Canada's PHX Energy Q2 revenue beats estimates

PHX Energy Services

05/08/2025 23:11

Overview

PHX Energy Q2 2025 revenue rises 9%, beating analyst expectations, per LSEG data

Adjusted EBITDA for Q2 2025 declines 9% due to higher equipment costs

Company repurchased 100,000 shares, plans to renew NCIB strategy

Outlook

PHX Energy expects strong activity and revenue in H2 2025

Company anticipates continued growth in Canadian RSS fleet

PHX Energy sees US fleet expansion supporting revenue in declining rig count

Company expects softer market in 2025 due to tariffs, lower oil prices

Result Drivers

RECORD REVENUE - PHX Energy achieved highest Q2 revenue on record, driven by increased motor rental activity and RSS deployment

US REVENUE GROWTH - Despite weaker industry drilling activity, US division revenue grew 10%, supported by RSS and motor rentals

COST IMPACT - Profitability affected by higher equipment costs due to tariffs and inventory obsolescence provision

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$167.67 mln
C$166.50 mln (2 Analysts)
Q2 EPS
C$0.17
Q2 Adjusted EBITDA
C$27.36 mln
Q2 FFO
C$20.60 mln
Q2 Capex
C$20.75 mln
Q2 FFO Per Share
C$0.45


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas drilling peer group is "buy"

Wall Street's median 12-month price target for PHX Energy Services Corp is C$10.00, about 18.4% above its August 5 closing price of C$8.16

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNXkJmLM

(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.)