Canada's Precision Drilling quarterly revenue rises on higher drilling activity, rig utilization

Precision Drilling(Calgary)

30/04/2026 04:01

Overview

The Canadian oilfield services firm's Q1 revenue rose 6% yr/yr, beating analyst expectations

Adjusted EBITDA fell 10% due to higher share-based compensation and depreciation expense

Net earnings attributable to shareholders dropped nearly 50% from prior year

Outlook

Precision expects Canadian Q2 activity to be well above last year's level

Company sees Canadian Q2 operating margins of C$12,000-C$13,000 per utilization day

U.S. operating margins expected at US$7,500-US$8,500 per utilization day in Q2

Result Drivers

NORTH AMERICAN ACTIVITY - Revenue growth driven by higher drilling activity and rig utilization in Canada and the U.S., offsetting lower international results

SHARE-BASED COMPENSATION - Profitability pressured by higher share-based compensation expense as share price rose 39% in the quarter

DEPRECIATION EXPENSE - Increased depreciation expense from change in useful life estimates reduced net earnings

Company press release: ID:nGNXplGVz

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$526.05 mln
C$499.73 mln (4 Analysts)
Q1 Net Income
C$17.85 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "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 Precision Drilling Corp(Calgary) is C$143.16, about 2.2% above its April 29 closing price of C$140.03

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 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.)