Calfrac Well Services Ltd. announces its financial and operating results for the three months and year ended December 31, 2025.

Calfrac Well Services Ltd. ("Calfrac" or "the Company") (TSX: CFW) announces its financial and operating results for the three months and year ended December 31, 2025. The following press release should be read in conjunction with the management's discussion and analysis and annual consolidated financial statements and notes thereto as at December 31, 2025. Readers should also refer to the "Forward-looking statements" legal advisory and the section regarding "Non-GAAP Measures" at the end of this press release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about Calfrac is available on the SEDAR+ website at www.sedarplus.ca, including the Company's Annual Information Form for the year ended December 31, 2025.

CEO'S MESSAGE

It is an honor to write to you for the first time as Chief Executive Officer of Calfrac Well Services Ltd. Having joined the Company in September 2025 and assumed the CEO role in February 2026, I am both proud and motivated to lead this respected energy services business into its next chapter of performance and growth.

Calfrac enters 2026 in a stronger financial and operational position. In 2025, our teams navigated dynamic industry conditions while strengthening our balance sheet, enhancing our strategic position in the high-growth Vaca Muerta shale play in Argentina, and completing our fleet modernization program in North America. As we work through the coming year, we remain grounded in three key priorities: safety, operational excellence and disciplined business optimization.

Under my leadership, Calfrac will continue to harness the relentless drive and entrepreneurial spirit that established safety and operational excellence as our hallmarks, while bringing a heightened level of data-driven analysis and strategic insight to every aspect of our business.

Calfrac enters its next chapter with strong momentum, a focused strategy, and a talented team committed to delivering exceptional results. As the energy landscape evolves, we are well prepared to support our customers in developing world-class resource plays across North America and Argentina. I am confident that our disciplined approach, culture of safety and commitment to excellence in the field will generate meaningful, long-term value for our shareholders.

FOURTH QUARTER OVERVIEW

In the fourth quarter of 2025, the Company:

generated revenue of $292.2 million, a decrease of 23 percent from the comparative quarter in 2024 primarily due to lower activity in Argentina, offset partially by higher activity in North America;

reported Adjusted EBITDA of $43.9 million versus $34.5 million in the fourth quarter of 2024 primarily due to improved operating results in North America;

generated cash flow from operating activities of $98.8 million compared to $91.0 million in the fourth quarter of 2024. The increase reflected better operating results in North America and improvements in working capital management;

closed a Rights Offering for net proceeds of $34.7 million which were used in conjunction with the drawdown of the Company's $120.0 million Term Loan to repay its outstanding US$120.0 million Second Lien Notes;

reported net income of $14.5 million or $0.16 per share diluted compared to a net loss of $6.4 million or $0.07 per share diluted in the comparable quarter in 2024; and

incurred capital expenditures of $16.7 million, which included approximately $11.0 million related to expansion capital, auxiliary support equipment and infrastructure upgrades in Argentina.

OUTLOOK

The Company's outlook in North America remains constructive over the next few years despite the near-term macroeconomic headwinds as longer-term demand for energy continues to strengthen and structural improvement in the Canadian LNG market is anticipated to take hold.

The Montney remains the primary source of demand for the Company's pressure pumping services in Canada while continued growth in the Duvernay is driving an outsized impact in pressure pumping demand due to the intensity of horsepower requirements and sand volumes in that resource play. Overall, Calfrac is expecting a modest increase in pressure pumping activity in Canada during 2026 and the Company is well-positioned with its customer base to benefit from growth in these resource plays. As in recent years, activity in the greater Rockies region in the United States is expected to be limited during the first quarter due to the difficult operating conditions that are present in this area during the winter months. The Company expects to see a moderate increase in oil-directed activity over the course of 2026 across its North America segment, while natural gas activity is expected to be relatively stable with a positive outlook for 2026 based upon the expected demand arising from the increased LNG take away capacity in North America. Pricing pressure has continued into the first quarter in 2026 as oil prices remained lower than at the beginning of 2025. The recent escalation of conflict in the Middle East has resulted in a significant increase in oil prices, however, it is not clear if these prices will be sustained beyond the short-term. In response to these market factors, the Company will continue to manage its cost structure to remain competitive in this pressure pumping market with a primary focus of generating free cash flow to lower long-term debt levels.

THREE MONTHS ENDED DECEMBER 31, 2025 COMPARED TO THREE MONTHS ENDED DECEMBER 31, 2024

REVENUE

Revenue from Calfrac's operations in North America decreased to $227.7 million during the fourth quarter of 2025 from $289.9 million in the respective quarter of 2024. The Company operated a lower number of fracturing fleets during the fourth quarter versus the comparable quarter in the prior year due primarily to a decrease in year-over-year oil-directed activity within North America. Pricing in the oil-focused regions of North America was also lower relative to the fourth quarter of 2024, which contributed to the 21 percent reduction in revenue. In addition, coiled tubing revenue was lower by 6 percent from the fourth quarter in 2024 mainly due to the completion of smaller jobs.

ADJUSTED EBITDA

The Company's operations in North America generated Adjusted EBITDA of $32.6 million or 14 percent of revenue during the fourth quarter of 2025 compared to $23.1 million or 8 percent of revenue in the same period in 2024. Despite lower revenue, the Company generated higher Adjusted EBITDA than the comparable quarter in 2024 primarily due to a higher number of operating days per fleet and the impact of reductions in support personnel within North America that were enacted during the second and third quarters of 2025.

YEAR ENDED DECEMBER 31, 2025 COMPARED TO YEAR ENDED DECEMBER 31, 2024

REVENUE

Revenue from Calfrac's North American operations decreased to $953.2 million during 2025 from $1.2 billion in 2024. The Company's North American activity in 2025 was impacted by extreme cold weather during the first quarter and a decrease in oil-based completions due to lower commodity prices. To address the seasonal challenges experienced in the Rockies region, the Company reduced its North American operating footprint during the first quarter in 2025 and also transferred a fracturing fleet into the natural gas-focused Appalachian basin at the beginning of the year. Pricing in North America was also lower relative to the comparable period in 2024, which contributed to the 18 percent reduction in revenue. Further, there was a shift in job mix resulting in a larger number of smaller jobs being completed in western Canada which also impacted the reported fracturing revenue per job. Coiled tubing revenue was approximately 5 percent lower as compared to 2024 primarily due to lower activity combined with the completion of smaller jobs.

ADJUSTED EBITDA

The Company's operations in North America generated Adjusted EBITDA of $104.6 million during 2025 compared to $123.8 million in 2024. This decrease in Adjusted EBITDA was primarily due to lower fracturing fleet utilization over a smaller operating footprint in North America combined with a decrease in year-over-year pricing levels. The Company was able to offset some of the decline in Adjusted EBITDA by reducing its fixed cost structure by approximately 10 percent to better align with activity levels and a lower pricing environment.

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