Precision Drilling Corporation Q3 2026 Earnings Recap

Precision’s shares rose 7.7% after earnings, with investors responding to 15% year-over-year revenue growth, higher net earnings and a clear Q4 margin-recovery outlook for the U.S. business. The improvement is not yet reflected in cash generation: operating cash flow fell to $71 million from $76 million, while reactivations and elevated international costs weighed on margins.

Key Takeaways

• Q3 revenue increased 15% year over year to $532 million. Adjusted EBITDA was $125 million versus $118 million a year earlier; net earnings were $21 million, compared with a $7 million loss.
• North American activity grew: Canada averaged 73 active rigs, up 10 year over year, and the U.S. averaged 43, up 7. Canadian daily operating margins were $12,800 versus $13,000 a year earlier.
• U.S. daily operating margins declined to US$7,650 from US$8,700, in part because six reactivated rigs cost US$2,130 per utilization day. Management expects Q4 margins of US$9,500–US$10,500.
• International results remained a drag: day rates were down 14% year over year to US$46,300, with Middle East operating costs elevated and one higher-performing Kuwait rig idle until an expected mid-2027 return.
• Cash from operations was $71 million versus $76 million a year earlier, amid working-capital needs and a semiannual interest payment. Capital spending was $82 million, including $24 million for upgrades, while Precision repurchased $31 million of shares.