STEP Energy Q3 revenue slightly beats expectations

STEP Energy Services

05/11/2025 23:11

Overview

STEP Energy Q3 revenue slightly beats analyst expectations despite a year-over-year decline

Adjusted EBITDA for Q3 beats analyst estimates, reflecting strong operational performance

ARC Financial proposes acquisition of all STEP shares, potential TSX delisting

Outlook

STEP anticipates strong Q4 utilization, slowing as clients wind down capital programs

Company expects Q1 2026 fracturing schedule to be almost fully booked

STEP notes pricing pressure on fracturing work due to lower commodity prices

Result Drivers

U.S. OPERATIONS TERMINATION - Revenue decline attributed to termination of U.S. fracturing operations

BALANCE SHEET STRENGTHENING - Co focused on reducing net debt and investing in sustainable operations

TECHNOLOGY INVESTMENT - Investment in technology to replace diesel with natural gas as part of sustainability strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
C$227.24 mln
C$225.40 mln (3 Analysts)
Q3 EPS
C$0.09
Q3 Net Income
C$6.78 mln
Q3 Adjusted EBITDA
Beat
C$45.17 mln
C$40.10 mln (5 Analysts)
Q3 Free Cash Flow
C$23.29 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil related services and equipment peer group is "buy."

Wall Street's median 12-month price target for Step Energy Services Ltd is C$5.50, about 0.7% above its November 5 closing price of C$5.46

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw2CDjbla

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@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.)