The revenue beat (+6% YoY) is positive, but the sharp drop in net earnings and Adjusted EBITDA due to non-cash compensation costs tempers the headline. Watch the Q2 conference call for guidance on U.S. rig count recovery (targeting high 30s by June) and Canadian margin outlook ($12k-$13k/day). The debt reduction trajectory supports balance sheet strength, but the elevated share-based comp is a recurring headwind tied to stock price.
Price Chart
Executive Summary
Precision Drilling reported Q1 2026 revenue of $526M, up 6% YoY, driven by higher activity in Canada and the U.S. However, net earnings fell 49.7% to $17M due to a $19M surge in share-based compensation expense from a 39% stock price appreciation and increased depreciation from revised drill pipe useful life estimates. Adjusted EBITDA declined 9.9% to $124M, and the company reduced debt by $25M while repurchasing $4M in shares.
Key Facts
- Revenue of $526M, up 6% YoY from $496M
- Net earnings attributable to shareholders of $17M, down 49.7% from $35M
- Adjusted EBITDA of $124M, down 9.9% from $137M
- Share-based compensation expense of $19M vs $3M in Q1 2025
- Cash provided by operations of $63M; debt reduced by $25M; $4M in share repurchases
- Canada averaged 79 active rigs (up from 74); U.S. averaged 37 (up from 30)
- Revised 2026 capital budget to $265M from $245M
- Long-term debt reduced to $664M from $679M at year-end 2025
Financial Impact
Revenue grew $30M YoY but net earnings fell $18M; Adjusted EBITDA declined $14M; share-based comp increased $16M
Risk Factors
- Geopolitical tensions in the Middle East disrupting international operations
- Contract churn in U.S. during March/April; rig count recovery uncertain
- Higher share-based compensation expense if stock continues to appreciate
- Increased depreciation from revised drill pipe useful life estimates
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001171843-26-002855 |
| Document: f6k_043026.htm | 0001171843-26-002855 |
| Document: 0001171843-26-002855-index-headers.html | 0001171843-26-002855 |
| Document: 0001171843-26-002855-index.html | 0001171843-26-002855 |
| Document: 0001171843-26-002855.txt | 0001171843-26-002855 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 29, 2026 27d ago | Press Release | $80.58 | awaiting T+60 | — | $98.80 (+22.61%) |
Jul 28, 2026 12w ago | Press Release | $73.12 $90.43 | ▼ −23.67% | ▼ −18.94% | $98.80 (−35.12%) |
Jul 13, 2026 15w ago | 6-K | $82.84 $83.56 | ▲ +0.87% | ▼ −2.51% | $98.80 (+19.27%) |
Jun 30, 2026 16w ago | 6-K | $76.66 $82.67 | ▲ +7.84% | ▲ +5.02% | $98.80 (+28.88%) |
Jun 29, 2026 17w ago | Press Release | $76.66 $82.67 | ▲ +7.84% | ▲ +5.02% | $98.80 (+28.88%) |
May 14, 2026 23w ago | Press Release | $95.00 $83.02 | ▼ −12.61% | ▼ −17.13% | $98.80 (+4.00%) |
May 5, 2026 24w ago | 6-K | $91.56 $77.73 | ▼ −15.10% | ▼ −17.17% | $98.80 (+7.91%) |
Apr 29, 2026 25w ago | 6-K | $93.33 $80.24 | ▼ −14.03% | ▼ −17.13% | $98.80 (+5.86%) |
Apr 29, 2026 25w ago | Press Release | $93.33 $80.24 | ▼ −14.03% | ▼ −17.13% | $98.80 (+5.86%) |
Apr 1, 2026 29w ago | 6-K | $94.49 $76.66 | ▼ −18.87% | ▼ −33.03% | $98.80 (+4.56%) |
US Market Status
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