Calfrac Reports Third Quarter 2025 Results

Core Insights - Calfrac Well Services Ltd. reported financial results for Q3 and the first nine months of 2025, showing improvements in net income and cash flow despite a decline in revenue compared to the previous year [2][9][17]. Financial Performance - Adjusted EBITDA for Q3 2025 was $48.5 million, down 25% from $65.0 million in Q3 2024, while net income from continuing operations was $4.3 million compared to a loss of $6.7 million in the same quarter last year [2][17]. - Revenue for Q3 2025 was $323.4 million, a decrease of 25% from $430.1 million in Q3 2024, primarily due to lower activity in Argentina and a reduced operating footprint in North America [9][13]. - For the first nine months of 2025, revenue was $1.1 billion, down 8% from $1.2 billion in the same period of 2024, with North American operations particularly affected by extreme weather and lower commodity prices [9][22]. Operational Highlights - The company operated an average of 10 fracturing fleets in Q3 2025, down from 13 in Q3 2024, reflecting a strategic alignment with reduced oil-directed activity [20]. - In Argentina, revenue decreased by 39% to $85.8 million in Q3 2025, attributed to a slowdown in industry activity, while revenue for the first nine months increased by 18% to $370.3 million due to the commencement of a new fracturing fleet [25][30]. Debt Management and Capital Structure - The company successfully repatriated significant funds from Argentina, leading to a reduction in long-term debt during Q3 2025 [2][27]. - A rights offering was approved to raise $35 million, with major shareholders agreeing to purchase any unsubscribed shares, demonstrating confidence in the company's strategy [3][4]. Future Outlook - The company anticipates a decline in overall industry activity in North America heading into Q4 2025, with expectations for a moderate increase in oil-directed activity in 2026 [16][18]. - The completion of the Tier IV fleet modernization program positions the company well for future growth, particularly in the Vaca Muerta shale play in Argentina [19][26].