PHX Energy Services (PHX) Q3 2025 earnings summary

Executive summary

• Consolidated Q3 2025 revenue rose 2% year-over-year to $164.3M, with US division up 3% and Canada flat despite industry declines.

• Adjusted EBITDA was $27.9M (17% margin), down 4% from Q3 2024, with net earnings of $8.5M ($0.16/share), a 17% decrease.

• Profitability impacted by higher equipment costs, increased depreciation, and lower high-margin RSS and parts sales.

• Dividend of $0.20/share ($9M total) paid in Q3; 279,000 shares repurchased and cancelled for $2.3M.

• Working capital at $102.2M and net debt at $34.5M as of September 30, 2025.

Financial highlights

• Q3 2025 revenue: $164.3M (+2% YoY); nine-month revenue: $525.7M (+9% YoY).

• Q3 net earnings: $8.5M (-17% YoY); nine-month net earnings: $37.1M (-8% YoY).

• Adjusted EBITDA Q3: $27.9M (-4% YoY); margin 17% (down from 18%).

• Cash flows from operations Q3: $20.1M (-30% YoY); excess cash flow Q3: $12.6M (-35% YoY).

• Capital expenditures Q3: $16.5M (+48% YoY); net capital expenditures Q3: $7.4M.

Outlook and guidance

• Q4 2025 expected to maintain activity and revenue trends, but profitability may weaken due to global instability, lower oil prices, and tariffs.

• Preliminary 2026 capital expenditure budget set at $60M, with focus on expanding high-margin RSS and Atlas rental divisions.

• Cautious approach to 2026 spending due to downgraded industry outlook; actual expenditures may be lower.

• Anticipates growth in LNG-related natural gas drilling and continued expansion in Atlas rental business.