NorAm Drilling (NORAM) Q4 2025 earnings summary

Executive summary

• Revenue increased to $26.5 million in Q4 2025 from $23.9 million in Q3, driven by higher rig utilization, improved reimbursables, and rig reactivation.

• Achieved operational excellence with 10 of 11 rigs under contract and working, expecting 100% fleet utilization by early March 2026 for the first time since 2023.

• Maintained industry-low cost base and zero debt, continuing regular dividend payments despite market headwinds.

• Backlog stood at $27.6 million as of February 19, 2026.

• Profit after tax was $2.0 million, with earnings per share of $0.05.

Financial highlights

• Q4 2025 revenue was $26.5 million, up from $23.9 million in Q3, with adjusted EBITDA at $3.8 million, down from $4.3 million.

• Operating profit for Q4 was $2.0 million, compared to $2.8 million in Q3.

• Net profit for Q4 was $2.0 million, down from $4.0 million in Q3.

• Cash balance at quarter end was $10.4 million, with a debt-free balance sheet.

• Net cash flow from operations for 2025 was $22.0 million.

Outlook and guidance

• All rigs expected to be contracted and working by early March 2026, with 100% fleet utilization.

• Outlook for H1 2026 is flat, with some E&Ps expected to add rigs offsetting any releases.

• CapEx guidance for 2026 is $3–$4 million, subject to additional drill pipe purchases.

• Dividend yield stands at 8.9% annualized based on recent distribution.

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