Total Energy Services (TOT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 8% year-over-year to $260.7 million, driven by strong Australian results and North American demand for compression/process equipment, offset by lower North American drilling and completion activity.

• Diversified business model and strong free cash flow enabled investment in growth, dividends, share buybacks, and debt reduction.

• Record fabrication sales backlog of CAD 380.8 million at quarter-end provides visibility into late 2026.

• Net income for Q3 2025 was $14.6 million, down 26% year-over-year; nine-month net income was stable at $50.6 million.

Financial highlights

• Consolidated Q3 revenue up 8% year-over-year; gross margin at 22%, down 409 bps from 2024.

• Q3 2025 EBITDA was $42.9 million, down 15% year-over-year; nine-month EBITDA rose 6% to $138.8 million.

• Net working capital at CAD 115.5 million, including CAD 57.1 million cash; net bank debt at CAD 32.9 million.

• Senior bank debt to EBITDA ratio at 0.25x; interest coverage ratio at 36.47x.

• Diluted EPS for Q3 2025 was $0.38, down from $0.50 in Q3 2024; nine-month diluted EPS was $1.33, up 6%.

Outlook and guidance

• Australian rig count to reach record 13 active rigs; further upgrades and reactivations planned.

• U.S. fabrication capacity expansion underway, with completion expected Q1 2027.

• CPS segment margins expected to improve as low-margin legacy orders are completed by year-end.

• Strong compression equipment demand and backlog expected to support revenue into H2 2026.

• Management remains open to both small and large M&A opportunities, focusing on disciplined growth.