Ensign Energy Services (ESI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $481.7 million, up 17% YoY; Adjusted EBITDA was $115.0 million, up 17%; funds flow from operations was $122.5 million, up 39%.

• Net income attributable to common shareholders was $10.8 million versus a $3.3 million loss in Q3 2025; the 9M net loss narrowed to $13.3 million from $26.0 million.

• Higher operating activity and revenue day rates, along with the Citadel Drilling acquisition, supported revenue and funds-flow growth.

Financial highlights

• 9M revenue was $1,297.1 million, up 6% YoY; Adjusted EBITDA was $295.7 million, up 5%, or $1.60 per common share versus $1.53.

• Q3 cash from operating activities was $108.9 million, up 8%; 9M cash from operating activities was $257.4 million, down 2%.

• Q3 basic and diluted EPS were each $0.06 versus a $0.02 loss; 9M loss per share was $0.07 versus $0.14.

• Q3 interest expense was $17.7 million, down 4%; 9M interest expense was $46.8 million, down 18%, reflecting lower pre-acquisition debt, effective rates and one-time recoveries.

Outlook and guidance

• Targeting approximately $50 million of net debt reduction for the remainder of 2026, subject to change with industry conditions.

• 2026 capital budget: approximately $190 million maintenance and $100 million selective upgrades; Q3 customer upgrade commitments totaled $87 million.

• Canadian and U.S. activity is expected to improve in Q4; international activity expectations include five Latin America rigs, five Middle East rigs and four Australia rigs.

• As of Nov. 5, term-contracted rigs represented approximately 73% of 77 marketed Canadian rigs, 68% of 75 U.S. rigs and 65% of 26 international rigs.