High Arctic Energy Services (HWO) investor relations material

Executive summary

• Q2 2026 revenue rose 23% year-over-year to $2.94 million, driven by increased customer demand and stable pricing in rental services.

• Net income improved to $3,000 in Q2 2026 from a net loss of $295,000 in Q2 2025, aided by a strong turnaround in Team Snubbing's performance.

• Operating loss narrowed to $126,000 from $254,000 year-over-year, reflecting higher revenues and improved margins despite increased G&A expenses.

• YTD 2026 revenue increased 20% to $5.68 million, with net income of $858,000 versus a net loss of $415,000 in YTD 2025.

Financial highlights

• Oilfield services operating margin for Q2 2026 was $1.3 million (46.2% margin), down from 49.1% in Q2 2025 due to a higher mix of lower-margin well stimulation services.

• Adjusted EBITDA for Q2 2026 was $504,000 (17% of revenue), up from $482,000 (20% of revenue) in Q2 2025.

• Cash flow from operations was $205,000 in Q2 2026, compared to a use of $477,000 in Q2 2025.

• Working capital at June 30, 2026 was $4.58 million, up from $3.64 million at year-end 2025.

• Capital expenditures for Q2 2026 were $803,000, nearly double the prior year quarter.

Outlook and guidance

• Customer demand in central Alberta remains strong, with accelerated Duvernay well development expected to continue into Q3 2026.

• Second half 2026 capital expenditures are expected to be significantly lower, as equipment deliveries were front-loaded in the first half.

• Team Snubbing is expected to maintain positive momentum in Alaska, with further growth opportunities anticipated in H2 2026.

• Strategic focus remains on safety, cost control, organic growth, and selective acquisitions.