PHX Energy Services (PHX) Q4 2025 earnings summary

Executive summary

• Achieved record fourth quarter and annual revenue in 2025, driven by strong Rotary Steerable Systems (RSS) activity and motor rentals, despite a weaker industry environment with declining rig counts in both the US and Canada.

• Declared a special cash dividend of $0.20 per share, reflecting a commitment to shareholder returns under the Return of Capital Strategy (ROCS), in addition to regular quarterly dividends.

• Continued investment in technology, including expansion of the RSS fleet and real-time communications, positioning for further market share gains in 2026.

Financial highlights

• Q4 2025 revenue reached $183.9M, up 3% year-over-year; annual revenue was $709.6M, up 8%.

• Q4 adjusted EBITDA was $36.9M (20% of revenue), up from $29.6M (17%) in Q4 2024; annual adjusted EBITDA was $132.8M (19% of revenue), up 7%.

• Q4 net earnings were $17.6M ($0.35/share diluted), up 25% year-over-year; annual net earnings were $54.7M ($1.13/share diluted), flat year-over-year.

• Q4 excess cash flow was $29.8M, up 73% year-over-year; annual excess cash flow was $69M, up 45%.

• Working capital at year-end was $110.9M; net debt was $6.4M.

Outlook and guidance

• 2026 outlook is positive, with momentum from Q4 2025 carrying into Q1 2026, supported by increased RSS deployment and strong market share.

• Board approved a preliminary 2026 capital expenditure program of $60M, with 40% allocated to growth, focused on expanding high-margin technologies.

• Continued focus on shareholder returns through ROCS, including dividends, share buybacks, and opportunistic special dividends.