Financial Data and Key Metrics Changes - In Q3 2025, the company reported adjusted free cash flow of $99 million, with a conversion rate of 36.8% [14][17] - EBITDA margin expanded by over 70 basis points despite market headwinds [6] - The company has paid four quarterly dividends of $0.25 per share and repurchased approximately $193 million worth of shares over the past five quarters [7] Business Line Data and Key Metrics Changes - North America saw a slight sequential increase due to seasonal recovery in Canada, but this was offset by a decline in U.S. land operations [4] - Latin America improved revenues by 10% sequentially, primarily driven by Mexico, although revenues are still expected to be down around 60% for the year [5] - The MENA and Asia regions posted another quarter of sequential growth, led by the UAE, Qatar, Australia, and Thailand [5] Market Data and Key Metrics Changes - The ESSR region remained relatively flat quarter on quarter, with some countries offsetting weakness in the UK [5] - Pricing pressure is noted in commodity services, particularly in the Middle East, while differentiated product lines are less affected [27][28] Company Strategy and Development Direction - The company is focused on evolving operations, maximizing cash generation, and maintaining margins rather than chasing market share [21] - A multi-year cost optimization program is in place to achieve sustainable productivity gains through technology and lean processes [23] - The company is committed to improving working capital efficiency to drive free cash flow conversion to a sustainable 50% [23] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for slight improvements in Mexico and the MENA-Asia region in 2026 [5][10] - The overall market remains soft, with expectations of year-on-year comparisons being down in the first half of 2026 [10] - The company anticipates a rebound in offshore activity and incremental onshore activity in the second half of 2026 [10][11] Other Important Information - The company has expanded its credit facility by $280 million and announced a private offering of $1.2 billion in senior notes [18] - The net leverage ratio is approximately 0.5 times, with liquidity around $1.6 billion [18] Q&A Session Summary Question: Pricing pressure in certain regions - Management noted pricing pressure primarily in commodity services, especially in the Middle East, but less so in differentiated product lines [27][28] Question: Improvement in Saudi Arabia's market - Management indicated that Saudi Arabia is expected to find a bottom, with potential for growth driven by gas and some oil activity [30][31] Question: Stability in Mexico - Management expressed cautious optimism regarding Mexico, noting two quarters of sequential improvement and a more stable operational environment [34][35] Question: Free cash flow guidance - Management indicated that the $100 million free cash flow guidance includes conservatism, with potential for higher outcomes depending on payments from Mexico [44][45] Question: Cost optimization impact on margins - Management highlighted that cost optimization efforts have led to significant savings and are expected to support margin improvements in a flat-to-up market environment [58][60] Question: ERP implementation - Management discussed a multi-year ERP implementation aimed at improving supply chain management and operational efficiencies, with expected benefits for margins [64][66]