PHX Energy Services (PHX) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was $183.9M, down 5% year-over-year but nearly flat sequentially, marking the second-highest Q1 revenue in company history.

• Record Rotary Steerable Systems (RSS) activity drove 18% of consolidated activity, up from 15% in Q1 2025.

• Earnings were $8.9M ($0.20/share), down from $20.2M ($0.44/share) in Q1 2025, impacted by higher depreciation and share-based compensation.

• Adjusted EBITDA excluding share-based compensation was $39.5M (22% margin), compared to $43.3M (22%) last year.

Financial highlights

• Revenue: $183.9M (-5% YoY); US division $125.8M (-8% YoY), Canada $58.1M (+1% YoY).

• Adjusted EBITDA: $30M (-26% YoY), margin 16%; excluding share-based comp: $39.5M (-9% YoY), margin 22%.

• Net income: $8.9M (-56% YoY); EPS diluted $0.20 (-55% YoY).

• Cash flows from operations: -$0.5M (down from $10.9M); excess cash flow: $3M (-84% YoY).

• Dividends paid: $18.1M ($0.40/share), up 100% YoY.

Outlook and guidance

• Expect continued momentum in RSS deployment and margin stability, with capital spending weighted to H1 2026.

• Board approved a $5M increase to 2026 capex budget, now $65M, focused on premium technologies.

• Inflationary pressures and industry volatility expected to persist; focus remains on efficiency and high-margin tech.

• Anticipate balanced ROCS position by year-end, with ongoing shareholder returns.