Canada's Precision Drilling Q4 revenue misses estimates

Overview

• Canada drilling services firm's Q4 revenue rose yr/yr but missed analyst expectations

• Adjusted EBITDA for Q4 increased slightly

• Net loss for Q4 due to non-cash charges related to asset decommissioning and drill pipe

Outlook

• Precision Drilling expects 2026 capital spending to be C$245 mln

• Company plans to reduce debt by C$100 mln in 2026

• Precision Drilling to allocate up to 50% of free cash flow to share repurchases

Result Drivers

• U.S. DRILLING ACTIVITY - Higher rig activity in the U.S. contributed to increased revenue in Q4

• NON-CASH CHARGES - Net loss due to non-cash charges related to decommissioning rigs and drill pipe

• DEBT REDUCTION - Achieved annual debt reduction target, reducing debt by C$101 million in 2025

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the NOT AVAILABLE peer group is "buy"

• Wall Street's median 12-month price target for Precision Drilling Corporation(Calgary) is C$119.50, about 2.5% above its February 11 closing price of C$122.51

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX5P4TxH

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