NorAm Drilling (NORAM) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $24.9 million, down from $25.8 million in Q1, with Adjusted EBITDA at $5.3 million and fleet utilization at 86%.

• Net profit after tax was $3.7 million, with EPS of $0.08.

• Nine out of eleven rigs were under contract at quarter-end, with the remaining rigs actively marketed.

• Maintained operational excellence despite a 10% decline in Permian rig counts and cautious market sentiment.

• Backlog stood at $12.2 million as of August 25, 2025.

Financial highlights

• Revenue: $24.9 million, down from $25.8 million in Q1 2025.

• Adjusted EBITDA: $5.3 million, down from $6.7 million in Q1.

• Operating profit: $3.8 million vs. $5.2 million in Q1.

• Net profit after tax: $3.7 million, down from $5.2 million in Q1.

• Net cash flow from operations was $1.14 million in Q2, a significant decrease from $9.55 million in Q1.

Outlook and guidance

• Near-term WTI prices and market conditions suggest flat to slightly down activity in the Permian.

• U.S. shale production likely peaked at current rig count levels, supporting long-term optimism for super-spec rigs.

• 2026 CapEx expected in the $3 million–$3.5 million range, with no major upgrades anticipated.

• Backlog expected to increase significantly before the next dividend call.

• Intention to continue monthly cash distributions, with 33 consecutive months totaling $82.2 million.