Abstract

Precision Drilling will release its quarterly results on February 11, 2026 Post Market, and investors are watching revenue, margins, and adjusted EPS as forecasts imply modest revenue growth and improving earnings momentum into the quarter.

Market Forecast

Consensus and company-derived projections indicate that Precision Drilling’s current-quarter revenue is estimated at USD 488.78 million, adjusted EPS at USD 2.20, and EBIT at USD 53.20 million, with year-over-year growth of 1.53% for revenue, 14.26% for adjusted EPS, and a slight year-over-year decline of 1.91% for EBIT. While no explicit gross profit or net margin guidance is provided for the current quarter, last quarter’s gross profit margin of 32.11% and net profit margin of -1.46% set the baseline for potential margin normalization if pricing and utilization stabilize. The company’s contract drilling services remain the principal revenue driver with USD 390.94 million last quarter, and completion and production services contributed USD 74.61 million; outlook commentary emphasizes North American rig demand and pricing consistency as the near-term swing factor. The most promising segment is completion and production services, where continued activity recovery and service intensity improvements are expected to lift revenue from the USD 74.61 million baseline and provide favorable year-over-year dynamics, contingent on commodity price stability.

Last Quarter Review

Precision Drilling posted last-quarter revenue of USD 462.25 million, gross profit margin of 32.11%, GAAP net profit attributable to the parent company of USD -6.76 million, net profit margin of -1.46%, and adjusted EPS of USD -0.51; revenue fell by 3.12% year over year, EBIT was USD 41.69 million, and adjusted EPS declined steeply year over year. Sequentially, net profit turned down with quarter-on-quarter growth of -141.56%, reflecting one-time items and softer utilization. The main business generated USD 390.94 million in contract drilling services and USD 74.61 million in completion and production services, with segment revenue mix aligning with rig activity and well-servicing trends.

Current Quarter Outlook

Contract Drilling Services

Contract drilling is the core revenue engine, and short-cycle North American E&P capital programs remain the key determinant of activity. The revenue base of USD 390.94 million last quarter shows the scale, but pricing resilience and dayrate realization will drive margin trajectory this quarter. With the company’s estimated revenue rising to USD 488.78 million and EPS to USD 2.20, improved fleet utilization and steady dayrates are implied; however, the slight year-over-year EBIT decline signal suggests incremental cost pressure or mix effects. Watch for commentary on rig count stability in Canada and the United States, contract rollovers, and any uptake in high-spec super triple rigs, as these influence both revenue capture and gross margin progression. If operating efficiency initiatives contain non-operating costs and downtime, gross margin could move closer to mid-30s, supporting EPS expansion even with flat to modestly lower EBIT on a year-over-year basis.

Completion and Production Services

Completion and production services are poised for relative growth as well servicing intensity and completions activity typically firm with supportive oil prices and winter program cadence in Canada. The USD 74.61 million prior-quarter baseline leaves room for a rebound, with revenue sensitivity to frac crew utilization, cementing, and ancillary services. The unit’s contribution to consolidated margin can be significant because incremental utilization often carries favorable drop-through given fixed overhead absorption. For this quarter, a normalized field schedule and smoother weather conditions could improve revenue and earnings in this segment, partially offsetting any dayrate pressure on drilling. Any indications of increased cross-selling with drilling customers or enhanced package offerings would be positive for revenue continuity and margin lift.

Key Stock Price Drivers This Quarter

Investors will focus on margin recovery signals after last quarter’s net margin of -1.46% and adjusted EPS of USD -0.51. The forecasted EPS of USD 2.20 points to operational improvements and potentially reduced one-offs; clarity around cost cadence and SG&A discipline will be crucial. Sector dynamics—especially North American oil and gas price trends and E&P cash return priorities—set the backdrop for rig demand and completion intensity, tying directly to revenue and margin outcomes. Contract mix quality, including term contracts and pad drilling efficiency, will shape gross margins, while any updates on technology adoption, maintenance downtime, or labor availability can sway EBIT. If management communicates stable utilization across core basins and constructive pricing, the market may lean toward interpreting the guidance as supportive of earnings normalization.

Analyst Opinions

Recent sell-side commentary leans cautiously bullish, emphasizing expected sequential improvement and positive EPS inflection against last quarter’s loss, while noting tempered EBIT growth given potential cost normalization. Analysts point to stable Canadian winter activity and resilient U.S. high-spec rig demand as supportive near-term drivers for revenue approaching USD 488.78 million and adjusted EPS near USD 2.20. Price target narratives highlight operational execution and contract quality as differentiators; the majority view underscores recovery potential in margins as utilization steadies, while maintaining vigilance on commodity volatility and customer capital discipline. The bullish camp expects the company’s earnings to reflect better throughput in both contract drilling and completion services, framing this quarter as a pivot from the prior loss toward sustainable profitability.