Canada's Pason System Q2 revenue up 1%

Pason Systems

06/08/2025 22:45

Corrects currency in first bullet of outlook section to C$, not $

Overview

Pason Q2 2025 revenue rises 1% yr/yr to CAD 96.4 mln

Adjusted EBITDA misses analyst expectations, reflecting lower margins in growth segments

Company returns CAD 20.2 mln to shareholders via dividends and share repurchases

Outlook

Pason expects 2025 capital expenditures between C$55 mln and C$60 mln

Company sees macroeconomic uncertainties affecting industry activity in 2025

Pason anticipates greater adoption of data-driven technologies

Result Drivers

NORTH AMERICAN DRILLING - Revenue declined 2% despite a 5% industry activity drop, supported by a 3% increase in Revenue per Industry Day

COMPLETIONS SEGMENT - Revenue increased 12% driven by a 14% rise in IWS Active Jobs, despite a 25% decline in US frac spreads

SOLAR AND ENERGY STORAGE - Revenue surged 58% due to increased control system deliveries

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
C$96.40 mln
Q2 EPS
C$0.34
Q2 Net Income Attributable
C$12.60 mln
Q2 Adjusted EBITDA
Miss
C$31.60 mln
C$32.10 mln (4 Analysts)
Q2 Free Cash Flow
C$5.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Pason Systems Inc is C$16.00, about 26.5% above its August 6 closing price of C$11.76

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nCNWdRLTya

 (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.)