Precision Drilling (PDS) Q3 2025 earnings summary

Executive summary

• Leadership transition completed with Carey Ford as CEO, Jean Stahl as COO, and Dustin Honing as CFO, following Kevin Neveu's retirement after 18 years.

• Leading land driller in Canada with 100 rigs and a top U.S. land driller with 64 Super Triple Alpha rigs; active in Kuwait and Saudi Arabia with 8 rigs contracted.

• Outperformance in drilling activity relative to industry, with resilient operating margins within guidance.

• Technology leadership with Alpha, EverGreen, and robotics platforms driving operational efficiency and margin growth.

• Strategic focus on leveraging scale, technology adoption, and customer-centric upgrades to drive future growth.

Financial highlights

• Q3 2025 revenue: $462 million (down 3% year-over-year); nine-month revenue: $1,365 million (down 5%).

• Adjusted EBITDA for Q3: $118 million (down 17%); nine months: $363 million (down 9%).

• Net loss attributable to shareholders was $7 million, compared to net earnings of $39 million in Q3 2024, due to higher deferred income tax expense in the U.S.

• Year-to-date, $101 million in debt repaid and $54 million in shares repurchased as of 09/30/25.

• Canadian and U.S. day rates have remained above $30,000/day, supporting sustained free cash flow.

Outlook and guidance

• 2025 capital budget increased to $260 million for five additional contracted rig upgrades.

• Canadian drilling expected to see near full utilization in winter, with Q4 margins between $14,000–$15,000 per day.

• U.S. Q4 rig count expected in the upper 30s, with margins between $8,000–$9,000 per day.

• 2025 guidance: depreciation ~$300 million, cash interest ~$65 million, effective tax rate 45–50%, SG&A $90–$95 million.

• U.S. operations positioned for long-term gas growth, with natural gas rig count up ~20% year-to-date.