PHX Energy Q3 revenue misses estimates

PHX Energy Services

04/11/2025 22:31

Overview

PHX Energy Q3 revenue grows 2% yr/yr but misses analyst expectations

Earnings for Q3 decline due to increased depreciation and equipment servicing costs

Outlook

PHX Energy expects global instability and higher costs to impact future profitability

Company approved a preliminary 2026 capital expenditure budget of C$60 mln

PHX Energy plans to expand RSS and Atlas motor rental fleets in 2026

Result Drivers

US DIVISION GROWTH - US division revenue increased by 3% despite a 7% decline in industry rig count

HIGHER COSTS - Increased equipment parts and repair costs due to diverse RSS fleet and inflation

DECREASED HIGH-MARGIN REVENUE - Lower profitability due to decreased RSS activity and motor equipment sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$164.33 mln
C$175 mln (1 Analyst)
Q3 EPS
C$0.16
Q3 Adjusted EBITDA
C$27.90 mln
Q3 FFO
C$21.34 mln
Q3 Capex
C$16.52 mln
Q3 FFO Per Share
C$0.46


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$9.50, about 19.2% above its November 3 closing price of C$7.68

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nGNX61cwBP

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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.)