Total Energy Services Inc. Announces Q3 2025 Results

Core Viewpoint - Total Energy Services Inc. reported its consolidated financial results for the third quarter of 2025, showing an increase in revenue but declines in operating income, EBITDA, and net income compared to the same period in 2024. The company experienced improved performance in Australia but faced challenges in North America due to market conditions and cost inflation [1][3]. Financial Highlights - Revenue for the three months ended September 30, 2025, was $260.7 million, an 8% increase from $241.9 million in 2024. For the nine months, revenue rose 16% to $763.0 million from $660.0 million [2]. - Operating income decreased by 29% to $19.4 million from $27.3 million year-over-year, while EBITDA fell 15% to $42.9 million from $50.5 million [2]. - Net income for the third quarter was $14.6 million, down 26% from $19.7 million in 2024, with diluted earnings per share at $0.38, a 24% decrease from $0.50 [2][27]. Segment Performance Contract Drilling Services (CDS) - Revenue for the CDS segment was $82.4 million, a 5% decline from $86.6 million in 2024. Year-to-date revenue increased by 4% to $244.7 million [4][5]. - The decline in North American onshore drilling activity negatively impacted the segment, although increased activity in Australia partially offset this decline [5]. Rentals and Transportation Services (RTS) - RTS segment revenue increased by 8% to $21.0 million from $19.4 million in 2024, with a 1% increase in nine-month revenue to $60.3 million [6][7]. - Despite the revenue increase, EBITDA decreased by 7% to $7.6 million, reflecting competitive market conditions [6]. Compression and Process Services (CPS) - CPS segment revenue rose 14% to $125.8 million from $110.6 million in 2024, with a 23% increase in nine-month revenue to $365.3 million [9][10]. - However, EBITDA for the segment fell 22% to $15.1 million due to foreign currency exchange impacts and cost inflation [9][10]. Well Servicing (WS) - WS segment revenue increased by 24% to $31.5 million from $25.3 million in 2024, with a 38% increase in nine-month revenue to $92.8 million [11][14]. - The increase was driven by higher activity in Australia, although lower pricing in Canada and reduced utilization in the U.S. negatively impacted EBITDA [14]. Financial Position - Total assets increased by 8% to $1.02 billion from $937.7 million in 2024, with long-term debt rising by 24% to $98.2 million [2][16]. - The company reported positive working capital of $113.5 million, including $57.1 million in cash and $85.0 million in available credit [16][22]. Capital Expenditures and Outlook - Total Energy invested $17.2 million in capital expenditures during the third quarter, primarily for upgrading drilling and service rigs [15][22]. - The company anticipates continued pressure on oil prices due to global economic uncertainty, but stable conditions in Australia and strong demand for compression and process equipment may provide some offset [18][19].