Constellation Oil Services (COSH) investor relations material

Executive summary

• Delivered adjusted EBITDA of $143 million for the first nine months, with full-year guidance raised to $195–$210 million, driven by strong contract execution and operational discipline.

• Maintained high fleet uptime (97% in Q3, 95% YTD), with successful contract transitions and a fully contracted fleet for 2025.

• Backlog expanded to $1.9 billion, up 22% year-over-year, with significant coverage for 2026 and 2027.

• Positioned for sustainable growth, with plans to initiate shareholder distributions as leverage and cash targets are met.

• Condensed consolidated interim financials reviewed with no material misstatements as of September 30, 2025.

Financial highlights

• Q3 2025 operating revenues reached $138 million, up year-over-year, with semi-fleet and new contracts offsetting maintenance impacts.

• Adjusted EBITDA for Q3 2025 was $44 million, with a 32% margin, and YTD adjusted EBITDA totaled $143 million.

• Net loss for the nine months ended September 30, 2025, was $37.1 million, compared to a $3 million profit in Q3 2024.

• Operating cash flow through Q3 was $170 million, up year-over-year, aided by mobilization fees.

• CAPEX for the nine months was $109 million, mainly for contract preparations and fleet maintenance.

• Net debt decreased to $437 million as of Q3 2025, down from $855 million in Q3 2024.

Outlook and guidance

• Full-year adjusted EBITDA guidance raised to $195–$210 million, with CAPEX guidance at $150 million.

• Contract backlog at $1.9 billion as of September 30, 2025, with 72% coverage for 2026 and 47% for 2027.

• 2026 expected to have fewer contract transitions, supporting higher EBITDA and cash flow, with potential for dividend distributions by late 2026 if leverage and cash targets are met.

• Revenue guidance for 2025 is $575–$590 million.