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Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2024, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.
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CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
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| (Stated in thousands of Canadian dollars) | December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 85,781 | $ | 73,771 | ||||
| Accounts receivable | 352,142 | 378,712 | ||||||
| Inventory | 48,992 | 43,300 | ||||||
| Assets held for sale | — | 5,501 | ||||||
| Total current assets | 486,915 | 501,284 | ||||||
| Non-current assets: | ||||||||
| Deferred tax assets | 2,235 | 6,559 | ||||||
| Property, plant and equipment | 2,159,212 | 2,356,173 | ||||||
| Intangibles | 9,470 | 12,997 | ||||||
| Right-of-use assets | 56,817 | 66,032 | ||||||
| Finance lease receivables | 4,474 | 4,806 | ||||||
| Investments and other assets | 7,567 | 8,464 | ||||||
| Total non-current assets | 2,239,775 | 2,455,031 | ||||||
| Total assets | $ | 2,726,690 | $ | 2,956,315 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 280,652 | $ | 314,355 | ||||
| Income taxes payable | 1,670 | 3,778 | ||||||
| Current portion of lease obligations | 17,778 | 20,559 | ||||||
| Total current liabilities | 300,100 | 338,692 | ||||||
| Non-current liabilities: | ||||||||
| Share-based compensation | 13,780 | 13,666 | ||||||
| Provisions and other | 6,704 | 7,472 | ||||||
| Lease obligations | 47,169 | 54,566 | ||||||
| Long-term debt | 679,291 | 812,469 | ||||||
| Deferred tax liabilities | 90,763 | 47,451 | ||||||
| Total non-current liabilities | 837,707 | 935,624 | ||||||
| Equity: | ||||||||
| Shareholders’ capital | 2,238,766 | 2,301,729 | ||||||
| Contributed surplus | 79,270 | 77,557 | ||||||
| Accumulated other comprehensive income | 165,020 | 199,020 | ||||||
| Deficit | (898,992 | ) | (900,834 | ) | ||||
| Total equity attributable to shareholders | 1,584,064 | 1,677,472 | ||||||
| Non-controlling interest | 4,819 | 4,527 | ||||||
| Total equity | 1,588,883 | 1,681,999 | ||||||
| Total liabilities and equity | $ | 2,726,690 | $ | 2,956,315 | ||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)
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| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (Stated in thousands of Canadian dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | $ | 478,508 | $ | 468,171 | $ | 1,843,704 | $ | 1,902,328 | ||||||||
| Expenses: | ||||||||||||||||
| Operating | 323,009 | 312,303 | 1,239,649 | 1,248,686 | ||||||||||||
| General and administrative | 29,113 | 35,342 | 114,440 | 132,421 | ||||||||||||
| Earnings before income taxes, loss (gain) on investments and other assets, finance charges, foreign exchange, loss on asset decommissioning, loss (gain) on asset | ||||||||||||||||
| Depreciation and amortization | 88,523 | 82,210 | 317,904 | 309,314 | ||||||||||||
| Loss (gain) on asset disposals | 4,128 | (1,913 | ) | (8,623 | ) | (16,148 | ) | |||||||||
| Loss on asset decommissioning | 67,080 | — | 67,080 | — | ||||||||||||
| Foreign exchange | (675 | ) | 1,487 | (1,208 | ) | 2,259 | ||||||||||
| Finance charges | 12,829 | 16,281 | 57,197 | 69,753 | ||||||||||||
| Loss (gain) on investments and other assets | (187 | ) | 1,814 | 1,344 | 1,484 | |||||||||||
| Earnings (loss) before income taxes | (45,312 | ) | 20,647 | 55,921 | 154,559 | |||||||||||
| Income taxes: | ||||||||||||||||
| Current | — | 2,811 | 3,307 | 7,470 | ||||||||||||
| Deferred | (3,444 | ) | 2,906 | 49,520 | 35,759 | |||||||||||
| (3,444 | ) | 5,717 | 52,827 | 43,229 | ||||||||||||
| Net earnings (loss) | $ | (41,868 | ) | $ | 14,930 | $ | 3,094 | $ | 111,330 | |||||||
| Attributable to: | ||||||||||||||||
| Shareholders of Precision Drilling Corporation | $ | (42,175 | ) | $ | 14,795 | $ | 1,842 | $ | 111,195 | |||||||
| Non-controlling interests | $ | 307 | $ | 135 | $ | 1,252 | $ | 135 | ||||||||
| Net earnings (loss) per share attributable to share- holders of Precision Drilling Corporation: | ||||||||||||||||
| Basic | $ | (3.23 | ) | $ | 1.06 | $ | 0.14 | $ | 7.81 | |||||||
| Diluted | $ | (3.23 | ) | $ | 1.06 | $ | 0.14 | $ | 7.81 | |||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
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| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (Stated in thousands of Canadian dollars) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net earnings (loss) | $ | (41,868 | ) | $ | 14,930 | $ | 3,094 | $ | 111,330 | |||||||
| Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency | (19,503 | ) | 89,412 | (68,830 | ) | 119,821 | ||||||||||
| Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt | 9,072 | (49,744 | ) | 34,830 | (69,027 | ) | ||||||||||
| Tax expense related to net investment hedge of long-term debt | — | 750 | — | 750 | ||||||||||||
| Comprehensive income (loss) | $ | (52,299 | ) | $ | 55,348 | $ | (30,906 | ) | $ | 162,874 | ||||||
| Attributable to: | ||||||||||||||||
| Shareholders of Precision Drilling Corporation | $ | (52,606 | ) | $ | 55,213 | $ | (32,158 | ) | $ | 162,739 | ||||||
| Non-controlling interests | $ | 307 | $ | 135 | $ | 1,252 | $ | 135 | ||||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
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| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (Stated in thousands of Canadian dollars) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Cash provided by (used in): | ||||||||||||||||
| Operations: | ||||||||||||||||
| Net earnings (loss) | $ | (41,868 | ) | $ | 14,930 | $ | 3,094 | $ | 111,330 | |||||||
| Adjustments for: | ||||||||||||||||
| Long-term compensation plans | 2,523 | 4,398 | 14,521 | 18,888 | ||||||||||||
| Depreciation and amortization | 88,523 | 82,210 | 317,904 | 309,314 | ||||||||||||
| Gain on asset disposals | 4,128 | (1,913 | ) | (8,623 | ) | (16,148 | ) | |||||||||
| Loss on asset decommissioning | 67,080 | — | 67,080 | — | ||||||||||||
| Unrealized foreign exchange | (620 | ) | 1,477 | (1,654 | ) | 2,442 | ||||||||||
| Finance charges | 12,829 | 16,281 | 57,197 | 69,753 | ||||||||||||
| Income taxes | (3,444 | ) | 5,717 | 52,827 | 43,229 | |||||||||||
| Other | (420 | ) | (392 | ) | (439 | ) | (272 | ) | ||||||||
| Loss (gain) on investments and other assets | (187 | ) | 1,814 | 1,344 | 1,484 | |||||||||||
| Income taxes paid | (878 | ) | (1,617 | ) | (5,638 | ) | (6,459 | ) | ||||||||
| Income taxes recovered | 62 | 27 | 67 | 85 | ||||||||||||
| Interest paid | (3,246 | ) | (2,806 | ) | (63,491 | ) | (72,241 | ) | ||||||||
| Interest received | 268 | 409 | 1,234 | 1,967 | ||||||||||||
| Funds provided by operations | 124,750 | 120,535 | 435,423 | 463,372 | ||||||||||||
| Changes in non-cash working capital balances | 1,364 | 42,256 | (22,526 | ) | 18,711 | |||||||||||
| Cash provided by operations | 126,114 | 162,791 | 412,897 | 482,083 | ||||||||||||
| Investments: | ||||||||||||||||
| Purchase of property, plant and equipment | (81,410 | ) | (58,900 | ) | (263,474 | ) | (216,647 | ) | ||||||||
| Purchase of intangibles | (24 | ) | — | (24 | ) | (51 | ) | |||||||||
| Proceeds on sale of property, plant and equipment | 17,244 | 8,570 | 39,038 | 30,395 | ||||||||||||
| Proceeds from sale of investments and other assets | — | — | — | 3,623 | ||||||||||||
| Purchase of investments and other assets | — | (718 | ) | (21 | ) | (725 | ) | |||||||||
| Receipt of finance lease payments | 225 | 208 | 851 | 799 | ||||||||||||
| Changes in non-cash working capital balances | 10,086 | (11,114 | ) | 15,306 | (20,380 | ) | ||||||||||
| Cash used in investing activities | (53,879 | ) | (61,954 | ) | (208,324 | ) | (202,986 | ) | ||||||||
| Financing: | ||||||||||||||||
| Issuance of long-term debt | 10,000 | 17,078 | 148,780 | 27,978 | ||||||||||||
| Repayment of long-term debt | (10,000 | ) | (41,813 | ) | (249,439 | ) | (204,319 | ) | ||||||||
| Repurchase of share capital | (21,565 | ) | (25,023 | ) | (75,623 | ) | (75,488 | ) | ||||||||
| Issuance of common shares from the exercise of options | 210 | — | 418 | 686 | ||||||||||||
| Debt amendment fees | (20 | ) | (46 | ) | (717 | ) | (1,363 | ) | ||||||||
| Distributions to non-controlling interest | — | — | (831 | ) | — | |||||||||||
| Lease payments | (3,504 | ) | (3,266 | ) | (14,867 | ) | (13,271 | ) | ||||||||
| Funding from non-controlling interest | — | — | — | 4,392 | ||||||||||||
| Cash used in financing activities | (24,879 | ) | (53,070 | ) | (192,279 | ) | (261,385 | ) | ||||||||
| Effect of exchange rate changes on cash | 114 | 1,700 | (284 | ) | 1,877 | |||||||||||
| Increase in cash | 47,470 | 49,467 | 12,010 | 19,589 | ||||||||||||
| Cash, beginning of period | 38,311 | 24,304 | 73,771 | 54,182 | ||||||||||||
| Cash, end of period | $ | 85,781 | $ | 73,771 | $ | 85,781 | $ | 73,771 | ||||||||
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CONDENSED
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
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| Attributable to shareholders of the Corporation | ||||||||||||||||||||||||||||
| (Stated in thousands of Canadian dollars) | Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total | Non- controlling interest | Total Equity | |||||||||||||||||||||
| Balance at January 1, 2025 | $ | 2,301,729 | $ | 77,557 | $ | 199,020 | $ | (900,834 | ) | $ | 1,677,472 | $ | 4,527 | $ | 1,681,999 | |||||||||||||
| Net earnings for the period | — | — | — | 1,842 | 1,842 | 1,252 | 3,094 | |||||||||||||||||||||
| Other comprehensive income for the period | — | — | (34,000 | ) | — | (34,000 | ) | — | (34,000 | ) | ||||||||||||||||||
| Share options exercised | 599 | (181 | ) | — | — | 418 | — | 418 | ||||||||||||||||||||
| Settlement of Executive Performance and Restricted Share Units | 11,651 | (2,790 | ) | — | — | 8,861 | — | 8,861 | ||||||||||||||||||||
| Distributions to non-controlling interest | — | — | — | — | — | (960 | ) | (960 | ) | |||||||||||||||||||
| Share repurchases | (76,857 | ) | — | — | — | (76,857 | ) | — | (76,857 | ) | ||||||||||||||||||
| Redemption of non-management directors share units | 1,644 | (859 | ) | — | — | 785 | — | 785 | ||||||||||||||||||||
| Share-based compensation expense | — | 5,543 | — | — | 5,543 | — | 5,543 | |||||||||||||||||||||
| Balance at December 31, 2025 | $ | 2,238,766 | $ | 79,270 | $ | 165,020 | $ | (898,992 | ) | $ | 1,584,064 | $ | 4,819 | $ | 1,588,883 | |||||||||||||
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| Attributable to shareholders of the Corporation | ||||||||||||||||||||||||||||
| (Stated in thousands of Canadian dollars) | Shareholders’ Capital | Contributed Surplus | Accumulated Other Comprehensive Income | Deficit | Total | Non- controlling interest | Total Equity | |||||||||||||||||||||
| Balance at January 1, 2024 | $ | 2,365,129 | $ | 75,086 | $ | 147,476 | $ | (1,012,029 | ) | $ | 1,575,662 | $ | — | $ | 1,575,662 | |||||||||||||
| Net earnings for the period | — | — | — | 111,195 | 111,195 | 135 | 111,330 | |||||||||||||||||||||
| Other comprehensive income for the period | — | — | 51,544 | — | 51,544 | — | 51,544 | |||||||||||||||||||||
| Settlement of Executive Performance and Restricted Share Units | 21,846 | (1,479 | ) | — | — | 20,367 | — | 20,367 | ||||||||||||||||||||
| Share options exercised | 978 | (292 | ) | — | — | 686 | — | 686 | ||||||||||||||||||||
| Share repurchases | (86,570 | ) | — | — | — | (86,570 | ) | — | (86,570 | ) | ||||||||||||||||||
| Redemption of non-management directors share units | 346 | (346 | ) | — | — | — | — | — | ||||||||||||||||||||
| Share-based compensation expense | — | 4,588 | — | — | 4,588 | — | 4,588 | |||||||||||||||||||||
| Funding from non-controlling interest | — | — | — | — | — | 4,392 | 4,392 | |||||||||||||||||||||
| Balance at December 31, 2024 | $ | 2,301,729 | $ | 77,557 | $ | 199,020 | $ | (900,834 | ) | $ | 1,677,472 | $ | 4,527 | $ | 1,681,999 | |||||||||||||
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2025 FOURTH QUARTER RESULTS CONFERENCE CALL AND WEBCAST
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Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, February 12, 2026.
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To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.
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The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website until the following quarterly conference all is posted.
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https://edge.media-server.com/mmc/p/gfacaf25
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About Precision
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Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, rental equipment and camps all backed by a comprehensive mix of technical support services and skilled, experienced personnel.
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Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.
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Additional Information
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For further information, please contact:
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Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500
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800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com
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English (US)