Canada's Calfrac Q1 revenue falls on lower North American activity

Calfrac Well Services

12/05/2026 11:12

Overview

Canada oilfield services firm's Q1 revenue fell 17% yr/yr on lower Argentina pricing, North American activity

Q1 net income more than doubled, driven by improved operating results and cost management

Company reduced long-term debt and amended credit facilities to lower borrowing costs

Outlook

Company expects increased U.S. demand for fracturing services due to higher commodity prices

Calfrac sees sustained demand for drilling and completion in Argentina's Vaca Muerta shale play

Company remains focused on free cash flow generation and further balance sheet strengthening in 2026

Result Drivers

ARGENTINA PRICING - Revenue declined due to normalization of spot pricing in Argentina to more typical market ranges after strong prior-year pricing

NORTH AMERICA ACTIVITY - Lower North American activity contributed to the revenue decline

COST MANAGEMENT - Improved cost management and greater utilization of active crews in North America supported higher margins

Company press release: ID:nGNX5lSt0H

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
C$18.88 mln
Q1 Adjusted EBITDA
C$50.12 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "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$7.25, about 32.3% above its May 11 closing price of C$5.48

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)