Canada's Precision Drilling swings to net loss, Q3 revenue misses estimates

Precision Drilling(Calgary)

23/10/2025 24:48

Overview

Canada's Precision Drilling swung to a net loss attributable to shareholders of C$7 mln due to higher tax expenses related to U.S. operations

 Q3 revenue of C$462 mln missed analyst expectations

Company's adjusted EBITDA declined to C$118 mln from C$142 mln in Q3 2024

Outlook

Precision expects Canadian winter drilling season to meet or exceed last year's activity

Company plans to allocate 35%-45% of free cash flow to share repurchases by year end

Result Drivers

SUPER TRIPLE RIGS - Precision Drilling upgraded and mobilized two Super Triple rigs from the U.S. to Canada under long-term contracts, enhancing revenue potential

HIGHER OPERATING COSTS - Increased operating costs in Canada due to labor, recoverable expenses, and rig move costs affected margins

U.S. TAX EXPENSES - Higher deferred income tax expense related to U.S. operations contributed to net loss

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$462.3 mln
C$467.4 mln (3 Analysts)
Q3 EPS
-C$0.51
Q3 Net Income Attributable to Shareholders
-C$6.8 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 is C$100.00, about 23.3% above its October 21 closing price of C$76.75

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX9tqdgG

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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.)