Canada's Pason Systems Q1 revenue falls on lower drilling activity

Pason Systems

07/05/2026 22:45

Overview

Canada oilfield data systems provider's Q1 revenue fell 9% yr/yr amid lower drilling activity

Q1 adjusted EBITDA slightly beat analyst expectations

Net income attributable to Pason declined 35% yr/yr

Outlook

Pason expects 2026 capital expenditures between C$60 mln and C$70 mln, likely near the lower end

Company says uncertainty persists due to supply chain risks and geopolitical tensions

Result Drivers

LOWER DRILLING ACTIVITY - Co said revenue decline was primarily due to lower drilling and completions industry activity in Q1 2026, along with negative foreign exchange effects

COMPLETIONS SEGMENT - Co said Completions revenue declined 6% yr/yr, outperforming a 21% drop in US frac spread, as new customers and more complex operations partly offset weaker activity and FX headwinds

INTERNATIONAL REVENUE - Co said international revenue declined due to challenging industry conditions and a major customer in Argentina divesting conventional assets

Company press release: ID:nCNWxPfmza

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$102.44 mln
Q1 Net Income Attributable
C$13 mln
Q1 Adjusted EBITDA
Slight Beat*
C$38.20 mln
C$38 mln (3 Analysts)
Q1 Free Cash Flow
C$8.50 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Pason Systems Inc is C$15.75, about 4.8% above its May 6 closing price of C$15.03

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)