Precision Drilling (PDS) investor relations material

Executive summary

• Q3 revenue was CAD 531.7 million, up 15.0% YoY; Adjusted EBITDA was CAD 125.1 million, up 6.4%, and net earnings attributable to shareholders were CAD 20.9 million versus a CAD 6.8 million loss in Q3 2025.

• North American activity gains drove growth, partly offset by higher U.S. reactivation costs and weaker international results.

• U.S. operating margins are expected to rise ~30% in Q4 as reactivations slow, supporting a stronger setup for 2027.

Financial highlights

• 9M revenue increased 10.6% to CAD 1.51 billion; Adjusted EBITDA declined 4.7% to CAD 346.1 million and shareholder earnings fell 15.7% to CAD 37.1 million.

• Q3 cash provided by operations was CAD 70.8 million versus CAD 75.9 million; 9M cash provided by operations was CAD 279.5 million versus CAD 286.8 million.

Outlook and guidance

• 2026 capital budget increased from CAD 265 million to CAD 275–285 million, including CAD 172 million for maintenance, infrastructure and intangibles and CAD 103–113 million for expansion and upgrades.

• Q4 Canada operating margin is expected at CAD 13,500–14,500 per utilization day; U.S. margin is forecast at US$9,500–10,500 per utilization day. Near-full winter utilization is expected for Canadian Super Series rigs.

• Q4 international activity is expected at seven rigs with elevated costs; CMP EBITDA is expected in line with prior-year levels.

• The 2026 target is CAD 100 million of debt repayment alongside continued share repurchases; CAD 75 million of debt reduction and CAD 47 million of buybacks were completed year to date.

• North American activity is expected to remain resilient through year-end, with growth potential in early 2027, assuming supportive commodity prices and no material market change.