Total Energy Services (TOT) Q2 2025 earnings summary

Executive summary

• Achieved record second quarter results for the three months ended June 30, 2025, with 17% year-over-year revenue growth to $250.4 million, driven by strong Australian drilling and service rig activity, robust North American demand for compression and process equipment, and improved Canadian well servicing, offsetting declines in U.S. and Canadian drilling activity.

• Substantial investment in the Australian business and continued momentum in the Compression and Process Services (CPS) segment underpinned performance.

• Net income attributable to shareholders increased 11% to $17.1 million.

Financial highlights

• Consolidated revenue increased 17% year-over-year to $250.4 million; EBITDA rose 21% to $45.4 million; operating income up 53% to $22.3 million.

• EBITDA margin improved by 58 basis points year-over-year to 18%; consolidated gross margin held steady at 23%.

• Net income attributable to shareholders increased 11% to $17.1 million; diluted EPS up 15% to $0.45.

• Positive working capital of $111.8 million, including $34.2 million in cash as of June 30, 2025.

• Total assets increased 1% to $949.9 million; shareholders’ equity up 2% to $581.5 million.

Outlook and guidance

• Strong sales activity and quoting in the CPS segment expected to continue through the back half of the year, with a record $303.9 million fabrication sales backlog providing visibility into 2026.

• Board approved a $19.5 million increase to the 2025 capital expenditure budget to $102.4 million, focused on a new U.S. assembly plant and rig upgrades in Australia.

• Most of the increased capital budget will be spent in 2026, with the new U.S. facility expected to boost fabrication capacity by at least 75% by Q1 2027.

• 70% of the 2025 capital budget targets growth; remaining $58.2 million to be funded by cash and cashflow.

• Oil prices remained weak due to global economic uncertainty, impacting North American drilling, especially in the U.S.