Total Energy Services Inc. announced consolidated financial results for the three months ended December 31, 2025.

Total Energy Services Inc. ("Total Energy" or the "Company") (TSX:TOT) announces its consolidated financial results for the three months ended December 31, 2025.

Fourth quarter Well Servicing segment revenue increased in 2025 as compared to 2024 due to increased activity in Australia following the upgrade and reactivation of several service rigs over the past year. Increased revenue from Australian operations was partially offset by lower WS segment revenue in the United States. Segment EBITDA for the fourth quarter of 2025 was higher compared to 2024 due to the deployment of upgraded rigs in Australia that was partially offset by lower Canadian operating margins due to competitive market conditions. During the fourth quarter of 2025 six idle service rigs in Canada were decommissioned with no impairment expense being recognized.

Corporate

During the fourth quarter of 2025, Total Energy continued to execute on its 2025 capital expenditure program with $15.8 million of capital expenditures that was primarily directed towards the upgrade of drilling and service rigs in Australia and Canada. To December 31, 2025, $93.7 million of capital expenditures were funded, including approximately $16.6 million of capital commitments carried forward from 2024 and the acquisition of 280 pieces of rental equipment located in Oklahoma in June 2025 for $9.0 million.   

Total Energy exited 2025 with $108.0 million of positive working capital, including $59.6 million of cash. At December 31, 2025 there was $120.0 million of available credit under the Company's $175 million of revolving bank credit facilities and the interest rate on the Company's outstanding bank debt was 4.08%.

$38.8 million was returned to shareholders during 2025 by way of dividends and share repurchases under the Company's normal course issuer bid. Bank debt was also reduced by $55.9 million during the year and for the first time since the acquisition of Savanna Energy Services in 2017, cash on hand exceeded bank debt at December 31, 2025.

Outlook

Global economic and political uncertainty and commodity price volatility continue to weigh on industry sentiment, particularly in the United States where producers remain measured with their drilling and completion capital budgets. Offsetting this uncertainty are stable Australian industry conditions, continued strong North American demand for compression and process equipment and an improving Canadian outlook following the Trans Mountain pipeline expansion and the startup of the LNG Canada liquified natural gas export terminal. The CPS segment's record $446.7 million fabrication sales backlog at December 31, 2025 provides visibility for the CPS segment's business into 2027.

In January 2026 the Company determined to cease its well servicing operations in the United States and to dispose of the related operating equipment and real estate. The operating equipment was sold in February 2026 and an agreement to sell the real estate has been entered into, with closing expected to occur by June 30, 2026.

Despite continued market uncertainty, targeted opportunities to deploy capital exist. The Board of Directors of the Company has approved a $31.6 million increase to the Company's 2026 capital budget to $87.4 million. This increase will be directed towards the substantial upgrade of two drilling rigs. One rig is a currently active Australian rig that will be taken out of service for approximately two months in mid-2026 to complete the upgrade following which it will be redeployed under a new long term contract. The second rig is an idle Canadian mechanical double rig that will be upgraded to an AC electric triple pad rig.   This upgrade follows the upgrade of a similar idle Canadian rig in 2025 that commenced operations in November 2025 and whose performance has exceeded expectations. Demand for this class of rig is very strong and the Company will look to contract the rig near completion which is expected by the first quarter of 2027. Total Energy intends to finance its 2026 capital budget with cash on hand and cash flow.

Total Energy enters its 30th year in business with cautious optimism and a continued commitment to its founding principles of "Focus, Discipline and Growth" that have served it well over the past three decades and numerous industry cycles.  

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