CES Energy Solutions (CEU) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of CAD 714.1 million, up 24.4% year-over-year, and record Adjusted EBITDAC of CAD 119.2 million, up 35% year-over-year, with a margin of 16.7%.

• U.S. revenue reached CAD 497 million (70% of total), Canadian revenue CAD 217.1 million, both driven by increased market share and service intensity.

• Net income for Q2 2026 was $38.5 million, down 26% year-over-year due to higher finance costs and FX losses despite strong operational performance.

• Declared a quarterly dividend of $0.055/share (1.3% yield), with a payout ratio of 15-16%.

• Business model resilience demonstrated by record funds flow from operations, strong free cash flow, and disciplined capital allocation.

Financial highlights

• Q2 2026 revenue: CAD 714.1 million (+24.4% year-over-year); TTM revenue reached CAD 2.68 billion.

• Adjusted EBITDAC: CAD 119.2 million (16.7% margin), above guidance and prior year.

• Funds flow from operations: CAD 97 million (record), free cash flow: CAD 25 million.

• Working capital surplus at June 30, 2026: CAD 761 million; net debt was negative CAD 248 million.

• Total debt to adjusted EBITDAC: 1.15x; adjusted EBITDAC/interest on debt: 13.4x.

Outlook and guidance

• Margin guidance maintained at 15.5%-16.5% due to ongoing market volatility, despite recent outperformance.

• Expects continued high activity levels in North America through Q3, Q4, and into 2027, supported by infrastructure and favorable commodity pricing.

• Anticipates growth in drilling fluids and production chemicals driven by well complexity and oil production.

• 2026 capital expenditures planned at CAD 100 million, split evenly between maintenance and growth.

• Business model and capital structure expected to support continued strong surplus free cash flow.