Precision Drilling Q2 Revenue $453M, Net Loss $1M; Debt Reduced $50M
Precision Drilling Corp announced its second quarter 2026 results, with revenue increasing 11% to $453 million, driven by stronger activity in Canada and the U.S. However, Adjusted EBITDA decreased 10% to $97 million, and the company reported a net loss of $1 million, primarily due to higher U.S. rig reactivation costs, lower international margins, and increased depreciation expense. The company generated $146 million in cash from operations, reducing debt by $50 million and repurchasing $12 million in shares, while also securing a new five-year contract in Kuwait. The company also disclosed a tax reassessment from the Canada Revenue Agency with a potential maximum liability of $155 million, which it intends to vigorously contest.
Key Highlights
- Revenue increased 11% to $453 million in Q2 2026 compared to $407 million in Q2 2025.
- Adjusted EBITDA decreased 10% to $97 million, down from $108 million in the prior year.
- Net loss attributable to shareholders was $1 million, compared to net earnings of $16 million in Q2 2025.
- Cash provided by operations was $146 million, enabling $50 million debt reduction and $12 million share repurchases.
- Canadian active rigs averaged 61, up 22% year-over-year, outpacing industry activity.
- Secured an additional five-year drilling rig contract in Kuwait, increasing international rig count to eight by mid-2027.
- Company received a Notice of Reassessment from CRA for 2018 tax year, with a potential maximum tax liability of $155 million.
Price Impact
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