Total Energy Services (TOT) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue, EBITDA, and net income for Q2 2026, driven by strong North American demand for natural gas compression/process equipment and upgraded rig deployments in Australia and Canada.

• Q2 results benefited from a CAD 3 million ($3.0 million) year-over-year gain on asset sales after discontinuing U.S. well servicing, partially offset by CAD 2.3 million ($2.3 million) in non-recurring U.S. contract drilling expenses.

• Share repurchases over the past year amplified per-share results.

Financial highlights

• Q2 2026 revenue increased 31% year-over-year to $328.96 million; net income rose 57% to $26.78 million.

• EBITDA for Q2 was $60.85 million, up 34% year-over-year; operating income grew 51% to $33.73 million.

• Q2 gross margin was 22%, down 157 basis points year-over-year due to higher CPS revenue mix.

• Cashflow from operations reached $47.74 million, a 24% increase year-over-year.

• At June 30, 2026, positive working capital of CAD 81.9 million, including CAD 50.5 million cash; cash exceeded bank debt by CAD 25.5 million.

Outlook and guidance

• Fabrication sales backlog reached a record CAD 554.5 million ($554.5 million), up 82% year-over-year, providing visibility into 2028.

• Expansion of U.S. fabrication capacity in Weirton, WV, on schedule for Q1 2027 completion.

• Board approved a capital budget increase to CAD 32.7 million for 2026, with total commitments of CAD 144.6 million ($144.6 million) including carryforward.

• Capital program includes CAD 24.9 million ($24.9 million) for growth and CAD 7.8 million ($7.8 million) for maintenance.