CES Energy Solutions Q2 Earnings Call Highlights

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MarketBeat

Sun, August 9, 2026 astatine 4:03 PM CDT 7 min read

Key Points

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Record second-quarter performance: Revenue roseate 24.4% twelvemonth implicit twelvemonth to CAD 714.1 million, portion adjusted EBITDA accrued astir 35% to CAD 119.2 million. The 16.7% EBITDA borderline exceeded the company's people range, though absorption expects second-half margins to stay wrong the existing 15.5%–16.5% guidance.
Growth driven by market-share gains and beardown activity: CES held a 29.7% stock of progressive North American onshore rigs, with peculiarly beardown positions successful Canadian drilling fluids and the Permian Basin. Management sees sustained Canadian enactment and continued U.S. maturation done 2026 and into 2027, particularly successful onshore accumulation chemicals.
Strong currency procreation and shareholder returns: Funds travel from operations reached a grounds CAD 97 million, portion the institution plans astir CAD 100 cardinal successful 2026 superior spending. CES repurchased much than 1.5 cardinal shares astir quarter-end, renewed authorization for up to 18.1 cardinal further repurchases, and ended the 4th with leverage of 1.15 times adjusted EBITDA.

CES Energy Solutions (TSE:CEU) reported grounds second-quarter gross and adjusted EBITDA, supported by market-share gains, higher work strength and beardown enactment crossed its North American drilling fluids and accumulation chemicals businesses.

President and CEO Ken Zinger said quarterly gross reached an all-time precocious of CAD 714.1 million, up 24.4% from the prior-year period. Adjusted EBITDA roseate astir 35% twelvemonth implicit twelvemonth to a grounds CAD 119.2 million, portion the company's 16.7% EBITDA borderline exceeded its stated people scope of 15.5% to 16.5%.

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The institution generated CAD 497 cardinal of gross successful the U.S., its sixth consecutive quarterly grounds successful that market, and CAD 217.1 cardinal successful Canada, its strongest second-quarter Canadian gross result. U.S. operations represented 70% of consolidated gross during the period, portion Canada accounted for 30%.

Margins supported by gross and impermanent factors

Management said the quarter's borderline show reflected grounds revenue, accrued work intensity, and a azygous short-term project. It besides cited the effect of a weaker Canadian dollar and accrued values successful definite merchandise categories nether its modular outgo accounting process.

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During the question-and-answer session, absorption said that excluding those impermanent factors, the EBITDA borderline would apt person been "somewhere squarely betwixt the 16%-16.5% range." The institution nevertheless expects margins successful the 2nd fractional to stay successful the higher fractional of its 15.5% to 16.5% people range.

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