Pason Q3 revenue down 5% on weakness in international market

Pason Systems

06/11/2025 22:44

Overview

Pason Q3 revenue declines 5% yr/yr to C$101 mln, reflecting challenging industry conditions

Adjusted EBITDA for Q3 beats analyst expectations, indicating strong operational performance

Net income attributable to Pason falls 48% yr/yr, reflecting lower industry activity

Outlook

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

Company expects industry conditions to remain challenging due to economic uncertainty

Pason aims to grow international revenue in unconventional drilling markets

Result Drivers

NORTH AMERICAN DRILLING - Revenue per Industry Day reached a new record, driven by increased product adoption

INTERNATIONAL CHALLENGES - Revenue decline in Argentina due to operational shift and currency depreciation

COMPLETIONS GROWTH - Revenue increased despite market challenges, driven by higher job activity and revenue per day

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$101 mln
Q3 EPS
C$0.16
Q3 Net Income Attributable
C$12.50 mln
Q3 Adjusted EBITDA
Beat
C$38.50 mln
C$36.20 mln (3 Analysts)
Q3 Free Cash Flow
C$18.70 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$14.00, about 14.4% above its November 5 closing price of C$11.98

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nCNWzzRZ1a

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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.)