The CRA tax dispute introduces a contingent liability of up to $155M, which could pressure cash flows if Precision ultimately loses. Monitor developments in the objection process and any further reassessments for 2019-2023. The Q4 U.S. margin guidance of US$9,500-US$10,500 per utilization day implies a significant step-up from Q3's US$7,653, which will be a key test of the reactivation strategy.
Price Chart
Executive Summary
Precision Drilling reported Q3 2026 results with revenue up 15% YoY to $532M and net earnings of $21M vs a net loss of $7M in Q3 2025, driven by stronger drilling activity in Canada and the U.S. Adjusted EBITDA grew 6% to $125M. The company also disclosed a CRA tax reassessment with a potential maximum liability of $155M, which it is contesting.
Key Facts
- Q3 2026 revenue increased 15% YoY to $532 million from $462 million
- Adjusted EBITDA increased 6% to $125 million from $118 million
- Net earnings attributable to shareholders was $21 million vs a net loss of $7 million in Q3 2025
- Cash from operations was $71 million; $31 million used for share repurchases (269,331 shares)
- Canada averaged 73 active rigs (up 16% YoY); U.S. averaged 43 active rigs (up 19% YoY)
- U.S. revenue per utilization day increased to US$33,270 from US$31,040
- Revised 2026 capital budget from $265M to $275M-$285M
- CRA issued a Notice of Reassessment for 2018 tax year denying deduction of intercompany dividends; maximum estimated tax liability of $155M if ultimately unsuccessful
- Long-term debt reduced by $75M year-to-date; $47M in share repurchases YTD
- U.S. operating margin was US$7,653, down from US$8,700 due to higher rig reactivation costs
Financial Impact
Revenue +15% YoY; net earnings swing from -$7M to +$21M; potential CRA tax liability up to $155M
Risk Factors
- CRA tax reassessment with potential $155M liability if Precision's position is unsuccessful; 50% of assessed tax must be paid upfront once reassessments are issued
- U.S. operating margins compressed by elevated rig reactivation costs; Q4 margin guidance depends on slowing reactivation pace
- International revenue declined due to rig mix and recertifications; geopolitical tensions in the Middle East add cost uncertainty
- Cash balance declined to $23M from $85.8M at year-end 2025, partly due to share repurchases and capex
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001171843-26-006867 |
| Document: f6k_102726.htm | 0001171843-26-006867 |
| Document: 0001171843-26-006867-index-headers.html | 0001171843-26-006867 |
| Document: 0001171843-26-006867-index.html | 0001171843-26-006867 |
| Document: 0001171843-26-006867.txt | 0001171843-26-006867 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 1d ago | 6-K | $99.96 | awaiting T+60 | awaiting T+60 | $105.47 (+5.51%) |
Oct 27, 2026 1d ago | 6-K | $99.96 | awaiting T+60 | awaiting T+60 | $105.47 (+5.51%) |
Oct 27, 2026 1d ago | Press Release | $98.51 | awaiting T+60 | awaiting T+60 | $105.47 (+7.07%) |
Sep 29, 2026 29d ago | Press Release | $80.58 | awaiting T+60 | awaiting T+60 | $105.47 (+30.89%) |
Jul 28, 2026 13w ago | Press Release | $73.12 $90.43 | ▼ −23.67% | ▼ −18.94% | $105.47 (−44.24%) |
Jul 13, 2026 15w ago | 6-K | $82.84 $83.56 | ▲ +0.87% | ▼ −2.51% | $105.47 (+27.32%) |
Jun 30, 2026 17w ago | 6-K | $76.66 $82.67 | ▲ +7.84% | ▲ +5.02% | $105.47 (+37.58%) |
Jun 29, 2026 17w ago | Press Release | $76.66 $82.67 | ▲ +7.84% | ▲ +5.02% | $105.47 (+37.58%) |
May 14, 2026 23w ago | Press Release | $95.00 $83.02 | ▼ −12.61% | ▼ −17.13% | $105.47 (+11.02%) |
May 5, 2026 25w ago | 6-K | $91.56 $77.73 | ▼ −15.10% | ▼ −17.17% | $105.47 (+15.19%) |
US Market Status
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