Precision Drilling Q1 2026 Revenue $526M, Adjusted EBITDA $124M

Precision Drilling Corporation (Precision) (TSX:PD; NYSE:PDS) released its unaudited first-quarter 2026 financial statements on April 29, 2026, reporting consolidated revenue of $526.1 million, Adjusted EBITDA of $123.9 million and net earnings attributable to shareholders of $17.4 million.

The company said higher utilization across its Canadian and U.S. drilling and well service operations drove the revenue increase versus Q1 2025. Cash provided by operations was $63.2 million in the quarter; Precision repurchased $4 million of common shares and reduced debt by $25 million. Capital expenditures for the quarter were $65 million and management raised the 2026 capital budget to $265 million from $245 million to support rig upgrades and expected higher activity.

Operationally, Contract Drilling Services delivered the bulk of revenue while Completion and Production Services contributed steady results. The quarter included elevated share-based compensation expense (approximately $18.9 million) and higher depreciation and amortization (about $84.3 million), reflecting a revision of useful life estimates for certain drilling assets; these items weighed on reported net earnings and segment margins.

From a market perspective, stronger rig utilization in key North American basins and demand for Precision’s Super Series rigs support a constructive near-term outlook for drilling activity. Nonetheless, increased non-cash charges and higher capex guidance may temper near-term margin expansion until higher day rates or utilization sustain improved returns.

Management hosted a conference call and webcast on April 30, 2026 to discuss the results and reiterated expectations for continued demand in Canada and the U.S., while emphasizing capital allocation priorities that balance upgrades, debt reduction and shareholder returns. Analysts note that a supportive pricing cycle or stronger natural gas/LNG fundamentals would be the key catalysts for margin recovery over the coming quarters.