This news release contains “forward-looking information and statements” within the meaning of applicable securities laws.
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release → contain → laws
For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release.
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they → look → release
This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), Net Capital Spending, Working Capital and Total Long-Term Financial Liabilities.
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release → contain → disposals
These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies.
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terms → have → companies
Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) announces its 2026 third quarter results, highlighted by revenue, Adjusted EBITDA and net earnings growth driven by higher activity in Canada and the U.S., with U.S. margins expected to inflect higher in the fourth quarter.
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margins → announce → quarter
Financial Highlights
- Revenue increased 15% to $532 million, compared with $462 million in the third quarter of 2025, supported by stronger drilling activity in North America and higher average U.S. day rates, which more than offset lower international results.
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which → increase → results
- Adjusted EBITDA(1) increased 6% to $125 million from $118 million in 2025, primarily due to stronger activity in North America, partially offset by higher U.S. rig reactivation costs and lower international margins.
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EBITDA(1 → increase → costs
Share-based compensation expense was $8 million in the third quarter of 2026 compared to $11 million in 2025.
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expense → base → 2025
- Net earnings attributable to shareholders in the third quarter was $21 million compared with a net loss of $7 million in 2025.
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earnings → compare → 2025
This increase was primarily due to higher deferred income tax expense in 2025 related to our U.S. operations, partially offset by $8 million of additional depreciation expense in 2026 resulting from our previously communicated change in useful life estimates.
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increase → relate → estimates
- Cash provided by operations during the quarter was $71 million compared to $76 million, allowing for the repurchase of $31 million of common shares.
- Capital expenditures were $82 million compared to $69 million in the third quarter of 2025.
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expenditures → provide → 2025
Precision has revised its 2026 capital budget from $265 million to a range of $275 million to $285 million to accommodate long-lead deliveries and a pending upgrade opportunity, which would have multiple rigs contracted through 2029 for a large Canadian producer.
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rigs → revise → producer
Capital spending by spend category(1) is expected to include approximately $172 million for maintenance, infrastructure, and intangibles and $103 million to $113 million for expansion and upgrades.
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spending → expect → expansion
Operational Highlights
- Canada averaged 73 active rigs, up 16% compared to 63 active rigs in the third quarter of 2025, in line with higher industry activity(2).
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Canada → average → activity(2
- Canadian revenue per utilization day was $33,654 compared to $34,193 in 2025.
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revenue → compare → 2025
The modest reduction reflects rig mix rather than pricing, as robust heavy oil activity increased utilization of Super Single rigs by 18% year over year.
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activity → reflect → year
- U.S. averaged 43 active rigs, up 19% compared to 36 active rigs in the third quarter of 2025, reflecting our improved customer base and competitive position.
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U.S. → average → base
This growth outpaced the U.S. industry’s 10% increase in activity.
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growth → outpace → activity
- U.S. revenue per utilization day increased to US$33,270 from US$31,040 in the same period last year, driven by higher average day rates and increased technology revenue.
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revenue → increase → rates
- Internationally, we had seven active rigs during the quarter, with three in the Kingdom of Saudi Arabia and four in Kuwait, compared with two and five rigs, respectively, in 2025.
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we → have → 2025
This change in rig mix and planned rig recertifications, resulting in non-billable days, decreased revenue per utilization day to US$46,304 from US$53,811.
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change → plan → 53,811
- Canadian well servicing rig operating hours increased 6% compared to the same quarter in 2025.
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hours → service → 2025
Higher oil prices drove incremental demand as customers looked to maximize cash flows, while Adjusted EBITDA increased 10%.
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EBITDA → drive → flows
MANAGEMENT COMMENTARY
Precision’s President and CEO, Carey Ford, provided the following commentary:
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President → provide → commentary
“Precision delivered another quarter of solid operational and financial execution, highlighted by year-over-year growth in revenue, Adjusted EBITDA, and net earnings, robust activity in Canada, and continued improvement in U.S. rig activity and day rates.
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Precision → deliver → activity
We are delivering on what we set out to accomplish in 2026: growing revenue and deepening customer relationships, generating free cash flow, and returning capital to shareholders.
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we → deliver → shareholders
“During the third quarter, our drilling rig utilization increased 16% in Canada and 19% in the U.S. compared with the prior year, outpacing industry activity in both markets.
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utilization → increase → markets
In Canada, our unique positioning in heavy oil basins drove our outperformance, while in the U.S., we further strengthened our customer base, increased day rates, and reactivated six rigs to meet growing customer demand.
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we → drive → demand
We continue to invest selectively in our fleet and expect to complete upgrades to 25 rigs across Canada and the U.S. this year, enhancing our competitive position in core markets and supporting future growth.
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We → continue → growth
“Our cash flow generation continues to support a balanced approach to capital allocation.
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generation → continue → allocation
During the quarter, we generated $71 million of cash from operations, invested $24 million into fleet upgrades, and returned $31 million to shareholders through share repurchases.
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we → generate → repurchases
Year to date, we have repurchased $47 million of shares while reducing debt by $75 million.
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we → repurchase → million
With our long-term leverage target within reach, we expect to enter 2027 with greater flexibility to direct free cash flow toward direct shareholder returns.
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we → expect → returns
“Looking ahead to 2027, we believe we are very well positioned to sustain momentum established this year, with our growing North American contract book further strengthening our outlook.
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book → look → outlook
In Canada, robust customer demand is positioning us for one of our busiest winter drilling seasons in years, with our Super Triple and Super Single rigs expected to be near full utilization.
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rigs → position → utilization
In Completion and Production Services, favorable producer economics, our differentiated service model and expanding drilling and service rentals businesses are expected to support continued growth and improved profitability.
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economics → expand → growth
“In the U.S., our strategy is delivering results.
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strategy → deliver → results
With the majority of our planned rig reactivations behind us, we expect U.S. operating margins to increase approximately 30% during the fourth quarter of 2026, establishing a stronger foundation for 2027.
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margins → plan → 2027
Our focus remains on aligning with customers who value Precision’s high-performance assets, technology, safety and operational execution.
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who → remain → assets
This growth is strategic, strengthening our business and creating sustainable value for shareholders.
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growth → strengthen → shareholders
…and 107 more, not listed.
The Aporia
