CALGARY, AB, Aug. 11, 2026 /CNW/ -- Pason Systems Inc. ("Pason" or the "Company") (TSX: PSI) announced today its 2026 second quarter results and the declaration of a quarterly dividend. The following news release should be read in conjunction with the Company's Management Discussion and Analysis ("MD&A"), the Condensed Consolidated Interim Financial Statements and related notes for the three and six months ended June 30, 2026, as well as the Annual Information Form for the year ended December 31, 2025. All of these documents are available on SEDAR+ at www.sedarplus.ca.

Financial Highlights

 
                Three Months Ended June 30,     Six Months Ended June 30, 
                2026       2025      Change     2026       2025       Change 
(000s, except   ($)        ($)       ( %)       ($)        ($)        ( %) 
per share 
data) 
North American 
 Drilling 
 Revenue           67,082    62,479          7    136,896    138,251       (1) 
International 
 Drilling 
 Revenue           13,092    13,614        (4)     24,818     27,603      (10) 
Completions 
 Revenue           15,850    15,345          3     30,898     31,358       (1) 
Solar and 
 Energy 
 Storage 
 Revenue            4,758     4,978        (4)     10,614     12,381      (14) 
Total Revenue     100,782    96,416          5    203,226    209,593       (3) 
Adjusted 
 EBITDA (1)        35,714    31,574         13     73,909     76,786       (4) 
As a % of 
 revenue             35.4      32.7    270 bps       36.4       36.6  (20) bps 
Funds flow 
 from 
 operations        33,540    26,484         27     65,464     63,027         4 
Per share -- 
 basic               0.43      0.34         28       0.84       0.80         6 
Per share -- 
 diluted             0.43      0.34         28       0.84       0.80         6 
Cash from 
 operating 
 activities        20,536    20,231          2     41,473     60,173      (31) 
Net capital 
 expenditures 
 (2)               17,075    14,955         14     29,471     31,663       (7) 
Free cash flow 
 (1)                3,461     5,276       (34)     12,002     28,510      (58) 
Cash dividends 
 declared (per 
 share)              0.13      0.13         --       0.26       0.26        -- 
Net income         13,601    12,008         13     26,003     31,654      (18) 
Net income 
 attributable 
 to Pason          14,061    12,648         11     27,104     32,657      (17) 
Per share -- 
 basic               0.18      0.16         13       0.35       0.41      (16) 
Per share -- 
 diluted             0.18      0.16         13       0.35       0.41      (16) 
 
 As at 
                                 June 30, 2026     December 31, 2025    Change 
(CDN 000s)                                 ($)                   ($)      ( %) 
Cash and cash 
 equivalents                            68,271                75,705      (10) 
Short-term 
 investments                                --                 1,430     (100) 
Total Cash (1)                          68,271                77,135      (11) 
Working 
 capital                               106,972                90,416        18 
Total interest                              --                    --        -- 
bearing debt 
Shares 
 outstanding 
 end of period 
 (#)                                77,640,286            77,791,365        -- 
 
 
(1) Non-GAAP and supplementary financial measures 
 are defined under Non-GAAP Financial Measures in this 
 press release 
(2) Includes additions to property, plant, and equipment, 
 development costs and changes in non-cash working 
 capital, net of proceeds on disposal from Pason's 
 Condensed Consolidated Interim Statements of Cash 
 Flows 
 

Pason's financial results for the three months ended June 30, 2026 reflect improving industry conditions in the Company's North American Drilling and Completions segments. Pason generated $100.8 million of revenue, a 5% increase from $96.4 million recorded in the prior year comparative period.

Pason generated record quarterly Revenue per Industry Day in the second quarter of 2026 of $1,078, a 5% increase from $1,026 generated in the second quarter of 2025. Against relatively flat industry activity year over year, the North American segment grew revenue by 7%, from $62.5 million generated in Q2 2025 to $67.1 million generated in Q2 2026. Revenue per Industry Day in the second quarter benefited from improved product adoption and increased Canadian activity year over year, a region which generates comparatively higher day rates than the US. Operating expenses for the segment remain mostly fixed in nature and decreased by 3% in the second quarter of 2026 over the 2025 comparative period. Resulting segment gross profit was $38.6 million during the second quarter of 2026 compared to $34.0 million in the comparative period of 2025, demonstrating the Company's operating leverage with increased revenue over a mostly fixed cost base.

Continuing to outpace changes in active frac spreads in the US, the Company's Completions segment generated $15.9 million in revenue in the second quarter of 2026, a 3% increase from $15.3 million in the comparative period in 2025, while US frac spreads decreased 4% during the same period. During the second quarter of 2026, the business unit averaged 31 IWS Active Jobs, compared to 33 IWS Active Jobs in the second quarter of 2025, reflecting the Company's strategic focus in recent quarters away from lower value, ancillary only jobs. As a result, Revenue per IWS day of $5,625 increased from $5,069 in Q2 2025, reflecting this improved and higher complexity mix of work year over year. As the segment continues to make operating and capital investments for its current stage of growth, gross profit for Completions was $0.01 million in the second quarter of 2026, down from $1.2 million in the comparable period of 2025. Gross profit for the segment also includes $2.2 million of amortization expense on intangible assets arising from the acquisition of IWS, but not indicative of capital required to operate the business.

The Company's International Drilling segment navigated challenging industry conditions in the second quarter and generated $13.1 million of revenue which compares to $13.6 million in the second quarter of 2025. While the majority of operating expenses for the segment remain mostly fixed in nature, Pason incurred $6.0 million in operating expenses in the second quarter of 2026, a 9% reduction from the second quarter of 2025 which reflects lower activity and revenue levels year over year. Resulting gross profit was $6.0 million in the second quarter of 2026 compared to $6.4 million in the second quarter of 2025.

Revenue generated by the Solar and Energy Storage segment remained consistent year over year with $4.8 million of revenue in the second quarter of 2026. Quarterly revenue for the Solar and Energy Storage business unit fluctuate with the timing of control system project deliveries.

Pason generated $35.7 million in Adjusted EBITDA, or 35.4% of revenue in the second quarter of 2026, compared to $31.6 million or 32.7% of revenue in the second quarter of 2025. Current quarter Adjusted EBITDA reflects higher levels of revenue generated by the Company's North American Drilling segment and the resulting operating leverage in the segment with its mostly fixed cost base.

The Company recorded net income attributable to Pason of $14.1 million ($0.18 per share) in the second quarter of 2026, compared to net income attributable to Pason of $12.6 million ($0.16 per share) recorded in the corresponding period in 2025, reflecting higher Adjusted EBITDA year over year as further outlined above, offset with higher depreciation and amortization expense which has increased as a result of the Company's capital investments in recent quarters.

Sequentially, Q2 2026 consolidated revenue of $100.8 million was a 2% decrease from consolidated revenue of $102.4 million in the first quarter of 2026, driven primarily by expected seasonality in Canadian drilling activity. Revenue in the North American Drilling business unit decreased from $69.8 million in the first quarter of 2026 to $67.1 million in the second quarter of 2026, demonstrating the effects of this seasonality. Partially offsetting the decline in industry activity, Revenue per Industry Day in the second quarter of 2026 was $1,078, a new quarterly record and a 3% increase from the $1,046 in the first quarter of 2026. The International Drilling segment also saw improved revenue in several regions and reported revenue of $13.1 million, which was an increase from the $11.7 million in Q1 2026. With an increase in active frac spreads in the US, the Completions segment generated $15.9 million in revenue, a 5% increase from the $15.0 million generated in the first quarter of 2026. IWS Active Jobs increased from 28 jobs in the first quarter of 2026 to 31 jobs in the second quarter of 2026, while Revenue per IWS day decreased 4% as a result of job mix. Revenue per IWS day will continue to fluctuate depending on the mix of technology adopted amongst existing customers and changes in foreign exchange. The Solar and Energy Storage segment generated $4.8 million of revenue in the second quarter of 2026 compared to revenue of $5.9 million reported in Q1 2026, with fewer control system deliveries sequentially. Consolidated Adjusted EBITDA was $35.7 million or 35.4% of revenue in the second quarter of 2026, compared to $38.2 million or 37.3% of revenue in the first quarter of 2026 primarily reflecting the effect of the seasonal slowdown in Canadian drilling activity over the Company's mostly fixed cost base. The Company recorded net income attributable to Pason in the second quarter of 2026 of $14.1 million ($0.18 per share) compared to $13.0 million ($0.17 per share) in the first quarter of 2026. The increase quarter over quarter is primarily driven by lower stock-based compensation expense in the second quarter which reflects changes in the Company's share price, offsetting the effect of lower Adjusted EBITDA sequentially as outlined above.