjusted EBITDA fell 7% to $94.8 million from $102.4 million year-over-year.

• Net loss was $11.1 million, or $(0.06) per share, versus net income of $3.7 million, or $0.02 per share, in Q1 2025.

• Interest expense dropped 37% to $12.9 million, aided by lower debt, rates, and a one-time recovery.

• Net capital expenditures were $64.8 million in Q1 2026, up 76% year-over-year.

Outlook and guidance

• Maintenance capital budget for 2026 set at $162 million, with $79.5 million in selective upgrade capital.

• Debt reduction target for 2026 is $125 million, with flexibility to adjust based on industry conditions.

• Expectation to increase contract rates by 5%-10% in the back half of 2026 as rig supply tightens.

• Operators signaling increased rig demand if high oil prices persist into Q3.

• Canadian activity expected to remain steady, supported by infrastructure projects; U.S. activity stable to slightly improved; international activity steady with regional variations.