PDS · Precision Drilling Corporation

Precision Drilling Corporation's Q1 2026 results showed revenue growth of 6% to $526 million, primarily from increased drilling activity in Canada (up 6.5% utilization days to 7,116) and the U.S. (up 23.8% to 3,332 days), offsetting lower international activity. Canadian revenue rose $13 million and U.S. $24 million year-over-year, with U.S. revenue per utilization day improving to US$33,715. However, Adjusted EBITDA fell 10% to $124 million due to elevated share-based compensation expense of $19 million (versus $3 million in Q1 2025, tied to 39% share price appreciation) and higher rig reactivation costs. Net earnings dropped sharply to $17 million from $35 million, also reflecting increased depreciation from useful life estimate changes. Operating margins held resilient: Canada at $14,282 per day (down slightly due to rig mix), U.S. at US$9,291 (core US$9,287 excluding turnkey/idle revenue). Completion and Production Services revenue was stable at $80 million with 22% Adjusted EBITDA margin. Management highlighted outperformance versus industry declines (Canada -7%, U.S. -7%) via Alpha™ technologies and Super Triple rigs. Cash from operations remained robust at $63 million, funding $25 million debt reduction (long-term debt to $664 million), $4 million share repurchases (36,874 shares), and $65 million capex. The 2026 capital budget was raised to $265 million for two contracted Canadian rig upgrades and anticipated activity gains. Certifications by CEO Carey T. Ford and CFO Dustin D. Honing confirm no material misrepresentations, fair presentation under IFRS, and effective DC&P/ICFR using COSO/COBIT frameworks, with no material weaknesses or scope limitations. Q2 outlook projects Canada margins of $12,000-$13,000/day and U.S. $7,500-$8,500/day, with optimistic full-year activity amid higher oil prices and geopolitical tensions supporting steady drilling in stable regions.