Total Energy Services (TOT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 23% year-over-year to $251.9 million, with net income up 23% to $19.0 million, driven by strong North American demand for compression/process equipment and improved Australian operations, offsetting U.S. market weakness.

• The acquisition of Saxon Energy Services Australia Pty Ltd. and upgrades/reactivations of rigs in Australia contributed to significant growth.

• Dividend increased by 11% to $0.10 per share for Q1 2025.

• Share repurchases continued under the normal course issuer bid, reflecting confidence in financial strength.

Financial highlights

• Q1 2025 revenue was $251.9 million, up 23% year-over-year; EBITDA rose 17% to $50.5 million; net income attributable to shareholders was $19.0 million, up 23%.

• Gross margin declined to 25% from 28% due to segment/revenue mix and lower North American margins.

• Cashflow improved 37% to $44.9 million; working capital rose to $83.6 million; cash and equivalents at quarter-end were $65.1 million.

• Shareholders’ equity increased to $586.3 million, up 3% from year-end 2024; total assets increased 7% to $999.6 million.

• Net debt nearly eliminated at March 31, 2025.

Outlook and guidance

• Industry conditions remain stable across Canada and Australia, despite global economic uncertainty, tariffs, and OPEC supply risks.

• 2025 capital expenditure budget increased by $12 million to $73.9 million, targeting rig upgrades, new rental equipment, and growth opportunities.

• Remaining $56 million in 2025 capex to be funded by cash and cashflow.

• Strong CPS sales backlog provides visibility for the remainder of the year.