Toronto Hydro recognized for excellence in IT innovation with CIO Award win
This generative AI-powered chatbot agent helps significantly improve how employees within the Engineering Standards and Operations team access and interact with technical information. Built on Microsoft Azure's OpenAI platform using a Retrieval-Augmented Generation framework, the agent delivers fast, accurate, and context-aware responses by extracting insights from thousands of pages of engineering and operations documents.
The tool enables faster decision-making, further improves compliance, and makes information more accessible for employees. It streamlines complex design and construction workflows — from engineering standards to operation procedures and design checklists — and enhances efficiency by offering instant guidance on process, design codes and regulations. The tool is expected to deliver significant productivity improvements while also supporting employees with their work.
The successful deployment of the agent demonstrates Toronto Hydro's ability to integrate cutting-edge AI solutions into the everyday workplace. By enabling faster and more accurate access to critical engineering knowledge, the agent is advancing operational efficiency and enhanced decision-making across teams.
The CIO Awards Canada celebrate excellence in IT leadership and innovation, recognizing organizations that leverage technology to drive meaningful impact, streamline operations and create a competitive advantage.
QUOTE
"This award is a testament to the incredible collaboration between our engineering and technology teams. The GenAI Agent is a strategic tool that empowers our employees to work smarter, faster, and with greater confidence so we can continue delivering safe, reliable power today and in the future."
Humie Woo, Chief Information Officer, Toronto Hydro
QUICK FACTS
This is Toronto Hydro's first win at the CIO Awards Canada
The GenAI Agent for our operation and engineering teams launched in May 2024
Key benefits delivered:
Reduction in internal work requests related to engineering and construction standards, enabling engineering teams to focus on high-priority tasks
Improved productivity and reduction in time spent searching and retrieving relevant information, increasing productivity
Enhanced compliance with industry standards through consistent and accurate access to up-to-date documentation
ABOUT TORONTO HYDRO
Toronto Hydro is a holding company which wholly owns two subsidiaries:
Toronto Hydro-Electric System Limited (THESL) – distributes electricity; and
Toronto Hydro Energy Services Inc. – provides streetlighting and expressway lighting services in the city of Toronto
The principal business of Toronto Hydro and its subsidiaries is the distribution of electricity by THESL, which owns and operates the electricity distribution system for Canada's largest city. Recognized as a Sustainable Electricity Leader™ by Electricity Canada, it has approximately 796,000 customers located in the city of Toronto and distributes approximately 18 per cent of the electricity consumed in Ontario.
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Cision Canada
23 minutes ago
- Cision Canada
McCOY GLOBAL ANNOUNCES SECOND QUARTER 2025 RESULTS AND DECLARATION OF QUARTERLY DIVIDEND
EDMONTON, AB, Aug. 8, 2025 /CNW/ - McCoy Global Inc. ("McCoy," "McCoy Global" or "the Corporation") (TSX: MCB) today announced its operational and financial results for the three months ended June 30, 2025. The Corporation also announced that its Board of Directors has declared a quarterly cash dividend of $0.025 per common share payable on October 15, 2025, to shareholders of record as of close of business on September 30, 2025. The dividend per common share is a regular dividend and is an "eligible" dividend for purposes of the Income Tax Act (Canada) and any similar provincial/territorial legislation. Second Quarter Highlights: Revenue increased 21% to $24.1 million, compared to $19.9 million in Q2 2024. smartProduct revenue 5 of $13.9 million accounted for 58% of total revenue (three months ended June 30, 2024 – 32%), an increase of 117% or $7.5 million from the comparative period; Net earnings decreased 56% to $1.4 million compared to the second quarter of 2024 of $3.1 millions a result of higher stock-based compensation expense ($1.4 million), reflecting the mark-to-market impact of the Corporation's share price appreciation on cash-settled awards, a significant portion of which relates to a previous non-recurring issuance of director performance share units vesting in December of 2025 (Q2 2024 - $0.1 million); Adjusted EBITDA 1 of $4.8 million, or 20% of revenue, compared with $4.7 million, or 24% of revenue, in 2024. The percentage of revenue decline from the comparative period was primarily attributable to provisions for bad debts of $0.5 million (Q2 2024 – recovery of $0.4 million); Since January 1, 2025, advanced its Digital Technology Roadmap: McCoy successfully concluded in-field trials for its innovative smarTR™ system for land and shelf applications. Confidence in the system from our US field-trial partners led to $11.0 million of contract awards for hardware. In addition to the equipment award, the contract includes utilization-based software-as-a-service (SaaS) revenue enabled by our integrated software platform for remote control, automation, and data-driven operational intelligence. The deployment of several systems into the North America land market by late June 2025 is accelerating product optimization and reinforcing the value of our offering through real-world performance and customer feedback. McCoy's smarTR™ system integrates McCoy's proprietary hydraulic smart casing running tool (smartCRT ™), McCoy's proprietary connected flush mount spider (smartFMS ™), and related tubular running accessories, into a first-to-market technology that significantly enhances both safety and efficiency and currently targets up to a 67% reduction in labor costs associated with TRS. McCoy delivered multiple hydraulic smartCRT ™ s destined for the Middle East market and secured additional orders for the US land market. The McCoy hydraulic smartCRT ™ was first commercialized in Q4, 2024, and the tool has successfully executed multiple operations with remarkable efficiency, demonstrating exceptional performance and proven reliability in demanding field conditions. Our unique, patented solution is a hydraulic option to our smartCRT ™ and is designed to integrate into our smarTR ™ system. This technology mitigates risks inherent in conventional, mechanical CRT technology, while providing actionable insights that optimize future performance. McCoy delivered a deep-water offshore integrated casing running system destined for Latin America. Delivering this technology completes the first step on a roadmap to a comprehensive smarTR™ system tailored for offshore and deep-water markets. This integrated deep-water system differs from our smarTR ™ solution designed for land and shelf that is centered around CRT technology, as deep-water casing installation requires hydraulic power tongs to meet technical specifications for the well profile. The Latin America contract award also marked the first offshore commercial SaaS purchase commitment for its Virtual Thread-Rep ™ technology. McCoy's Virtual Thread-Rep ™ technology enables customers to remotely monitor and control premium connection make-up. It also facilitates the autonomous evaluation and confirmation of premium connection make-up on location. Declared a quarterly cash dividend of $0.025 per common share payable on October 15, 2025, to shareholders of record as of close of business on September 30, 2025. "Our second quarter performance highlights the growing momentum behind McCoy's smartProduct portfolio and the advancements of our Technology Roadmap. With smartProduct revenue now representing 58% of total revenue, it is clear our customers are increasingly prioritizing automation, safety, and efficiency, in spite of challenging market conditions. The commercialization of our smarTR™ system, and its deployment into the North America land market by late June 2025 has allowed us to validate its performance in real-world environments, optimize the offering, and gather valuable customer feedback," said Jim Rakievich, President & CEO. "While our results for the quarter were impacted by certain non-recurring compensation expenses and working capital investments to support future demand, we remain confident in our long-term trajectory. As we continue to scale our smartProduct portfolio, we are positioning McCoy to generate stable, technology-driven revenue streams that are less reflective of the cyclicality often associated with the oil & gas industry. Our focus remains on delivering differentiated value to our customers, driving operational excellence, and executing with discipline to create sustainable growth and returns for our shareholders." "While Q3 may reflect tempered sequential revenue and earnings growth due to timing of NOC contract announcements and continued weakness in the North American land market, our $24.6 million backlog and growing smartProduct adoption provide a solid foundation for the remainder of 2025," said Lindsay McGill, Vice President & CFO. "We continue to invest in strategic initiatives that support long-term value creation. Our disciplined approach to capital allocation and operational efficiency ensures we remain well-positioned to deliver on our long-term financial objectives, even amid ongoing market uncertainty." Second Quarter Financial Highlights: Total revenue of $24.1 million, compared with $19.9 million in Q2 2024; Net earnings of $1.4 million, compared to $3.1 million in Q2 2024; Adjusted EBITDA 1 of $4.8 million, or 20% of revenue, compared with $4.7 million, or 24% of revenue, in 2024; Booked backlog 2 of $24.6 million at June 30, 2025, compared to $22.3 million in the second quarter of 2024; Book-to-bill ratio 3 was 0.93 for the three months ended June 30, 2025, compared with 0.83 in the second quarter of 2024. Financial Summary Revenue of $24.1 million for the three months ended June 30, 2025, increased 21% from the comparative period. 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This was partially offset by investments in production and technical service capacity, including expanded staffing and facility-related costs, as well as support for new product deployment, customer training, and product commissioning activities. For the three and six months ended June 30, 2025, general and administrative expenses (G&A) totaled $4.3 million and $7.6 million, respectively, an increase from the comparative periods primarily driven by higher stock-based compensation expense, reflecting the mark-to-market impact of the Corporation's share price appreciation on cash-settled awards, a significant portion of which relates to a previous non-recurring issuance of director performance share units vesting in December of 2025. This resulted in an expense of $1.4 million for the three months ended June 30, 2025 (2024 – $0.1 million), and $2.2 million for the six months ended June 30, 2025 (2024 – $0.1 million). G&A also included $0.5 million of bad debts provision in the quarter (2024 – recovery of $0.4 million), and $0.8 million year-to-date (2024 – recovery of $0.1 million). To a lesser extent, G&A was also impacted by increased investment in corporate support including information technology, human resources and administrative support – aligned with the Corporation's continued revenue growth. As a percentage of revenue, G&A increased by 10 and 7 percentage points, respectively, in comparison to 2024. For the three and six months ended June 30, 2025, sales and marketing expenses were $0.9 million and $1.6 million, respectively. The increase was primarily attributable to expansion of the Corporation's technical salesforce and enhanced marketing efforts to support the accelerated adoption of the Corporation's smartProducts portfolio. As a percentage of revenue, Sales & Marketing increased 1% from the comparative periods. With total product development and support expenditures of $1.8 million and $3.4 million during the three and six months ended June 30, 2025, respectively, the Corporation further advanced its 'Technology Roadmap' through the design and development of additional smart product enhancements and complementary product accessories for McCoy's smartProduct portfolio. For the remainder of 2025, the Corporation has committed US$1.5 million of capital toward the development of these enhancements and additional product offerings. Product development and support expenses increased over the comparative periods, primarily due to investment in engineering and technical personnel, as well as increased travel related to new product deployment and customer support activities. Higher intellectual property expenditures also contributed to the increase. For the three and six months ended June 30, 2025, as well as the comparative period, other losses (gains), net is comprised mainly of foreign exchange losses or gains. Net earnings for the three months ended June 30, 2025, was $1.4 million or $0.05 per basic share, compared with net earnings of $3.1 million or $0.12 per basic share in the second quarter of 2024. Adjusted EBITDA 1 for the three months ended June 30, 2025, was $4.8 million compared with $4.7 million for the second quarter of 2024. As at June 30, 2025, the Corporation had $6.6 million in net cash 4, along with an additional $12.1 million available under undrawn credit facilities. Selected Quarterly Information Summary of Quarterly Results ($000 except per share amounts) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Revenue 24,051 19,346 25,222 15,842 19,910 16,542 19,699 16,878 Net earnings 1,367 946 4,255 516 3,125 975 2,674 1,900 as a % of revenue 6 % 5 % 17 % 3 % 16 % 6 % 14 % 11 % per share – basic 0.05 0.03 0.16 0.02 0.12 0.04 0.10 0.07 per share – diluted 0.05 0.03 0.15 0.02 0.11 0.04 0.10 0.07 EBITDA 1 2,978 2,296 5,598 1,826 4,638 2,191 3,001 3,641 as a % of revenue 12 % 12 % 22 % 12 % 23 % 13 % 15 % 22 % Adjusted EBITDA 1 4,817 3,479 6,534 2,668 4,728 2,273 3,987 3,856 as a % of revenue 20 % 18 % 26 % 17 % 24 % 14 % 20 % 23 % Outlook and Forward-Looking Information As 2025 has progressed, there has been a notable decline in market conditions across several global regions, driven by persistent macroeconomic uncertainty, a sharp increase in oil supply following the lifting of OPEC+ production quotas, global trade disruptions, and geopolitical tensions. These factors have contributed to increased customer prudence, particularly in capital equipment procurement, resulting in deferred investment decisions, subdued activity levels across key regions, and a shift in focus toward cash flow preservation and operational efficiency. Despite near-term stagnation in drilling activity and the deferral of certain National Oil Company (NOC) contract tender announcements, medium-term fundamentals for oil & gas markets are expected to remain stable, particularly in the Middle East and North Africa (MENA). Recent TRS contract tenders awarded in one of our largest markets have been favourable for McCoy; however, customer capital constraints have introduced challenges and have led to increased demand for rental tools or alternative financing arrangements. Over the next twelve months, several additional TRS contract award announcements are anticipated across key Eastern Hemisphere markets, representing a cumulative total of upwards of 100rigs - all requiring the use of casing running tools. Though the timing of these announcements is uncertain, we expect these awards will positively impact the conversion of many of our smartProduct technology quotes into confirmed orders. McCoy is well positioned to capitalize on these trends with market leading technologies and product enhancements that provide superior safety, efficiency, and simplified operating procedures, as well as expert technical support with local presence and the broadest portfolio of TRS equipment on the market. In the North American land market, recent market volatility and broader recessionary pressures have contributed to a continued decline in rig count and drilling with some regions reaching levels not seen since 2021. Despite these headwinds, industry confidence in McCoy's smartProduct technologies, particularly our smarTR ™ system, remains positive. However, we anticipate the current market environment may temper the rate of technology adoption and near-term revenue growth. As we advance through the commercialization and adoption phases of our Technology Roadmap initiative, we anticipate future revenue streams will become progressively less tied to the cyclicality of drilling activity and increasingly driven by technology adoption. McCoy's smartProduct portfolio offers meaningful improvements in safety, operational efficiency, and, often, cost reduction, positioning the Corporation to deliver enhanced value to customers even in challenged market conditions. As customers look to differentiate in a competitive market and drive greater efficiency at lower cost, McCoy's smart solutions are increasingly aligned with their priorities. With a reported backlog of $24.6 million as at June 30, 2025, and continued momentum in the adoption of our smartProduct technologies, we are well positioned to pursue our strategic and financial objectives in 2025 with discipline and flexibility. While the pace of market penetration may be moderated by current macroeconomic conditions, we continue to observe encouraging trends that are expected to facilitate adoption across key markets over the long-term. Q3 2025 may reflect tempered revenue and earnings growth amid ongoing market dynamics, largely influenced by the timing of National Oil Company (NOC) contract announcements and North America land market conditions. Looking ahead, uncertainty may persist into the latter half of 2025 and early 2026, as customers align capital commitments with TRS award announcements timelines. While quarterly performance may exhibit variability, this is largely reflective of the inherent lumpiness in capital equipment markets, where customer purchase decisions and shipment schedules can shift between periods. To navigate this environment, we are proactively implementing cost control measures and deferring select capital expenditures, while continuing to invest in strategic initiatives. These include continued product development, deployment and support activities, scaling our global technical support capabilities to enhance customer experience with particular focus on McCoy's smartProduct lines, and expanding our rental fleet in regions where customer capital constraints are creating opportunities for high-return rental solutions. Supported by a proven track record of operational efficiency and cash flow generation, McCoy is well positioned to navigate current market dynamics and capitalize on emerging opportunities. For 2025 and beyond, we continue to focus on our key strategic initiatives to deliver value to all our stakeholders: Accelerating market adoption of new and recently developed 'smart' portfolio products; and Focusing on capital allocation priorities. We believe this strategy, together with our committed and agile team, McCoy's global brand recognition, application expertise, strong balance sheet, and global footprint will further advance McCoy's competitive position and generate strong returns on invested capital. About McCoy Global Inc. McCoy Global is transforming well construction using automation and machine learning to maximize wellbore integrity and collect precise connection data critical to the global energy industry. The Corporation has offices in Canada, the United States of America, and the United Arab Emirates and operates internationally in more than 50 countries through a combination of direct sales and key distributors. Throughout McCoy's 100-year history, it has proudly called Edmonton, Alberta, Canada its corporate headquarters. The Corporation's shares are listed on the Toronto Stock Exchange and trade under the symbol "MCB". 1 EBITDA is calculated under IFRS and is reported as an additional subtotal in the Corporation's consolidated statements of cash flows. EBITDA is defined as net earnings (loss), before depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); and finance charges, net. Adjusted EBITDA is a non-GAAP measure defined as net earnings (loss), before: depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); finance charges, net; provisions for excess and obsolete inventory; other (gains) losses, net; restructuring charges; share-based compensation; and impairment losses. The Corporation reports on EBITDA and adjusted EBITDA because they are key measures used by management to evaluate performance. The Corporation believes adjusted EBITDA assists investors in assessing McCoy Global's current operating performance on a consistent basis without regard to non-cash, unusual (i.e. infrequent and not considered part of ongoing operations), or non-recurring items that can vary significantly depending on accounting methods or non-operating factors. Adjusted EBITDA is not considered an alternative to net earnings (loss) in measuring McCoy Global's performance. Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable to similar measures used by other issuers. For comparative purposes, in previous financial disclosures 'adjusted EBITDA' was defined as "net earnings (loss) before finance charges, net, income tax expense (recovery), depreciation, amortization, impairment losses, restructuring charges, non-cash changes in fair value related to derivative financial instruments and share-based compensation. 2 McCoy Global defines backlog as orders that have a high certainty of being delivered and is measured on the basis of a firm customer commitment, such as the receipt of a purchase order. Customers may default on or cancel such commitments but may be secured by a deposit and/or require reimbursement by the customer upon default or cancellation. Backlog reflects likely future revenues; however, cancellations or reductions may occur and there can be no assurance that backlog amounts will ultimately be realized as revenue, or that the Corporation will earn a profit on backlog once fulfilled. Expected delivery dates for orders recorded in backlog historically spanned from one to six months. 3 The book-to-bill ratio is a measure of the amount of net sales orders received to revenues recognized and billed in a set period of time. The ratio is an indicator of customer demand and sales order processing times. The book-to-bill ratio is not a GAAP measure and therefore the definition and calculation of the ratio will vary among other issuers reporting the book-to-bill ratio. McCoy Global calculates the book-to-bill ratio as net sales orders taken in the reporting period divided by the revenues reported for the same reporting period. 4 Net cash is a non-GAAP measure defined as cash and cash equivalents, plus: restricted cash, less: borrowings. 5 smartProduct revenue is a non-GAAP measure and includes sales, rental and services revenues from those products and technologies developed under the Corporation's technology roadmap initiative. The metric includes revenues from flush mount spiders (FMS), casing running tools (CRTs), smartTONGs and related software and accessories. The Corporation believes smartProduct revenue is a key metric that can assist investors in assessing how McCoy Global has executed on its technology roadmap strategy. Forward-Looking Information This News Release contains forward looking statements and forward-looking information (collectively referred to herein as "forward looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward looking information is often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "expect", "objective", "ongoing", "believe", "will", "may", "projected", "plan", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well positioned" or similar words suggesting future outcomes. This New Release contains forward looking statements respecting the business opportunities for the Corporation that are based on the views of management of the Corporation and current and anticipated market conditions; and the perceived benefits of the growth strategy and operating strategy of the Corporation are based upon the financial and operating attributes of the Corporation as at the date hereof, as well as the anticipated operating and financial results. Forward-looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in the forward looking statements, including inability to meet current and future obligations; inability to complete or effectively integrate strategic acquisitions; inability to implement the Corporation's business strategy effectively; access to capital markets; fluctuations in oil and gas prices; fluctuations in capital expenditures of the Corporation's target market; competition for, among other things, labour, capital, materials and customers; interest and currency exchange rates; technological developments; global political and economic conditions; global natural disasters or disease; and inability to attract and retain key personnel. Readers are cautioned that the foregoing list is not exhaustive. The reader is further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These judgments and estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. The information contained in this News Release identifies additional factors that could affect the operating results and performance of the Corporation. We urge you to carefully consider those factors. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this News Release are made as of the date of this New Release and the Corporation does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
Cision Canada
23 minutes ago
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BIG ROCK BREWERY INC. ANNOUNCES SECOND QUARTER 2025 RESULTS AND A 45% INCREASE IN SECOND QUARTER SALES VOLUMES
Trailing twelve month sales volume growth of 39% CALGARY, AB, Aug. 8, 2025 /CNW/ - Big Rock Brewery Inc. (TSX: BR) (" Big Rock" or the " Corporation") today announces its financial results for the three and six months ended June 30, 2025. Financial Summary For the three months ended June 30, 2025, compared to the three months ended June 30, 2024, the Corporation reported: total sales volumes up 45.3% to 84,116 hl compared to 57,908 hl, driven by contract sales volumes that more than doubled and an increase of 20.2% in wholesale volumes; net revenue increased by 34.2% to $16.6 million from $12.3 million on increased sales volumes; gross margin increased to $5.2 million compared to $4.1 million; operating income increased to $0.4 million, compared to an operating loss of $(0.7) million; net income increased by $0.1 million to $0.3 million; and Adjusted EBITDA increased by $0.8 million to $1.0 million. Adjusted EBITDA is a non-GAAP financial measure, see " Non-GAAP Measures". For the six months ended June 30, 2025, compared to the six months ended June 30, 2024, the Corporation reported: total sales volumes up 47.9% to 152,460 hl compared to 103,112 hl, driven by contract sales volumes that more than doubled and an increase of 10.6% in wholesale volumes; net revenue increased by 32.7% to $27.8 million from $20.9 million because of increased co-packing sales volumes; gross margin increased to $8.9 million compared to $5.9 million, an increase of 51%; operating income increased to $0.5 million, compared to an operating loss of $(3.0) million; net income increased to $0.2 million from a loss of $(2.9) million, an increase of $3.1 million; and Adjusted EBITDA increased by $3.0 million to $1.7 million. Adjusted EBITDA is a non-GAAP financial measure, see " Non-GAAP Measures". Summary of Results $000, except hl and per share amounts Three months ended June 30 Six months ended June 30 2025 2024 2025 2024 Sales volumes - wholesale (hl) 48,698 40,519 80,590 72,871 Sales volumes – contract (hl) 35,418 17,389 71,870 30,241 Total sales volumes (hl) 84,116 57,908 152,460 103,112 Gross product revenue $ 20,470 $ 15,792 $ 34,673 $ 27,080 Net revenue 16,567 12,344 27,767 20,926 Cost of sales 11,402 8,218 18,893 15,063 Adjusted EBITDA (1) 967 165 1,655 (1,308) Operating income (loss) 395 (667) 495 (2,966) Net income (loss) 281 220 232 (2,853) Net income (loss) per share (basic and diluted) $ 0.01 $ 0.03 $ 0.01 $ (0.41) (1) Non-GAAP financial measure. See " Non-GAAP Measures". Sales volumes increased by 45.3% compared the second quarter of 2024 and a 23.1% increase compared to the first quarter of 2025. More importantly, Adjusted EBITDA was a positive $1.0 million, which represents a $0.8 million improvement from the second quarter of 2024. David Kinder, Big Rock's President and Chief Executive Officer noted, "In an economically challenging and uncertain time, I am delighted to release our second quarter 2025 results. Directionally, we are building on 4 consecutive quarters of year-over-year quarterly sales volume growth. This momentum contributed to a significant improvement in Adjusted EBITDA of $0.8 million for the quarter and $3.0 million on a year-to-date basis. Key metrics are directionally positive, and more importantly we are fundamentally profitable from an earnings and cash flow perspective. The management team continues to focus on mitigating the negative effects of tariffs, the Alberta Markup increases and a general increase in costs. In 2025 we are incredibly proud to be celebrating our 40-year anniversary and to have successfully launched our new branding and updated product portfolio, which no doubt have contributed to our success so far this year". Additional Information The unaudited condensed interim consolidated financial statements of the Corporation and the Corporation's Management Discussion and Analysis for the three and six months ended June 30, 2025 dated August 7, 2025, can be viewed on Big Rock's website at and on SEDAR+ at under Big Rock Brewery Inc. NON-GAAP MEASURES The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles (" GAAP"). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. The non-GAAP financial measures should not be considered in isolation, as an alternative to or more meaningful than the most directly comparable GAAP measures which are prepared in accordance with IFRS Accounting Standards. " Adjusted EBITDA" is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The most directly comparable GAAP measure to adjusted EBITDA is net income, or net loss, as applicable. The following table details the composition of adjusted EBITDA and its reconciliation to net income, or net loss: ($000, except where indicated) Three months ended June 30 Six months ended June 30 2025 2024 Change 2025 2024 Change Net income (loss) $ 281 $ 220 $ 61 $ 232 $ (2,853) $ 3,085 Addback: Interest 213 587 (374) 377 1,361 (984) Depreciation and amortization 529 827 (298) 1,069 1,654 (585) Share based payments (56) 5 (61) (23) 4 (27) Gain on dispositions – net — (1,474) 1,474 — (1,474) 1,474 Adjusted EBITDA $ 967 $ 165 $ 802 $ 1,655 $ (1,308) $ 2,963 Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. These statements relate to expectations regarding future events or Big Rock's future performance based on certain assumptions made by Big Rock. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are not facts, but only predictions based on information presently available and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement. This press release contains forward-looking statements pertaining to: Big Rock's continued focus on mitigating the negative effects of tariffs, changes to, and the subsequent revision of the Alberta Markup Share and general cost increases; and other similar statements. With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things: the duration and impact of tariffs currently in effect and that such tariffs will remain in effect unchanged; markup rates applied by the Alberta Gaming, Liquor and Cannabis Commission ("AGLC"); anticipated cost increases in Big Rock's production and supply chain; volumes in the current fiscal year will remain constant or continue to increase; there will be no material change to the regulatory environment in which Big Rock operates; there will be no material supply issues with Big Rock's vendors; seasonal fluctuations in demand; and Big Rock can and will execute it business plans and strategies. Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2024 which is available on SEDAR+ at and also include, but are not limited to: risks related to Big Rock's credit facility with ATB; the inability to grow demand for Big Rock's products; the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations; changes to the duration and/or impact of tariffs currently in place, including any impacts on general market demand; risks related to unanticipated changes to AGLC's mark-up rates; the risk that Big Rock may not have an increase in market demand or market share; the risk that Big Rock may lose co-packing contract volumes or the anticipated benefits of co-packing production; the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses, won't help the Corporation continue to improve its financial results and strengthen its balance sheet; the risk that Big Rock may not realize operational efficiencies or margin growth; the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months. Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements contained herein speak only as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. About Big Rock Brewery Inc. In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider ® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit SOURCE Big Rock Brewery Inc.
Cision Canada
an hour ago
- Cision Canada
ACT Energy Technologies Reports 2025 Q2 Interim Results
CALGARY, AB, Aug. 8, 2025 /CNW/ - (TSX: ACX) ACT Energy Technologies Ltd (the "Company" or "ACT")'s news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. For a full disclosure of forward-looking statements and the risks to which they are subject, see the 'Forward-Looking Statements' section in this news release. This news release contains references to Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Working capital and Net capital expenditures. These terms do not have standardized meanings prescribed under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and may not be comparable to similar measures used by other companies. See the 'Non-GAAP Measures' section in this news release for definitions and tabular calculations. 2025 Q2 FINANCIAL RESULTS Sustained Adjusted EBITDAS (1) margins despite lower activity and revenues primarily attributable to lower third-party rental costs as a result of the Rime measurement-while-drilling ("MWD") deployment. Adjusted EBITDAS (1) of $14.8 million in 2025 Q2 decreased 14%, compared to $17.3 million in 2024 Q2, attributable to lower revenues, offset by lower direct costs. Revenues of $112.0 million in 2025 Q2, a decrease of 14%, compared to $130.3 million in 2024 Q2, with the decline primarily attributable to lower U.S. operating days. Net loss of $10.0 million in 2025 Q2, compared to net income of $5.3 million in 2024 Q2. The net loss was mainly due to: i) unrealized foreign exchange loss of $6.5 million mainly related to the translation of intercompany balances, and ii) a provision of $4.8 million related to a sales tax issue (refer to the 'Provision' section in this news release for more details) and iii) lower revenues. Cash flow - operating activities of $26.0 million in 2025 Q2, compared to $34.1 million in 2024 Q2. Free cash flow (1) of $2.7 million in 2025 Q2, compared to Free cash flow deficit (1) of $1.8 million in 2024 Q2. The Company completed its normal course issuer bid ("NCIB"), purchasing 1,110,858 common shares of ACT during the first six months of 2025 for a total amount of $6.3 million, at an average price of $5.69 per common share. Loans and borrowings less cash was $38.1 million as at June 30, 2025, compared to $50.7 million as at December 31, 2024. The Company's liquidity position remained strong with $62.2 million of undrawn capacity on the Company's amended Credit Agreement and a cash balance of $24.0 million (December 31, 2024 - $55.0 million and $12.8 million, respectively). 2025 Q2 OPERATIONAL RESULTS Canadian operating days in 2025 Q2 were consistent compared to 2024 Q2. U.S. operating days decreased 24% in 2025 Q2, compared to 2024 Q2. The decrease in operating days in 2025 Q2 was mainly as a result of customer consolidation and a competitive U.S. market given tariff and general macro uncertainties causing customers to remain more cautious with their spending. A decrease in the Canadian average revenues per operating day of 3% in 2025 Q2, compared to 2024 Q2, was primarily due to lower lost-in-hole revenues (1). An increase in the U.S. average revenues per operating day of 9% in 2025 Q2, compared to 2024 Q2, was primarily due to higher lost-in-hole revenues (1). Improved U.S gross margins by 5% in 2025 Q2, compared to 2024 Q2, from the reduction of third-party rental costs by utilizing Rime supplied MWD systems. Further durability of gross margins is expected as more MWD systems are deployed. To date, twenty-nine Rime MWD systems have been deployed with an additional twenty-one MWD systems expected to be deployed by the end of 2025 Q3. A substantial majority of the inventory required to build-out these systems was spent in 2024, with minimal purchases required in 2025. PRESIDENT'S MESSAGE Comments from President & CEO Tom Connors: "Our second quarter 2025 showed steady results in Canada and improving adjusted gross margins corporately despite weaker U.S. activity. In Canada, our second quarter activity levels started off strong through April and May, but essentially matched the underlying industry trend which was a slow ramp up out of spring break-up as we continued through June. We retain a strong market position in those regions that have some of the best economic return levels, which, combined with our extensive experience and leading technology offering, is ideally suited for the growing number and length of wells drilled in the multi-lateral oil plays. "Our U.S. results were heavily impacted by the 10% weakening in West Texas Intermediate ("WTI") oil prices in 2025 Q2 versus 2025 Q1 levels, which sent the average U.S. land rig count down another 3% sequentially as well. The industry rig count in the Permian basin fell to a greater extent, which impacted our operating footprint that is heavily focused on this leading U.S. oil play. Combined with the lingering effects of client mergers and acquisitions ("M&A") in 2024, our U.S. operating days dropped 7% sequentially, however, despite a soft U.S. operating environment, our Adjusted gross margin, including and excluding lost-in-hole revenues, improved versus 2025 Q1 and 2024 Q2. Additional MWD deployment was a contributing factor to improved margins as we now have available our fully-built fleet of MWD systems for marketing. Increasing the penetration of this next-generation technology with our clients is expected to grow our U.S. operating margins by lowering our third-party MWD rental costs. "We remain committed to returning capital to our shareholders. During the second quarter, we completed our 2024 / 2025 NCIB program, maxing out our available repurchases, a total of 1.9 million shares, or 6% of our issued and outstanding shares as at June 30, 2025. We are renewing our program and will continue to utilize this program as a lever for returning capital to shareholders. "We remain committed to delivering ultra-high-performance directional drilling and related down-hole services, leveraging our proprietary technologies and experienced team. This focus will allow us to deliver value to our shareholders through the cycles. To maximize returns, we continue to expect allocating capital as follows: Margin expansion: utilize selective capital investment, primarily rotary steerable systems ("RSS") and MWD to replace rental equipment with in-house, next-generation technology solutions. Return of capital: repurchase shares through the Company's NCIB. Further strengthen our financial position: although debt remains low, continue to reduce leverage, which allows for business resiliency through the cycles and optionality to pursue a counter-cyclical, long-term investment strategy. "By having this diverse approach to capital allocation, we believe we will continue to build an increasingly durable business model, one that optimizes investment returns over the long term," stated Tom Connors, ACT President and Chief Executive Officer. (stated in thousands of Canadian dollars, except net income per common share amounts) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues $ 112,010 $ 130,297 $ 247,367 $ 295,253 Gross margin percentage 22 % 21 % 22 % 22 % Adjusted gross margin percentage (1) 29 % 26 % 28 % 28 % Adjusted EBITDAS (1) $ 14,824 $ 17,305 $ 34,523 $ 46,054 Adjusted EBITDAS margin percentage (1) 13 % 13 % 14 % 16 % Net (loss) income $ (9,959) $ 5,259 $ (2,711) $ 16,840 Per common share - basic (2) $ (0.30) $ 0.15 $ (0.08) $ 0.49 Per common share - diluted (2) $ (0.30) $ 0.14 $ (0.08) $ 0.44 Cash flow - operating activities $ 26,029 $ 34,123 $ 44,714 $ 49,866 Free cash flow (deficit) (1) $ 2,726 $ (1,799) $ 10,601 $ 4,409 Weighted average common shares outstanding: Basic (000s) (2) 33,626 34,439 33,892 34,574 Diluted (000s) (2) 33,626 38,402 33,892 38,490 Balance (stated in thousands of Canadian dollars) June 30, 2025 December 31, 2024 Working capital, excluding current portion of loans and borrowings (1) $ 73,698 $ 84,417 Total assets $ 455,490 $ 472,881 Loans and borrowings $ 62,145 $ 63,527 Shareholders' equity $ 234,119 $ 241,580 OUTLOOK General uncertainty related to commodity prices, trade, and potential tariffs, are resulting in restrained levels of drilling activity and a more cautious spending environment. Despite the cautious environment, Canadian activity levels appear to be somewhat resilient and the rig count in the U.S. seems to be nearing a bottom, with some potential for increases in the back half of this year. We remain positive on the longer-term outlook for energy fundamentals due to general economic growth, increasing demand from emerging economies, and significant opportunities related to growth in power demand. In Canada, stronger customer balance sheets, reasonably constructive commodity price levels, and additional takeaway capacity for both oil and gas continue to support consistent levels of drilling activity. The first LNG Canada natural gas volumes have now shipped from Kitimat, British Columbia and the expansion of the Trans Mountain Pipeline supports heavy oil production, both of which should be positive for drilling activity in the long term. Currently, our Canadian job count is in the low-50 job count range supported by our strong presence in multi-lateral drilling markets. Given relatively strong drilling economics for multi-lateral drilling projects, activity levels are anticipated to be resilient in these areas with continued plans for growth though this cycle and into the future. We expect our Canadian activity levels to be similar or slightly less than 2024 levels of activity as some of our customers have deferred spending plans to later this year due to market uncertainty. In the U.S., the continued slow decline of industry oil drilling levels has caused our U.S. job run-rate to pull back to the mid-30 jobs per day versus the range of 40 to 50 jobs per day we saw one year ago. While activity levels are lower year-over-year, we still see a significant opportunity for margin recapture as we replace third party rentals with our own MWD technology. We expect to build on the initial success of the product rollout thus far and continue to increase levels of customer adoption through the back half of this year and into next year. The rig counts in the U.S. appear to be approaching a bottom as improved year-over-year natural gas prices are expected to result in increased gas rig counts in the back half of this year. Further, ongoing major additions to U.S. LNG export capacity in the coming two to three years and extreme growth in data center build-out should motivate continued strength in U.S. natural gas demand, pricing and gas drilling levels. Overall, we remain bullish on longer-term global energy demand and believe that pursuing strong directional drilling market positions in the both the U.S. and Canada remains the best way to capture this opportunity. Financial Operational (stated in Canadian dollars, except operating days and average industry land rig counts) Three months ended June 30, % Six months ended June 30, % 2025 2024 Change 2025 2024 Change Operating days (1) United States 2,838 3,746 (24 %) 5,878 7,416 (21 %) Canada 2,107 2,130 (1 %) 6,361 6,504 (2 %) 4,945 5,876 (16 %) 12,239 13,920 (12 %) Industry land rig count (2) United States 556 583 (5 %) 564 593 (5 %) Canada 138 139 (1 %) 172 168 2 % Average revenues per operating day (1) United States $ 28,918 $ 26,447 9 % $ 27,847 $ 27,728 — % Canada $ 14,211 $ 14,661 (3 %) $ 13,156 $ 13,780 (5 %) $ 22,651 $ 22,174 2 % $ 20,211 $ 21,211 (5 %) Net lost-in-hole equipment reimbursements (3) $ 6,841 $ 4,742 44 % $ 7,957 $ 15,388 (100 %) Summary The Company improved gross margin and Adjusted gross margin percentages (1) despite a 16% and 12% decline in the Company's operating days in 2025 Q2 and the six months ended June 30, 2025, compared to prior periods, respectively. The decline in operating days was offset by increased lost-in-hole revenues (1) in 2025 Q2. There was a significant reduction of lost-in-hole revenues (1) in 2025 Q1 contributing significantly to the decline in the Company's revenues in the six months ended June 30, 2025, compared to the prior period. The Company has improved the resiliency of gross margins through replacement of third-party rental equipment with owned equipment, primarily focused on Rime MWD systems. Typically, decreased revenue of 14% and 16% in 2025 Q2 and the six months ended June 30, 2025, respectively, would result in the Company's fixed components of direct costs negatively impacting margin percentages. SEGMENTED INFORMATION United States Revenues U.S. revenues were $82.1 million in 2025 Q2, a decrease of $17.0 million or 17%, compared to $99.1 million in 2024 Q2. The Company experienced a 24% decrease in operating days in 2025 Q2 (2025 - 2,838 days; 2024 - 3,746 days). The Company's activity declines exceeded the 5% decrease in the average U.S. land rig count mainly as a result of consolidation by some of the Company's customers. In addition, the Company felt the impact of the increasingly competitive U.S. market given the general market uncertainty contributing to commodity price volatility. The average revenues per operating day (2) increased 9% in 2025 Q2 (2025 - $28,918 per day; 2024 - $26,447 per day). The increase in average revenues per operating day (2) is mainly due to higher lost-in-hole revenues (1). U.S. revenues were $163.7 million in the six months ended June 30, 2025, a decrease of $41.9 million or 20%, compared to $205.6 million for the same period in 2024. The Company experienced a 21% decrease in operating days in the six months ended June 30, 2025 (2025 - 5,878 days; 2024 - 7,416 days). The Company's activity declines exceeded the 5% decrease in the average U.S. land rig count mainly as a result of consolidation by some of the Company's customers. In addition, the Company felt the impact of the increasingly competitive U.S. market given the general market uncertainty contributing to commodity price volatility. The average revenues per operating day (2) relatively consistent in the six months ended June 30, 2025 (2025 - $27,847 per day; 2024 - $27,728 per day). The unusually low lost-in-hole revenues (1) the Company experienced in 2025 Q1 was partially offset by higher lost-in-hole revenues (1) in 2025 Q2, although lost-in-hole revenues (1) remained lower in the six months ended June 30, 2025, compared to the same period in 2024. Lost-in-hole activity has historically been relatively consistent as a percentage of operating revenues. Direct costs U.S. direct costs included in cost of sales were $58.1 million in 2025 Q2, a decrease of $16.4 million or 22%, compared to $74.5 million in 2024 Q2. The decrease is mainly due to lower MWD third-party rental costs, resulting from the Rime MWD build-out and lower labour and repair costs related to lower activity and cost reduction initiatives in 2025 Q2. As a result, direct costs as a percentage of revenues were 71% in 2025 Q2, compared to 75% in 2024 Q2. In addition, direct costs as a percentage of revenues were lower due to higher lost-in-hole revenues (1) in 2025 Q2. U.S. direct costs included in cost of sales were $120.2 million in the six months ended June 30, 2025, a decrease of $35.0 million or 23%, compared to $155.2 million for the same period in 2024. The decrease is mainly due to lower MWD third-party rental costs, resulting from the Rime MWD build-out and lower labour and repair costs related to lower activity and cost reduction initiatives in the six months ended June 30, 2025. As a result, direct costs as a percentage of revenues were 73% in the six months ended June 30, 2025, compared to 75% for the same period in 2024. Lower direct costs as a percentage of revenues were offset by the effect of lower lost-in-hole revenues (1) in the six months ended June 30, 2025, compared to the same period in 2024. Canadian Revenues Canadian revenues were $29.9 million in 2025 Q2, a decrease of $1.3 million or 4%, compared to $31.2 million in 2024 Q2, with the decline primarily attributable to lower lost-in-hole revenues (1), as activity was consistent with 2024 Q2. The average revenues per operating day (2) decreased 3% in 2025 Q2 (2025 - $14,211 per day; 2024 - $14,661 per day). The decrease in the average revenues per operating day (2) is mainly attributed to lower lost-in-hole revenues (1). Canadian revenues were $83.7 million in the six months ended June 30, 2025, a decrease of $5.9 million or 7%, compared to $89.6 million for the same period in 2024, with the decline primarily attributable to lower lost-in-hole revenues (1) and a 2% decrease in operating days in the six months ended June 30, 2025 (2025 - 6,361 days; 2024 - 6,504 days). Despite an increase in the Western Canada average land rig count of 2%, ACT had a slight decline in activity during the six months ended June 30, 2025, relative to the comparative period, primarily attributable to lower activity in oil plays where ACT is more prevalent. The average revenues per operating day (2) decreased 5% in the six months ended June 30, 2025 (2025 - $13,156 per day; 2024 - $13,780 per day). The decrease in the average revenues per operating day (2) is mainly attributed to lower lost-in-hole revenues (1). In the six months ended June 30, 2025, the Company experienced an unusually low rate of lost-in-hole activity compared to the same period in 2024 ($7.3 million), which was conversely unusually high. Over longer periods of time, lost-in-hole activity has historically been relatively consistent as a percentage of operating revenues. Direct costs Canadian direct costs included in cost of sales were $21.5 million in 2025 Q2, a decrease of $0.2 million or 1%, compared to $21.7 million in 2024 Q2. The decrease is mainly due to lower repair costs in 2025 Q2 as a result of lower activity, offset by higher labour and third-party rental costs related to deployment of new RSS tools. As a percentage of revenues, direct costs were 72% in 2025 Q2, compared to 70% in 2024 Q2. The effect of lower lost-in-hole revenues (1) in 2025 Q2, relative to 2024 Q2, is the primary factor in direct costs being higher as a percentage of revenues in 2025 Q2. Canadian direct costs included in cost of sales were $57.2 million in the six months ended June 30, 2025, a decrease of $0.8 million or 1%, compared to $58.0 million for the same period in 2024. The decrease is mainly due to lower repair costs in the six months ended June 30, 2025 as a result of lower activity, offset by higher labour and third-party rental costs related to RSS tools. As a percentage of revenues, direct costs were 68% in the six months ended June 30, 2025, compared to 65% for the same period in 2024. The effect of minimal lost-in-hole revenues (1) in the six months ended June 30, 2025, compared to the same period in 2024, is the primary factor in direct costs being higher as a percentage of revenues. CONSOLIDATED Revenues The Company recognized $112.0 million of revenues in 2025 Q2, a decrease of $18.3 million or 14%, compared to $130.3 million in 2024 Q2. The decrease is due to a 16% decrease in operating days (2025 - 4,945 days; 2024 - 5,876 days). The decrease was offset by a 2% increase in the average revenues per operating day (1) resulting from higher lost-in-hole revenues (1) compared to 2024 Q2 (2025 - $22,651; 2024 - $22,174). The Company recognized $247.4 million of revenues in the six months ended June 30, 2025, a decrease of $47.9 million or 16%, compared to $295.3 million for the same period in 2024. The decrease is due to a 12% decrease in operating days (2025 - 12,239 days; 2024 - 13,920 days), and a 5% decrease in the average revenues per operating day (1) resulting from very low levels of lost-in-hole revenue (1) in the six months ended June 30, 2025 (2025 - $20,211; 2024 - $21,211). Direct Costs The Company recognized $79.6 million of direct costs in 2025 Q2, a decrease of $16.7 million or 17%, compared to $96.2 million in 2024 Q2. The decrease is mainly due to lower labour and repair costs related to the decrease in operating days and cost reduction initiatives, and lower third-party MWD rental costs mainly related to the Rime MWD build-out. The Company recognized $177.4 million of direct costs in the six months ended June 30, 2025, a decrease of $35.7 million or 17%, compared to $213.2 million for the same period in 2024. The decrease is mainly due to lower labour and repair costs related to the decrease in operating days, and lower third-party MWD rental costs mainly related to the Rime MWD build-out. Direct costs as a percentage of revenues decreased to 71% in 2025 Q2, compared to 74% in 2024 Q2. Lost-in-hole revenues (1) was higher in 2025 Q2, relative to the comparative period, and since lost-in-hole activity typically has little to no related costs, direct costs as a percentage of revenue was lower in 2025 Q2 compared to 2024 Q2. Direct costs as a percentage of revenues remained consistent at 72% for the six months ended June 30, 2025 and 2024. Gross margin and Adjusted gross margin The gross margin percentage was 22% in 2025 Q2, compared to 21% in 2024 Q2. The gross margin percentage was consistent at 22% in the six months ended June 30, 2025 and 2024. The Adjusted gross margin percentage (1) increased to 29% in 2025 Q2, compared to 26% in 2024 Q2. The adjusted gross margin percentage was consistent at 28% in the six months ended June 30, 2025 and 2024. Despite a 14% and 16% decrease in revenues in 2025 Q2 and the six months ended June 30, 2025, respectively, the gross margin percentage and Adjusted gross margin percentage were relatively consistent. The Company remains focused on reducing third-party MWD rental costs by investing capital to build out its MWD fleet. Depreciation and amortization expense Depreciation and amortization expense included in cost of sales increased to $7.4 million in 2025 Q2, compared to $6.2 million in 2024 Q2 mainly due to a higher portion of the MWD build-out being depreciated. Depreciation and amortization expense included in cost of sales decreased to $14.8 million in the six months ended June 30, 2025, compared to $17.8 million for the same period in 2024. The decrease is mainly due to a change in depreciation methodology affecting the prior period. Selling, general and administrative ("SG&A") expenses The Company recognized direct costs included in SG&A expenses of $14.9 million and $31.4 million in 2025 Q2 and the six months ended June 30, 2025, compared to $14.8 million and $30.8 million for the same periods in 2024, respectively. The increase is mainly related to the effects of foreign currency translation of U.S. overhead costs and other minor increases. As a result of SG&A being more fixed cost in nature against lower revenues, direct costs included in SG&A expenses as a percentage of revenues were 13% in 2025 Q2 and the six months ended June 30, 2025, compared to 11% and 10% for the same periods in 2024, respectively. Depreciation and amortization included in SG&A expenses were $2.7 million and $5.6 million in 2025 Q2 and the six months ended June 30, 2025, compared to $2.5 million and $4.8 million for the same periods in 2024, respectively. The increases are mainly due to amortization expense associated with RSS licenses acquired in the latter part of 2024. Stock-based compensation included in SG&A expenses were $1.0 million and $1.5 million in 2025 Q2 and the six months ended June 30, 2025, compared to $0.7 million and $1.6 million for the same periods in 2024, respectively. The decrease is mainly due to certain stock options being fully vested in 2024, offset by the impact of the restricted shares granted in the period. Provision In 2025 Q2, the Company received additional information related to a historical sales and use tax audit period. As a result, the Company has recognized an additional provision of $4.8 million. As at June 30, 2025, the Company has accrued a total provision of $12.0 million related to the post-closing period related to the acquisition of Altitude in July 2022. In relation to a pre-closing sales tax issue related to the July 14, 2022 acquisition of Altitude, as a result of a preliminary assessment, the Company has recognized a provision of $14.7 million in Trade and other payables. Pursuant to the Equity Purchase Agreement related to the Altitude acquisition, the sellers provided the Company with an indemnity related to pre-closing tax issues, including the sales tax issue noted. Accordingly, the Company has recognized an offsetting indemnity receivable of $14.7 million in Other receivable. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Company to change its judgement regarding the adequacy of this provision. The Company recognized R&D costs of $1.2 million and $2.6 million in 2025 Q2 and the six months ended June 30, 2025, compared to $1.6 million and $2.8 million for the same periods in 2024, respectively. R&D costs are salaries, benefits, purchased materials and shop supply costs related to new product development and technology and sustaining engineering. Write-off of property, plant and equipment The Company recognized a write-off of property, plant and equipment of $1.2 million and $1.4 million in 2025 Q2 and the six months ended June 30, 2025, compared to $0.6 million and $2.2 million for the same periods in 2024, respectively. The write-offs related to equipment lost-in-hole and damaged beyond repair. Lost-in-hole equipment and damaged beyond repair reimbursements from customers are based on service agreements held with clients and are recognized as revenues. Finance costs Finance costs - loans and borrowings and exchangeable promissory notes were $1.3 million, a decrease of $1.1 million, compared to $2.4 million in 2024 Q2. Finance costs - loans and borrowings and exchangeable promissory notes were $3.5 million in the six months ended June 30, 2025, a decrease of $1.4 million, compared to $4.9 million for the same period in 2024. The decrease is mainly due to a lower outstanding balance of loans and borrowings in 2025 Q2 compared to 2024 Q2 and a lower interest rate as a result of the Company's refinancing completed in 2025 Q1 (refer to the 'Syndicated and revolving credit facilities' section of this news release). In addition, the Company had finance costs - lease liabilities of $0.3 million and $0.5 million in 2025 Q2 and the six months ended June 30, 2025, related to lease liabilities, compared to $0.2 million and $0.4 million for the same periods in 2024, respectively. Foreign exchange The Company recognized a foreign exchange loss of $6.6 million and $6.8 million in 2025 Q2 and the six months ended June 30, 2025, compared to a foreign exchange gain of $1.1 million and $3.0 million for the same periods, respectively, due to the impact of a 6% decrease in the Canadian dollar exchange rate from $1.44 at March 31, 2025 to $1.36 at June 30, 2025 on the revaluation of the Company's USD denominated balances (2025 Q2 - foreign exchange gain of $1.1 million) and intercompany loans issued by the parent company to its self-sustaining foreign subsidiaries (2025 Q2 - foreign exchange loss of $7.7 million). The offsetting foreign exchange gain on intercompany loans held by the subsidiaries is recognized as part of the translation of foreign operations within other comprehensive income, as described below. The Company's foreign operations are denominated in USD and differences due to fluctuations in the foreign currency exchange rates are recorded in other comprehensive income. The Company recognized a foreign currency translation loss on foreign operations of $4.0 million in 2025 Q2, compared to a gain of $0.7 million in 2024 Q2. The Company recognized a foreign currency translation loss of $4.1 million in the six months ended June 30, 2025, compared to a gain of $2.2 million for the same period in 2024. Income tax expense (recovery) The Company recognized an income tax expense of $1.0 million and an income tax recovery of $0.2 million in 2025 Q2 and the six months ended June 30, 2025, compared to an income tax expense of $1.1 million and $2.8 million for the same periods in 2024, respectively. Income tax expense (recovery) is recognized based upon expected annualized rates using the statutory rates of 23% for both Canada and the U.S. adjusted for key items that will effect the Company's actual tax for the period. LIQUIDITY AND CAPITAL RESOURCES Annually, the Company's principal source of liquidity is cash generated from its operations. In addition, the Company has the ability to fund liquidity requirements through its credit facility and the issuance of additional debt and/or equity, if available. In order to facilitate the management of its liquidity, the Company prepares an annual budget, which is updated, as necessary, depending on varying factors, including changes in capital structure, execution of the Company's business plan and general industry conditions. The annual budget is approved by the Board of Directors and updated forecasts are prepared as the fiscal year progresses with changes reviewed by the Board of Directors. Cash flow - operating activities was $26.0 million and $44.7 million in 2025 Q2 and the six months ended June 30, 2025, compared to $34.1 million and $49.9 million for the same periods in 2024, respectively. ACT remains focused on reducing its loans and borrowings and generating Free cash flow, as defined in the 'Non-GAAP measures' section of this news release. In addition, the Company will remain opportunistic in executing its NCIB and making strategic and accretive acquisitions. At June 30, 2025, the Company had working capital, excluding current portion of loans and borrowings of $73.7 million (December 31, 2024 - $84.4 million). Common share consolidation On May 9, 2024, the shareholders of the Company approved the consolidation of the issued and outstanding common shares of the Company, on the basis of one post-consolidation common share for a range of five to ten pre-consolidation common shares. On June 10, 2024, the Board of Directors approved a consolidation ratio of one post-consolidation share for seven pre-consolidation common shares (the "Consolidation"). As a result, on July 3, 2024, 243,383,392 common shares issued and outstanding prior to the Consolidation were reduced to 34,769,056 common shares. No fractional common shares were issued in connection with the Consolidation, and all fractional common shares that otherwise would have been issued was rounded to the nearest whole common share. The number of shares and per share amounts in this news release were restated to reflect the Consolidation. Normal course issuer bid During the six months ended June 30, 2025, 1,110,858 (2024 - 353,100) common shares were purchased under the NCIB for a total purchase amount of $6.3 million (2024 - $2.1 million) at an average price of $5.69 (2024 - $5.89) per common share. A portion of the purchase amount reduced share capital by $6.0 million (2024 - $2.0 million) and the residual purchase amount of $0.3 million (2024 - $0.1 million) was recorded to the surplus. On August 7, 2025, the Company received approval from the TSX to purchase up to 2,034,285 common shares of the Company, or 10% of the 20,342,855 issued and outstanding common shares of the Company under the NCIB. The ability to purchase common shares under the NCIB will commence on August 11, 2025, and will terminate no later than August 10, 2026. The actual number of common shares under the NCIB, the timing of purchases and the price at which the common shares are purchased will be subject to management's discretion. Syndicated and revolving credit facilities On March 21, 2025, the Company entered into a Fifth Amended and Restated Credit Agreement with its existing syndicate of lenders co-lead by ATB Financial and Royal Bank of Canada ("Amended Credit Agreement"). The Amended Credit Agreement provided for the following: i. A revolving facility with an approximate principal amount of $124.3 million comprised of: i) $100.0 million Syndicated Revolving Facility ("CAD Syndicated Revolving Facility") and ii) $10.0 million revolving facility provided by ATB Financial ("ATB Revolving Facility"), and iii) USD $10.0 million (approximately CAD $14.3 million equivalent) provided by HSBC Bank USA, N.A. ("HSBC Revolving Facility"). The revolving facility replaced the Company's existing facilities (CAD Syndicated Term Facility of $59.0 million, USD Syndicated Term Facility of USD $21.0 million, Syndicated Operating Facility of $35.0 million, Revolving Operating Facility of $15.0 million and USD Revolving Operating Facility of $10.0 million). As such, the contractual repayments of the CAD Syndicated Term Facility and USD Syndicated Term Facility are no longer required; ii. A lower amended interest rate updated to the financial institution's prime rate plus 1.0% to 1.75% or Canadian Overnight Repo Rate Average rate / Secured Overnight Financing Rate plus 2.0% to 2.75% (previously prime rate plus 1.5% to 2.25% or Canadian Overnight Repo Rate Average rate / Secured Overnight Financing Rate plus 2.5% to 3.25%); iii. The maturity date extended from July 11, 2026 to March 21, 2028; iv. Replaced the financial covenant of Consolidated Fixed Charge Coverage ratio (previously required to be no less than 1.25:1) with a Consolidated Interest Coverage Ratio, which is required to be no less than 3.0:1. The Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio remained unchanged and shall not exceed 2.5:1; and v. The syndicate of lenders remained unchanged with the exception of Royal Bank of Canada joining ATB Financial as the syndicate co-lead. As at June 30, 2025, $62.2 million of the $123.6 million Revolving Facility remained undrawn. Subsequent to June 30, 2025, the Company repaid $6.6 million of its CAD Syndicated Revolving Facility. At June 30, 2025, the Company was in compliance with all covenants, including its financial covenants, which were as follows: Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio shall not exceed 2.5:1.0 (calculated - 1.0); and Consolidated Interest Coverage ratio shall not be less than 3.0 :1.0 (calculated - 10.8). Contractual obligations and contingencies As at June 30, 2025, the Company's commitment to capital is approximately $7.8 million (December 31, 2024 - $11.9 million), which is expected to be incurred over the next six months. The Company holds six letters of credit totaling $1.7 million (December 31, 2024 - $1.8 million) related to rent payments, corporate credit cards and a utilities deposit. The Company is involved in various other legal claims and tax audits associated with the normal course of operations. The Company believes that any liabilities that may arise pertaining to such matters would not have a material impact on its financial position. Refer to the 'Provision' section in this news release for more details. The following table outlines the anticipated payments related to contractual commitments subsequent to June 30, 2025: (stated in thousands of Canadian dollars) Carrying amount One year 1-2 years 3-5 years Thereafter Loans and borrowings - principal $ 62,712 $ 657 $ — $ 62,055 $ — Exchangeable promissory ("EP") notes - principal 27,286 — 27,286 — — Interest payments on loans and borrowings and EP notes 14,043 6,056 4,719 3,268 — Lease liabilities - undiscounted 20,065 3,862 3,597 7,814 4,792 Trade and other payables 99,797 99,797 — — — Total $ 223,903 $ 110,372 $ 35,602 $ 73,137 $ 4,792 Capital structure As at August 8, 2025, the Company has 33,934,977 common shares, 2,618,958 stock options, and EP Notes, that are exchangeable into a maximum of 3,510,000 common shares outstanding. NET CAPITAL EXPENDITURES The following table details the Company's Net capital expenditures (1): Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars) 2025 2024 2025 2024 MWD and related equipment $ 2,345 $ 6,308 $ 17,200 $ 14,219 Motors and related equipment 3,271 6,738 11,256 13,944 Shop and automotive equipment 859 149 915 382 Other 879 869 1,532 1,438 Gross capital expenditures 7,354 14,064 30,903 29,983 Less: net lost-in-hole equipment reimbursements (6,841) (4,742) (7,958) (15,388) Net capital expenditures (1) $ 513 $ 9,322 $ 22,945 $ 14,595 (1) Refer to the 'Non-GAAP Measures' section in this news release. Equipment additions totaling $30.9 million included $7.6 million of items previously purchased and held in inventory for the Rime MWD system build-out in 2025 Q1. As at June 30, 2025, property, plant and equipment included $14.3 million (2024 - $12.4 million) of MWD equipment not yet being depreciated as they are currently being manufactured and tested. Depreciation of the assets will commence upon the assets being fully operational. Given the current market uncertainty, partly as a result of the enacted and proposed U.S. tariffs, the Company's 2025 Net capital expenditure budget will be dynamic and adjusted to reflect management's expectation of future activity levels. Currently, the Company's target Net capital expenditures (1) budget is anticipated to relate to necessary sustaining capital expenditures that will enhance realized gross margin percentage levels, including growing ACT's high-performance mud motors, MWD in both Canada and the U.S., and selective RSS deployments. ACT intends to fund its 2025 capital plan from cash flow - operating activities. NON-GAAP MEASURES ACT uses certain performance measures throughout this news release that are not defined under IFRS Accounting Standards or Generally Accepted Accounting Principles ("GAAP"). These non-GAAP measures do not have a standardized meaning and may differ from that of other organizations, and accordingly, may not be comparable. Investors should be cautioned that these measures should not be construed as alternatives to IFRS Accounting Standards measures as an indicator of ACT's performance. These measures include the Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Working capital and Net capital expenditures. Management believes these measures provide supplemental financial information that is useful in the evaluation of ACT's operations. These non-GAAP measures are defined as follows: i) "Adjusted gross margin" - calculated as gross margin before non-cash costs (write-down of inventory included in cost of sales, depreciation and amortization and share-based compensation); is a supplemental measure of changes in financial performance that are closely related to the Company's core operating activities, by excluding certain non-cash costs that might otherwise distort trends in overall profitability (see tabular calculation); ii) "Adjusted gross margin percentage" - calculated as Adjusted gross margin divided by revenues; is considered a primary indicator of operating performance (see tabular calculation); iii) "Adjusted EBITDAS" - calculated as net income before finance costs, unrealized foreign exchange gain (loss), foreign exchange gain (loss) on intercompany balances, income tax expense, depreciation and amortization, gain on settlement of lease liabilities, non-recurring costs, write-down of inventory included in cost of sales and equity-settled share-based compensation; provides supplemental information to net income that is useful in evaluating the results from our principal business activities prior to consideration of how our activities are financed, foreign exchange components and other charges like depreciation (see tabular calculation); iv) "Adjusted EBITDAS margin percentage" - calculated as Adjusted EBITDAS divided by revenues; provides supplemental information to net income that is useful in evaluating the results and financing of the Company's business activities before considering certain charges as a percentage of revenues (see tabular calculation); v) "Free cash flow" - calculated as cash flow - operating activities prior to: i) changes in non-cash working capital, ii) and income tax (refund) payment less: i) cash flow - investing activities (updated from property, plant and equipment ("PP&E") and intangible asset additions, excluding assets acquired in business combinations), ii) required repayments on loans and borrowings, in accordance with the Company's credit facility agreement, and iii) repayments of lease liabilities, net of finance costs, offset by proceeds on disposal of PP&E. This is a useful supplemental measure of the Company's ability to generate funds from operations available for future capital expenditures, discretionary debt repayments, or other strategic initiatives (see tabular calculation). Free cash flow was updated from prior periods to deduct cash flow - investing activities (updated from PP&E and intangible asset additions, excluding assets acquired in business combinations) to include changes in non-cash investing working capital in the calculation to account for non-cash movements in the period; vi) "Net capital expenditures" - calculated as the gross capital expenditures less net lost-in-hole equipment reimbursements, as defined below - refer to the "Net capital expenditures" section of this news release for tabular calculation; 1. "Lost-in-hole revenues" - represent reimbursements received from customers and insurance proceeds related to directional drilling equipment that is lost in-hole or damaged beyond repair. Management considers lost-in-hole revenues to be supplemental information that assists in understanding fluctuations in the Company's reported revenues under IFRS Accounting Standards. Although lost-in-hole revenues tend to remain relatively consistent over longer periods, they can vary significantly from period to period, causing fluctuations in the Company's financial results; 2. "Net lost-in-hole equipment reimbursements" - represent lost-in-hole revenues, as defined above, less outflows associated with vendor payments for insurance coverage and third-party rental equipment replacement, following equipment loss-in-hole or damage beyond repair; and vii) "Working capital" - calculated as current assets less current liabilities, excluding the current portion of loans and borrowings. Management uses this measure as an indication of the Company's financial and cash liquidity position. The following tables provide reconciliations from the IFRS Accounting Standards to non-GAAP measures included in this news release. Adjusted gross margin Adjusted EBITDAS Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars, except percentages) 2025 2024 2025 2024 Net (loss) income $ (9,959) $ 5,259 $ (2,711) $ 16,840 Add (deduct): Income tax expense (recovery) 984 1,148 (211) 2,813 Depreciation and amortization - cost of sales 7,448 6,180 14,796 17,815 Depreciation and amortization - selling, general and administrative expenses 2,730 2,462 5,556 4,809 Equity settled share-based compensation - cost of sales 129 169 260 392 Equity settled share-based compensation - selling, general and administrative expenses 536 719 1,077 1,649 Finance costs - loans and borrowings and exchangeable promissory notes 1,284 2,419 3,519 4,884 Finance costs - lease liabilities 260 201 541 406 Unrealized foreign exchange loss (gain) 6,527 (1,339) 6,811 (3,648) Provision 4,846 — 4,846 — Gain on settlement of lease liabilities — (391) — (391) Non-recurring expenses, including inventory write-off 39 478 39 485 Adjusted EBITDAS $ 14,824 $ 17,305 $ 34,523 $ 46,054 Adjusted EBITDAS margin percentage 13 % 13 % 14 % 16 % Free cash flow Three months ended June 30, Six months ended June 30, (stated in thousands of Canadian dollars) 2025 2024 2025 2024 Cash flow - operating activities $ 26,029 $ 34,123 $ 44,714 $ 49,866 Add (deduct): Income tax payment 439 3,633 384 3,793 Changes in non-cash operating working capital (10,183) (20,282) (9,092) (5,801) Less: Cash flow - investing activities (12,588) (13,192) (23,397) (31,320) Required repayments on loans and borrowings (1) — (5,164) — (10,313) Repayments of lease liabilities, net of finance costs (971) (917) (2,008) (1,816) Free cash flow (deficit) $ 2,726 $ (1,799) $ 10,601 $ 4,409 (1) Required repayments on loans and borrowings in accordance with the credit facility agreement, which excludes discretionary debt repayments. SUPPLEMENTARY FINANCIAL MEASURES AND OTHER DEFINITIONS i) "Average revenues per operating day" - is a supplemental operational metric calculated by dividing revenues, either for a specific geographic segment or on a consolidated basis as reported under IFRS Accounting Standards, by the corresponding number of operating days for that segment or on a consolidated basis. Management uses revenues per operating day to assess pricing strength, service intensity, and comparative financial performance against different periods and across different geographic markets; ii) "Job count" - sometimes referred to as daily jobs, refers to the number of drilling rigs our directional equipment is available for operation on those specific drilling rigs; iii) "MWD" - Measurement-while-drilling is a down-hole tool used in oil, natural gas and geothermal wells that provides real-time drilling data to the directional driller enabling more precise placement and optimized drilling operations. iv) "Operating days" - are defined as the total number of calendar days during which directional drilling services were actively provided to a customer at a rig site, excluding any days where personnel or equipment were on location but not engaged in active drilling operations (such as standby, rig move days, or other non-operational periods, regardless of whether partial revenues were recognized); and COMMON INDUSTRY TERMS i) "LNG" - natural gas is typically is transported via pipeline with customer demand limited to regions with access to these pipelines. Through liquefaction, larger volumes of natural gas can be economically exported by sea to new markets; ii) "RSS" - Rotary steerable system which is a high-technological drilling tool that simultaneously steers and rotates the drill bit without manual intervention enabling for more accurate drilling, especially in curved or horizontal wells. FORWARD LOOKING STATEMENTS This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this news release contains forward-looking statements relating to, among other things: The 2025 Net capital expenditure budget and financing thereof; Given the current market uncertainty, partly as a result of the enacted and proposed U.S. tariffs, the Company's 2025 Net capital expenditure budget will be dynamic and adjusted to reflect management's expectation of future activity levels. ACT retains a strong market position in regions that have some of the best economic return levels, which, combined with its extensive experience and leading technology offering, is ideally suited for the growing number and length of wells drilled in the multi-lateral oil plays. ACT remains committed to returning capital to its shareholders. During the second quarter, ACT completed its 2024 / 2025 NCIB program, maxing out our available repurchases. ACT is renewing a program and will continue to utilize this program as a lever for returning capital to our shareholders. ACT remains committed to delivering ultra-high-performance directional drilling and related down-hole services, leveraging our proprietary technologies and experienced team. This focus will allow us to deliver value to our shareholders through the cycles. To maximize returns, we continue to expect allocating capital as follows: Margin expansion: utilize selective capital investment, primarily rotary steerable systems ("RSS") and MWD to replace rental equipment with in-house, next-generation technology solutions. Return of capital: repurchase shares through the Company's NCIB. Further strengthen our financial position: although debt remains low, continue to reduce leverage, which allows for business resiliency through the cycles and optionality to pursue a counter-cyclical, long-term investment strategy. By having this diverse approach to capital allocation, ACT believed it will continue to build an increasingly durable business model, one that optimizes investment returns over the long term. Currently, the Company's target Net capital expenditures budget is anticipated to relate to necessary sustaining capital expenditures that will enhance realized gross margin percentage levels, including growing ACT's high-performance mud motors, MWD in both Canada and the U.S., and selective RSS deployments. ACT intends to fund its 2025 capital plan from cash flow - operating activities. General uncertainty related to commodity prices, trade, and potential tariffs, are resulting in restrained levels of drilling activity and a more cautious spending environment. Despite the cautious environment, Canadian activity levels appear to be somewhat resilient and the rig count in the U.S. seems to be nearing a bottom, with some potential for increases in the back half of this year. ACT remains positive on the longer-term outlook for energy fundamentals due to general economic growth, increasing demand from emerging economies, and significant opportunities related to growth in power demand. In Canada, stronger customer balance sheets, reasonably constructive commodity price levels, and additional takeaway capacity for both oil and gas continue to support consistent levels of drilling activity. The first LNG Canada natural gas volumes have now shipped from Kitimat, British Columbia and the expansion of the Trans Mountain Pipeline supports heavy oil production, both of which should be positive for drilling activity in the long term. ACT's Canadian job count is in the low-50 job count range supported by our strong presence in multi-lateral drilling markets. Given relatively strong drilling economics for multi-lateral drilling projects, activity levels are anticipated to be resilient in these areas with continued plans for growth though this cycle and into the future. ACT expects its Canadian activity levels to be similar or slightly less than 2024 levels of activity as some of its customers have deferred spending plans to later this year due to market uncertainty. At the end of 2025 Q2, the Company saw improved U.S gross margins by the reduction of third-party rental costs by utilizing Rime supplied MWD systems. Further durability of gross margins is expected as more MWD systems are deployed. To date, twenty-nine Rime MWD systems have been deployed with an additional twenty-one MWD systems expected to be deployed by the end of 2025 Q3. A substantial majority of the inventory required to build-out these systems was spent in 2024, with minimal purchases required in 2025. The Company remains focused on reducing third-party MWD rental costs by investing capital to build out its MWD fleet. Increasing the penetration of this next-generation technology with the ACT's clients is expected to grow U.S. operating margins by lowering third-party MWD rental costs. ACT expects to build on the initial success of the product rollout thus far and continue to increase levels of customer adoption through the back half of this year and into next year. Rig counts in the U.S. appear to be approaching a bottom as improved year-over-year natural gas prices are expected to result in increased gas rig counts in the back half of this year. Ongoing major additions to U.S. LNG export capacity in the coming two to three years and extreme growth in data center build-out should motivate continued strength in U.S. natural gas demand, pricing and gas drilling levels. ACT remains bullish on longer-term global energy demand and believes that pursuing strong directional drilling market positions in the both the U.S. and Canada remains the best way to capture this opportunity. The Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources. In some instances, material assumptions and material factors are presented elsewhere in this news release in connection with the forward-looking statements. You are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to: the performance of ACT's business; impact of economic and social trends; oil and natural gas commodity prices and production levels; capital expenditure programs and other expenditures by ACT and its customers; the ability of ACT to attract and retain key management personnel; the ability of ACT to retain and hire qualified personnel; the ability of ACT to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities; the ability of ACT to maintain good working relationships with key suppliers; the ability of ACT to retain customers, market its services successfully to existing and new customers and reliance on major customers; risks associated with technology development and intellectual property rights; obsolescence of ACT's equipment and/or technology; the ability of ACT to maintain safety performance; the ability of ACT to obtain adequate and timely financing on acceptable terms; the ability of ACT to comply with the terms and conditions of its credit facility; the ability to obtain sufficient insurance coverage to mitigate operational risks; currency exchange and interest rates; risks associated with future foreign operations; the ability of ACT to integrate its transactions and the benefits of any acquisitions, dispositions and business development efforts; environmental risks; business risks resulting from weather, disasters and related to information technology; changes under governmental regulatory regimes including tariffs and tax, environmental, climate and other laws in Canada and the U.S.; and competitive risks. Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in this news release and in the Company's Annual Information Form under the heading "Risk Factors". Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current Annual Information Form that has been filed with Canadian provincial securities commissions and is available on and the Company's website ( As at June 30, 2025 and December 31, 2024 Canadian dollars in '000s (unaudited) June 30, December 31, Balance, 2025 2024 Assets Current assets: Cash $ 24,048 $ 12,792 Trade receivables 85,430 105,872 Other receivable 14,721 15,526 Current taxes receivable 2,487 2,417 Prepaid expenses 5,185 6,678 Inventories 45,554 51,498 Total current assets 177,425 194,783 Property, plant and equipment 139,798 129,243 Intangible assets 68,443 77,352 Right-of-use assets 15,932 15,359 Goodwill 41,192 43,444 Deferred tax asset 12,700 12,700 Total non-current assets 278,065 278,098 Total assets $ 455,490 $ 472,881 Liabilities and Shareholders' Equity Current liabilities: Trade and other payables $ 99,797 $ 106,242 Loans and borrowings, current 657 21,435 Lease liabilities, current 3,930 4,124 Total current liabilities 104,384 131,801 Loans and borrowings, long-term 61,488 42,092 Exchangeable promissory notes 26,064 26,962 Lease liabilities, long-term 16,135 16,037 Deferred tax liability 13,300 14,409 Total non-current liabilities 116,987 99,500 Total liabilities 221,371 231,301 Shareholders' equity: Share capital 195,123 195,516 Treasury shares (229) (469) Exchangeable promissory notes 1,242 1,242 Contributed surplus 17,024 17,408 Accumulated other comprehensive income 15,027 19,151 Surplus 5,932 8,732 Total shareholders' equity 234,119 241,580 Total liabilities and shareholders' equity $ 455,490 $ 472,881 Three and six months ended June 30, 2025 and 2024 Canadian dollars in '000s except per share amounts (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenues $ 112,010 $ 130,297 $ 247,367 $ 295,253 Cost of sales: Direct costs (79,559) (96,165) (177,432) (213,173) Depreciation and amortization (7,448) (6,180) (14,796) (17,815) Share-based compensation (129) (169) (260) (392) Total cost of sales (87,136) (102,514) (192,488) (231,380) Gross margin 24,874 27,783 54,879 63,873 Selling, general and administrative expenses: Direct costs (14,937) (14,808) (31,370) (30,834) Depreciation and amortization (2,730) (2,462) (5,556) (4,809) Share-based compensation (968) (719) (1,509) (1,649) Total selling, general and administrative expenses (18,635) (17,989) (38,435) (37,292) Provision (4,846) — (4,846) — Research and development costs (1,220) (1,628) (2,584) (2,831) Write-off of property, plant and equipment (1,207) (613) (1,386) (2,248) Gain on disposal of property, plant and equipment 178 20 335 20 Gain on settlement of lease liabilities — 391 — 391 (Loss) income from operating activities (856) 7,964 7,963 21,913 Finance costs - loans and borrowings and exchangeable promissory notes (1,284) (2,419) (3,519) (4,884) Finance costs - lease liabilities (260) (201) (541) (406) Foreign exchange (loss) gain (6,575) 1,063 (6,825) 3,030 (Loss) income before income taxes (8,975) 6,407 (2,922) 19,653 Income tax (expense) recovery: Current (107) (202) (181) (1,655) Deferred (877) (946) 392 (1,158) Income tax (expense) recovery (984) (1,148) 211 (2,813) Net (loss) income (9,959) 5,259 (2,711) 16,840 Other comprehensive (loss) income Foreign currency translation differences on foreign operations (4,045) 738 (4,124) 2,193 Total comprehensive (loss) income $ (14,004) $ 5,997 $ (6,835) $ 19,033 Net (loss) income per share - basic (restated) $ (0.30) $ 0.15 $ (0.08) $ 0.49 Net (loss) income per share - diluted (restated) $ (0.30) $ 0.14 $ (0.08) $ 0.44 Six months ended June 30, 2025 and 2024 Canadian dollars in '000s (unaudited) Share capital Treasury Shares Exchangeable promissory ("EP") Notes Contributed surplus Accumulated other comprehensive income Deficit Total shareholders' equity Balance, December 31, 2023 $ 197,380 $ (709) $ 1,242 $ 17,002 $ 13,088 $ (48,535) $ 179,468 Comprehensive income — — — — 2,193 16,840 19,033 Repurchased pursuant to normal course issuer bid (2,019) — — — — (58) (2,077) Contributed surplus on treasury shares vesting — 240 — (240) — — — Issued pursuant to stock option exercises 3,645 — — (1,415) — — 2,230 Share-based compensation — — — 2,041 — — 2,041 Balance, June 30, 2024 $ 199,006 $ (469) $ 1,242 $ 17,388 $ 15,281 $ (31,753) $ 200,695 Share capital Treasury shares EP Notes Contributed surplus Accumulated other comprehensive income Surplus Total shareholders' equity Balance, December 31, 2024 $ 195,516 $ (469) $ 1,242 $ 17,408 $ 19,151 $ 8,732 $ 241,580 Comprehensive loss — — — — (4,124) (2,711) (6,835) Repurchased pursuant to normal course issuer bid (6,021) — — — — (303) (6,324) Accrued purchases under the normal course issuer bid 1,854 — — — — 214 2,068 Contributed surplus on treasury shares vested — 240 — (240) — — — Issued pursuant to stock options exercised 3,774 — — (1,483) — — 2,291 Share-based compensation — — — 1,339 — — 1,339 Balance, June 30, 2025 $ 195,123 $ (229) $ 1,242 $ 17,024 $ 15,027 $ 5,932 $ 234,119 Three and six months ended June 30, 2025 and 2024 Canadian dollars in '000s (unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Cash provided by (used in): Operating activities: Net (loss) income $ (9,959) $ 5,259 $ (2,711) $ 16,840 Non-cash adjustments: Income tax expense 984 1,148 (211) 2,813 Depreciation and amortization 10,178 8,642 20,352 22,624 Share-based compensation 1,097 888 1,769 2,041 Write-off of property, plant and equipment 1,207 613 1,386 2,248 Gain on disposal of property, plant and equipment (178) (20) (335) (20) Gain on settlement of lease liabilities — (391) — (391) Provision 4,846 — 4,846 — Write-down of inventory included in cost of sales 39 54 39 61 Finance costs - loans and borrowings and exchangeable promissory notes 1,284 2,419 3,519 4,884 Finance costs - lease liabilities 260 201 541 406 Income tax payment (439) (3,633) (384) (3,793) Unrealized foreign exchange loss (gain) 6,527 (1,339) 6,811 (3,648) 15,846 13,841 35,622 44,065 Changes in non-cash operating working capital 10,183 20,282 9,092 5,801 Cash flow - operating activities 26,029 34,123 44,714 49,866 Investing activities: Property, plant and equipment additions (7,354) (14,064) (30,903) (29,983) Intangible asset additions (158) (1,892) (346) (6,859) Proceeds on disposal of property, plant and equipment 115 1,533 323 1,533 Changes in non-cash investing working capital (5,191) 1,231 7,529 3,989 Cash flow - investing activities (12,588) (13,192) (23,397) (31,320) Financing activities: Advances of loans and borrowings, net of upfront financing fees — — (335) 10,000 Repayments on loans and borrowings (24) (10,159) (52) (16,868) Payments on lease liabilities, net of finance costs (971) (917) (2,008) (1,816) Interest paid (1,239) (2,316) (3,438) (4,689) Common shares repurchased pursuant to normal course issuer bid 2,083 — (4,255) (2,077) Proceeds on common share issuances, net of issuance costs 2,090 2,007 2,291 2,230 Changes in non-cash financing working capital (3,885) — (2,069) — Cash flow - financing activities (1,946) (11,385) (9,866) (13,220) Effect of exchange rate on changes in cash (396) 481 (195) 935 Change in cash 11,099 10,027 11,256 6,261 Cash, beginning of period 12,949 6,965 12,792 10,731 Cash, end of period $ 24,048 $ 16,992 $ 24,048 $ 16,992 ACT Energy Technologies Ltd., based in Calgary, Alberta, Canada, is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. and Canada under Altitude Energy Partners, Discovery Downhole Services in the U.S., and Rime Downhole Technologies, LLC in the U.S.. ACT's common shares are publicly-traded on the Toronto Stock Exchange under the symbol "ACX". ACT is a trusted partner to North American energy companies requiring high performance directional drilling services and related downhole technologies. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs. Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs. For more information, visit • Sustained Adjusted EBITDAS margins (1) despite lower activity and revenues primarily attributable to lower third-party rental costs as a result of the Rime measurement-while-drilling ("MWD") deployment. Adjusted EBITDAS (1) of $14.8 million in 2025 Q2 decreased 14%, compared to $17.3 million in 2024 Q2, attributable to lower revenues, offset by the lower direct costs. • Revenues of $112.0 million in 2025 Q2, a decrease of 14%, compared to $130.3 million in 2024 Q2, with the decline primarily attributable to lower U.S. operating days. SOURCE ACT Energy Technologies LTD.
