Precision Drilling (PDS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $496 million, down 6% year-over-year, with strong Canadian drilling offset by lower U.S. activity.

• Adjusted EBITDA was $137 million, including $3 million in restructuring costs and $3 million in share-based compensation; adjusted EBITDA would have been $143 million.

• Net earnings were $35 million ($2.52/share), nearly flat year-over-year.

• Cash from operations was $63 million, supporting $31 million in share repurchases and $17 million in debt repayment.

• 2025 capital budget reduced to $200 million from $225 million.

Financial highlights

• Adjusted EBITDA margin was stable at 28%, up from 27% in Q1 2024.

• Funds from operations were $110 million; cash provided by operations was $63 million.

• General and administrative expenses dropped to $30 million from $45 million, mainly due to lower share-based compensation.

• Net capital spending increased 12% to $56 million, with $20 million for upgrades and $40 million for maintenance.

• Diluted EPS was $2.20, down from $2.53 in Q1 2024.

Outlook and guidance

• Canadian drilling activity expected to remain strong in H1 2025, supported by LNG and pipeline projects.

• U.S. rig count increased to 34, with optimism around LNG export growth.

• 2025 capital budget cut by $25 million to $200 million, with further adjustments possible if demand changes.

• Committed to repaying at least $100 million in debt and allocating 35%-45% of free cash flow to share buybacks.

• International segment to maintain 7–8 active rigs, with stable cash flow from long-term contracts.