PHX Energy Services (PHX) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter revenue of $167.7 million, up 9% year-over-year, driven by strong US and Canadian performance despite industry softness.

• Adjusted EBITDA was $27.4 million (16% margin), down 9% from prior year due to higher equipment costs and tariffs.

• Net earnings were $8.5 million ($0.17/share), a 34% decrease year-over-year, impacted by increased depreciation and direct costs.

• Continued focus on premium RSS technology and motor rentals supported resilience in a declining rig count environment.

Financial highlights

• Revenue: $167.7 million (+9% YoY); US division $128.1 million (+10% YoY), Canada $39.6 million (+4% YoY).

• Adjusted EBITDA: $27.4 million (16% margin), down from $30 million (19% margin) YoY.

• Net earnings: $8.5 million ($0.17/share) vs. $12.9 million ($0.26/share) YoY.

• Cash flows from operating activities: $10.5 million, down 73% YoY.

• Excess cash flow: $9.3 million, up 163% YoY due to lower net capital expenditures.

Outlook and guidance

• Expect continued strong activity and revenue in H2 2025, leveraging premium RSS and motor rental offerings.

• Anticipate ongoing margin pressure from tariffs and lower commodity prices, but plan to offset with technology and market share gains.

• Monitoring LNG export growth and potential for increased natural gas drilling activity.

• Committed to maintaining industry-leading dividend and share buyback program.