Earnings call transcript: Total Energy Services misses Q3 2026 profit view
Total Energy Services Inc. reported Q3 2026 earnings of $0.59 per share on $343 million in revenue, below analysts' expectations of $0.79 per share and $356.25 million in sales. Despite the miss, the stock rose 3.41% to $34.25 after hours, as investors valued the earnings decline against strong cash generation, a record backlog, and a debt-free balance sheet.
Revenue increased 32% year-over-year, driven by growth in compression, process, drilling, and well servicing services. Adjusted EBITDA rose 50% year-over-year to CAD 22.4 million, and the EBITDA margin expanded to 23%. Cash provided by operations hit a record CAD 112.6 million, the highest in company history. The company ended the quarter with no bank debt and CAD 93.4 million in cash, underscoring liquidity strength.
Management highlighted strong operational momentum across its businesses, particularly in compression, process, drilling, and well servicing segments. The backlog of fabrication work increased 93% year-over-year to CAD 733.8 million, and the company has paid back all bank debt. The dividend yield stood at 5.15%, with a 4-year streak of dividend increases.
Despite the earnings miss, the report signals robust growth in key areas and a solid financial position for the future.
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