The severe EPS miss and net loss will likely drive the stock lower despite the revenue beat. Watch for analyst downgrades and further margin commentary on the Q2 conference call. The CRA tax exposure adds overhang, though the company plans to contest it.
Price Chart
Executive Summary
Precision Drilling reported Q2 2026 revenue of $453M (+11% YoY, beating $441M consensus) but posted a net loss of $1M and diluted EPS of -$0.52, a 230% miss vs the $0.40 consensus estimate. Adjusted EBITDA fell 10% to $97M due to U.S. rig reactivation costs, international margin pressure, and $11M in higher depreciation from a useful life revision. The massive earnings miss and swing to a loss overshadow the revenue beat and debt reduction progress.
Key Financial Metrics
Key Facts
- Revenue $452.8M (+11% YoY) beat $441.3M consensus by 2.6%
- Diluted EPS -$0.52 missed $0.40 consensus by 230% (net loss of $1M vs net income of $16M a year ago)
- Adjusted EBITDA $97M, down 10% YoY, with U.S. margins compressed by rig reactivation costs ($2,387/utilization day vs $648 in 2025)
- Cash from operations $146M funded $50M debt reduction and $12M share repurchases
- CRA tax reassessment risk of up to $155M (excluding interest) for 2018-2023 intercompany dividend deductions
Financial Impact
EPS miss of $0.92 per share vs consensus; revenue beat of $11.5M; Adjusted EBITDA decline of $11M YoY
Risk Factors
- CRA tax reassessment could require up to $155M in payments if ultimately unsuccessful
- Geopolitical tensions in the Middle East may continue to pressure international margins
- Commodity price volatility could slow North American drilling activity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3334916 |
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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