Canada's Total Energy Q2 revenue rises 31% on North American demand

Total Energy Services

12/08/2026 22:10

Overview
Canada energy services provider's Q2 revenue grew 31% yr/yr, driven by strong North American demand
Q2 net income rose 57% yr/yr, aided by asset sales and offset by non-recurring U.S. expenses
Company returned C$16 mln to shareholders and reduced bank debt by C$20 mln in Q2

Outlook
Company increases 2026 capital expenditure budget to C$120.1 mln from C$87.4 mln
North American demand for compression and process equipment remains very strong
CPS segment’s C$554.5 mln fabrication sales backlog provides visibility into 2028

Result Drivers
NORTH AMERICAN DEMAND - Co said strong North American demand for natural gas compression and process equipment drove Q2 results
UPGRADED EQUIPMENT - Deployment and reactivation of upgraded drilling and service rigs in Australia and Canada contributed to higher activity and revenue
ASSET SALE GAIN - Net income benefited from a C$3.0 mln yr/yr increase in gain on sale of U.S. well servicing assets, partly offset by non-recurring U.S. expenses

Company press release: ID:nGNX6Bz2RN

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$328.96 mln
C$313 mln (1 Analyst)
Q2 Net Income
 
C$26.78 mln
 
Q2 EBITDA
 
C$60.85 mln
 
Q2 Operating Income
 
C$33.73 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 Total Energy Services Inc is C$85.42, about 235.5% above its August 11 closing price of C$25.46
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 11 - Pason Systems Q2 adjusted core profit beats amid increased Canadian drilling activity
Aug 10 - Natural Gas Services Q2 adjusted core profit beats; 2026 outlook lifted
Aug 11 - Flowco Q2 revenue slightly beats estimates on customer demand

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.)