Canada · Delayed Price · Currency is CAD Ensign Energy Services Earnings Call Transcripts
Fiscal Year 2026
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Revenue and EBITDA grew year-over-year in Q2 2026, driven by higher operating activity and rig upgrades. The Citadel Drilling acquisition will boost Permian market share, while debt reduction targets were revised due to reinvestment. High-spec rig demand and contract rates are rising.
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Revenue and Adjusted EBITDA declined year-over-year, but strong oil prices and de-risked Venezuela operations support a constructive outlook. Rig activity is set to increase in Canada and internationally, with a focus on debt reduction and capital upgrades.
Fiscal Year 2025
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Q4 and full year 2025 results exceeded expectations, with strong debt reduction and steady performance in Canada and the U.S. Despite revenue and EBITDA declines, forward contract coverage and technology adoption remain robust. Debt reduction and capital discipline are top priorities.
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Q3 saw revenue and EBITDA declines year-over-year, but strong cash flow enabled further debt reduction and increased long-term contract bookings. High-spec rig markets in Canada and the U.S. remain tight, with technology adoption and contract lengthening supporting future growth.
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Q2 2025 revenue fell 5% YoY to CAD 372.4 million, with adjusted EBITDA down 19% due to lower rates and one-time rig expenses. Debt reduction remains on track, with only CAD 119.8 million left to reach the CAD 600 million target by end-2025. Market share gains in Canada and new long-term contracts in Oman support a positive outlook.
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Revenue rose 1% year-over-year to CAD 436.5 million, while adjusted EBITDA fell 13% due to lower activity and one-time U.S. rig costs. Canadian operations outperformed, debt reduction accelerated, and technology adoption advanced, with a positive outlook for free cash flow and contract coverage.
Fiscal Year 2024
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Delivered $450M EBITDA and $220M debt reduction in 2024, with strong Canadian and international performance offsetting U.S. softness. 2025 outlook is steady, with continued focus on debt reduction, high-spec rig demand, and expanding digital solutions.
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Strong Canadian and international demand offset U.S. weakness, with Q3 revenue down 2% year-over-year but adjusted EBITDA up 1%. Debt reduction remains on track, and most Canadian rigs are contracted into 2025, while U.S. recovery is not expected until late 2025.
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Q2 2024 saw strong Canadian and international performance offset by U.S. declines, with revenue and EBITDA down year-over-year. Debt reduction remains on track, capital spending is disciplined, and high-spec rig demand in Canada is robust, while U.S. activity is expected to recover in 2025.