Calfrac Reports Fourth Quarter 2025 Results

Core Viewpoint - Calfrac Well Services Ltd. reported its financial and operational results for the year ended December 31, 2025, highlighting a stronger financial position despite a decrease in revenue due to lower activity levels in Argentina and North America [1][3]. Financial Performance - Revenue for Q4 2025 was C$292.2 million, a decrease of 23% from Q4 2024, primarily due to lower activity in Argentina, partially offset by higher activity in North America [12]. - Adjusted EBITDA for Q4 2025 was C$43.9 million, an increase of 27% from C$34.5 million in Q4 2024, driven by improved operating results in North America [12]. - Cash flows from operating activities for Q4 2025 were C$98.8 million, up 9% from C$91.0 million in Q4 2024, reflecting better operating results and improved working capital management [12]. - Net income for Q4 2025 was C$14.5 million or C$0.16 per share diluted, compared to a net loss of C$6.4 million or C$0.07 per share diluted in Q4 2024 [12][44]. Operational Highlights - In North America, revenue decreased to C$227.7 million in Q4 2025 from C$289.9 million in Q4 2024, attributed to a lower number of fracturing fleets and reduced oil-directed activity [15]. - The number of fracturing jobs in North America decreased by 10% year-over-year, with a total of 7,185 jobs in Q4 2025 [10]. - In Argentina, revenue for Q4 2025 was C$64.5 million, down 29% from C$91.3 million in Q4 2024, primarily due to a slowdown in industry activity [23]. Capital Expenditures - Capital expenditures for Q4 2025 were C$16.7 million, a decrease of 49% from C$32.9 million in Q4 2024, with a significant portion allocated to expansion capital and infrastructure upgrades in Argentina [30]. Outlook - The outlook for 2026 in North America is positive, with expectations of a moderate increase in oil-directed activity and stable natural gas activity, supported by increased LNG export capacity [13][14]. - In Argentina, the Vaca Muerta shale play is expected to see strong activity levels, with the company anticipating high utilization of its unconventional fracturing fleets [21][22].