Total Energy Services (TOT) investor relations material

Executive summary

• Q3 revenue rose 32% YoY to $343.0M; operating income increased 38% to $26.6M and net income attributable to shareholders rose 48% to $21.5M.

• Adjusted EBITDA increased 50% YoY; reported EBITDA rose 20% to $51.4M. Results included $15.9M of share-based compensation expense.

• Record operating cash flow of $112.6M reflected strong CPS, stable Australian activity and improving North American drilling and completion conditions.

Financial highlights

• Q3 consolidated margin was 23%, up 106 bps YoY; gross margin was $79.5M versus $57.7M.

• Nine-month revenue increased 29% to $986.9M, EBITDA rose 21% to $167.4M, and net income increased 43% to $72.6M.

• Q3 diluted EPS was $0.59 versus $0.38; nine-month diluted EPS was $1.97 versus $1.33.

• Operating cash flow was $112.6M in Q3 versus $57.5M; nine-month cash flow was $188.8M versus $139.2M.

• Q3 deferred revenue increased $54.1M, driven by deposits on CPS fabrication sales orders.

Outlook and guidance

• Preliminary 2027 capital budget expected in early January; maintenance capital estimated at $40M if activity is flat, with growth spending dependent on opportunities.

• Weirton fabrication facility expansion is on schedule and budget for Q1 2027 completion; production ramp-up will take several quarters.

• Canadian AC triple upgrade is expected to finish in early January 2027 and start work for a major producer; three Canadian service rigs and one Australian drilling rig are also expected to deploy by January.

• Canadian winter drilling outlook is positive; a new Australian service rig is expected to start in Q2 2027, with activity broadly stable and fewer upgrade opportunities.