Trican Reports Annual Results for 2025 and Declares Quarterly Dividend

Core Insights - Trican Well Service Ltd. reported strong annual results for 2025, driven by an acquisition and increased operational activity, with revenue reaching $1,096.2 million, a 12% increase from $980.8 million in 2024 [6][20]. Strategic Combination - The company completed the acquisition of Iron Horse Coiled Tubing Inc. for $77.25 million in cash and 33.76 million common shares, enhancing its service capabilities in the Western Canadian Sedimentary Basin [3]. Financial Review - Revenue for Q4 2025 was $322.7 million, up from $275.5 million in Q4 2024, with gross profit increasing to $63.2 million from $49.6 million [5][33]. - Adjusted EBITDAS for the year was $251.7 million, compared to $231.2 million in 2024, while adjusted EBITDA was $239.1 million, up from $219.2 million [6][35]. - Free cash flow for 2025 was $149.4 million, with a free cash flow per share of $0.77, compared to $137.1 million and $0.69 per share in 2024 [6][51]. - The company returned $96.3 million to shareholders through dividends and share repurchases [6][30]. Capital Expenditures and Technology Modernization - Capital expenditures for 2025 totaled $62.9 million, primarily for maintenance and electric ancillary fracturing equipment [9]. - A capital budget of $122 million for 2026 has been approved, focusing on maintenance and growth capital, including a $40 million investment in a natural gas-fueled hydraulic fracturing fleet [10][11]. Market Conditions and Outlook - The outlook for Trican remains positive, supported by improvements in Canadian energy infrastructure and LNG export capacity, which are expected to sustain drilling and completion activities [18][22]. - Natural gas completion activity has shown resilience despite pricing challenges, with customers adapting to market conditions [19]. - Oil prices experienced volatility in 2025, impacting customer capital programs, but recent stabilization is expected to improve activity levels in early 2026 [20][21]. Strategic Positioning - The acquisition of Iron Horse has expanded Trican's capabilities in coiled tubing-integrated fracturing, enhancing its service offerings across the WCSB [27]. - The company is investing in logistics capabilities to support increased sand volumes and optimize execution for customers [26]. Capital Allocation - Trican is committed to returning capital to shareholders through dividends and its Normal Course Issuer Bid (NCIB) program, with a recent 10% increase in quarterly dividends [31][32].