CTP N.V. Notice of H1-2025 Results
CTP N.V. ('CTP' or the 'Company'), Europe's largest listed owner, developer and manager of logistics and industrial real estate by gross lettable area, will announce its H1-2025 results on Thursday, 7 August 2025.
On the day, at 09.00 am (GMT) and 10.00 am (CET) the Company will host a video presentation and Q&A session for analysts and investors, via a live webcast and audio conference call.
The live webcast can be viewed through the following link:
https://www.investis-live.com/ctp/6863c5976c0d660016f95b35/kalwt
To join the presentation by telephone, please dial one of the following numbers and enter the participant access code 893972.
Press *1 to ask a question, *2 to withdraw your question, or *0 for operator assistance.
A recording will be available on CTP's website within 24 hours after the presentation: https://ctp.eu/investors/financial-results/
About CTP
CTP is Europe's largest listed owner, developer, and manager of logistics and industrial real estate by gross lettable area, owning 13.4 million sqm of GLA across 10 countries as at 31 March 2025. CTP certifies all new buildings to BREEAM Very good or better and earned a negligible-risk ESG rating by Sustainalytics, underlining its commitment to being a sustainable business. For more information, visit CTP's corporate website: www.ctp.eu
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Business Wire
6 minutes ago
- Business Wire
Cactus Announces Second Quarter 2025 Results
HOUSTON--(BUSINESS WIRE)--Cactus, Inc. (NYSE: WHD) ('Cactus' or the 'Company') today announced financial and operating results for the second quarter of 2025. Second Quarter Highlights Revenue of $273.6 million and operating income of $60.8 million; Net income of $49.0 million and diluted earnings per Class A share of $0.59; Adjusted net income (1) of $53.2 million and diluted earnings per share, as adjusted (1) of $0.66; Net income margin of 17.9% and adjusted net income margin (1) of 19.5%; Adjusted EBITDA (2) and Adjusted EBITDA margin (2) of $86.7 million and 31.7%, respectively; Cash flow from operations of $82.8 million; Cash and cash equivalents of $405.2 million, with no bank debt outstanding as of June 30, 2025; Signed an agreement to acquire a 65% majority interest in Baker Hughes' Surface Pressure Control business; and In July 2025, the Board of Directors approved an 8% increase in the dividend to $0.14 per Class A share per quarter and declared a quarterly dividend of that amount. Financial Summary Three Months Ended June 30, March 31, June 30, 2025 2025 2024 (in thousands) Revenues $ 273,575 $ 280,319 $ 290,389 Operating income (3) $ 60,805 $ 68,612 $ 79,819 Operating income margin 22.2 % 24.5 % 27.5 % Net income $ 49,047 $ 54,105 $ 63,059 Net income margin 17.9 % 19.3 % 21.7 % Adjusted net income (1) $ 53,249 $ 58,816 $ 65,192 Adjusted net income margin (1) 19.5 % 21.0 % 22.4 % Adjusted EBITDA (2) $ 86,677 $ 93,841 $ 103,637 Adjusted EBITDA margin (2) 31.7 % 33.5 % 35.7 % Expand (1) Adjusted net income, Adjusted net income margin and diluted earnings per share, as adjusted are non-GAAP financial measures. These figures assume Cactus, Inc. held all units in its operating subsidiary at the beginning of the period. Additional information regarding non-GAAP financial measures, including the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures are in the Supplemental Information tables. (2) Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See the definitions of these measures and the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables. (3) Operating income reflects certain expenses related to the FlexSteel acquisition, including expenses related to the remeasurement of the earn-out liability associated with the FlexSteel acquisition and intangible amortization expenses related to purchase price accounting. See the reconciliation of GAAP to non-GAAP financial measures in the Supplemental Information tables for further details. Expand Scott Bender, CEO and Chairman of the Board of Cactus, commented, 'Our second quarter performance highlights the benefits of portfolio diversification achieved through the FlexSteel acquisition, as cash flows and revenues remained resilient despite falling U.S. land activity levels. Spoolable Technologies revenues increased and margins exceeded expectations on improved manufacturing efficiency in the quarter. Pressure Control revenues declined more than expected, largely driven by lower frac equipment rental, while our product sales outperformed the quarter-over-quarter decline in the average U.S. land rig count reflecting our market share strength. Pressure Control margins were unfavorably impacted by tariffs as we exited the second quarter, particularly given the unexpected doubling of the Section 232 tariff announced and implemented in the quarter.' 'In the third quarter of 2025, we anticipate that the U.S. land rig count will continue to decline, although we believe that the majority of the reductions for 2025 are behind us provided commodity prices remain relatively stable near today's levels. We expect revenues to be down modestly in both segments, following the lower average domestic activity levels.' Mr. Bender concluded, 'The second quarter was transformational for Cactus as we announced the agreement to acquire a 65% majority interest in Baker Hughes' Surface Pressure Control business. Our integration planning work is progressing smoothly, and I am particularly pleased with the customer response to our Joint Venture announcement. Adjusting to lower North American activity levels and tariff uncertainties that have negatively impacted margins, we have recently taken action to right-size our organization to align with expectations for the second half of the year. The current softness in the North American market and the ongoing tariff uncertainty emphasized the strategic rationale for our planned acquisition of the Surface Pressure Control business of Baker Hughes, which will provide Cactus with a broader geographic footprint and further revenue diversification.' Segment Performance We report two business segments, Pressure Control and Spoolable Technologies. Corporate and other expenses not directly attributable to either segment are presented separately as Corporate and Other expenses. Pressure Control Second quarter 2025 Pressure Control revenue decreased $10.5 million, or 5.5%, sequentially, primarily due to lower rental revenues and lower sales of wellhead and production related equipment resulting from reduced activity levels in the quarter. Operating income decreased $12.0 million, or 22.1%, sequentially, with margins declining 510 basis points due to tariff impacts to product margins and increased legal expenses and reserves recognized in connection with litigation claims. Adjusted Segment EBITDA decreased $11.7 million, or 18.0%, sequentially, with Adjusted Segment EBITDA margins decreasing 450 basis points. Spoolable Technologies Second quarter 2025 Spoolable Technologies revenues increased $3.6 million, or 3.9%, sequentially, due to higher customer activity levels in the seasonally stronger second quarter. Operating income improved $4.2 million, or 17.5%, sequentially, on higher volume, while margins increased 340 basis points on higher operating leverage. Adjusted Segment EBITDA was higher by $4.4 million, or 13.2%, sequentially, with Adjusted Segment EBITDA margins improving 320 basis points. Corporate and Other Expenses Second quarter 2025 Corporate and Other expenses were flat sequentially. Second quarter Corporate and Other expenses contained $3.5 million of transaction-related expenses related to the announced plan to acquire a majority interest in Baker Hughes' Surface Pressure Control business, flat from the first quarter. Liquidity, Capital Expenditures and Other As of June 30, 2025, the Company had $405.2 million of cash and cash equivalents, no bank debt outstanding, and $222.6 million of availability on our revolving credit facility. Operating cash flow was $82.8 million for the second quarter of 2025. During the second quarter, the Company made dividend payments and associated distributions of $10.4 million. Net capital expenditures were $11.1 million during the second quarter of 2025. For the full year 2025, the Company now expects net capital expenditures to be in the range of $40 to $45 million, inclusive of capital directed towards supply chain diversification efforts and efficiency improvements in the Baytown manufacturing facility. We are continuing to evaluate our capital spending program for the year given lower market activity levels. As of June 30, 2025, Cactus had 68,574,875 shares of Class A common stock outstanding (representing 85.9% of the total voting power) and 11,259,495 shares of Class B common stock outstanding (representing 14.1% of the total voting power). Quarterly Dividend The Board of Directors has approved a quarterly cash dividend of $0.14 per share of Class A common stock with payment to occur on September 18, 2025 to holders of record of Class A common stock at the close of business on August 29, 2025. A corresponding distribution of up to $0.14 per CC Unit has also been approved for holders of CC Units of Cactus Companies, LLC. Conference Call Details The Company will host a conference call to discuss financial and operational results tomorrow, Thursday July 31, 2025 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). The call will be webcast on Cactus' website at Please access the webcast for the call at least 10 minutes ahead of the start time to ensure a proper connection. Analysts and institutional investors may click here to pre-register for the conference call. An archived webcast of the conference call will be available on the Company's website shortly after the end of the call. About Cactus, Inc. Cactus designs, manufactures, sells or rents a range of highly engineered pressure control and spoolable pipe technologies. Its products are sold and rented principally for onshore unconventional oil and gas wells and are utilized during the drilling, completion and production phases of its customers' wells. In addition, it provides field services for its products and rental items to assist with the installation, maintenance and handling of the equipment. Cactus operates service centers throughout North America and Australia, while also providing equipment and services in select international markets. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release and oral statements made regarding the matters addressed in this release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Cactus' control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology including 'may,' 'believe,' 'expect,' 'intend,' 'anticipate,' 'plan,' 'should,' 'estimate,' 'continue,' 'potential,' 'will,' 'hope,' 'opportunity,' or other similar words and include the Company's expectation of future performance contained herein. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other 'forward-looking' information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other factors noted in the Company's Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the Securities and Exchange Commission. The risk factors and other factors noted therein could cause actual results to differ materially from those contained in any forward-looking statement. Cactus disclaims any duty to update and does not intend to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this press release. (1) Represents the elimination of inter-segment revenue for sales from our Pressure Control segment to our Spoolable Technologies segment. (2) Dilution for the three months ended June 30, 2025, June 30, 2024, and the six months ended June 30, 2025, excludes 11.3, 13.4 and 11.4 million shares of Class B common stock, respectively, as the effect would be antidilutive. Dilution for the six months ended June 30, 2024 includes an additional $24.9 million of pre-tax income attributable to non-controlling interest adjusted for a corporate effective tax rate of 26.0% and 13.7 million weighted average shares of Class B common stock plus the effect of dilutive securities. Expand Cactus, Inc. Condensed Consolidated Balance Sheets (unaudited) June 30, December 31, 2025 2024 (in thousands) Assets Current assets Cash and cash equivalents $ 405,177 $ 342,843 Accounts receivable, net 207,283 191,627 Inventories 246,420 226,796 Prepaid expenses and other current assets 14,471 13,422 Total current assets 873,351 774,688 Property and equipment, net 349,161 346,008 Operating lease right-of-use assets, net 22,117 24,094 Intangible assets, net 155,998 163,991 Goodwill 203,028 203,028 Deferred tax asset, net 207,106 219,003 Investment in unconsolidated affiliates 5,773 — Other noncurrent assets 7,995 8,516 Total assets $ 1,824,529 $ 1,739,328 Liabilities and Equity Current liabilities Accounts payable $ 83,142 $ 72,001 Accrued expenses and other current liabilities 64,128 75,416 Current portion of liability related to tax receivable agreement 20,297 20,297 Finance lease obligations, current portion 7,354 7,024 Operating lease liabilities, current portion 5,042 4,086 Total current liabilities 179,963 178,824 Deferred tax liability, net 2,197 2,868 Liability related to tax receivable agreement, net of current portion 259,732 258,376 Finance lease obligations, net of current portion 11,681 10,528 Operating lease liabilities, net of current portion 17,944 20,078 Other noncurrent liabilities 4,475 4,475 Total liabilities 475,992 475,149 Equity 1,348,537 1,264,179 Total liabilities and equity $ 1,824,529 $ 1,739,328 Expand Cactus, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Six Months Ended June 30, 2025 2024 (in thousands) Cash flows from operating activities Net income $ 103,152 $ 112,874 Reconciliation of net income to net cash provided by operating activities Depreciation and amortization 31,564 30,047 Deferred financing cost amortization 559 560 Stock-based compensation 12,371 10,373 Provision for expected credit losses 300 589 Inventory obsolescence 902 3,035 Gain on disposal of assets (389 ) (1,674 ) Deferred income taxes 12,775 7,915 Change in fair value of earn-out liability — 16,180 Changes in operating assets and liabilities: Accounts receivable (15,715 ) (358 ) Inventories (20,253 ) (4,340 ) Prepaid expenses and other assets (1,009 ) 429 Accounts payable 11,175 (8,577 ) Accrued expenses and other liabilities (11,052 ) 12,442 Payments pursuant to tax receivable agreement — (15,277 ) Net cash provided by operating activities 124,380 164,218 Cash flows from investing activities Investment in unconsolidated affiliate (6,000 ) — Capital expenditures and other (22,168 ) (17,371 ) Proceeds from sales of assets 1,661 3,317 Net cash used in investing activities (26,507 ) (14,054 ) Cash flows from financing activities Payments on finance leases (3,940 ) (3,954 ) Dividends paid to Class A common stock shareholders (18,153 ) (16,135 ) Distributions to members (8,743 ) (8,617 ) Repurchases of shares (5,710 ) (8,489 ) Net cash used in financing activities (36,546 ) (37,195 ) Effect of exchange rate changes on cash and cash equivalents 1,007 (258 ) Net increase in cash and cash equivalents 62,334 112,711 Cash and cash equivalents Beginning of period 342,843 133,792 End of period $ 405,177 $ 246,503 Expand Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin (unaudited) Adjusted net income, diluted earnings per share, as adjusted and adjusted net income margin are not measures of net income as determined by GAAP but they are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements. Cactus defines adjusted net income as net income assuming Cactus, Inc. held all units in its operating subsidiary at the beginning of the period, with the resulting additional income tax expense related to the incremental income attributable to Cactus, Inc. Adjusted net income also includes certain other adjustments described below. Cactus defines diluted earnings per share, as adjusted as Adjusted net income divided by weighted average shares outstanding, as adjusted. Cactus defines Adjusted net income margin as Adjusted net income divided by total revenue. The Company believes this supplemental information is useful for evaluating performance period over period. (1) Represents non-routine charges related to severance benefits. (2) Reflects transaction fees and expenses recorded in connection with the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business. (3) Reflects amortization expense associated with the step-up in intangible value due to purchase price accounting. (4) Represents adjustments for the remeasurement of the earn-out liability associated with the FlexSteel acquisition. (5) Represents the increase or decrease in tax expense as though Cactus, Inc. owned 100% of its operating subsidiary at the beginning of the period, calculated as the difference in tax expense recorded during each period and what would have been recorded, adjusted for pre-tax items listed above, based on a corporate effective tax rate of 25% on income before income taxes for the three months ended June 30, 2025 and March 31, 2025, and 26.0% for the three months ended June 30, 2024. (6) Reflects 68.5, 68.2, and 66.1 million weighted average shares of basic Class A common stock outstanding and 11.3, 11.4 and 13.4 million additional shares for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively, as if the weighted average shares of Class B common stock were exchanged and cancelled for Class A common stock at the beginning of the period, plus the effect of dilutive securities. Expand Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures EBITDA, Adjusted EBITDA and Adjusted EBITDA margin (unaudited) EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines EBITDA as net income excluding net interest, income tax and depreciation and amortization. Cactus defines Adjusted EBITDA as EBITDA excluding the other items outlined below. Cactus management believes EBITDA and Adjusted EBITDA are useful because they allow management to more effectively evaluate the Company's operating performance and compare the results of its operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. EBITDA and Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company's computations of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company's business. Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, 2025 2025 2024 2025 2024 (in thousands) Net income $ 49,047 $ 54,105 $ 63,059 $ 103,152 $ 112,874 Interest income, net (2,518 ) (2,325 ) (1,405 ) (4,843 ) (2,094 ) Income tax expense 14,276 16,832 18,165 31,108 31,589 Depreciation and amortization 15,886 15,678 15,001 31,564 30,047 EBITDA 76,691 84,290 94,820 160,981 172,416 Severance expenses (1) 177 — — 177 — Transaction related expenses (2) 3,502 3,487 — 6,989 — Remeasurement loss on earn-out liability (3) — — 2,876 — 16,180 Stock-based compensation 6,307 6,064 5,941 12,371 10,373 Adjusted EBITDA $ 86,677 $ 93,841 $ 103,637 $ 180,518 $ 198,969 Revenue $ 273,575 $ 280,319 $ 290,389 $ 553,894 $ 564,512 Net income margin 17.9 % 19.3 % 21.7 % 18.6 % 20.0 % Adjusted EBITDA margin 31.7 % 33.5 % 35.7 % 32.6 % 35.2 % Expand (1) Represents non-routine charges related to severance benefits. (2) Reflects transaction fees and expenses recorded in connection with the announced acquisition of a majority interest in Baker Hughes' Surface Pressure Control business. (3) Represents adjustments for the remeasurement of the earn-out liability associated with the FlexSteel acquisition. Expand Cactus, Inc. – Supplemental Information Reconciliation of GAAP to non-GAAP Financial Measures Adjusted Segment EBITDA and Adjusted Segment EBITDA margin (unaudited) Adjusted Segment EBITDA and Adjusted Segment EBITDA margin are not measures of net income as determined by GAAP but are supplemental non-GAAP financial measures that are used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Cactus defines Adjusted Segment EBITDA as segment operating income excluding depreciation and amortization and the other items outlined below, in each case, that are attributable to the segment. Cactus management believes Adjusted Segment EBITDA is useful because it allows management to more effectively evaluate the Company's segment operating performance and compare the results of its segment operations from period to period without regard to financing methods or capital structure, or other items that impact comparability of financial results from period to period. Adjusted Segment EBITDA should not be considered as an alternative to, or more meaningful than, net income or any other measure as determined in accordance with GAAP. The Company's computations of Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. Cactus defines Adjusted Segment EBITDA margin as Adjusted Segment EBITDA divided by total segment revenue. Cactus presents this supplemental information because it believes it provides useful information regarding the factors and trends affecting the Company's business.
Business Wire
6 minutes ago
- Business Wire
Allstate Reports Second Quarter 2025 Results
NORTHBROOK, Ill.--(BUSINESS WIRE)--The Allstate Corporation (NYSE: ALL) today reported financial results for the second quarter of 2025. 'Allstate had strong operating and financial performance in the second quarter while executing our growth strategies,' said Tom Wilson, who leads The Allstate Corporation. 'Revenues increased to $16.6 billion and net income was $2.1 billion for the quarter. Adjusted net income* was $1.6 billion, $5.94 per diluted share, which excludes a $643 million gain from the Employer Voluntary Benefits business divestiture.' 'In addition to strong financial results, we are creating shareholder value by increasing growth and proactively managing investments and capital. Total policies in force increased to 208 million, 4% higher than last year, led by Protection Plans. Personal property-liability policies have begun to grow due to expanded distribution, new products and increased marketing. Protection Plans continued to expand with international revenues up 30% above the prior year. The $77.4 billion investment portfolio generated $754 million of income in the quarter while lowering overall portfolio risk. Redeployment of capital out of the health businesses was completed on July 1 with the sale of Group Health, bringing total divestiture proceeds to $3.25 billion for this segment,' concluded Wilson. Second Quarter 2025 Results Total revenues of $16.6 billion in the second quarter of 2025 were $919 million or 5.8% higher than the prior year quarter. Net income applicable to common shareholders was $2.1 billion in the second quarter of 2025 compared to $301 million in the prior year quarter, reflecting strong operating results and a $643 million gain, after-tax, from the sale of the Employer Voluntary Benefits business. Adjusted net income* was $1.6 billion, or $5.94 per diluted share, compared to $429 million in the prior year quarter. Adjusted net income return on common shareholders equity* was 28.6%. * Measures used in this release that are not based on accounting principles generally accepted in the United States of America ('non-GAAP') are denoted with an asterisk and defined and reconciled to the most directly comparable GAAP measure in the 'Definitions of Non-GAAP Measures' section of this document. NM = not meaningful Expand Property-Liability earned premiums of $14.3 billion increased 7.5% in the second quarter of 2025 compared to the prior year quarter, primarily driven by higher average premiums and modest policy in force growth. Underwriting income was $1.3 billion compared to a loss of $145 million in the prior year quarter. Premiums written increased 5.4% compared to the prior year quarter driven mainly by higher average premiums. Policies in force increased by 0.6% as a 31.3% decline in commercial policies partially offset growth in personal property-liability. Property-Liability combined ratio was 91.1 for the quarter which was an improvement of 10.0 points versus the prior year quarter due to improved underlying margins and favorable prior year non-catastrophe reserve reestimates. Allstate Protection auto insurance generated strong margins while accelerating new business growth, which increased policies in force compared to the prior year quarter. Written and earned premiums grew 2.7% and 4.9% compared to the prior year quarter, respectively, primarily due to higher average premiums. Auto insurance rate increases result in an annualized premium impact of 0.4% in the second quarter, reflecting continued moderation in loss cost trends. Auto insurance policies in force have begun to grow due to expanded distribution, increased marketing, new products and sophisticated rating plans. Policies grew by 0.5% as a 24.8% increase in new business was negatively impacted by reductions in New York and New Jersey and lower customer retention. Policy growth was 1.9% over the prior year, excluding New York and New Jersey, which have pending regulatory requests which would open these markets. The recorded auto insurance combined ratio of 86.0 in the second quarter of 2025 was a 9.9 point improvement from the prior year quarter, reflecting higher average earned premiums, moderating loss costs and favorable prior year non-catastrophe reserve releases. Prior year non-catastrophe reserve reestimates were favorable $415 million in the second quarter, a 4.3 point combined ratio impact, reflecting improvement in loss trends. The underlying auto insurance combined ratio* of 87.8 in the second quarter of 2025 was a 5.7 point improvement from the prior year quarter, as higher average earned premiums continued to outpace loss and expense trends. Allstate Protection homeowners insurance generated an underwriting loss of $76 million compared to a loss of $375 million in the prior year. Underlying margins improved and policies in force increased. Written premiums and earned premiums increased by 14.3% and 15.9% compared to the prior year quarter, respectively, due to higher average premium and policies in force growth of 2.3%. A 13.7% increase in Allstate brand homeowners insurance average gross written premium compared to the prior year quarter reflects continued rate increases and higher insured home replacement costs. Catastrophe losses of $1.6 billion in the quarter were in line with the prior year quarter. The recorded homeowners insurance combined ratio of 102.0 was 9.5 points below the second quarter of 2024, due to higher average premiums and favorable underlying trends. The underlying combined ratio* of 58.6 improved by 4.9 points compared to the prior year quarter primarily driven by higher average premiums and favorable non-catastrophe claim frequency. ------------------------------------------------------------------------------------------------------------------------------------------------------- Protection Services continues to broaden protection to customers through five businesses that include embedded Allstate branded offerings in non-insurance purchases. Revenues increased to $867 million in the second quarter of 2025, 12.2% higher than the prior year quarter, primarily due to Allstate Protection Plans. Adjusted net income of $60 million increased by $5 million compared to the prior year quarter. Protection Services Results Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 % / $ Change 2025 2024 % / $ Change Total revenues (1) $ 867 $ 773 12.2 % $ 1,727 $ 1,526 13.2 % Allstate Protection Plans 563 483 16.6 1,103 947 16.5 Allstate Dealer Services 148 148 — 294 294 — Allstate Roadside 56 51 9.8 111 117 (5.1 ) Arity 59 52 13.5 138 91 51.6 Allstate Identity Protection 41 39 5.1 81 77 5.2 Adjusted net income $ 60 $ 55 $ 5 $ 115 $ 109 $ 6 Allstate Protection Plans 51 41 10 96 81 15 Allstate Dealer Services 4 6 (2 ) 8 12 (4 ) Allstate Roadside 11 8 3 22 19 3 Arity (8 ) (2 ) (6 ) (14 ) (6 ) (8 ) Allstate Identity Protection 2 2 — 3 3 — (1) Excludes net gains and losses on investments and derivatives. Expand Allstate Protection Plans continued to expand distribution relationships and product offerings. Revenue of $563 million increased $80 million, or 16.6%, compared to the prior year quarter reflecting strong international growth. Adjusted net income of $51 million in the second quarter of 2025 was $10 million higher than the prior year quarter. Allstate Dealer Services generated revenue of $148 million and adjusted net income of $4 million, a slight decline compared to $6 million in the prior year quarter due to higher loss costs. Allstate Roadside revenue of $56 million in the second quarter of 2025 increased 9.8% compared to the prior year quarter reflecting increased bundling with Allstate branded Affordable, Simple, Connected auto insurance products and higher third-party sales. Adjusted net income of $11 million in the second quarter was $3 million higher than the prior year quarter. Arity revenue of $59 million increased $7 million compared to the prior year quarter, due to higher lead generation revenue. Adjusted net loss of $8 million in the second quarter of 2025 compared to a $2 million loss in the prior year reflecting increased operating expenses. Allstate Identity Protection revenue of $41 million in the second quarter of 2025 increased 5.1% compared to the prior year quarter reflecting growth in the employee benefits channel. Adjusted net income of $2 million in the second quarter of 2025 was unchanged compared to the prior year quarter. ----------------------------------------------------------------------------------------------------------------------------------------------------- Allstate Health and Benefits The sale of the Employer Voluntary Benefits business closed on April 1, 2025, generating a financial book gain of $643 million, after-tax, in the second quarter of 2025. The sale of the Group Health business closed on July 1, 2025, generating a financial book gain of approximately $500 million that will be recorded in the third quarter of 2025. Operating results were reported in the Health and Benefits segment, and the assets and liabilities of the business are classified as held for sale for the second quarter. Premiums and contract charges for health and benefits decreased 50.4%, or $239 million, compared to the prior year quarter primarily due to the sale of the Employer Voluntary Benefits business. Adjusted net income of $4 million in the second quarter was $54 million lower than prior year quarter attributable to the sale of the Employer Voluntary Benefits business and increased benefit utilization in the Group Health and Individual Health businesses. Allstate Health and Benefits Results Three months ended June 30, Six months ended June 30, ($ in millions) 2025 2024 % Change 2025 2024 % Change Premiums and contract charges $ 235 $ 474 (50.4 )% $ 722 $ 952 (24.2 )% Employer voluntary benefits — 246 NM 243 494 (50.8 ) Group health 123 120 2.5 247 238 3.8 Individual health 112 108 3.7 232 220 5.5 Adjusted net income $ 4 $ 58 (93.1 ) $ 34 $ 114 (70.2 )% Employer voluntary benefits — 28 NM 22 45 (51.1 ) Group health 9 28 (67.9 ) 21 56 (62.5 ) Individual health (5 ) 2 NM (9 ) 13 NM Expand ----------------------------------------------------------------------------------------------------------------------------------------------------- Allstate Investments uses a proactive approach to balance risk and return for the $77.4 billion portfolio. Net investment income of $754 million in the second quarter of 2025, increased by $42 million from the prior year quarter primarily due to market-based portfolio growth, partially offset by lower performance-based income. (1) Investment expenses are not allocated between market-based and performance-based portfolios with the exception of investee level expenses. (2) Includes investments held for sale. Expand Market-based investment income was $733 million in the second quarter of 2025, an increase of $66 million, or 9.9%, compared to the prior year quarter, reflecting increased asset balances and slightly higher fixed income yields in the $67.1 billion market-based portfolio. Performance-based investment income totaled $79 million in the second quarter of 2025, a decrease of $28 million compared to the prior year quarter reflecting lower private equity valuation increases. The overall portfolio allocation to performance-based assets provides a diversifying source of higher long-term returns; volatility in reported results is expected. Net losses on investments and derivatives were $144 million in the second quarter of 2025, compared to losses of $103 million in the prior year quarter. Second quarter 2025 losses were driven by sales of fixed income securities partially offset by valuation increases on equity instruments. Unrealized net capital gains improved by $492 million to the prior quarter as lower interest rates resulted in higher fixed income valuations and prior unrealized loss balances were converted to realized through fixed income sales. Total return on the investment portfolio was 1.4% for the second quarter of 2025 and 5.4% for the latest twelve months. Macroeconomic impacts are regularly monitored through our integrated Enterprise Risk and Return Management framework. In the second quarter of 2025, investment risks were lowered by reducing public equity and high yield bond allocations and shortening the fixed income portfolio duration. Proactive Capital Management 'Allstate's results support our growth strategy creating shareholder value,' said Jess Merten, Chief Financial Officer. 'Adjusted net income return on equity* was 28.6% for the latest 12 months. Divestiture of the Employer Voluntary Benefits and Group Health businesses positions those businesses for success and reallocates capital to Allstate's strategic growth opportunities. Shareholders also benefited from a 9% increase in the quarterly dividend to $1.00 per common share, and we repurchased $341 million of common stock.' Visit for additional information about Allstate's results, including a webcast of its quarterly conference call and the call presentation. The conference call will be at 9 a.m. ET on Thursday, July 31. Financial information, including material announcements about The Allstate Corporation, is routinely posted on Forward-Looking Statements This news release contains 'forward-looking statements' that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words like 'plans,' 'seeks,' 'expects,' 'will,' 'should,' 'anticipates,' 'estimates,' 'intends,' 'believes,' 'likely,' 'targets' and other words with similar meanings. We believe these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission, including the 'Risk Factors' section in our most recent annual report on Form 10-K. Forward-looking statements are as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statement. About Allstate The Allstate Corporation (NYSE: ALL) protects people from life's uncertainties with a wide array of protection for autos, homes, electronic devices, and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate is widely known for the slogan 'You're in Good Hands with Allstate.' For more information, visit THE ALLSTATE CORPORATION AND SUBSIDIARIES ($ in millions, except per share data) Three months ended June 30, Six months ended June 30, Revenues Property and casualty insurance premiums $ 15,041 $ 13,952 $ 29,739 $ 27,464 Accident and health insurance premiums and contract charges 235 474 722 952 Other revenue 747 679 1,509 1,348 Net investment income 754 712 1,608 1,476 Net gains (losses) on investments and derivatives (144 ) (103 ) (493 ) (267 ) Total revenues 16,633 15,714 33,085 30,973 Costs and expenses Property and casualty insurance claims and claims expense 10,249 10,801 21,064 20,302 Accident, health and other policy benefits 188 291 521 587 Amortization of deferred policy acquisition costs 2,076 2,001 4,163 3,940 Operating costs and expenses 2,135 2,019 4,380 3,904 Pension and other postretirement remeasurement (gains) losses — (9 ) 78 (11 ) Restructuring and related charges 15 13 31 23 Amortization of purchased intangibles 57 70 116 139 Interest expense 100 98 200 195 Total costs and expenses 14,820 15,284 30,553 29,079 Gain on disposition of operations 890 — 890 — 2,703 430 3,422 1,894 Income tax expense 604 83 727 349 Net income 2,099 347 2,695 1,545 Less: Net (loss) income attributable to noncontrolling interest (10 ) 16 (9 ) (4 ) Net income attributable to Allstate 2,109 331 2,704 1,549 Less: Preferred stock dividends 30 30 59 59 Net income applicable to common shareholders $ 2,079 $ 301 $ 2,645 $ 1,490 Earnings per common share: Net income applicable to common shareholders per common share - Basic $ 7.86 $ 1.14 $ 9.98 $ 5.65 Weighted average common shares - Basic 264.6 264.1 264.9 263.8 Net income applicable to common shareholders per common share - Diluted $ 7.76 $ 1.13 $ 9.85 $ 5.58 Weighted average common shares - Diluted 267.9 267.1 268.4 266.8 Expand Definitions of Non-GAAP Measures We believe that investors' understanding of Allstate's performance is enhanced by our disclosure of the following non-GAAP measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited. Adjusted net income (loss) is net income (loss) applicable to common shareholders, excluding: Net gains and losses on investments and derivatives Pension and other postretirement remeasurement gains and losses Amortization or impairment of purchased intangibles Gain or loss on disposition Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years Related income tax expense or benefit of these items Net income (loss) applicable to common shareholders is the GAAP measure that is most directly comparable to adjusted net income. We use adjusted net income as an important measure to evaluate our results of operations. We believe that the measure provides investors with a valuable measure of the Company's ongoing performance because it reveals trends in our insurance and financial services business that may be obscured by the net effect of net gains and losses on investments and derivatives, pension and other postretirement remeasurement gains and losses, amortization or impairment of purchased intangibles, gain or loss on disposition and adjustments for other significant non-recurring, infrequent or unusual items and the related tax expense or benefit of these items. Net gains and losses on investments and derivatives, and pension and other postretirement remeasurement gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments such as capital market conditions, the timing of which is unrelated to the insurance underwriting process. Gain or loss on disposition is excluded because it is non-recurring in nature and the amortization or impairment of purchased intangibles is excluded because it relates to the acquisition purchase price and is not indicative of our underlying business results or trends. Non-recurring items are excluded because, by their nature, they are not indicative of our business or economic trends. Accordingly, adjusted net income excludes the effect of items that tend to be highly variable from period to period and highlights the results from ongoing operations and the underlying profitability of our business. A byproduct of excluding these items to determine adjusted net income is the transparency and understanding of their significance to net income variability and profitability while recognizing these or similar items may recur in subsequent periods. Adjusted net income is used by management along with the other components of net income (loss) applicable to common shareholders to assess our performance. We use adjusted measures of adjusted net income in incentive compensation. Therefore, we believe it is useful for investors to evaluate net income (loss) applicable to common shareholders, adjusted net income and their components separately and in the aggregate when reviewing and evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the Company and management's performance. We note that the price to earnings multiple commonly used by insurance investors as a forward-looking valuation technique uses adjusted net income as the denominator. Adjusted net income should not be considered a substitute for net income (loss) applicable to common shareholders and does not reflect the overall profitability of our business. The following tables reconcile net income (loss) applicable to common shareholders and adjusted net income (loss). Taxes on adjustments to reconcile net income (loss) applicable to common shareholders and adjusted net income (loss) generally use a 21% effective tax rate. Adjusted net income (loss) return on Allstate common shareholders' equity is a ratio that uses a non-GAAP measure. It is calculated by dividing the rolling 12-month adjusted net income by the average of Allstate common shareholders' equity at the beginning and at the end of the 12-months, after excluding the effect of unrealized net capital gains and losses. Return on Allstate common shareholders' equity is the most directly comparable GAAP measure. We use adjusted net income as the numerator for the same reasons we use adjusted net income, as discussed previously. We use average Allstate common shareholders' equity excluding the effect of unrealized net capital gains and losses for the denominator as a representation of common shareholders' equity primarily applicable to Allstate's earned and realized business operations because it eliminates the effect of items that are unrealized and vary significantly between periods due to external economic developments such as capital market conditions like changes in interest rates, the amount and timing of which are unrelated to the insurance underwriting process. We use it to supplement our evaluation of net income (loss) applicable to common shareholders and return on Allstate common shareholders' equity because it excludes the effect of items that tend to be highly variable from period to period. We believe that this measure is useful to investors and that it provides a valuable tool for investors when considered along with return on Allstate common shareholders' equity because it eliminates the after-tax effects of realized and unrealized net capital gains and losses that can fluctuate significantly from period to period and that are driven by economic developments, the magnitude and timing of which are generally not influenced by management. In addition, it eliminates non-recurring items that are not indicative of our ongoing business or economic trends. A byproduct of excluding the items noted above to determine adjusted net income return on Allstate common shareholders' equity from return on Allstate common shareholders' equity is the transparency and understanding of their significance to return on common shareholders' equity variability and profitability while recognizing these or similar items may recur in subsequent periods. We use adjusted measures of adjusted net income return on Allstate common shareholders' equity in incentive compensation. Therefore, we believe it is useful for investors to have adjusted net income return on Allstate common shareholders' equity and return on Allstate common shareholders' equity when evaluating our performance. We note that investors, financial analysts, financial and business media organizations and rating agencies utilize adjusted net income return on common shareholders' equity results in their evaluation of our and our industry's financial performance and in their investment decisions, recommendations and communications as it represents a reliable, representative and consistent measurement of the industry and the company and management's utilization of capital. We also provide it to facilitate a comparison to our long-term adjusted net income return on Allstate common shareholders' equity goal. Adjusted net income return on Allstate common shareholders' equity should not be considered a substitute for return on Allstate common shareholders' equity and does not reflect the overall profitability of our business. The following tables reconcile return on Allstate common shareholders' equity and adjusted net income (loss) return on Allstate common shareholders' equity. ($ in millions) For the twelve months ended June 30, 2025 2024 Adjusted net income return on Allstate common shareholders' equity Numerator: Adjusted net income * $ 5,650 $ 3,551 Denominator: Beginning Allstate common shareholders' equity $ 16,592 $ 13,516 Less: Unrealized net capital gains and losses (938 ) (1,845 ) Adjusted beginning Allstate common shareholders' equity 17,530 15,361 Ending Allstate common shareholders' equity (1) 22,018 16,592 Less: Unrealized net capital gains and losses 36 (938 ) Adjusted ending Allstate common shareholders' equity 21,982 17,530 Average adjusted Allstate common shareholders' equity $ 19,756 $ 16,446 Adjusted net income return on Allstate common shareholders' equity * 28.6 % 21.6 % _____________ (1) Excludes equity related to preferred stock of $2,001 million for both periods shown. Expand Combined ratio excluding the effect of catastrophes, prior year reserve reestimates and amortization or impairment of purchased intangibles ('underlying combined ratio') is a non-GAAP ratio, which is computed as the difference between four GAAP operating ratios: the combined ratio, the effect of catastrophes on the combined ratio, the effect of prior year non-catastrophe reserve reestimates on the combined ratio, and the effect of amortization or impairment of purchased intangibles on the combined ratio. We believe that this ratio is useful to investors, and it is used by management to reveal the trends in our Property-Liability business that may be obscured by catastrophe losses, prior year reserve reestimates and amortization or impairment of purchased intangibles. Catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve reestimates are caused by unexpected loss development on historical reserves, which could increase or decrease current year net income. Amortization or impairment of purchased intangibles relates to the acquisition purchase price and is not indicative of our underlying insurance business results or trends. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business. The following tables reconcile the respective combined ratio to the underlying combined ratio. Underwriting margin is calculated as 100% minus the combined ratio. Allstate Protection - Auto Insurance Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Combined ratio 86.0 95.9 88.6 96.0 Effect of catastrophe losses (2.2 ) (3.9 ) (2.2 ) (2.6 ) Effect of prior year non-catastrophe reserve reestimates 4.3 1.9 3.4 1.3 Effect of amortization of purchased intangibles (0.3 ) (0.4 ) (0.3 ) (0.4 ) Underlying combined ratio* 87.8 93.5 89.5 94.3 Effect of prior year catastrophe reserve reestimates (0.2 ) (0.1 ) (0.2 ) (0.1 ) Expand Allstate Protection - Homeowners Insurance Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Combined ratio 102.0 111.5 107.1 97.1 Effect of catastrophe losses (42.8 ) (49.6 ) (46.3 ) (33.9 ) Effect of prior year non-catastrophe reserve reestimates (0.3 ) 1.9 — 1.6 Effect of amortization of purchased intangibles (0.3 ) (0.3 ) (0.3 ) (0.3 ) Underlying combined ratio* 58.6 63.5 60.5 64.5 Effect of prior year catastrophe reserve reestimates 0.5 (3.9 ) 0.3 (4.3 ) Expand
Associated Press
7 minutes ago
- Associated Press
Source Energy Services Reports Q2 2025 Results
CALGARY, AB / ACCESS Newswire / July 30, 2025 / Source Energy Services Ltd. ('Source' or the 'Company') is pleased to announce its financial results for the three and six months ended June 30, 2025. Q2 2025 PERFORMANCE HIGHLIGHTS Key achievements for the quarter ended June 30, 2025 include the following: Note: RESULTS OVERVIEW Notes: SECOND QUARTER 2025 RESULTS Source realized record sand sales volumes during the second quarter, reflecting continued strong demand as Source customers pushed through spring break-up. Total revenue was $201.9 million for the three months ended June 30, 2025, an increase of $25.5 million, or 14%, compared to the second quarter last year. The second quarter also saw record sand sales volumes delivered for 'last mile' logistics, as Source's ability to reliably supply the large volumes of sand required per completion job resulted in a record for the largest daily sand volume fed into a blender in twenty-four hours in April. For the second quarter, average realized sand price per MT was impacted by a shift in product mix to more 100 mesh sand and the elimination of tariff charges, which were included in the average realized sand price during the first quarter of 2025 and reversed during the second quarter. Refer to 'Remission Order' below. Cost of sales, excluding depreciation, increased on a quarter-over-quarter basis, driven by higher sand sales volumes and increased transportation costs resulting from the record volumes hauled by 'last mile' logistics. On a per MT basis, cost of sales, excluding depreciation, decreased for the second quarter, driven by a shift in terminal mix and the impact of the tariff reversal. A weakening of the Canadian dollar increased cost of sales denominated in US dollars by $1.49 per MT, compared to the second quarter of 2024, which was largely offset by the movement in exchange rates on revenue denominated in US dollars for the period. For the three months ended June 30, 2025, gross margin increased by $4.1 million compared to the second quarter of 2024. Higher sand sales volumes and volumes trucked to the well site contributed to the increase, as well as incremental gross margin generated from the sand trucking assets acquired in 2024. Excluding gross margin from mine gate volumes, Adjusted Gross Margin was $44.49 per MT compared to $46.16 per MT for the second quarter of 2024. The change is attributed to a shift in product mix, driven by a 17% increase in the sales of 100 mesh sand compared to the second quarter of 2024, the impact of terminal mix and the weakening of the Canadian dollar which negatively impacted Adjusted Gross Margin by $0.31 per MT for the quarter. The tariff reversal had no impact on Adjusted Gross Margin as these surtaxes were borne by Source customers. Operating expenses increased by $2.1 million on a quarter-over-quarter basis, largely driven by higher royalty-related costs, partly attributed to the increased sand sales volumes realized during the period. Higher activity levels impacted costs for rail car related expenses including repairs and maintenance costs, as well as increased compensation expense, including people costs for Source's trucking operations. General and administrative expense decreased by $1.0 million during the second quarter of 2025, largely the result of lower people costs due to lower variable incentive compensation expense, partially offset by an increase in IT costs, due to the cloud-computing system implemented last year, compared to the second quarter of 2024. Adjusted EBITDA increased by 14%, or $4.4 million, to $35.2 million for the second quarter, attributed primarily to the record sand sales volumes and well site solutions performance, as well as the incremental benefit from trucking assets acquired in 2024. The weakening of the Canadian dollar negatively impacted Adjusted EBITDA by $0.8 million for the quarter, attributed to the movement in exchange rates on the settlement of working capital. Normal Course Issuer Bid On May 13, 2025, Source commenced a Normal Course Issuer Bid (the 'NCIB'), under which Source is authorized to purchase up to a maximum of 750,000 common shares or $5.0 million. The NCIB will terminate on May 12, 2026, or such earlier date as the maximum number of common shares are purchased pursuant to the NCIB or the NCIB is completed or terminated at the election of Source. During the second quarter, Source repurchased 225,400 common shares for a weighted average price of $11.99 per share under the NCIB. Remission Order Since the enactment of the reciprocal tariff by the Canadian government on March 4, 2025, Source has been working diligently with the Canadian government for relief of all surtaxes imposed on frac sand imported from the US. On June 26, 2025, Source received a Remission Order from the Government of Canada which determined that Source is eligible for relief of the surtax on sand at time of import, and qualifies for refunds of all surtaxes paid to date since enactment of the reciprocal tariff. During the second quarter of 2025, Source reversed the impact of tariffs previously recognized in revenue and cost of sales. Liquidity and Capital Resources Notes: During the second quarter of 2025, Free Cash Flow decreased by $1.2 million compared to the second quarter of 2024, primarily due to amounts paid for income taxes driven by Source's improved performance. An increase in growth and maintenance capital expenditures, as described below, and higher amounts paid for lease obligations also impacted Free Cash Flow for the quarter. The increase in lease obligations is a result of additional heavy equipment for the Peace River operations while the Wisconsin mining facilities replaced aging equipment which will drive lower costs for repairs and maintenance and reduce higher-cost short-term leases. Payments for lease obligations in Wisconsin, including rail car leases, were impacted by renewals at higher rates and the weakening of the Canadian dollar compared to the second quarter of 2024. Capital expenditures, net of proceeds on disposals and reimbursements and excluding expenditures related to the Taylor facility, were $7.6 million for the three months ended June 30, 2025, an increase of $2.0 million compared to the second quarter last year. On a quarter-over-quarter basis and excluding construction for the Taylor facility, growth capital expenditures increased by $1.0 million, attributed to the expansion of the Peace River facility as well as the addition of trailers for Source's trucking operations. Maintenance and sustaining capital expenditures increased for the second quarter of 2025 , compared to the same period last year, largely attributed to improvements made for an aging Sahara unit and roadwork at the north mine processing facility in Wisconsin, higher amounts for overburden removal for mining operations, driven by increased volumes, and amounts related to Source's trucking operations, compared to the second quarter of 2024. BUSINESS OUTLOOK Source is anticipating a slowdown in customer activity levels for the second half of 2025, driven by weaker commodity prices and ongoing economic volatility stemming from trade policy uncertainty. Source continues to monitor the impact of ongoing shifts in tariff policy imposed by the US government and retaliatory measures enacted by the Canadian government, and the related impacts on Source customers. Source believes in the longer-term additional natural gas export capability with LNG Canada now online and the expedited permitting of additional LNG capacity, including the recent approval for continued construction of an LNG pipeline project by the government of British Columbia, will help mitigate potential impacts related to uncertainty in the current economic environment. Source believes it is well-positioned to accommodate the expected longer-term increase in demand in northeastern British Columbia and take advantage of activity levels in the Western Canadian Sedimentary Basin ('WCSB') through its new Taylor facility, expected to be fully operational in the third quarter. The Peace River facility expansion will result in increased nameplate production capacity and provide Source's customers with an ability to blend their sand and lower their landed sand cost. In the longer-term, Source believes the increased demand for natural gas, driven by liquefied natural gas exports, increased natural gas pipeline export capabilities and power generation facilities, will drive incremental demand for Source's services in the WCSB. Source continues to see increased demand from customers that are primarily focused on the development of natural gas properties in the Montney, Duvernay and Deep Basin. This trend is consistent with Source's view that natural gas will be an important transitional fuel that is critical for the successful movement to a less carbon-intensive world. Source continues to focus on increasing its involvement in the provision of logistics services for other items needed at the well site in response to customer requests to expand its service offerings and to further utilize its existing Western Canadian terminals to provide additional services. SECOND QUARTER CONFERENCE CALL A conference call to discuss Source's second quarter financial results has been scheduled for 7:30 am MST (9:30 am ET) on Thursday, July 31, 2025. Interested analysts, investors and media representatives are invited to register to participate in the call. Once you are registered, a dial-in number and passcode will be provided to you via email. The link to register for the call is on the Upcoming Events page of our website and as follows: Source Energy Services Q2 2025 Results Call The call will be recorded and available for playback approximately 2 hours after the meeting end time, until August 31, 2025, using the following dial-in: Toll-Free Playback Number: 1-855-669-9658 Playback Passcode: 1323921 ABOUT SOURCE ENERGY SERVICES Source is a company that focuses on the integrated production and distribution of frac sand, as well as the distribution of other bulk completion materials not produced by Source. Source provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian terminal network and its 'last mile' logistics capabilities, including its trucking operations, and Sahara, a proprietary well site mobile sand storage and handling system. Source's full-service approach allows customers to rely on its logistics platform to increase reliability of supply and to ensure the timely delivery of frac sand and other bulk completion materials at the well site. IMPORTANT INFORMATION These results should be read in conjunction with Source's unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024 and the audited consolidated financial statements for the years ended December 31, 2024 and 2023, together with the accompanying notes (the 'Financial Statements') and its corresponding MD&A for such periods. The Financial Statements and MD&A and other information relating to Source, including the Annual Information Form, are available under the Company's SEDAR+ profile at The Financial Statements and comparative statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board. Unless otherwise stated, all amounts are expressed in Canadian dollars. NON-IFRS MEASURES In this press release Source has used the terms Free Cash Flow, Adjusted Gross Margin and Adjusted EBITDA, including per MT, which do not have standardized meanings prescribed by IFRS and Source's method of calculating these measures may differ from the method used by other entities and, accordingly, they may not be comparable to similar measures presented by other companies. These financial measures should not be considered as an alternative to, or more meaningful than, net income and gross margin, respectively, which represent the most directly comparable measures of financial performance as determined in accordance with IFRS. Reconciliation of Adjusted EBITDA and Free Cash Flow to Net Income Notes: Reconciliation of Gross Margin to Adjusted Gross Margin For additional information regarding non-IFRS measures, including their use to management and investors, their composition and discussion of changes to either their composition or label, if any, please refer to the 'Non-IFRS Measures' section of the MD&A, which is incorporated herein by reference. Source's MD&A is available online at and through Source's website at FORWARD-LOOKING STATEMENTS Certain statements contained in this press release constitute forward-looking statements relating to, without limitation, expectations, intentions, plans and beliefs, including information as to the future events, results of operations and Source's future performance (both operational and financial) and business prospects. In certain cases, forward-looking statements can be identified by the use of words such as 'expects', 'believes', 'continues', 'focus', 'trend', 'driven by', 'approach' or variations of such words and phrases, or statements that certain actions, events or results 'may' or 'will' be taken, occur or be achieved. Such forward-looking statements reflect Source's beliefs, estimates and opinions regarding its future growth, results of operations, future performance (both operational and financial), and business prospects and opportunities at the time such statements are made, and Source undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or circumstances should change unless required by applicable law. Forward-looking statements are necessarily based upon a number of estimates and assumptions made by Source that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. In particular, this press release contains forward-looking statements pertaining, but not limited to: the expectation that LNG Canada will come online; the completion of phase one of the Taylor facility to help Source meet the expected longer-term increase in demand in northeastern British Columbia; increased demand as Source customers pushed through spring break-up; Source's terminal network footprint and its Wisconsin and Peace River production facilities; expectations regarding the completion of the next phase of the Peace River facility expansion and approaching nameplate capacity of one million tons of domestic sand production; the outcomes of countermeasures proposed by the Canadian federal and provincial governments to mitigate any tariff-related impacts; the volatility in commodity prices on long-term capital plans for the industry; ongoing economic volatility stemming from trade policy uncertainty; Source's focus on pursuing its application to have the Canadian government's counter-tariffs on frac sand removed; the belief that the additional export capability via LNG Canada and the expedited permitting of additional LNG capacity will help mitigate potential impacts related to the counter-tariffs; expectations with respect to sand revenue and mine gate sand sales and associated costs; Source's anticipation of a slowdown in customer activity levels for the second half of 2025; expectations that increased demand for natural gas, increased natural gas pipeline export capabilities and liquefied natural gas exports will drive incremental demand for Source's services in the WCSB; continued increase in demand from customers primarily focused on the development of natural gas properties in Montney, Duvernay and Deep Basin; views that natural gas is an important transitional fuel for the successful movement to a less carbon-intensive world; Source's focus on and expectations regarding increasing its involvement in the provision of logistics services for other well site items; the benefits of Source's existing Western Canadian terminals to provide additional services to customers; the benefits that Source's 'last mile' services provide to customers; expectations respecting future conditions; and profitability. By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Source to differ materially from those anticipated by Source and described in the forward-looking statements. With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: proppant market prices; future oil, natural gas and liquefied natural gas prices; future global economic and financial conditions, including the results of ongoing tariff and trade negotiations in North America, as well as globally; predictable inflationary pressures; future commodity prices, demand for oil and gas and the product mix of such demand; levels of activity in the oil and gas industry in the areas in which Source operates; the continued availability of timely and safe transportation for Source's products, including without limitation, Source's rail car fleet and the accessibility of additional transportation by rail and truck; the maintenance of Source's key customers and the financial strength of its key customers; the maintenance of Source's significant contracts or their replacement with new contracts on substantially similar terms and that contractual counterparties will comply with current contractual terms; operating costs; that the regulatory environment in which Source operates will be maintained in the manner currently anticipated by Source; future exchange and interest rates; geological and engineering estimates in respect of Source's resources; the recoverability of Source's resources; the accuracy and veracity of information and projections sourced from third parties respecting, among other things, future industry conditions and product demand; demand for horizontal drilling and hydraulic fracturing and the maintenance of current techniques and procedures, particularly with respect to the use of proppants; Source's ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which Source conducts its business and any other jurisdictions in which Source may conduct its business in the future; future capital expenditures to be made by Source; future sources of funding for Source's capital program; Source's future debt levels; the impact of competition on Source; and Source's ability to obtain financing on acceptable terms. A number of factors, risks and uncertainties could cause results to differ materially from those anticipated and described herein including, among others: the effects of competition and pricing pressures; risks inherent in key customer dependence; effects of fluctuations in the price of proppants; risks related to indebtedness and liquidity, including Source's leverage, restrictive covenants in Source's debt instruments and Source's capital requirements; risks related to interest rate fluctuations and foreign exchange rate fluctuations; changes in general economic, financial, market and business conditions in the markets in which Source operates, including with respect to tariff and trade policy in North America, as well as globally; changes in the technologies used to drill for and produce oil and natural gas; Source's ability to obtain, maintain and renew required permits, licenses and approvals from regulatory authorities; the stringent requirements of and potential changes to applicable legislation, regulations and standards; the ability of Source to comply with unexpected costs of government regulations; liabilities resulting from Source's operations; the results of litigation or regulatory proceedings that may be brought by or against Source; the ability of Source to successfully bid on new contracts and the loss of significant contracts; uninsured and underinsured losses; risks related to the transportation of Source's products, including potential rail line interruptions or a reduction in rail car availability; the geographic and customer concentration of Source; the impact of extreme weather patterns and natural disasters; the impact of climate change risk; the ability of Source to retain and attract qualified management and staff in the markets in which Source operates; labor disputes and work stoppages and risks related to employee health and safety; general risks associated with the oil and natural gas industry, loss of markets, consumer and business spending and borrowing trends; limited, unfavorable, or a lack of access to capital markets; uncertainties inherent in estimating quantities of mineral resources; sand processing problems; implementation of recently issued accounting standards; the use and suitability of Source's accounting estimates and judgments; the impact of information systems and cyber security breaches; the impact of inflation on capital expenditures; and risks and uncertainties related to pandemics, including changes in energy demand. Although Source has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will materialize or prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Readers should not place undue reliance on forward-looking statements. These statements speak only as of the date of this press release. Except as may be required by law, Source expressly disclaims any intention or obligation to revise or update any forward-looking statements or information whether as a result of new information, future events or otherwise. Any financial outlook and future-oriented financial information contained in this press release regarding prospective financial performance, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of Source's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The forward-looking information and statements contained in this document speak only as of the date hereof and have been approved by the Company's management as at the date hereof. The Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. FOR FURTHER INFORMATION PLEASE CONTACT: Scott Melbourn Chief Executive Officer (403) 262-1312 [email protected] Derren Newell Chief Financial Officer (403) 262-1312 [email protected] SOURCE: Source Energy Services Ltd. press release
