Canada's Source Energy Q4 adjusted EBITDA falls

Source Energy Services

26/02/2026 23:44

Overview

Canada frac sand producer's Q4 sand volumes rose 18% yr/yr

Adjusted EBITDA for Q4 decreased compared to last year

Outlook

Company anticipates incremental demand from Western Canadian LNG projects

Source positioned to capitalize on increased demand in northeastern British Columbia

Result Drivers

REBOUND IN ACTIVITY - Source Energy Services saw a rebound in customer activity levels, driving an 18% increase in sand volumes for Q4 2025 compared to Q4 2024

COST INCREASES - Higher sand volumes and incremental costs at Peace River facility increased cost of sales in Q4 2025

MARGIN PRESSURE - Adjusted Gross Margin per MT decreased due to integration issues at Peace River and adverse weather conditions

Company press release: ID:nACSFrZhra

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EBITDA
Beat
C$23.08 mln
C$22.15 mln (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction materials peer group is "buy"

Wall Street's median 12-month price target for Source Energy Services Ltd is C$17.75, about 0.8% above its February 26 closing price of C$17.90

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 3 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.)