The revenue beat and strong operational momentum (Canada + U.S. rig count growth) are positive, but the large EPS miss and 50% net earnings decline due to non-cash share-based comp create a mixed picture. Watch Q2 guidance on operating margins and whether the Street adjusts EPS expectations to align with GAAP reality — the stock may trade on the revenue beat and improving customer sentiment rather than the GAAP EPS miss.
Price Chart
Executive Summary
Precision Drilling reported Q1 2026 revenue of $526M (+6% YoY), but net earnings attributable to shareholders fell 50% to $17M ($1.34/share) due to a $19M surge in share-based compensation expense from a 39% stock price appreciation. The Street consensus EPS of $2.31 was not met — the reported GAAP EPS of $1.34 represents a 42% miss vs the $2.31 estimate, though the company's own prior-quarter Street EPS history (e.g., $1.37 in Dec 2025) suggests the consensus may have been stale or non-GAAP. Revenue beat the $508.5M consensus by 3.4%, and management guided for Q2 Canadian operating margins of $12,000-$13,000/day and U.S. margins of $7,500-$8,500/day, with improving customer sentiment.
Key Financial Metrics
Key Facts
- Revenue $526M vs $496M YoY (+6%), beating $508.5M consensus
- GAAP EPS $1.34 vs consensus $2.31 (miss), but prior Street EPS was $1.37 in Dec 2025
- Net earnings attributable to shareholders $17M vs $35M YoY (-50%)
- Adjusted EBITDA $124M vs $137M YoY (-10%) on $19M share-based comp expense
- Cash from operations $63M; debt reduced $25M; $4M in share buybacks (36,874 shares)
- Canada rigs averaged 79 vs 74 YoY; U.S. rigs 37 vs 30 YoY (+24% utilization days)
- Q2 Canada operating margin guidance $12,000-$13,000/day; U.S. $7,500-$8,500/day
- 2026 capex budget raised to $265M from $245M on contracted Super Triple upgrades
Financial Impact
Revenue beat consensus by $17.5M (+3.4%); EPS missed consensus by $0.97 (-42%) vs $2.31 estimate; net earnings down $17.5M YoY
Risk Factors
- Geopolitical tensions in the Middle East disrupting international operations
- Share-based compensation expense volatility tied to stock price movements
- Contract churn in U.S. during March/April with expected recovery to high 30s rigs in June
- Higher capex budget ($265M vs $245M) could pressure free cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3284396 |
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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