{
  "id": 5399577,
  "title": "S&P upgrades CES Energy Solutions outlook on profitability",
  "url": "https://urgent.news/2026/09/03/s-p-upgrades-ces-energy-solutions-outlook-on-profitability",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-03T19:44:30.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/sp-upgrades-ces-energy-solutions-outlook-on-profitability-93CH-4888459"
  },
  "original_language": "en",
  "account": "S&P Global Ratings has upgraded its outlook for CES Energy Solutions Corp. (TSX:CEU), moving from a 'stable' to a 'positive' outlook on Thursday. The company's credit rating remains at 'B+' for both its issuer and issue-level ratings. The Toronto-based firm reported record revenue of C$2.5 billion and adjusted EBITDA margins of 15.1% in 2025, despite a decline in industry rig counts in the U.S. and Canada.\n\nCES holds a 40% market share in the Western Canada Sedimentary Basin and around 40% in the Permian Basin for its drilling fluids segment. The ratings firm anticipates CES to generate between C$200 million and C$220 million in adjusted free operating cash flow for 2026 and 2027. This is supported by annual capital expenditures of C$100 million to C$120 million, or 3% to 5% of revenue.\n\nThe positive outlook reflects S&P's conviction that CES will continue to grow its North American business with stable-to-improving margins while generating robust cash flow through its asset-light business model. The firm expects funds from operations to debt to average around 65% for 2026-2027, with a debt to EBITDA ratio of approximately 1.3x. S&P projects gradual revenue growth through 2027, driven by recent market share gains, with adjusted EBITDA margins of 14% to 16%. Canada accounts for roughly 34% of CES's revenue, with strong activity levels expected due to increased oil sands production and elevated drilling activity in the Montney region.",
  "summary": null,
  "key_points": [
    "S&P upgrades CES Energy Solutions outlook to positive",
    "Company reports C$2.5 billion revenue and 15.1% margins in 2025",
    "CES expects C$200M to C$220M adjusted free cash flow for 2026-2027"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}