Precision Drilling (PRE1) Q3 2026 Earnings Report
DE:PRE1 Q3 2026 EPS Results
- Actual EPS
- EUR 1.48
- Consensus EPS
- EUR 1.15
- Beat/Miss
- Beat by +EUR 0.34
- One Year Ago EPS
- -EUR 0.49
DE:PRE1 Q3 2026 Revenue Results
- Actual Revenue
- EUR 339.95M
- Expected Revenue
- EUR 339.86M
- Beat/Miss
- Beat by +EUR 83.12K
- YoY Revenue Growth
- +15.01%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- After Close
- Conference Call
- Tuesday, October 27, 2026
Precision Drilling's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was predominantly positive. Precision reported 15% revenue growth, a return to net profitability, higher adjusted EBITDA, strong North American activity, expanding contract coverage, continued capital returns and improving U.S. margin and activity prospects. These positives outweighed lower international day rates and margins, Middle East operating-cost pressures, lower cash from operations, inflation and labor challenges, Canadian market headwinds, and the unresolved CRA dispute.
For Q4, Precision expects Canadian average active rig count in the low-70s versus 66 average rigs working in prior year Q4, with daily operating margins between $13.5 thousand and $14.5 thousand; U.S. average rig count in the low- to mid-40s, with daily operating margins between U.S. $9.5 thousand and U.S. $10.5 thousand; internationally, 7 rigs with elevated operating costs; and C&P EBITDA to remain in line with prior year levels. For full year 2026, capital expenditures are expected in a range between $275 million and $285 million, depreciation at $325 million, cash interest expense from debt at $45 million, the effective tax rate at approximately 25% to 30%, SG&A at $100 million before share based compensation expense, and share based compensation at $25 million to $50 million assuming a share price between $100 and $150 and a 1x multiplier, with the multiplier able to range between 0 and 2x; Precision also expects business cash taxes to remain low in 2026 with cash taxes slightly increasing in Canada in 2027, to maintain over $460 million in total liquidity, reach its $100 million debt reduction target for 2026, and continue to repurchase shares in the fourth quarter.
- Revenue Growth and Return to ProfitabilityThird-quarter revenue increased 15% year over year to $532 million, driven by stronger North American drilling activity and higher average U.S. day rates, partially offset by lower international results. Net earnings were $21 million versus a $7 million net loss in the third quarter of 2025.
- Adjusted EBITDA IncreasedThird-quarter adjusted EBITDA was $125 million, or $133 million before share-based compensation, compared with $118 million, or $129 million before share-based compensation, in the prior-year quarter.
- Strong North American ActivityNorth American activity increased year over year, with Canada averaging 73 active rigs, up 10 rigs from the third quarter of 2025, and the U.S. averaging 43 active rigs, up 7 rigs from the prior-year quarter.
- Canadian Heavy Oil Utilization GrowthRobust heavy oil activity increased utilization of the super single fleet by 18% year over year. Precision said activity remained at multiyear highs across its Canadian drilling, completion and production service businesses.
- Canadian Contract Book ExpansionThe Canadian contract book grew to 28 rigs under contract in the third quarter, up from 16 rigs one year earlier.
- U.S. Permian ExpansionPrecision was running 16 rigs in the Permian compared with 8 rigs one year earlier. Management attributed the increase to field performance, new customer onboarding, customer-contract upgrades and deeper customer relationships.
- U.S. Activity and Margin Recovery OutlookManagement expects fourth-quarter U.S. activity in the low- to mid-40s, with daily operating margins expected to increase to US$9.5 thousand to US$10.5 thousand from US$7.65 thousand in the third quarter. Management said fourth-quarter margins are expected to reach the highest level in the past two years.
- U.S. Growth OpportunitiesPrecision reported an elevated number of customer requests for rig start-ups early next year, supporting an improved activity outlook for 2027. The requests are primarily in the Permian, with additional requests in the Haynesville and Rockies, and include both public and private customers.
- Canadian Winter OutlookPrecision expects its super triple and super single fleets to operate at near-full utilization through the winter drilling season. Fourth-quarter Canadian average active rig count is expected to be in the low-70s versus 66 rigs in the prior-year fourth quarter, with daily operating margins expected at $13.5 thousand to $14.5 thousand.
- Capital Returns ContinuedThe company invested $82 million in capital expenditures during the quarter and allocated $31 million to share repurchases. During the first nine months of 2026, Precision reduced debt by $75 million and repurchased $47 million of shares.
- Liquidity and Leverage ImprovementPrecision entered the fourth quarter with more than $460 million in total liquidity and said it was closing in on its long-term target of net debt to adjusted EBITDA below 1x. Management remains committed to reaching its $100 million debt-reduction target for 2026 while continuing share repurchases in the fourth quarter.
- Strategic Fleet Investment and Upgrade PipelineThe 2026 capital expenditure budget was increased to $275 million to $285 million. The lower end supports committed long-lead purchases for projects to be completed next year, while the higher end includes a pending opportunity involving multiple rigs contracted through 2029 for a large Canadian producer. Management also described potential 2027 Canadian ERD, super single pad and U.S. Super Triple 1500 upgrades.
- C&P and Rentals PerformanceThe C&P business continued to generate strong free cash flow, driven by well servicing and surface rentals. The growing rentals business delivered incremental year-over-year revenue and EBITDA, and fourth-quarter C&P EBITDA is expected to remain in line with prior-year levels.
- Technology Business GrowthThe Alpha and Evergreen businesses are on track to achieve their highest revenue and contribution margin ever. Precision said customers continue to seek higher-efficiency operations and solutions that reduce emissions and diesel consumption.
- Customer Engagement with Remote Operations and AIMore than 100 customer representatives from 12 customers visited Precision's Calgary remote operations center to observe Alpha technology and interact with the optimization team. The team is using real-time data and AI-driven insights to work with crews on operating practices, equipment performance and safe drilling results.
- Technology and Diesel-Reduction OpportunitiesPrecision said customer discussions around robotics have increased in both the U.S. and Canada. Its Evergreen offering includes batteries on rigs, bi-fuel systems and hydrogen injection on super single rigs to help customers reduce diesel consumption and emissions.
- Improving Contract Duration TrendsU.S. contracting discussions have moved from spot to six-month terms early in the year, to six-month to one-year terms, and more recently toward 18-month to two-year conversations with some customers, although management said the broad market remains closer to six-month to one-year contracts.
- Canadian Infrastructure and Energy Development BackdropManagement highlighted the completion of the TMX Expansion and LNG Canada Phase 1, the Pacific Link pipeline's designation as a project of national interest, Shell's final investment decision on LNG Canada Phase 2, growing political support for LNG development in British Columbia, proposed infrastructure projects and a federal mega tax deduction for infrastructure investments.
- Potential Canadian Fleet Capacity ExpansionManagement said pad upgrades to the remaining 27 super single rigs could add the capability of nine more rigs, based on approximately 100 additional drilling days per upgraded rig. Precision also has the opportunity to move Super Triple 1200 rigs from the U.S. to Canada if demand increases.
- International Reactivation OpportunityA higher-performing rig that was idled in Kuwait is expected to return to work in mid-2027 under a five-year contract. Management also said there is demand in Argentina for upgraded U.S. high-spec rigs and that it continues to discuss potential contracts.
DE:PRE1 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2026 (Q4) | 1.69- | -2.07 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 1.151.48 | -0.49 | 400.39% (+1.97) | |
| Jul 29, 2026 | 2026 (Q2) | 0.31-0.35 | 0.77 | -145.87% (-1.13) | |
| Apr 30, 2026 | 2026 (Q1) | 1.541.23 | 1.41 | -12.73% (-0.18) | |
| Feb 11, 2026 | 2025 (Q4) | 1.31-2.07 | 0.68 | -404.72% (-2.74) | |
| Oct 22, 2025 | 2025 (Q3) | 0.94-0.49 | 1.68 | -129.30% (-2.18) | |
| Jul 29, 2025 | 2025 (Q2) | 0.190.77 | 0.92 | -15.97% (-0.15) | |
| Apr 23, 2025 | 2025 (Q1) | 1.381.41 | 1.62 | -13.04% (-0.21) | |
| Feb 12, 2025 | 2024 (Q4) | 1.030.68 | 6.27 | -89.19% (-5.59) | |
| Oct 29, 2024 | 2024 (Q3) | 1.471.68 | 0.93 | 81.45% (+0.76) |
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.
