Canada's Calfrac Q4 revenue falls on lower Argentina activity

Overview

• Canada oilfield services firm's Q4 revenue fell 23% yr/yr on lower Argentina activity

• Q4 adjusted EBITDA rose 27% yr/yr, driven by improved North America operations

• Company swung to Q4 net income from a loss a year earlier

Outlook

• Calfrac expects a modest increase in pressure pumping activity in Canada during 2026

• Company sees a moderate increase in oil-directed activity in North America in 2026

• Calfrac's Board approved a 2026 capital budget of about C$75 mln, plus C$10 mln unspent from 2025

Result Drivers

• ARGENTINA SLOWDOWN - Co said Q4 revenue in Argentina fell due to lower industry activity from customer budget exhaustion in Vaca Muerta shale play

• NORTH AMERICA COST CUTS - Improved Q4 adjusted EBITDA in North America driven by more operating days per fleet and reductions in support personnel

• ARGENTINA MARGIN BOOST - Q4 adjusted EBITDA margin in Argentina rose due to retroactive pumping hour adjustments and higher coiled tubing margins

Company press release: ID:nGNX2zn4KN

Key Details

Analyst Coverage

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

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Calfrac Well Services Ltd is C$5.25, about 1.5% above its March 18 closing price of C$5.17

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 11 three months ago

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