Financial Highlights
Three Months Ended March 31,
2026
2025
Change
(000s, except per share data)
($)
($)
( %)
North American Drilling Revenue
69,814
75,772
(8)
International Drilling Revenue
11,726
13,989
(16)
Completions Revenue
15,048
16,013
(6)
Solar and Energy Storage Revenue
5,856
7,403
(21)
Total Revenue
102,444
113,177
(9)
Adjusted EBITDA (1)
38,195
45,212
(16)
As a % of revenue
37.3
39.9
(260) bps
Funds flow from operations
31,924
36,543
(13)
Per share, basic
0.41
0.46
(11)
Per share, diluted
0.41
0.46
(11)
Cash from operating activities
20,937
39,942
(48)
Net capital expenditures (2)
12,396
16,708
(26)
Free cash flow (1)
8,541
23,234
(63)
Cash dividends declared (per share)
0.13
0.13
—
Net income
12,402
19,646
(37)
Net income attributable to Pason
13,043
20,009
(35)
Per share, basic
0.17
0.25
(32)
Per share, diluted
0.17
0.25
(32)
As at
March 31, 2026
December 31, 2025
Change
(CDN 000s)
($)
($)
( %)
Cash and cash equivalents
72,785
75,705
(4)
Short-term investments
744
1,430
(48)
Total Cash (1)
73,529
77,135
(5)
Working capital
97,912
90,416
8
Total interest bearing debt
—
—
—
Shares outstanding end of period (#)
77,578,322
77,791,365
—
(1)
Non-GAAP and supplementary financial measures are defined under Non-GAAP Financial Measures in this press release
(2)
Includes additions to property, plant, and equipment, development costs and changes in non-cash working capital, net of proceeds on disposal from Pason's Condensed Consolidated Interim Statements of Cash Flows
Pason's financial results for the three months ended March 31, 2026 reflect challenging industry conditions within its drilling and completions segments. For the three months ended March 31, 2026, Pason generated $102.4 million of revenue, a 9% decrease from $113.2 million recorded in 2025 driven primarily by lower levels of drilling and completions industry activity in the first quarter of 2026, along with negative effects of changes in foreign exchange rates.
Significantly outpacing a 21% decline in active frac spread in the US, the Company's Completions segment generated $15.0 million in revenue in the first quarter of 2026, a 6% decrease from $16.0 million in the comparative period in 2025. Current quarter revenue for this segment was also negatively affected by a weaker US dollar versus the Canadian dollar as the vast majority of the Company's Completions revenue is generated in the US.
The Company's North American Drilling segment was also negatively affected by challenging industry conditions and changes in foreign exchange rates. Pason generated revenue in the first quarter of 2026 for North American Drilling of $69.8 million, an 8% decrease from the $75.8 million generated in the same period in 2025 with industry activity declining 6% year over year. For the first quarter of 2026, Revenue per Industry Day of $1,046 was slightly below Revenue per Industry Day of $1,067 in the prior year comparative period primarily due to the impacts of foreign exchange between the Canadian dollar and US dollar. Similarly, the Company's International Drilling segment experienced challenging industry conditions in the first quarter and generated $11.7 million of revenue which compares to $14.0 million in the first quarter of 2025.
Revenue generated by the Solar and Energy Storage segment continues to fluctuate with the timing of deliveries on control systems. Pason generated $5.9 million of revenue in the first quarter of 2026, down from $7.4 million in the first quarter of 2025.
Pason generated $38.2 million in Adjusted EBITDA, or 37.3% of revenue in the first quarter of 2026, compared to $45.2 million or 39.9% of revenue in the first quarter of 2025. Current quarter Adjusted EBITDA reflects the impacts of more challenging industry conditions on the Company's drilling and completions revenue over a mostly fixed cost base.
The Company recorded net income attributable to Pason of $13.0 million ($0.17 per share) in the first quarter of 2026, compared to net income attributable to Pason of $20.0 million ($0.25 per share) recorded in the corresponding period in 2025, reflecting lower Adjusted EBITDA year over year as further outlined above, along with higher depreciation and amortization expense which has increased as a result of the Company's capital investments in recent quarters.
Sequentially, Q1 2026 consolidated revenue of $102.4 million was a 6% decrease from consolidated revenue of $108.7 million in the fourth quarter of 2025, driven by the Company's Solar and Energy Storage segment's quarterly record revenue in Q4 2025. First quarter 2026 results benefited from higher levels of Canadian drilling activity through the winter drilling season and sequential growth in Revenue per Industry Day, which offset negative effects of changes in foreign exchange. Revenue in the North American Drilling segment increased from $67.5 million in the fourth quarter of 2025 to $69.8 million in the first quarter of 2026. The International Drilling segment reported revenue of $11.7 million, which was slightly down from the $12.0 million in Q4 2025. Despite a 7% decline in active frac spread in the US, the Completions segments generated $15.0 million in revenue, a 16% increase from the $13.0 million generated in the fourth quarter of 2025. As previously mentioned, revenue from the Company's Solar and Energy Storage segment will fluctuate with the timing of deliveries on control systems. In Q1 2026, this segment generated $5.9 million of revenue, a decline from the $16.2 million reported in Q4 2025 which was a record quarterly level for the segment. Adjusted EBITDA of $38.2 million or 37.3% of revenue in the first quarter of 2026 was similar to the $38.1 million or 35.1% of revenue generated in the fourth quarter of 2025. While Adjusted EBITDA remained flat from the fourth quarter of 2025 to the first quarter of 2026, Adjusted EBITDA ...
