Pason Systems (PSI) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was CAD 102.4 million (or $102.4 million), down 9% year-over-year due to lower drilling and completions activity and adverse FX impacts.

• Adjusted EBITDA was CAD 38.2 million (37.3% of revenue), down 16% year-over-year but stable sequentially.

• Net income attributable was CAD 13 million (CAD 0.17 per share), down 35% from Q1 2025, but up sequentially from Q4 2025.

• Free cash flow was CAD 8.5 million, reflecting lower EBITDA, higher cash taxes, and increased working capital investments.

• Returned CAD 13.5 million to shareholders via dividends and share repurchases in Q1 2026.

Financial highlights

• Revenue declined 9% year-over-year, primarily from lower drilling and completions activity and FX headwinds.

• Adjusted EBITDA margin was 37.3%, down from 39.9% in Q1 2025.

• Cash from operating activities was CAD 20.9 million, down from CAD 39.9 million in Q1 2025.

• Net capital expenditures were CAD 12.4 million, down from CAD 16.7 million in Q1 2025.

• SG&A expenses were CAD 10.1 million, down 6% year-over-year.

Outlook and guidance

• Medium-term goal is to double revenue from 2023 levels over five to seven years, focusing on scaling completions, new technologies, and international expansion.

• 2026 capital expenditures expected between CAD 60 million and CAD 70 million, likely near the lower end.

• Management expects continued growth in completions, with increasing job size and technology adoption.

• Dividend remains at CAD 0.13 per share, with focus on organic investments and disciplined capital returns.

• Well-positioned to benefit from rising industry activity as oil futures strengthen and producers accelerate capital programs.