Total Energy Services Inc. Announces Q2 2025 Results
Financial Highlights
($000's except per share data, unaudited)
Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.
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Total Energy's financial results for the second quarter of 2025 represent record second quarter results. A substantial increase in Australian drilling and service rig activity, continued strong North American demand for compression and process equipment and improved performance from Canadian well servicing more than offset a substantial decline in United States drilling and completion activity and a modest decline in Canadian drilling activity.
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Contract Drilling Services ('CDS')
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
(2) Operating days includes drilling and paid standby days.
Second quarter CDS segment activity was modestly lower in 2025 compared to 2024 due to a substantial decline in U.S. activity, an extended spring shutdown in Canada and the loss of market share in more competitive areas of the Canadian market. The decline in North American operating days was offset by a significant increase in Australian activity following the acquisition of Saxon in March of 2024 and the reactivation of several upgraded drilling rigs following such acquisition. The year over year increase in second quarter Australian revenue per operating day reflects the addition of Saxon's deeper drilling rig fleet which receives higher day rates as well as increased rates received for upgraded drilling rigs.
Rentals and Transportation Services ('RTS')
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
RTS segment revenue and revenue per utilized piece of equipment both decreased for the second quarter of 2025 compared to 2024 due to the mix of equipment operating and lower industry activity. Second quarter segment EBITDA decreased in 2025 compared to the prior year due to the change in the mix of equipment operating and lower equipment utilization. Partially offsetting the decline in U.S. activity was the acquisition of 280 major pieces of rental equipment located in Oklahoma on June 10, 2025.
Compression and Process Services ('CPS')
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
(2) Rental equipment utilization is measured on a horsepower basis.
2025 second quarter CPS segment revenue was higher compared to 2024 due to increased fabrication sales and parts and service activity in both Canada and the U.S. that was partially offset by lower compression rental fleet utilization. Efficiencies arising from higher production levels contributed to the year-over-year increase in second quarter segment EBITDA and EBITDA margin. Sequentially, the quarter end fabrication sales backlog increased by $38.5 million, or 15%, from the $265.4 million backlog at March 31, 2025.
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Well Servicing ('WS')
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
(2) Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby.
(3) T he Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company's service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.
Second quarter WS segment revenue increased in 2025 as compared to 2024 due to increased activity in Australia and Canada following the reactivation of several upgraded service rigs that offset a substantial decline in U.S. activity. Segment EBITDA for the second quarter of 2025 was higher compared to the prior year due to increased Australian and Canadian activity and higher pricing realized in Australia for upgraded service rigs.
Corporate
During the second quarter of 2025, Total Energy continued to execute on its 2025 capital expenditure program and pursuit of attractive acquisition opportunities. $26.3 million of capital expenditures were made during the second quarter that related primarily to the upgrade of drilling and service rigs in Australia and Canada and the acquisition of rental equipment in the U.S. To June 30, 2025, $60.8 million of capital expenditures were funded, including approximately $16.6 million of capital commitments carried forward from 2024 and the acquisition of 280 pieces of rental equipment located in Oklahoma on June 10, 2025 for $9.0 million.
Following the repayment of a $40.4 million mortgage loan that matured on April 29, 2025, Total Energy exited the second quarter of 2025 with $111.8 million of positive working capital, including $34.2 million of cash, and $75.0 million of available credit under its $175 million of revolving bank credit facilities. The weighted average interest rate on the Company's outstanding bank debt at June 30, 2025 was 4.49%.
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$17.0 million was returned to shareholders during the first half of 2025 with the payment of $7.2 million of dividends and the repurchase of $9.8 million of shares under the Company's normal course issuer bid. $10.9 million of bank debt was also repaid during this period.
Outlook
Oil prices remained relatively weak during the second quarter of 2025 as a result of significant global economic uncertainty. Such uncertainty continues to impair North American drilling and completion activity levels, particularly in the United States. Offsetting such weakness is continued strong North American demand for compression and process equipment and stable Australian industry conditions. The CPS segment's record $303.9 million fabrication sales backlog at June 30, 2025 provides visibility into 2026.
Total Energy's Board of Directors has approved a $19.5 million increase to the Company's 2025 capital expenditure budget to $102.4 million. This increase is directed primarily towards the expansion of the CPS segment's United States compression fabrication capacity. The planned expansion will increase the Company's U.S. plant capacity by at least 75% and is expected to be completed by the first quarter of 2027. In addition, an idle Australian service rig will be upgraded and put into service by the end of the first quarter of 2026 under a minimum 12 month contract. Including this increase, approximately 70% of the Company's 2025 capital budget is targeting growth opportunities. Total Energy intends to finance the remaining $58.2 million of 2025 capital expenditure commitments with cash on hand and cashflow.
Conference Call
At 9:00 a.m. (Mountain Time) on August 6, 2025 Total Energy will conduct a conference call and webcast to discuss its second quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy's website at www.totalenergy.ca by selecting 'Webcasts'. Persons wishing to participate in the conference call may do so by calling (833) 752-3851 or (647) 846-8915. Those who are unable to listen to the call live may listen to a recording of it on Total Energy's website. A recording of the conference call will also be available until September 6, 2025 by dialing (855) 669-9658 (passcode 1605923).
Selected Financial Information
Selected financial information relating to the three and six months ended June 30, 2025 and 2024 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management's discussion and analysis to be issued in due course and in the Company's 2024 Annual Report.
Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
Consolidated Statements of Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)
Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
Segmented Information
The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labor required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labor required to operate the equipment. Corporate includes activities related to the Company's corporate and public issuer affairs.
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As at and for the three months ended June 30, 2025 (unaudited, in thousands of Canadian dollars)
As at and for the three months ended June 30, 2024 (unaudited, in thousands of Canadian dollars)
(1) Corporate includes the Company's corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
As at and for the six months ended June 30, 2025 (unaudited, in thousands of Canadian dollars)
As at and for the six months ended June 30, 2024 (unaudited, in thousands of Canadian dollars)
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(1) Corporate includes the Company's corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.
Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca
Notes to the Financial Highlights
(1) EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company's primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy's performance. Total Energy's method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.
(2) Working capital equals current assets minus current liabilities.
(3) Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company's liquidity.
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(4) Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 6 to the Company's Condensed Interim Consolidated Financial Statements.
Certain statements contained in this press release, including statements which may contain words such as 'could', 'should', 'expect', 'believe', 'will' and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.
In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy's future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy's ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy's most recently filed Annual Information Form and other public disclosures (available at http://www.sedarplus.ca/) for a discussion of such risks and uncertainties.
The TSX has neither approved nor disapproved of the information contained herein.
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Reconcile Net Income to EBITDA Reconcile EBITDA to Adjusted EBITDA Three Months Ended Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 (000s) ($) ($) ($) ($) ($) ($) ($) ($) EBITDA 42,967 22,169 91,510 33,345 42,604 36,030 44,424 31,479 Add: Foreign exchange loss (gain) 681 14,247 714 (1,202) (1,245) 5,574 (170) (1,174) Put option revaluation — (149) — — — (1,413) — — Net monetary loss (1,477) — — — — — — — Gain on previously held equity interest — — (50,830) — — — — — Other 110 2,621 1,031 992 2,789 1,928 958 1,269 Adjusted EBITDA 42,281 38,888 42,425 33,135 44,148 42,119 45,212 31,574 Free cash flow Free cash flow is defined as cash from operating activities plus proceeds on disposal of property, plant, and equipment, less capital expenditures (including changes to non-cash working capital associated with capital expenditures), and deferred development costs. This metric provides a key measure on the Company's ability to generate cash from its principal business activities after funding capital expenditure programs, and provides an indication of the amount of cash available to finance, among other items, the Company's dividend and other investment opportunities. Three Months Ended Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 (000s) ($) ($) ($) ($) ($) ($) ($) ($) Cash from operating activities 31,698 27,412 31,014 25,976 30,375 35,825 39,942 20,231 Less: Net additions to property, plant and equipment (6,474) (7,720) (17,834) (16,695) (12,444) (16,707) (15,268) (13,562) Deferred development costs (208) (375) (1,447) (1,250) (1,277) (1,472) (1,440) (1,393) Free cash flow 25,016 19,317 11,733 8,031 16,654 17,646 23,234 5,276 Supplementary Financial Measures A supplementary financial measure: (a) is, or is intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company; (b) is not presented in the financial statements of the Company; (c) is not a non-GAAP financial measure; and (d) is not a non-GAAP ratio. Supplementary financial measures found within this press release are as follows: Revenue per Industry Day Revenue per Industry Day is defined as the total revenue generated from the North American Drilling segment over all active drilling rig days in the North American market. This metric provides a key measure of the North American Drilling segment's ability to evaluate and manage product adoption, pricing, and market share penetration. Drilling rig days are calculated by using accepted industry sources. IWS Active Jobs IWS Active Jobs represents the average number of jobs per day that IWS is generating revenue on through the rental of its technology offering to customers during the reporting period. This metric provides a key measure of IWS' market penetration. Revenue per IWS Day Revenue per IWS Day is defined as the total revenue generated by the Completions segment over all IWS active days during the quarter. IWS active days are calculated by using IWS Active Jobs in the reporting period. This metric provides a key measure of the IWS' ability to evaluate and manage product adoption and pricing. Adjusted EBITDA as a percentage of revenue Calculated as adjusted EBITDA divided by revenue. Total Cash Calculated as the sum of cash and cash equivalents, and short-term investments from the Company's Consolidated Balance Sheets. The Company's short term-investments are comprised of US dollar bonds. Forward Looking Information Certain statements contained herein constitute "forward-looking statements" and/or "forward-looking information" under applicable securities laws (collectively referred to as "forward-looking statements"). Forward- looking statements can generally be identified by the words "anticipate", "expect", "believe", "may", "could", "should", "will", "estimate", "project", "intend", "plan", "outlook", "forecast" or expressions of a similar nature suggesting a future outcome or outlook. Without limiting the foregoing, this document includes, but is not limited to, the following forward-looking statements: the Company's growth strategy and related schedules; divergence in activity levels between the geographic regions in which we operate; demand fluctuations for our products and services; the Company's ability to increase or maintain market share; projected future value, forecast operating and financial results; planned capital expenditures; expected product performance and adoption, including the timing, growth and profitability thereof; potential dividends and dividend growth strategy; future use and development of technology; our financial ability to meet long-term commitments not included in liabilities; the collectability of accounts receivable; the application of critical accounting estimates and judgements; treatment under governmental regulatory and taxation regimes; and projected increasing shareholder value. These forward-looking statements reflect the current views of Pason with respect to future events and operating performance as of the date of this document. They are subject to known and unknown risks, uncertainties, assumptions, and other factors that could cause actual results to be materially different from results that are expressed or implied by such forward-looking statements. Although we believe that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: the state of the economy; volatility in industry activity levels and resulting customer expenditures on exploration and production activities; customer demand for existing and new products; the industry shift towards more efficient drilling and completions activity and technology to assist in that efficiency; the impact of competition; the loss of key customers; the loss of key personnel; cybersecurity risks; reliance on proprietary technology and ability to protect the Company's proprietary technologies; changes to government regulations (including those related to safety, environmental, or taxation); the impact of extreme weather events and seasonality on our suppliers and on customer operations; and war, terrorism, pandemics, social or political unrest that disrupts global markets. These risks, uncertainties and assumptions include but are not limited to those discussed in Pason's Annual Information Form for the year ended December 31, 2024 under the heading, "Risk and Uncertainty," in our management's discussion and analysis for the year ended December 31, 2024, and in our other filings with Canadian securities regulators. These documents are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( or through Pason's website ( Forward-looking statements contained in this document are expressly qualified by this cautionary statement. Except to the extent required by applicable law, Pason assumes no obligation to publicly update or revise any forward-looking statements made in this document or otherwise, whether as a result of new information, future events or otherwise. Pason Systems Inc. Pason is a leading global provider of specialized data management systems for drilling rigs. Our solutions, which include data acquisition, wellsite reporting, remote communications, web-based information management, and analytics, enable collaboration between the rig and the office. Through Intelligent Wellhead Systems Inc. ("IWS"), we also provide engineered controls, data acquisition, and software, to automate workflows and processes for oil and gas well completions operations, improving wellsite safety and efficiency. Through Energy Toolbase Software, Inc. ("ETB"), we also provide products and services for the solar power and energy storage industry. ETB's solutions enable project developers to model, control and monitor economics and performance of solar energy and storage projects. Pason's common shares trade on the Toronto Stock Exchange and OTC Markets Group under the symbol PSI and PSYTF, respectively. For more information about Pason Systems Inc., visit the company's website at or contact [email protected]. Additional information on risks and uncertainties and other factors that could affect Pason's operations or financial results are included in Pason's reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website ( or through Pason's website (
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- The Market Online
@ the Bell: Dip buying and earnings drive market gains
Canada's main stock index hit a new all-time high on Wednesday, driven by dip-buying activity following Friday's decline and ongoing evaluations of corporate earnings. The tech segment was by far the top gaining sector on the TSX while a large wave of losses among the energy, industrials, health care, and mining markets capped growth. US equities also advanced as investors reviewed the latest round of earnings reports after a previous downturn on Wall Street. Apple (NASDAQ:AAPL) shares rose more than 5 per cent after a White House official announced that the company plans to increase its domestic manufacturing investment by US$100 billion, bringing its total US investment to US$600 billion over the next four years. The Canadian dollar traded for 72.76 cents US compared to 72.55 cents US on Tuesday. US crude futures traded US$1.07 lower at US$64.09 a barrel, and the Brent contract lost US$1.00 to US$66.44 a barrel. The price of gold was down US$9.32 to US$3,370.92. In world markets, the Nikkei was up 245.32 points to ¥40,794.86, the Hang Seng was up 8.10 points to HK$24,910.63, the FTSE was up 21.58 points to ₤9,164.31, and the DAX was up 78.29 points to €23,924.36. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here .
Toronto Star
39 minutes ago
- Toronto Star
WSP Reports Q2 2025 Results
Strong free cash flow generation Robust margin expansion with an 80 basis points increase in adjusted EBITDA margin Enhanced financial outlook with adjusted EBITDA now expected to reach the higher end of the range MONTREAL, Aug. 06, 2025 (GLOBE NEWSWIRE) — WSP Global Inc. (TSX: WSP) ('WSP' or the 'Corporation'), one of the world's leading professional services firms, today announced financial results for the second quarter and six-month period ended June 28, 2025.
