CES Energy Solutions (CEU) investor relations material

Executive summary

• Achieved record quarterly revenue of CAD 681.5 million (USD 681.5 million) in Q1 2026, up 8% year-over-year, with strong margins and high-quality earnings.

• U.S. and Canadian divisions both set all-time high quarterly revenues, with U.S. revenue at CAD 438 million (64% of total) and Canada at CAD 244 million (36%).

• North American provider of molecular-level chemical solutions with vertically integrated, decentralized operations in key markets.

• Focus on consumable chemical solutions for oilfield services, with a resilient, countercyclical balance sheet and low capital intensity.

• Strong management team with significant industry experience and insider ownership aligned with shareholders.

Financial highlights

• TTM Q1 2026 revenue reached C$2.54 billion, with 66% from the US and 34% from Canada.

• Adjusted EBITDAC of CAD 111.7 million in Q1 2026, up 12% year-over-year, with a margin of 16.4%, at the high end of guidance.

• Cash flow from operations was CAD 69 million, up 15% year-over-year.

• Free cash flow was CAD 33 million, up 29% year-over-year, with a 30% conversion rate to adjusted EBITDAC.

• Working capital surplus of C$718 million and net debt of negative C$226 million as of March 31, 2026.

Outlook and guidance

• Margin guidance reaffirmed at 15.5%-16.5%, with no expected material impact from ongoing cost pressures.

• Optimistic about higher activity levels in Canada and the U.S. for the remainder of 2026 and into 2027, driven by infrastructure improvements and favorable energy pricing.

• Anticipates continued growth in drilling fluids and production chemical markets, driven by increasing well complexity and oil production.

• Expects to maintain strong free cash flow generation and stable margins through cycles.

• 2026 capital expenditures projected at $95 million, split equally between maintenance and expansion.