Precision Drilling earnings rose in the third quarter of 2026 as stronger drilling activity in Canada and the United States helped lift revenue 15% to C$532 million. The company also raised its full-year capital spending budget and projected higher U.S. operating margins in the fourth quarter.
Key Takeaways
- Revenue increased from C$462 million a year earlier, while adjusted EBITDA rose to C$125 million from C$118 million.
- Net earnings attributable to shareholders were C$21 million, compared with a C$7 million loss a year earlier.
- Precision raised its 2026 capital budget to C$275 million–C$285 million from C$265 million.
Precision Drilling earnings and cash flow
The company said stronger North American activity and higher average U.S. day rates more than offset lower international results. Adjusted EBITDA growth was partly held back by U.S. rig reactivation costs and lower international margins.
Precision attributed the improvement in shareholder earnings primarily to higher deferred income tax expense in 2025 related to its U.S. operations. That was partly offset by C$8 million in additional depreciation expense in 2026 following a change in estimated useful lives.
Cash provided by operations fell to C$71 million from C$76 million in the third quarter of 2025. Precision repurchased C$31 million of common shares during the latest quarter, while capital expenditures were C$82 million, up from C$69 million.
| Item | Details |
|---|---|
| Canadian active rigs | Average of 73 in the third quarter of 2026, versus 63 a year earlier |
| U.S. active rigs | Average of 43, versus 36 a year earlier |
| International active rigs | Seven: three in Saudi Arabia and four in Kuwait, versus two and five, respectively, a year earlier |
North American drilling activity increases
Average active rig counts increased in both Canada and the U.S. Precision said it reactivated six U.S. rigs during the quarter to meet customer demand. U.S. revenue per utilization day rose to US$33,270 from US$31,040, driven by higher average day rates and technology revenue.
In Canada, revenue per utilization day slipped to C$33,654 from C$34,193. The company attributed the decline to rig mix rather than pricing, as heavy oil activity increased use of Super Single rigs.
International revenue per utilization day declined to US$46,304 from US$53,811. Precision attributed the decrease to changes in rig mix and planned recertifications that resulted in non-billable days.
Capital budget and margin outlook
The higher 2026 capital budget accommodates long-lead deliveries and a pending upgrade opportunity involving multiple rigs that would be contracted through 2029 for a large Canadian producer. Precision expects to complete upgrades to 25 rigs across Canada and the U.S. during 2026.
Chief Executive Carey Ford said Precision expects U.S. operating margins to increase approximately 30% during the fourth quarter, with most planned rig reactivations behind it. That is a management expectation, not a reported result.
Next milestone
The company expects to complete its 25 planned North American rig upgrades during 2026.
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