Precision Drilling Reports Strong Q3 2025 Financial Results

Precision Drilling Corporation has released its unaudited financial results for the third quarter of 2025, demonstrating a significant performance amid a challenging North American drilling market. The Calgary-based company reported increased activity and revenue growth, confirming its commitment to shareholder returns while enhancing its operational capabilities.

Financial highlights indicate a robust growth trajectory, with Adjusted EBITDA reaching $19 million for the quarter. The company also raised its planned capital expenditures from $240 million to $260 million, reflecting increased investments in fleet upgrades supported by customer contracts. This strategic move aims to bolster the company’s competitive position in key operating markets.

Operational Success in a Challenging Market

Despite facing a 7% decline in the North American drilling market compared to last year, Precision Drilling achieved a more than 10% increase in both its U.S. and Canadian operations. President and CEO Carey Ford highlighted that the company’s favorable positioning in U.S. natural gas markets, along with Canadian heavy oil and unconventional natural gas sectors, has enabled it to capture significant opportunities for growth.

In Canada, Precision currently operates 68 drilling rigs, with strong demand for its Super Triple and Super Single rig classes expected to continue through the winter season. During the third quarter, the company successfully mobilized two Super Triple rigs from the U.S. to a major Canadian client under a multi-year contract. These rigs are set to commence revenue generation in the fourth quarter.

Meanwhile, in the U.S., the company operates 39 drilling rigs, significantly up from an average of 30 rigs earlier in the year. The company has noted a positive trend in natural gas activity, particularly in key basins such as the Haynesville and Marcellus. Ford expressed optimism about customer engagement, although he acknowledged the challenges posed by shorter contract durations and fluctuating commodity prices.

Commitment to Shareholder Returns and Future Outlook

Precision Drilling has met its debt reduction target for 2025, successfully decreasing its debt by over $100 million by the end of the third quarter. The company plans to allocate between 35% and 45% of its free cash flow to share repurchases by year-end, building on $54 million in shares already repurchased during the first nine months of the year.

Looking ahead, the company is optimistic about the remainder of 2025, particularly with the anticipated stability in commodity prices. Operating margins in Canada are expected to average between $14,000 and $15,000 per utilization day, consistent with recent performance. In the U.S., margins are anticipated to remain steady, averaging between US$8,000 and US$9,000 per utilization day.

Ford concluded by emphasizing his excitement as the new CEO, expressing confidence in the company’s ability to serve customers and enhance shareholder value. As Precision Drilling continues to strengthen its fleet and expand its operational capacity, it remains committed to positioning itself as a leading provider in the energy sector.

For further details, Precision Drilling will host a conference call and webcast on October 23, 2025, at 11:00 a.m. MT (1:00 p.m. ET), offering stakeholders an opportunity to engage directly with company leadership about the latest developments and future plans.