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CES Energy Solutions Corp (CESDF)
OTHER OTC:CESDF
US Market
EarningsQ2 2026 Earnings Report

CES Energy Solutions (CESDF) Q2 2026 Earnings Report

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CESDF Q2 2026 EPS Results

Actual EPS$0.13
Consensus EPS$0.15
Beat/MissMissed by -$0.03
One Year Ago EPS$0.16

CESDF Q2 2026 Revenue Results

Actual Revenue$500.73M
Expected Revenue$455.90M
Beat/MissBeat by +$44.84M
YoY Revenue Growth+24.41%

Earnings Announcement Details

QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
CESDF Upcoming Earnings
CES Energy Solutions's next earnings date is estimated for November 5, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

CESDF Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 06, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call portrayed a strongly positive operating and financial quarter with multiple records (revenue, adjusted EBITDAC, U.S. and Canada regional highs, and funds flow). Management emphasized market-share gains, organic growth in production chemicals (notably in U.S. land), disciplined capital allocation, improved working capital metrics and a conservative but constructive outlook for 2026–2027. Headwinds include supply chain/cost volatility from the Iran conflict, deliberate working capital investments that compressed free cash flow this quarter, longer timelines and near-term dilutive investments for offshore and heavy oil expansion, and modest increases in leverage and net draws. Overall the positive growth, margin outperformance and strong returns metrics materially outweigh the manageable risks and timing-driven lowlights.
Company Guidance
The company reiterated disciplined capital and financial guidance, maintaining an EBITDA margin target of 15.5%–16.5% (Q2 adj. EBITDAC $119.2M; margin 16.7%) and a leverage band of 1.0–1.5x total debt to trailing‑12‑month EBITDA (Q2 total debt $513M; leverage 1.15x), with confidence in those ranges; 2026 cash CapEx is guided to ~CAD $100M split evenly between maintenance and growth (Q2 CapEx net of disposals $24M, 4% of revenue). Management expects to address the dividend annually in Q4 or Q1 (target payout ratio 10%–20%; current payout ~15%, yield ~1.3%), will continue opportunistic NCIB repurchases (NCIB renewed to repurchase up to 18.1M shares, 10% of float; YTD Q2 repurchases 780k at $17 for $13.3M, subsequent 735k at $16.60 for $12.2M; since 2018 89M shares bought), and stay within the 1.0–1.5x leverage range while pursuing accretive tuck‑ins that meet return hurdles. Operating liquidity metrics are improving (annualized revenue run rate ≈ $2.9B from Q2 revenue $714.1M; funds flow from operations Q2 $97M; cash flow from ops $60M; free cash flow Q2 $25M; FCF/EBITDAC ~21% in Q2 and ~37% TTM, or 51%/46% excl. working capital), working capital at 26% of annualized quarterly revenue (vs historical 30%–35%) and cash conversion cycle 95 days (vs 112), while trailing‑12‑month ROCE is 22% and ROIC 18%; refinancing (new $300M 5‑5/8% notes) trims ~$2M of annual interest expense and extends maturities.
Record Quarterly Revenue
Q2 revenue of $714.1 million, a 24.4% increase versus Q2 2025, producing an annualized revenue run rate of approximately $2.9 billion (first quarter to reach ~$2.9B range).
Record EBITDA and Strong Margin
Highest quarterly adjusted EBITDAC of $119.2 million, ~35% improvement over Q2 2025, with an EBITDAC margin of 16.7% (above the stated guidance range of 15.5%–16.5%).
Record Funds Flow From Operations
Record funds flow from operations of $97 million in Q2 versus $77 million in Q2 2025 (approximately +26%), demonstrating strong cash-generating ability (despite working capital timing impacts on cash flow from operations).
Geographic and Segment Records
Record U.S. revenue of $497 million (70% of consolidated revenues) and best-ever Q2 Canadian revenue of $217.1 million. North American land rig coverage of 235 rigs out of 791 (29.7% market share) and #1 U.S. land rig market share at 25.5% (AES servicing 146 of 572 U.S. rigs; 39.5% of Permian rigs). Canadian Drilling Fluids holds 40.6% WCSB share (89 of 219 jobs).
Strong Organic Growth in Key Businesses
AES Completion Services (post-acquisition) has grown revenue by over 5x since June 2024. Production chemicals business now ~53% of revenue and showing continued market share gains in U.S. land production chemicals (~21% per prior report) with clear momentum.
Prudent Capital Allocation and Shareholder Returns
Q2 share repurchases of 780,000 common shares for $13.3 million plus subsequent 735,000 shares for $12.2 million. NCIB renewed to repurchase up to 18.1 million shares. Dividend supported by a prudent 15% payout ratio (~1.3% yield).
Capital Structure and Liquidity Improvements
Completed $300 million senior notes issuance (5 5/8% due 2033) to refinance $275 million older notes; reduced annual interest costs by ~$2 million and extended maturities. Total debt $513 million and total debt to trailing 12-month adjusted EBITDAC was 1.15x (within 1.0–1.5x target).
Operational Efficiency and Returns
Cash conversion cycle improved to 95 days from 112 days in Q2 2025 (improvement of 17 days, ~15% shorter). Operating working capital was 26% of annualized quarterly revenue versus historical 30%–35%. Trailing 12-month ROCE of 22% and ROIC of 18%.

CESDF Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 05, 2026
2026 (Q3)
0.21 / -
0.126―
2026 (Q2)
0.15 / 0.13
0.161-21.74% (-0.04)
2026 (Q1)
0.17 / 0.17
0.13326.32% (+0.04)
2025 (Q4)
0.16 / 0.22
0.12677.78% (+0.10)
2025 (Q3)
0.15 / 0.13
0.14-10.00% (-0.01)
2025 (Q2)
0.13 / 0.16
0.1415.00% (+0.02)
2025 (Q1)
0.17 / 0.13
0.161-17.39% (-0.03)
2024 (Q4)
0.15 / 0.13
0.14-10.00% (-0.01)
2024 (Q3)
0.14 / 0.14
0.10533.33% (+0.04)
2024 (Q2)
0.11 / 0.14
0.09153.85% (+0.05)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed