Canada's PHX Energy Q2 revenue rises to record high on increased drilling activity

PHX Energy Services

04/08/2026 22:19

Overview
Canada directional drilling firm's Q2 revenue rose 7% yr/yr to record high
Q2 adjusted EBITDA increased 20% yr/yr, driven by strong RSS and motor rental activity
On June 12, company declared C$0.20 per share dividend

Outlook
Company expects North American industry activity to strengthen in the third quarter, aided by higher commodity prices
PHX Energy raises 2026 capital expenditure budget to $80 mln, mainly for RSS fleet expansion

Result Drivers
CANADIAN DRILLING ACTIVITY - Revenue growth was mainly driven by increased drilling activity in Canada, with operating days up 24% and revenue up 29% yr/yr
RECORD RSS ACTIVITY - Both Canadian and US divisions achieved record RSS activity, which contributed to higher margins and profitability
MOTOR RENTAL REVENUE - Increased motor rental revenue contributed to overall results, with Q2 revenue rising to C$15.4 mln from C$13.8 mln yr/yr

Company press release: ID:nGNXPZPR0

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$178.91 mln
C$176.50 mln (2 Analysts)
Q2 EPS
 
C$0.21
 
Q2 Adjusted EBITDA
 
C$32.95 mln
 
Q2 FFO
 
C$23.87 mln
 
Q2 Capex
 
C$15.05 mln
 
Q2 FFO Per Share
 
C$0.51
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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$14.38, about 35.1% above its July 31 closing price of C$10.64
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 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.)