Total Energy Services (TOT) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual financial results for Q4 and full year 2025, driven by strong North American demand for natural gas compression and process equipment, and upgraded equipment deployment in Australia, offsetting lower North American drilling and completion activity.

• Net income attributable to shareholders rose 134% year-over-year in Q4 and 22% for the full year; revenue increased 22% in Q4 and 17% for the year.

• Substantial investments in Australia and a record fabrication sales backlog reflect a growing position in the North American natural gas compression market.

• Exited U.S. Well Servicing business, redeploying capital to higher-return opportunities and maintaining a disciplined approach to M&A.

• Cash on hand exceeded bank debt at year-end for the first time since 2017, with $59.6 million in cash and $120 million available credit.

Financial highlights

• Q4 2025 revenue: $301.7M (+22% YoY); FY 2025 revenue: $1,064.7M (+17% YoY).

• Q4 2025 EBITDA: $47.3M (+9% YoY); FY 2025 EBITDA: $171.98M (+6% YoY).

• Q4 2025 net income: $23.7M (+135% YoY); FY 2025 net income: $74.3M (+22% YoY).

• Diluted EPS: $0.63 in Q4 (+142% YoY), $1.95 for FY (+27% YoY).

• At December 31, 2025, positive working capital was CAD 108 million, including CAD 59.6 million in cash; cash exceeded bank debt by CAD 4.6 million.

Outlook and guidance

• Entered 2026 in the strongest position since inception, with a CAD 31.6 million increase to the 2026 capital budget for rig upgrades in Australia and Canada.

• Record $446.7M fabrication sales backlog in CPS segment provides visibility into 2027.

• Ongoing focus on targeted investments driven by customer demand and maintaining flexibility in capital allocation.

• Ceased US well servicing operations in January 2026; equipment sold in February 2026, real estate sale pending.

• Stable Australian conditions, strong North American compression/process demand, and improved Canadian outlook following major infrastructure projects.