Pason Systems (PSI) investor relations material

Executive summary

• Q1 2026 consolidated revenue was $102.4 million (CAD 102.4 million), down 9% year-over-year due to lower drilling activity and FX headwinds.

• Adjusted EBITDA was $38.2 million (37.3% margin), down from $45.2 million in Q1 2025.

• Net income attributable to shareholders was $13 million ($0.17 per share), down 35% year-over-year.

• Free cash flow was $8.5 million, with $13.5 million returned to shareholders via dividends and share repurchases.

• Ended Q1 2026 with $73.5 million in cash, $97.9 million in working capital, and no interest-bearing debt.

Financial highlights

• Revenue declined 9% year-over-year, primarily from lower drilling and completions activity and FX headwinds.

• Adjusted EBITDA margin was 37.3%, down from 39.9% in Q1 2025.

• SG&A expenses were $10.1 million, down 6% year-over-year.

• Cash from operating activities was $20.9 million, down from $39.9 million in Q1 2025.

• Net capital expenditures were $12.4 million, down from $16.7 million in Q1 2025.

Outlook and guidance

• Medium-term goal is to double revenue from 2023 levels over five to seven years, driven by scaling completions, new technologies, and international expansion.

• 2026 capital expenditures expected between $60 million and $70 million, likely near the lower end.

• Management expects continued growth in completions, with increasing job size and technology adoption.

• Dividend remains at $0.13 per share, with focus on organic investments and disciplined capital returns.

• Positioned for growth investments and continued shareholder returns with a prudent balance sheet.