CALGARY, Alberta, July 28, 2026 (GLOBE NEWSWIRE) -- Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD; NYSE:PDS) reported its 2026 second-quarter results, citing robust heavy oil drilling and well service activity in Canada and improving rig utilization in the U.S.

This news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Cautionary Statement Regarding Forward-Looking Information and Statements" later in this news release. The release also refers to certain financial measures and ratios, including Adjusted EBITDA, Net Capital Spending, Working Capital and Total Long-Term Financial Liabilities, which do not have standardized meanings under IFRS Accounting Standards and may not be comparable with similar measures used by other companies.

Financial highlights

Revenue increased 11% to $453 million, compared with $407 million in the second quarter of 2025, supported by stronger activity in Canada and the U.S., which more than offset lower international results and reduced Canadian upfront capital payments.

Adjusted EBITDA was $97 million, down 10% from $108 million in 2025, primarily because of higher U.S. rig reactivation costs and lower international margins tied to geopolitical tensions and a change in rig mix. Results in 2026 also included $3 million of one-time restructuring charges, partially offset by a $2 million share-based compensation recovery. In comparison, share-based compensation was a $4 million expense in 2025.

Net loss attributable to shareholders in the second quarter was $1 million, compared with net earnings of $16 million in 2025. The loss in 2026 was mainly due to $11 million of additional depreciation expense from a previously disclosed change in useful-life estimates.

Cash provided by operations during the quarter was $146 million, allowing the Company to reduce debt by $50 million and repurchase $12 million of common shares.

Capital expenditures totaled $76 million, compared with $53 million in the second quarter of 2025. Year to date, Precision has invested $141 million in equipment and continues to expect capital expenditures of $265 million in 2026.

Operational highlights

In Canada, Precision averaged 61 active rigs, up 22% from 50 active rigs in the second quarter of 2025 and ahead of Canadian industry activity, which increased 16%.

Canadian revenue per utilization day declined to $35,448 from $37,725 a year earlier, mainly because of lower upfront capital payments of $3 million in 2026 versus $7 million in the same period last year, as well as a higher Super Single rig mix. Robust heavy oil activity lifted utilization of these rigs 31% year over year.

In the U.S., the Company averaged 35 active rigs in the second quarter of 2026, compared with 33 in 2025, outperforming U.S. industry activity, which declined 3%.

U.S. revenue per utilization day increased to US$32,802 from US$31,113 in the same period last year, driven by higher day rates on new contracts and increased technology revenue.

Internationally, Precision had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait, compared with two and five rigs, respectively, in the second quarter of 2025. The resulting change in rig mix reduced revenue per utilization day to US$50,524 from US$53,129 a year earlier.

Precision also secured an additional five-year drilling rig contract in Kuwait for an existing rig, which is expected to increase its active international rig count to eight by mid-2027 following planned recertifications and upgrades.

Canadian well servicing rig operating hours rose 25% from the same quarter in 2025, driven mainly by stronger customer demand amid higher oil prices. That helped lift Adjusted EBITDA in the segment by 38%.

Management commentary

Precision President and CEO Carey Ford said the Company delivered another quarter of solid operational execution and continued to advance its 2026 strategic priorities, including revenue growth, free cash flow generation and capital returns to shareholders.

"Precision delivered another quarter of solid operational execution," Ford said. "We continued to advance our 2026 strategic priorities, driving revenue growth through competitive differentiation and deeper customer relationships, free cash flow generation, and returning capital to shareholders. Revenue increased 11% year over year, reflecting increased North American activity levels, higher Alpha™ and EverGreen™ contributions, and improved pricing. Higher than expected rig reactivations in the quarter, scheduled upgraded rig deliveries in the second half of the year, and continued growth in our contract book position Precision to deliver stronger financial performance through the balance of 2026 and into 2027."

Ford added that during the first half of the year, Precision generated consistent operating cash flow, which enabled it to reduce debt by $75 million and repurchase $16 million of shares.

He said the Company continued to invest in fleet upgrades and technology initiatives that support activity gains and long-term value creation.

In Canada, Ford said activity increased 22% year over year, supported by demand for Super Triple and Super Single rigs. He said improving producer economics and expanded market access continue to support an attractive drilling environment, particularly in the condensate and heavy oil basins, and that second-half activity is expected to remain above prior-year levels.

In the U.S., Ford said the business is "reaching an inflection point" as the active rig count increased through the quarter and stood at 43 rigs today. He said higher day rates, greater technology adoption and improving oil-directed activity supported year-over-year revenue growth. He also said second-quarter margins were below long-term expectations, but the Company is positioned for meaningful margin expansion, with fourth-quarter margins expected to approach US$10,000 per utilization day.

Ford said Precision’s Alpha™ digital platform and automation systems continue to improve drilling performance, reduce downtime and deliver measurable value for customers. He also said the Company’s high-performance fleet and experienced crews strengthen customer relationships and support sustainable revenue and profitability growth.

Internationally, Ford said Precision’s teams continue to operate safely and reliably despite geopolitical uncertainty in the region. He said the new five-year Kuwait contract reinforces the resilience of customer relationships and the Company’s operational reputation in the region.

On Completion and Production Services, Ford said the business delivered outstanding results as operating hours increased 25% year over year, supported by favorable oil prices and strong producer activity. He said the Company remains optimistic about the remainder of 2026.

Selected financial and operating information

For the three months ended June 30, 2026, revenue was $453 million, up $46 million from 2025. Canadian revenue increased by $36 million as higher oil prices supported stronger drilling and well servicing activity, partially offset by lower upfront capital payments. U.S. revenue increased by $15 million, driven by higher rig utilization and average day rates.

Adjusted EBITDA fell 10% to $97 million from $108 million in the second quarter of 2025, mainly because of higher U.S. rig reactivation costs and lower international margins related to geopolitical tensions and the change in rig mix. Adjusted EBITDA also included $3 million of international restructuring costs and a $2 million share-based compensation recovery.

Net loss attributable to shareholders was $1 million, or $0.09 per share, compared with net earnings of $16 million, or $1.21 per share, a year earlier. The difference was largely due to the increase in depreciation expense tied to revised useful-life estimates.

Cash provided by operations was $146 million in the second quarter of 2026. During the quarter, Precision repurchased 99,416 shares for $12 million and reduced long-term debt by $50 million. The Company ended the quarter with $66 million of cash and more than $500 million in available liquidity.

In Canada, operating margin was $13,855, compared with $15,306 in the same period last year, mainly because of lower upfront capital payments and a higher Super Single rig mix. In the U.S., operating margin was US$6,212, down from US$9,026 in 2025, as margins were affected by higher rig reactivations. Reactivation costs averaged US$2,387 per utilization day, versus US$648 per utilization day in 2025, as Precision reactivated seven rigs to support higher activity.

Internationally, revenue was US$32 million in the second quarter of 2026, compared with US$36 million in 2025, primarily because of the change in rig mix and a 6% decline in drilling activity.

Completion and Production Services revenue was $66 million, up $12 million from 2025, primarily due to stronger customer demand driven by higher oil prices. Adjusted EBITDA for the segment was $14 million, or 21% of revenue, compared with 18% in the second quarter of 2025.

Capital expenditures were $76 million, including $46 million for maintenance of existing assets and infrastructure and $30 million for upgrades.

Subsequent to quarter end, Precision received a Notice of Reassessment (NOR) from the Canada Revenue Agency (CRA) relating to its 2018 tax year, denying certain deductions. The Company and its tax advisors believe the tax filing position is appropriate and intend to vigorously contest the 2018 NOR and any additional reassessments.

Six-month results

For the first six months of 2026, revenue was $979 million, up $76 million from the same period in 2025. Canadian revenue increased by $49 million due to stronger North American drilling and well servicing activity, while U.S. revenue rose by $40 million on improved drilling activity. Those gains were partially offset by lower international drilling results and lower upfront capital payments in Canada.

Adjusted EBITDA fell 10% to $221 million from $246 million in 2025, mainly because of higher share-based compensation expense as the share price increased 11% during the first half of 2026, along with higher operating costs in the U.S. and internationally.

Net earnings attributable to shareholders were $16 million, or $1.25 per share, compared with $51 million, or $3.75 per share, in the same period last year. The decline was primarily due to $22 million of additional depreciation expense from revised useful-life estimates.

General and administrative expenses increased to $68 million from $55 million in the first six months of 2025, mainly because of higher share-based compensation expense and international restructuring costs.

Cash provided by operations was $209 million. Precision repurchased 136,290 shares for $16 million and reduced long-term debt by $75 million. The Company ended the quarter with $66 million of cash and more than $500 million in available liquidity.

Capital expenditures were $141 million, compared with $113 million in the first six months of 2025, including $81 million for maintenance of existing assets and infrastructure and $61 million for upgrades.

Strategy

Precision said its vision is to be globally recognized as the High Performance, High Value provider of land drilling services. The Company measures its progress against strategic priorities set at the beginning of each year.

For 2026, Precision said it is focused on driving revenue growth and deepening customer relationships through contracted upgrades, operational excellence and performance-driven technology. The Company said it grew rig utilization 20% in Canada and 6% in the U.S. year over year, outpacing industry activity in both regions. It maintained strong pricing in Canada for Super Triple and Super Single rigs and increased the average number of drilling rigs under term contract for 2026 by 33% in Canada and 45% in the U.S. since the end of April 2026.

Precision said it also secured the additional five-year Kuwait contract for an existing rig, which is expected to lift its international active rig count to eight by mid-2027 after recertifications and upgrades.

The Company said it is maximizing free cash flow through strategic capital deployment and cost discipline. It generated $146 million of cash from operations in the quarter, restructured its international operations to better align with its organizational structure in each country, and reiterated its $265 million capital budget, including $93 million allocated to strategic upgrades in Canada and the U.S.

Precision also reiterated its shareholder-return objectives, including reducing debt by $100 million in 2026 and allocating up to 50% of free cash flow, before debt repayments, directly to shareholders. It reduced debt by $50 million in the quarter and $75 million year to date, and returned $12 million to shareholders through share repurchases in the quarter. Year to date, it has repurchased $16 million of shares. As of June 30, 2026, Precision said it has reduced debt by $610 million since the beginning of 2022, on the way toward a long-term debt reduction target of $700 million between 2022 and 2027.

Outlook

Precision said ongoing geopolitical uncertainty and relatively tight global crude oil inventories underscore the importance of secure and reliable energy supply, supporting constructive oil prices and customer investment confidence. Assuming commodity prices remain supportive and market conditions do not materially change, the Company expects North American drilling and completion activity to improve modestly through the remainder of the year.

In Canada, demand for Super Series rigs remains strong, supported by one of the most active drilling environments the Company has seen in recent years. Improving heavy oil and condensate prices continue to support producer economics and upstream investment in oil and natural gas formations. Precision expects its Super Triple and Super Single rigs to be nearly fully utilized through the fall drilling season if commodity prices remain constructive.

In the U.S., rising oil prices, disruptions in global crude supply and concerns about low inventories have supported a more constructive outlook for oil-directed drilling activity. Precision said U.S. land drilling activity has strengthened in recent months, and it increased its oil-weighted activity while maintaining a strong position in key natural gas basins, including the Haynesville and Marcellus. The Company currently has 43 active rigs and expects that count to remain in the low 40s during the third quarter, with continued rig churn. It said it expects margins to improve through the rest of the year.

Internationally, Precision said crews continue to deliver services safely despite minor activity disruptions and incremental costs related to the Middle East conflict. The Company has seven active rigs, including four in Kuwait and three in Saudi Arabia, all under five-year term contracts extending into 2027 and 2028. It expects activity to remain at seven rigs until mid-2027, when one idle Kuwait rig is scheduled to return to work under a five-year contract after recertifications and upgrades. Crew-related operating costs are expected to remain elevated while regional tensions persist.

Precision said it remains optimistic about the long-term outlook for its Completion and Production Services business, citing expanded market access, strong heavy oil drilling and production activity, favorable oil prices and its High Performance, High Value service offering.

For the remainder of the year, Precision said its outlook is optimistic, with potential upside supported by sustained oil prices and continued customer investment. In Canada, it expects third-quarter operating margins to average between $12,000 and $13,000 per utilization day, with a higher proportion of Super Singles working this fall than in the prior year. In the U.S., revenue per utilization day is expected to remain stable, while operating margins are anticipated to range between US$7,000 and US$8,000 per utilization day, with cost pressures continuing because of additional rig reactivation expenses. The Company said fourth-quarter U.S. margins are expected to approach US$10,000 per utilization day.

Conference call and webcast

Precision Drilling Corporation scheduled a conference call and webcast for Wednesday, July 29, 2026, at 11:00 a.m. MT (1:00 p.m. ET).

To participate in the conference call, register here:

The webcast will be available here:

A replay of the webcast call will be available on Precision's website for 12 months.

About Precision

Precision is a provider of High Performance, High Value services to the energy industry, offering access to a fleet of Super Series drilling rigs. The Company has commercialized its Alpha™ digital technology portfolio, which uses automation software and analytics to support efficient, predictable and repeatable results for energy customers. Its drilling services are supported by its EverGreen™ suite of environmental solutions. Precision also offers well service rigs, camps and rental equipment, along with technical support services and experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the symbol "PD" and on the New York Stock Exchange and NYSE Texas, Inc. under the symbol "PDS".

For further information, contact Lavonne Zdunich, CPA, CA, Vice President, Investor Relations, at 403.716.4500 or visit