CALGARY, AB, Aug. 7, 2026 /CNW/ -- (TSX: ACX) ACT Energy Technologies Ltd (the "Company" or "ACT")'s news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. For a full disclosure of forward-looking statements and the risks to which they are subject, see the 'Forward-Looking Statements' section in this news release. This news release contains references to Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Net debt, Working capital and Net capital expenditures. These terms do not have standardized meanings prescribed under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and may not be comparable to similar measures used by other companies. See the 'Non-GAAP measures' section in this news release for definitions and tabular calculations.
2026 Q2 FINANCIAL RESULTS
-- Revenues of $178.5 million in 2026 Q2 increased 59% compared to $112.0
million one year ago, reflecting higher activity in the Canadian segment
together with the contributions of Stryker Directional Services, acquired
January 5, 2026, and SB Directional Services, acquired April 1, 2026.
-- Adjusted EBITDAS(1) of $26.9 million increased 76% compared to $15.3
million in 2025 Q2, the highest Adjusted EBITDAS the Company has recorded
in a second quarter.
-- Income before income taxes was $9.4 million, compared to a loss before
income taxes of $9.0 million in 2025 Q2, resulting from stronger and
expanded operational activity and foreign exchange gains.
-- Canadian operating days(2) increased 81% to 3,805 well ahead of the 29%
increase in the average Western Canadian directional rig count,
reflecting new customer additions and the deployment of additional
revenue-generating technologies. Canadian revenues increased 85% to $55.3
million.
-- U.S. operating days(2) increased 76% to 5,000, while the average U.S.
directional rig count increased 1%. The increase was principally
attributable to the Stryker and SB acquisitions. U.S. revenues increased
50% to $123.2 million.
-- Free cash flow(1) of $9.7 million in 2026 Q2, compared to $1.0 million in
2025 Q2.
-- Cash flow from operating activities was $9.4 million, compared to $26.0
million in 2025 Q2, reflecting the investment in operating working
capital required to support higher Canadian activity and the acquired
businesses.
-- Net debt(1) was $142.1 million as at June 30, 2026, compared to $53.6
million as at December 31, 2025, reflecting the debt used to fund the
Stryker and SB acquisitions.
-- The exchangeable subordinated promissory notes were repaid in full during
the quarter and had a carrying value of $nil as at June 30, 2026,
compared to US$20.0 million as at December 31, 2025.
-- On April 1, 2026, the Company acquired the directional drilling services
business of SB Directional Services for estimated total consideration of
$65.6 million in cash and common shares (the "SB acquisition").
-- During the six months ended June 30, 2026, the Company purchased 285,072
common shares under the normal course issuer bid ("NCIB") for a total
purchase price of $1.7 million at an average cost of $5.79 per common
share, of which 6,000 common shares were purchased during the second
quarter.
_________________________________
(1) As defined in the 'Non-GAAP measures' section
of this News Release
(2) Per 'Supplementary financial measures and other
definitions' section in this News Release.
PRESIDENT'S MESSAGE
Comments from President & CEO Tom Connors:
"The second quarter was the strongest second quarter in ACT's history, and the clearest evidence to date that the platform we have been building is working as designed. Revenues of $178.5 million increased 59% and Adjusted EBITDAS((3) () of $26.9 million increased 76% over the same quarter last year. We delivered that growth in the quarter that is seasonally our most difficult, and against a United States land rig count that was essentially unchanged year over year.
"Canada produced a record second quarter for activity. Operating days(2) increased 81% to 3,805, well ahead of the 29% increase in the average Western Canadian directional rig count(2) , reflecting new customer additions, the continued adoption of rotary steerable and other revenue-generating technologies, and the multi-lateral drilling franchise that remains the foundation of the Canadian business. Just as importantly, the incremental activity converted into margin rather than volume alone. Canadian direct costs declined to 67% of revenue from 72% a year ago, which is the operating leverage this business is built to deliver when equipment and crews are working.
"In the United States, operating days(2) increased 76% to 5,000 while the average U.S. directional rig count(2) rose 1%. Stryker and SB Directional were the principal drivers, and both businesses have performed in line with our expectations since closing. Our pre-existing U.S. operations held their position in a market where pricing remains competitive and where the industry continues to absorb the effects of customer consolidation.
"The quarter is also a proof point for how we operate. ACT is one platform with many strong local operators. Capital allocation, technology development and manufacturing, procurement, safety systems and financial discipline sit at the centre; customer relationships, basin-level judgement and day-to-day execution stay with the leaders who built these businesses and who understand their operators, their crews and their formations better than any head office can. Stryker and SB joined ACT with their teams, their customers and their identities intact, and their contribution this quarter reflects that. The model is designed to protect the earnings we acquire and then improve them, which is what allows us to integrate at pace without losing the entrepreneurial character that made these businesses worth owning in the first place.
"We also strengthened the balance sheet while absorbing two acquisitions. The Company generated Free cash flow(1) of $9.7 million in the quarter, retired the exchangeable promissory notes in full, and ended the period with Net debt(1) of $142.1 million and a Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio of 1.4 times against a covenant limit of 3.0 times. Working capital(1) of $105.2 million reflects the investment required to support a materially larger business, and we expect a portion of that investment to unwind as activity levels normalize. Reducing leverage is the first call on free cash flow through the balance of the year, alongside continued measured purchases under our Normal Course Issuer Bid.
"Activity in the third quarter to date has continued to build in both Canada and the United States. We enter the second half with more scale and more owned technology in the field than at any prior point in the Company's history, and at a lower cost of delivery than a year ago," stated Tom Connors, ACT President and Chief Executive Officer.
_________________________________ (3) As defined in the 'Non-GAAP measures' section of this News Release (2) Per 'Supplementary financial measures and other definitions' section in this News Release.
FINANCIAL HIGHLIGHTS
(stated in thousands Three months ended June Six months ended June 30,
of Canadian dollars, 30,
except net
income per
common share amounts)
2026 2025 2026 2025
Revenues $ 178,474 $ 112,010 $ 322,937 $ 247,367
Gross margin
percentage 22 % 22 % 22 % 22 %
Adjusted gross margin
percentage(1) 29 % 29 % 28 % 28 %
Adjusted EBITDAS(1) $ 26,857 $ 15,256 $ 49,781 $ 34,955
Adjusted EBITDAS
margin percentage(1) 15 % 14 % 15 % 14 %
Net income (loss) $ 2,479 $ (9,959) $ 7,324 $ (2,711)
Per common share -
basic $ 0.06 $ (0.30) $ 0.20 $ (0.08)
Per common share -
diluted $ 0.06 $ (0.30) $ 0.20 $ (0.08)
Cash flow - operating
activities $ 9,369 $ 26,029 $ 9,124 $ 44,714
Free cash flow(1) $ 9,731 $ 1,048 $ 17,807 $ 6,779
Weighted average
common shares
outstanding:
Basic (000s) 38,581 33,626 36,771 33,892
Diluted (000s) 38,764 33,626 36,916 33,892
(stated in thousands of Canadian dollars) June 30, December 31,
2026 2025
Current assets $ 247,095 $ 184,250
Current liabilities $ 155,746 $ 127,457
Working capital(1) $ 105,247 $ 84,092
Total assets $ 624,686 $ 462,382
Loans, borrowings and promissory notes $ 160,577 $ 61,534
Net debt(1) $ 142,055 $ 53,581
Exchangeable promissory notes ("EP notes") $ -- $ 26,697
Shareholders' equity $ 293,962 $ 248,773
(1) As defined in the 'Non-GAAP measures' section
of this News Release.
OUTLOOK
The second quarter's commodity price environment was driven by supply risk rather than by demand. WTI averaged US$95.75 per barrel, up from US$71.98 in the first quarter, as disruption to traffic through the Strait of Hormuz removed barrels and shipping capacity from the market. Most of that risk premium has since unwound. WTI has traded in the low-to-mid US$80s through July, and forward curves and third-party forecasts point to a lower average price through the balance of the year as OPEC+ barrels return, shut-in production is restored and global inventories rebuild. We are planning the business against that lower and more volatile path rather than against second-quarter realized prices.
The more instructive observation from the quarter is that the price move did not move the rig count. A one-third sequential increase in WTI produced a 1% year-over-year change in the U.S. land rig count and a Western Canadian rig count that, while up 29% against a weak comparative period, remains well below prior-cycle peaks. Exploration and production companies are budgeting against mid-cycle assumptions and the strip prices, not spot, and a more consolidated customer base has reinforced that discipline. At the same time, well designs continue to lengthen and drilling performance continues to improve, so each active rig delivers more lateral footage and more technical complexity than it did even two years ago. The practical consequence for our sector is that rig count is a weaker proxy for demand than it once was. Footage, well complexity and technology intensity per rig are the better indicators, and each of those factors favours service providers with owned downhole technology and consistent performance across basins.
North American natural gas presents the opposite picture. NYMEX averaged US$2.95 per Mmbtu in the second quarter, down from US$4.79 in the first, and near-term gas-directed drilling is likely to remain restrained. The medium-term case is considerably more constructive: LNG Canada volumes, incremental liquefaction capacity on the U.S. Gulf Coast and growing gas-fired power demand all point to a call on additional supply from the Montney, Duvernay, Deep Basin and Haynesville from 2027 onward. These are long-lateral, technically demanding plays that align closely with our capabilities and with the technology we manufacture.
In Canada, we expect a seasonally stronger third quarter and a busier second half than the same period last year. Industry commentary points to increased drilling in the Western Canadian Sedimentary Basin through the balance of 2026, and oil-directed multi-lateral development in the Clearwater, Mannville and adjacent plays continues to offer some of the most attractive drilling economics in North America. Our objective is to hold and, where possible, extend the market share gains achieved in the first half of the year, and to continue converting activity into margin as owned measurement-while-drilling systems and mud motors displace third-party rentals. Weather-related interruptions remain a normal source of quarter-to-quarter variability.
In the United States, we expect activity to build modestly from second-quarter levels rather than to step change. Consolidation on both sides of the market - fewer and larger operators, and reduced directional drilling capacity following several years of attrition - is concentrating work with providers that can demonstrate scale, technical capability and balance sheet strength. Continued adoption of rotary steerable systems raises revenue capture per operating day and remains a priority for capital deployment. A weaker Canadian dollar remains a modest tailwind on the translation of U.S. earnings. Trade policy and cross-border tariff treatment of equipment remain unresolved, and the Company continues to monitor and assess the potential impact on its supply chain and cost base.
From an oilfield services perspective, we continue to expect a gradual, technology-led recovery rather than a conventional cyclical upswing, and we do not require a higher rig count to grow. Our priorities for the balance of 2026 are unchanged: convert activity into cash, reduce leverage, complete the integration of Stryker and SB, and retain the flexibility to act on further consolidation opportunities where they are accretive and where the acquired team and customer base can be preserved.
RESULTS OF OPERATIONS
Financial
Three months ended June Six months ended June 30,
30,
(stated in thousands 2026 2025 2026 2025
of Canadian dollars,
except percentages)
Revenues
United States $ 123,212 $ 82,068 $ 206,385 $ 163,684
Canada 55,262 29,942 116,552 83,683
Total revenues 178,474 112,010 322,937 247,367
Cost of sales
Direct costs (126,990) (79,559) (231,712) (177,432)
Depreciation and
amortization (11,316) (7,448) (21,008) (14,796)
Share-based
compensation (43) (129) (73) (260)
Total cost of sales (138,349) (87,136) (252,793) (192,488)
Gross margin $ 40,125 $ 24,874 $ 70,144 $ 54,879
Gross margin
percentage 22 % 22 % 22 % 22 %
Adjusted gross margin
percentage(1) 29 % 29 % 28 % 28 %
(1) As defined in the 'Non-GAAP measures' section
of this News Release.
Operational
(stated in Canadian Three months ended % Six months ended %
dollars, except operating June 30, June 30,
days
and
average industry land rig
counts)
2026 2025 Change 2026 2025 Change
Operating days(1)
United States 5,000 2,838 76 % 8,184 5,878 39 %
Canada 3,805 2,107 81 % 8,278 6,361 30 %
8,805 4,945 78 % 16,462 12,239 35 %
Average industry land rig
count - directional(2)
United States 543 540 1 % 530 539 (2 %)
Canada 151 117 29 % 171 158 8 %
Average revenues per
operatingday(1)
United States $ 24,642 $ 28,918 (15 %) $ 25,218 $ 27,847 (9 %)
Canada $ 14,524 $ 14,211 2 % $ 14,080 $ 13,156 7 %
$ 20,270 $ 22,651 (11 %) $ 19,617 $ 20,211 (3 %)
Net lost-in-hole
equipmentreimbursements(3) $ 9,143 $ 6,841 34 % $ 14,035 $ 7,957 76 %
(1) Per 'Supplementary financial measures and other
definitions' section in this News Release.
(2) Per JWN RigLocator and Enverus.
(3) As defined in the 'Non-GAAP measures' section
of this News Release.
Summary
The Company delivered the strongest second quarter in its history, demonstrating the effectiveness of its operating platform despite a challenging seasonal period and relatively flat U.S. land drilling activity. The combination of record second-quarter activity in Canada and the successful integration of the Stryker and SB acquisitions in the United States led to significantly higher operating activity and revenue compared to the prior-year quarter. Gross margin and Adjusted gross margin percentages(1() remained stable, reflecting disciplined operational execution.
Net income of $2.5 million in 2026 Q2, and $7.3 million for the six months ended June 30, 2026 was an improvement from the losses realized a year earlier (net losses of $10.0 million and $2.7 million for the same periods in 2025, respectively). The improvement is a direct result of increased Canadian activity and the Company's operating model which enabled the successful integration of Stryker and SB, contributing to earnings growth while preserving the entrepreneurial culture and operational strengths of the acquired businesses. Net income for the current periods did benefit from a foreign exchange gain, comparative periods foreign exchange loss, offset by a higher income tax expense compared to the prior periods. Additional details on key impacts to net income are described below.
SEGMENTED INFORMATION
United States
Revenues
U.S. revenues were $123.2 million in 2026 Q2, an increase of $41.1 million or 50%, compared to $82.1 million in 2025 Q2. The Company experienced a 76% increase in operating days(2) in 2026 Q2 (2026 - 5,000 days; 2025 - 2,838 days). The Company's activity outperformed a 1% increase in the average U.S. land rig count, mainly due to the recent Stryker and SB acquisitions, combined with steady activity from its pre-existing U.S. business. The average revenues per operating day(([5]) () decreased 15% in 2026 Q2 (2026 - $24,642 per day; 2025 - $28,918 per day) due to a lower proportion of revenue from our rental and technology businesses, which have no associated operating days.
U.S. revenues were $206.4 million in the six months ended June 30, 2026, an increase of $42.7 million or 26%, compared to $163.7 million for the same period in 2025. The Company experienced a 39% increase in operating days(2) in the six months ended June 30, 2026 in comparison to the same period in 2025 (2026 - 8,184 days; 2025 - 5,878 days). The Company's activity increased despite a 2% decrease in the average U.S. land rig count, mainly due to the recent Stryker and SB acquisitions. The average revenues per operating day(2) decreased 9% in the six months ended June 30, 2026 (2026 - $25,218 per day; 2025 - $27,847 per day), compared to the same period in 2025 due to a lower proportion of revenue from our rental and technology businesses, which have no associated operating days.
Direct costs
U.S. direct costs included in cost of sales were $90.1 million in 2026 Q2, an increase of $32.0 million or 55%, compared to $58.1 million in 2025 Q2. Direct costs as a percentage of revenues were 73% in 2026 Q2, compared to 71% in 2025 Q2, which reflects a higher proportion of lost-in-hole revenue in the prior year period.
U.S. direct costs included in cost of sales were $156.3 million in the six months ended June 30, 2026, an increase of $36.1 million or 30%, compared to $120.2 million for the same period in 2025, below the 39% increase in U.S. operating days(2) . Direct costs as a percentage of revenues were 76% in the six months ended June 30, 2026, compared to 73% in the same period in 2025, which reflects a higher proportion of lost-in-hole revenue in the prior year period.
Canadian
Revenues
Canadian revenues were $55.3 million in 2026 Q2, an increase of $25.4 million or 85%, compared to $29.9 million in 2025 Q2, due to an 81% increase in operating days(2) in 2026 Q2 (2026 - 3,805 days; 2025 - 2,107 days), significantly higher than the Canada average land rig count increase of 29%. Canadian activity increased more than the industry activity levels reflecting new customer additions, partially as a result of the deployment of additional revenue generating technologies. The average revenues per operating day(2) increased 2% in 2026 Q2 (2026 - $14,524 per day; 2025 - $14,211 per day). The increase in the average revenues per operating day(2) is mainly attributable to a favorable job mix requiring additional revenue generating technologies.
Canadian revenues were $116.6 million in the six months ended June 30, 2026, an increase of $32.9 million or 39%, compared to $83.7 million for the same period in 2025, with the increase primarily attributable to a 30% increase in operating days(2) in the six months ended June 30, 2026 (2026 - 8,278 days; 2025 - 6,361 days). Canadian activity increased more than the industry activity levels reflecting new customer additions, partially as a result of the deployment of additional revenue generating technologies. The average revenues per operating day(2) increased in the six months ended June 30, 2026 (2026 - $14,080 per day; 2025 - $13,156 per day). The increase in the average revenues per operating day(2) is mainly attributable to a favorable job mix requiring additional revenue generating technologies.
_________________________________ (1) As defined in the 'Non-GAAP measures' section of this News Release. (2) Per 'Supplementary financial measures and other definitions' section in this News Release.
Direct costs
Canadian direct costs included in cost of sales were $36.9 million in 2026 Q2, an increase of $15.4 million or 72%, compared to $21.5 million in 2025 Q2. The increase is mainly due to higher operating activities in 2026 Q2. As a percentage of revenues, direct costs were 67% in 2026 Q2, compared to 72% in 2025 Q2, reflecting disciplined cost management and economies of scale associated with higher activity levels.
Canadian direct costs included in cost of sales were $75.4 million in the six months ended June 30, 2026, an increase of $18.2 million or 32%, compared to $57.2 million for the same period in 2025. The increase is mainly due to higher activity levels in the six months ended June 30, 2026. As a percentage of revenues, direct costs were 65% in the six months ended June 30, 2026, compared to 68% for the same period in 2025, reflecting disciplined cost management and economies of scale associated with higher activity levels.
CONSOLIDATED
Revenues
The Company's revenues were $178.5 million in 2026 Q2, an increase of $66.5 million or 59%, compared to $112.0 million in 2025 Q2. The increase is driven by a 78% increase in operating days(2) (2026 - 8,805 days; 2025 - 4,945 days) offset by an 11% decrease in the average revenues per operating day(2) (2026 - $20,270; 2025 - $22,651). The decrease in average revenues per operating day(2) is due to a lower proportion of revenue from our rental and technology businesses, which have no associated operating days.
The Company recognized $322.9 million of revenues in the six months ended June 30, 2026, an increase of $75.5 million or 31%, compared to $247.4 million for the same period in 2025. The increase is driven by a 35% increase in operating days(2) (2026 - 16,462 days; 2025 - 12,239 days).
Direct Costs
The Company recognized $127.0 million of direct costs in 2026 Q2, an increase of $47.4 million or 60%, compared to $79.6 million in 2025 Q2. The increase is mainly due the 78% increase in consolidated operating days(2) .
The Company recognized $231.7 million of direct costs in the six months ended June 30, 2026, an increase of $54.3 million or 31%, compared to $177.4 million for the same period in 2025. The increase is mainly due to an increase in operating days(2) (.)
Direct costs as a percentage of revenues remained consistent at 71% in 2026 Q2, compared to 71% in 2025 Q2. Direct costs for the six months ended June 30, 2026 remained consistent as a percentage of revenues at 72% when compared to the same period in 2025.
Gross margin and Adjusted gross margin(1)
The Gross margin and Adjusted gross margin percentages(1) remained consistent in 2026 periods when compared to the same periods in 2025. However, dollar margins improved for the three and six months ended June 30, 2026 compared to the same periods in 2025 arising from a 59% and 31% year-over-year increase in revenues in 2026 Q2 and the six months ended June 30, 2026, respectively. Improved results are primarily driven by higher activity levels.
Depreciation and amortization expense
Depreciation and amortization expense included in cost of sales increased to $11.3 million in 2026 Q2 (2025 Q2 - $7.4 million), and $21.0 million for the six months ended June 30, 2026 (six months ended June 30, 2025 - $14.8 million). The increases noted are mainly due to the addition of Stryker and SB assets.
________________________________ (1) Refer to the 'Non-GAAP measures' section in this News Release. (2) Per 'Supplementary financial measures and other definitions' section in this News Release.
Selling, general and administrative ("SG&A") expenses
Three months ended Six months ended June
June 30, 30,
(stated in thousands 2026 2025 2026 2025
of Canadian dollars)
Selling, general and
administrative
expenses :
Direct costs $ 21,755 $ 14,937 $ 38,661 $ 31,370
Depreciation and
amortization 4,063 2,730 7,220 5,556
Share-based
compensation 677 968 1,174 1,509
Selling, general and
administrative
expenses $ 26,495 $ 18,635 $ 47,055 $ 38,435
The Company recognized direct costs included in SG&A expenses of $21.8 million and $38.7 million in 2026 Q2 and the six months ended June 30, 2026, which were higher than $14.9 million and $31.4 million for the same periods in 2025, respectively. The increases noted are mainly due to the recent Stryker and SB acquisitions. Severance costs paid in the three and six months ended June 30, 2026 of $0.2 million and $2.0 million, respectively also impacted SG&A expenses. Direct costs included in SG&A expenses as a percentage of revenues improved to 12% for 2026 Q2 and the six months ended June 30, 2026, compared to 13% for the same periods in 2025.
Depreciation and amortization included in SG&A expenses were $4.1 million and $7.2 million in 2026 Q2 and the six months ended June 30, 2026, compared to $2.7 million and $5.6 million for the same periods in 2025, respectively. The increases are mainly due to amortization expense associated with intangible assets associated with the acquisitions of Stryker and SB.
Share-based compensation included in SG&A expenses were $0.7 million and $1.2 million in 2026 Q2 and the six months ended June 30, 2026, compared to $1.0 million and $1.5 million for the same periods in 2025, respectively. The decrease for the three and six months ended June 30, 2026 is mainly due to certain stock options being fully vested and therefore no longer accruing an expense during the 2026 period. The cash portion of share-based compensation expense were $0.5 million and $0.9 million in 2026 Q2 and the six months ended June 30, 2026, compared to $0.4 million and $0.4 million for the same periods in 2025, respectively. Cash settled share-based compensation expense will fluctuate with the Company's share price and therefore amounts recognized are subject to this volatility.
Provision
Three months ended Six months ended
June 30, June 30,
(stated in thousands 2026 2025 2026 2025
of Canadian dollars)
Provision $ -- $ 4,846 $ -- $ 4,846
The Company is subject to a historical U.S. sales and use tax audit (the "Audit") period that originated prior to the Company's acquisition of Altitude Energy Partners ("AEP Acquisition") on July 14, 2022, with certain errors extending into the period after the AEP Acquisition (the "Post-Closing Audit Period"). In 2025, the Company received additional information relating to this Audit impacting the Post-Closing Audit Period and recorded an incremental provision of $4.8 million. No revisions to this estimate were made in the six months ended June 30, 2026.