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Pason Systems (PSI) investor relations material

Pason Systems Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary7 Nov, 2025

Executive summary

  • Q3 2025 consolidated revenue was $101 million, down 5% year-over-year, with adjusted EBITDA of $38.5 million (38.1% margin), reflecting resilience amid challenging industry conditions and outperforming a 9% decline in North American drilling activity.

  • Net income was $12.5 million ($0.16/share), down from $24.2 million ($0.30/share) year-over-year, due to lower industry activity and higher depreciation and stock-based compensation.

  • Free cash flow reached $18.7 million, up 12% from $16.7 million in Q3 2024, with $13.1 million returned to shareholders via dividends and share repurchases.

  • The company continues to focus on expanding product offerings, technology adoption, and disciplined capital allocation.

Financial highlights

  • North American drilling revenue declined 7% year-over-year to $68.8 million, outperforming a 9% drop in industry activity; revenue per industry day hit a record $1,071, up 1%.

  • International drilling revenue fell 18% to $12.5 million due to a major customer in Argentina shifting focus to unconventional wells and currency depreciation.

  • Completions segment revenue grew 17% year-over-year to $14.6 million, despite a 27% drop in U.S. industry activity; IWS had 30 active jobs, up from 28.

  • Solar and energy storage revenue increased 30% year-over-year to $5.1 million, driven by timing of control system deliveries.

  • Adjusted EBITDA margin compressed slightly due to lower consolidated revenue and higher contributions from lower-margin segments.

Outlook and guidance

  • Capital program for 2025 and 2026 expected at $55–$60 million annually, with about $25 million allocated to growth investments in completions.

  • Near-term industry conditions remain challenging due to economic uncertainty and potential oil oversupply; medium- to long-term growth expected from technology adoption and international expansion.

  • Company aims to double revenue from 2023 levels within five to seven years, focusing on product innovation, completions growth, and international opportunities.

  • Quarterly dividend maintained at $0.13 per share.

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Frequently asked questions

Pason Systems Inc. is an energy services company specializing in advanced data management and analytics solutions for the oil and gas industry. The company provides real-time drilling data, automated reporting, and remote communications technology to enhance operational efficiency and decision-making for drilling companies. Its product offerings include rig-based data acquisition systems, cloud-based analytics platforms, and software solutions for performance optimization. The company is headquartered in Calgary, Canada, and its shares are listed on the TSX.

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