PHX Energy Services (PHX) investor relations material

Executive summary

• Q3 2026 revenue reached a record $204.2M, up 24% YoY; record RSS activity represented 20% of consolidated activity, versus 13% in Q3 2025.

• Net earnings rose to $10.5M from $8.5M; adjusted EBITDA increased 21% to $33.7M, while its revenue share eased to 16% from 17%.

• Record quarterly revenue in both the US and Canada reflected stronger drilling activity and expanded RSS adoption.

Financial highlights

• Q3 revenue was $204.2M (+24% YoY); 9M revenue was $567.0M (+8%).

• Q3 net earnings were $10.5M (+24%) and diluted EPS was $0.23 versus $0.16; 9M earnings fell 18% to $30.4M and diluted EPS declined 14% to $0.67.

• Q3 adjusted EBITDA was $33.7M (+21%); excluding cash-settled share-based compensation, it was $36.6M (+28%). 9M adjusted EBITDA was $96.6M (+1%).

• Q3 operating cash flow was $18.8M versus $20.1M; funds from operations rose to $27.9M from $21.3M, while excess cash flow was $11.6M versus $12.6M.

Outlook and guidance

• Strong activity is expected to continue into 2027; RSS fleet capacity was exceeded by demand, prompting accelerated equipment purchases.

• The 2026 capital budget was raised by $8M to $88M, with ~60% allocated to growth; the preliminary 2027 budget is $75M, roughly half for growth.

• Growth investment is expected to focus on RSS, Velocity and Atlas fleets; planned spending would be funded by operating cash flow, equipment-disposition proceeds, cash and, if needed, credit facilities.

• Q4 excess cash flow is expected to remain consistent with Q3; 2026 shareholder distributions are expected to exceed the ROCS target of up to 70% of annual excess cash flow.