Total Energy Services Inc. Announces Q1 2026 Results

CALGARY, Alberta, May 12, 2026 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended March 31, 2026.

Financial Highlights
($000’s except per share data, unaudited)

	Three months ended March 31
		2026		2025	Change
Revenue	$	314,896	$	251,909	25	%
Operating income		27,129		26,063	4	%
EBITDA⁽¹⁾		55,158		50,488	9	%
Cashflow		54,290		44,934	21	%
Net income		24,222		18,952	28	%
Attributable to shareholders		24,137		18,966	27	%

Per Share Data (Diluted)
EBITDA⁽¹⁾	$	1.49	$	1.31	14	%
Cashflow	$	1.46	$	1.16	26	%

Attributable to shareholders:
Net income	$	0.65	$	0.49	33	%

Common shares (000’s)⁽⁴⁾
Basic		36,459		38,041	(4	%)
Diluted		37,118		38,685	(4	%)

	March 31		December 31
Financial Position at		2026		2025	Change
Total Assets	$	1,069,786	$	1,000,102	7	%
Long-Term Debt and Lease Liabilities (excluding current portion)		64,507		75,236	(14	%)
Working Capital⁽²⁾		113,404		108,023	5	%
Net Debt⁽¹⁾		-		-	-
Shareholders’ Equity		623,554		601,311	4	%

_{Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.}

Total Energy’s results for the three months ended March 31, 2026 reflect continued strong North American demand for natural gas compression and process equipment and the deployment of upgraded drilling and service rigs in Australia and Canada that more than offset a year over year decline in North American drilling and completion activity. Negatively impacting first quarter financial results was a $6.5 million year over year increase in share-based compensation expense due to the 52% increase in the Company’s share price during the first quarter of 2026. This was partially offset by a $2.9 million year over year increase on the gain on sale of property, plant and equipment following the sale of certain well servicing equipment in the United States in February 2026.

Contract Drilling Services (“CDS”)

	Three months ended March 31
		2026			2025		Change
Revenue	$	97,178		$	91,087		7	%
EBITDA⁽¹⁾	$	24,020		$	25,228		(5	%)
EBITDA⁽¹⁾ as a % of revenue		25	%		28	%	(11	%)
Operating days⁽²⁾		2,615			2,723		(4	%)
Canada		1,545			1,889		(18	%)
United States		115			144		(20	%)
Australia		955			690		38	%
Revenue per operating day⁽²⁾, dollars	$	37,162		$	33,451		11	%
Canada		28,386			27,245		4	%
United States		26,913			30,507		(12	%)
Australia		52,594			50,659		4	%
Utilization		31	%		29	%	7	%
Canada		27	%		28	%	(4	%)
United States		11	%		13	%	(15	%)
Australia		62	%		45	%	38	%
Rigs, average for period		93			103		(10	%)
Canada		64			74		(14	%)
United States		12			12		-
Australia		17			17		-

_{⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.}
_{⁽²⁾ Operating days includes drilling and paid standby days.}

First quarter CDS segment activity in 2026 was modestly lower than the first quarter of 2025. Reactivation of upgraded equipment at higher day rates in Australia and higher day rates received for upgraded Canadian equipment contributed to increased first quarter segment revenue. However, a year over year decline in North American first quarter drilling activity more than offset a significant increase in Australian rig utilization and resulted in lower first quarter segment EBITDA relative to 2025.

Rentals and Transportation Services (“RTS”)

	Three months ended March 31
		2026			2025		Change
Revenue	$	19,467		$	23,024		(15	%)
EBITDA⁽¹⁾	$	6,494		$	8,426		(23	%)
EBITDA⁽¹⁾ as a % of revenue		33	%		37	%	(11	%)
Revenue per utilized piece of equipment, dollars	$	14,165		$	15,503		(9	%)
Pieces of rental equipment		8,023			7,813		3	%
Canada		6,839			6,879		(1	%)
United States		1,184			934		27	%
Rental equipment utilization		17	%		19	%	(11	%)
Canada		14	%		16	%	(13	%)
United States		37	%		41	%	(10	%)
Heavy trucks		57			68		(16	%)
Canada		37			47		(21	%)
United States		20			21		(5	%)

_{⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.}

RTS segment revenue decreased in the first quarter of 2026 compared to 2025 due to lower North American drilling and completion activity and decreased revenue per utilized piece resulting from a change in the mix of equipment operating. The acquisition of 280 major rental pieces located in Oklahoma on June 10, 2025 mitigated the year over year decline in industry activity levels in the United States. First quarter segment EBITDA decreased compared to 2025 given this segment’s relatively high fixed cost structure and competitive market conditions that did not allow for price increases necessary to offset cost inflation.

Compression and Process Services (“CPS”)

	Three months ended March 31
		2026			2025		Change
Revenue	$	164,639		$	106,216		55	%
EBITDA⁽¹⁾	$	21,807		$	15,740		39	%
EBITDA⁽¹⁾as a % of revenue		13	%		15	%	(13	%)
Horsepower of equipment on rent at period end		31,970			43,558		(27	%)
Canada		17,320			14,468		20	%
United States		14,650			29,090		(50	%)
Rental equipment utilization during the period (HP)⁽²⁾		70	%		67	%	4	%
Canada		69	%		62	%	11	%
United States		71	%		74	%	(4	%)
Sales backlog at period end, $ million	$	446.9		$	265.4		68	%

_{⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.}
_{⁽²⁾ Rental equipment utilization is measured on a horsepower basis.}

2026 first quarter CPS segment revenue was higher compared to 2025 due to increased North American fabrication sales and parts and service activity that was partially offset by lower compression rental fleet revenue in the United States following the sale of several active compression rental units in 2025. The year over year increase in first quarter segment EBITDA was due to increased fabrication and parts and service activity and improved fabrication margins although the decline in higher margin rental revenues resulted in a lower segment EBITDA margin compared to 2025. The quarter end fabrication sales backlog increased to $446.9 million compared to the $265.4 million backlog at March 31, 2025. Sequentially the quarter-end fabrication sales backlog increased by $0.2 million compared to the $446.7 million backlog at December 31, 2025.

Well Servicing (“WS”)

	Three months ended March 31
		2026			2025		Change
Revenue	$	33,612		$	31,582		6	%
EBITDA⁽¹⁾	$	11,135		$	5,306		110	%
EBITDA⁽¹⁾ as a % of revenue		33	%		17	%	94	%
Service hours⁽²⁾		30,342			29,068		4	%
Canada		16,281			15,056		8	%
United States		108			2,229		(95	%)
Australia		13,953			11,783		18	%
Revenue per service hour⁽²⁾, dollars	$	1,108		$	1,086		2	%
Canada		947			964		(2	%)
United States		898			919		(2	%)
Australia		1,297			1,275		2	%
Utilization⁽³⁾		40	%		31	%	29	%
Canada		37	%		30	%	23	%
United States		3	%		21	%	(86	%)
Australia		54	%		45	%	20	%
Rigs, average for period		61			79		(23	%)
Canada		49			55		(11	%)
United States		-			12		(100	%)
Australia		12			12		-

_{⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.}
_{⁽²⁾ Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby.}
_{⁽³⁾ The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.}

First quarter Well Servicing segment revenue increased in 2026 as compared to 2025 due to increased activity in Australia and Canada following the upgrade and reactivation of several service rigs over the past year. Increased revenue from Australian and Canadian operations was partially offset by lower WS segment revenue in the United States following the discontinuance of U.S. operations in January 2026. Segment EBITDA for the first quarter of 2026 was higher compared to 2025 due to the deployment of upgraded rigs in Australia and Canada and the cessation of operating losses in the United States.

Corporate

During the first quarter of 2026, Total Energy began to execute on its $87.4 million 2026 capital expenditure program with $20.7 million of capital expenditures that were primarily directed towards the upgrade of drilling and service rigs in Australia and Canada and the expansion of CPS segment fabrication capacity in the United States. Included in 2026 first quarter capital expenditures was approximately $8.5 million of the $24.5 million of capital commitments carried forward from 2025.

Total Energy exited the first quarter of 2026 with $113.4 million of positive working capital, including $91.4 million of cash. At March 31, 2026 there was $130.0 million of available credit under the Company’s $175.0 million of revolving bank credit facilities and the interest rate on the Company’s outstanding bank debt was 4.07%.

$6.5 million was returned to shareholders during the first quarter of 2026 by way of dividends and share repurchases. Bank debt was also reduced by $10.0 million during the quarter. Cash on hand exceeded bank debt by $46.4 million at March 31, 2026.

Outlook

Global economic and political uncertainty, commodity price volatility and producer capital discipline continued to weigh on North American drilling and completion activity during the first quarter of 2026. Offsetting this uncertainty were stable Australian industry conditions and continued strong North American demand for compression and process equipment. The CPS segment’s record $446.9 million fabrication sales backlog at March 31, 2026 provides visibility for the CPS segment’s fabrication business well into 2027 and current quoting activity remains strong. In January 2026 the Company ceased well servicing operations in the United States and substantially all of the operating equipment was sold in February. An agreement to sell the associated real estate has been entered into, with closing expected to occur by June 30, 2026.

The escalation of hostilities in the Middle East in February 2026 resulted in a substantial increase in global oil and LNG prices following supply disruptions. While capital discipline arising from a commitment to improving shareholder returns continued to restrain North American drilling and completion activity during the first quarter of 2026, should higher commodity prices persist, they are expected to provide a tailwind for increased North American industry activity. Relatively high natural gas prices in Australia continue to support stable industry conditions.

In early May, an upgraded service rig was reactivated in Australia, bringing the Company’s current Australian active rig count to 13 drilling rigs and eight service rigs. An active Australian drilling rig will be taken out of service during the third quarter for approximately two months to complete certain upgrades, following which it will commence operations under a new long term contract. A new Australian service rig is currently under construction and is scheduled to commence operations in the first quarter of 2027. In Canada, the upgrade of a second idle mechanical double drilling rig into a state of the art AC electric triple pad rig is underway and is expected to be completed by the first quarter of 2027. Demand for this style of drilling rig remains very strong and, similar to the first upgrade completed in November 2025, the Company will look to contract this rig closer to the completion date. Total Energy continues to evaluate several acquisition and equipment upgrade opportunities in North America and Australia and will pursue those which meet its investment criteria.

Conference Call

At 9:00 a.m. (Mountain Time) on May 13, 2026 Total Energy will conduct a conference call and webcast to discuss its first quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 715-9871 or (647) 932-3411. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until June 12, 2026 by dialing (800) 770-2030 (passcode 1002576).

Selected Financial Information

Selected financial information relating to the three months ended March 31, 2026 and 2025 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and the Company’s 2025 Annual Report.

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

	March 31			December 31
	2026			2025
		(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	91,373		$	59,637
Accounts receivable		178,473			165,991
Inventory		143,207			127,022
Prepaid expenses and deposits		22,555			18,268
		435,608			370,918

Property, plant and equipment		630,125			625,131
Goodwill		4,053			4,053
	$	1,069,786		$	1,000,102

Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	188,048		$	152,214
Deferred revenue		107,736			89,826
Contingent consideration on business acquisition		2,744			2,796
Income taxes payable		12,590			7,518
Dividends payable		4,405			3,635
Current portion of lease liabilities		6,681			6,906
		322,204			262,895

Long-term debt		45,000			55,000

Lease liabilities		19,507			20,236

Deferred income tax liability		59,521			60,660

Shareholders' equity:
Share capital		231,558			228,041
Contributed surplus		3,749			5,841
Accumulated other comprehensive loss		(8,448	)		(16,523	)
Non-controlling interest		462			377
Retained earnings		396,233			383,575
		623,554			601,311

	$	1,069,786		$	1,000,102

Consolidated Statements of Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)

	Three months ended March 31
		2026			2025

Revenue	$	314,896		$	251,909

Cost of services		244,855			189,128
Selling, general and administration		13,434			13,968
Other income		(834	)		(308	)
Share-based compensation		6,614			108
Depreciation		23,698			22,950
Operating income		27,129			26,063

Gain on sale of property, plant and equipment		4,331			1,475
Finance costs, net		(786	)		(1,468	)
Net income before income taxes		30,674			26,070

Current income tax expense		8,001			4,614
Deferred income tax expense (recovery)		(1,549	)		2,504
Total income tax expense		6,452			7,118

Net income	$	24,222		$	18,952

Net income (loss) attributable to:
Shareholders of the Company	$	24,137		$	18,966
Non-controlling interest		85			(14	)

Income per share
Basic	$	0.66		$	0.50
Diluted	$	0.65		$	0.49

Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)

	Three months ended March 31
		2026		2025

Net income	$	24,222	$	18,952

Foreign currency translation		8,075		1,786

Total other comprehensive income for the period		8,075		1,786

Total comprehensive income	$	32,297	$	20,738

Total comprehensive income (loss) attributable to:

Shareholders of the Company	$	32,212	$	20,752
Non-controlling interest		85		(14	)

Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)

	Three months ended March 31
		2026			2025

Cash provided by (used in):

Operations:
Net income for the period	$	24,222		$	18,952
Add (deduct) items not affecting cash:
Depreciation		23,698			22,950
Share-based compensation		6,614			108
Gain on sale of property, plant and equipment		(4,331	)		(1,475	)
Finance costs, net		786			1,468
Foreign currency translation		219			1,353
Current income tax expense		8,001			4,614
Deferred income tax expense (recovery)		(1,549	)		2,504
Income taxes paid		(3,370	)		(5,540	)
Cashflow		54,290			44,934
Changes in non-cash working capital items:
Accounts receivable		(12,483	)		(15,228	)
Inventory		(16,185	)		(6,177	)
Prepaid expenses and deposits		(4,287	)		(1,614	)
Accounts payable and accrued liabilities		23,406			22,168
Deferred revenue		17,910			13,467
Cash provided by operating activities		62,651			57,550
Investing:
Purchase of property, plant and equipment		(20,744	)		(34,457	)
Proceeds on disposal of property, plant and equipment		5,713			2,492
Changes in non-cash working capital items		3,231			10,314
Cash used in investing activities		(11,800	)		(21,651	)
Financing:
Repayment of long-term debt		(10,000	)		(528	)
Repayment of lease liabilities		(1,857	)		(1,902	)
Dividends to shareholders		(3,635	)		(3,429	)
Repurchase of common shares		(2,883	)		(2,019	)
Shares issued on exercise of stock options		87			-
Interest paid		(827	)		(1,359	)
Cash used in financing activities		(19,115	)		(9,237	)

Change in cash and cash equivalents		31,736			26,662

Cash and cash equivalents, beginning of period		59,637			38,419

Cash and cash equivalents, end of period	$	91,373		$	65,081

Segmented Information

The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labor required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labor required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.

As at and for the three months ended March 31, 2026 (unaudited, in thousands of Canadian dollars)

As at and for the three months ended

Contract

Rentals and

Compression

Well

Corporate

Total

March 31, 2026

Drilling

Transportation

and Process

Servicing

⁽¹⁾

Services

Revenue

97,178

19,467

164,639

33,612

314,896

Cost of services

70,617

11,255

138,228

24,755

244,855

Selling, general and administration

2,680

1,851

4,618

1,767

2,518

13,434

Other income

(834

)

(834

)

Share-based compensation

6,614

Depreciation

12,861

5,299

2,827

2,553

158

23,698

Operating income (loss)

11,020

1,062

18,966

4,537

(8,456

)

27,129

Gain on sale of property, plant and equipment

139

133

4,045

4,331

Finance costs, net

(48

)

(104

)

(656

)

(786

)

Net income (loss) before income taxes

11,190

1,147

18,876

8,573

(9,112

)

30,674

Goodwill

2,514

1,539

4,053

Total assets

448,109

159,243

334,353

121,736

6,345

1,069,786

Total liabilities

63,747

37,119

208,667

6,148

130,551

446,232

Capital expenditures

9,421

2,109

4,531

4,335

348

20,744

Canada

United States

Australia

International

Total

Revenue

146,305

100,173

68,418

314,896

Non-current assets⁽²⁾

364,540

110,577

159,061

634,178

As at and for the three months ended March 31, 2025 (unaudited, in thousands of Canadian dollars)

As at and for the three months ended	Contract		Rentals and			Compression			Well			Corporate			Total
March 31, 2025	Drilling		Transportation			and Process			Servicing			⁽¹⁾
	Services		Services			Services

Revenue	$	91,087	$	23,024		$	106,216		$	31,582		$	-		$	251,909

Cost of services		63,943		12,340			87,185			25,660			-			189,128
Selling, general and administration		2,661		2,281			3,595			1,019			4,412			13,968
Other income		-		-			-			-			(308	)		(308	)
Share-based compensation		-		-			-			-			108			108
Depreciation		12,349		5,060			2,935			2,334			272			22,950
Operating income (loss)		12,134		3,343			12,501			2,569			(4,484	)		26,063

Gain on sale of property, plant and equipment		745		23			304			403			-			1,475
Finance costs, net		7		(41	)		(91	)		(15	)		(1,328	)		(1,468	)

Net income (loss) before income taxes		12,886		3,325			12,714			2,957			(5,812	)		26,070

Goodwill		-		2,514			1,539			-			-			4,053
Total assets		449,682		167,067			291,774			85,352			5,696			999,571
Total liabilities		94,518		33,251			134,643			9,183			141,720			413,315
Capital expenditures		23,625		1,181			935			8,687			29			34,457

	Canada		United States		Australia		International		Total

Revenue	$	119,347	$	78,815	$	50,074	$	3,673	$	251,909
Non-current assets⁽²⁾		373,223		133,742		132,259		-		639,224

_{⁽¹⁾ Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
⁽²⁾ Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.}

Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centres in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.

For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.

Notes to the Financial Highlights

	(1)	EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.

	(2)	Working capital equals current assets minus current liabilities.

	(3)	Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.

	(4)	Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Q1 2026 Condensed Interim Consolidated Financial Statements.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.

In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at http://www.sedarplus.ca/) for a discussion of such risks and uncertainties.

The TSX has neither approved nor disapproved of the information contained herein.

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