NorAm Drilling (NORAM) Q1 2026 earnings summary

Executive summary

• Achieved 100% fleet utilization by quarter end, reactivating two rigs and reaching 90.3% utilization, with all rigs contracted and revenues of $26.2 million for Q1 2026.

• Adjusted EBITDA improved to $4.5 million from $3.8 million in Q4, and operating profit rose to $3 million from $2 million, driven by higher utilization.

• Net profit after tax was $2.6 million, with EPS of $0.06.

• Paid $3.9 million in dividends during the quarter, with two additional dividends declared post-quarter and a 42nd consecutive monthly payout.

• Backlog stood at $23.3 million as of late May 2026.

Financial highlights

• Q1 2026 revenue was $26.2 million, slightly down from $26.5 million in Q4 2025, mainly due to lower reimbursables.

• Adjusted EBITDA increased to $4.5 million from $3.7 million sequentially.

• Operating profit reached $3 million, up from $2 million in Q4.

• Net profit after tax was $2.6 million, compared to $2 million in Q4 2025.

• Ended the quarter with $7.3 million in cash and a debt-free balance sheet.

Outlook and guidance

• 100% of rigs are now contracted and working, supporting a stable near-term outlook.

• Most major E&P companies are maintaining 2026 budgets, while some private operators are increasing budgets, leading to a recent uptick in Permian rig counts.

• Expectation that U.S. shale production has peaked at current rig counts, supporting longer-term optimism for super-spec rigs.

• Customers are showing increased interest in longer-term contracts (6-12 months), with day rate increases expected if market conditions improve.

• CapEx for 2026 is projected between $3 million and $4 million, with OpEx expected to normalize as overhead is spread across the full fleet.