Ensign Energy Services (ESI) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $411.2 million, down 5% year-over-year; nine-month revenue was $1,220.1 million, down 3% year-over-year.

• Adjusted EBITDA for Q3 2025 was $98.6 million, 17% lower year-over-year; nine-month Adjusted EBITDA was $282.3 million, down 16%.

• Net loss attributable to common shareholders for Q3 2025 was $3.3 million ($0.02/share), compared to net income of $5.3 million ($0.03/share) in Q3 2024.

• Funds flow from operations for Q3 2025 was $88.2 million, down 25% year-over-year; working capital surplus at September 30, 2025, was $38.3 million, a significant improvement from a $100.9 million deficit at December 31, 2024.

• Achieved market share growth in Canadian high-spec rigs and U.S. performance-driven gains, expanded technology suite, and maintained industry-leading safety metrics.

Financial highlights

• Canadian revenue for Q3 2025 was $129.7 million (down 1%); U.S. revenue was $217.3 million (up 1%); international revenue was $64.2 million (down 27%).

• Depreciation expense for Q3 2025 was $87.4 million (down 4%); nine-month depreciation was $252 million (down 4%).

• Interest expense decreased 23% to $18.4 million in Q3 2025 due to lower debt and effective rates.

• General and administrative expenses for Q3 2025 were $13.2 million (down 5%); nine-month G&A was $41 million (down 7%).

• Cash provided by operating activities was $100.6 million in Q3 2025, down 3% year-over-year.

Outlook and guidance

• Debt reduction target of $600 million, originally set for end of 2025, now expected to be achieved in H1 2026 due to increased capital expenditures and industry conditions.

• Maintenance CapEx for 2025 set at $154 million, with selective upgrade CapEx of $35.5 million, partially customer-funded.

• Canadian activity expected to remain steady in Q4 2025, supported by pipeline expansion and LNG Canada; U.S. activity to remain steady or modestly improve; international activity expected to improve exiting 2025, especially in Latin America.

• Anticipate Canadian rig count peaking at 55 in Q1 2026, with continued contract lengthening and rate increases in high-spec categories.

• Oilfield services outlook remains constructive, but global supply and OPEC+ production increases are capping oil prices.