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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.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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