Ensign Energy Services (ESI) Q4 2025 earnings summary

Executive summary

• Fourth quarter and full year 2025 results exceeded analyst estimates, with notable debt reduction of CAD 80 million in 2025.

• Revenue for 2025 was $1,638.9 million, down 3% year-over-year, with declines in international operations offset by positive USD translation effects.

• Adjusted EBITDA fell 13% to $389.8 million, and net loss attributable to common shareholders increased to $38.8 million from $20.8 million in 2024.

• Canadian business unit led EBITDA gains year-over-year, while U.S. operations faced headwinds but maintained strong performance metrics.

• 60% of the fleet is contracted forward, with CAD 1.2 billion in forward contract coverage.

Financial highlights

• Q4 2025 revenue was CAD 418.8 million, down 2% year-over-year; full year revenue was CAD 1.64 billion, down 3%.

• Adjusted EBITDA for Q4 2025 was CAD 107.5 million, down 5% year-over-year; full year Adjusted EBITDA was CAD 389.8 million, down 13%.

• Net loss: $38.8 million ($0.21 per share), up from $20.8 million loss in 2024.

• Interest expense decreased 23% to $74.8 million due to lower debt and rates.

• Depreciation expense for 2025 decreased by 3% to CAD 345.4 million.

Outlook and guidance

• Maintenance capital expenditures for 2026 are budgeted at CAD 161.4 million, with CAD 32.8 million in selective upgrade capital, of which CAD 24 million is customer funded.

• Debt reduction target of CAD 600 million expected to be achieved in the first half of 2026, subject to industry conditions.

• Expect steady rig activity in Canada and California through 2026, with potential for increased U.S. activity if oil prices remain high for six months.

• Canadian activity expected steady, supported by LNG Canada and Trans Mountain Pipeline; US and international activity to remain stable.

• 2026 outlook remains constructive; global oil demand stable but supply keeps prices capped.