Precision Drilling Announces 2025 Fourth Quarter and Year End Unaudited Financial Results

Rhea-AI Summary

Precision Drilling (TSX:PD; NYSE:PDS) reported 2025 fourth-quarter revenue of $479 million (up 2.2% YoY) and Adjusted EBITDA of $126 million (up 4.9% YoY). The company recorded a $42 million net loss in Q4 driven by non-cash charges including a $67 million rig decommissioning charge.

Precision ended 2025 with ~1.2x Net Debt to Adjusted EBITDA, >$445 million available liquidity, reduced debt by $101 million in 2025, and announced 2026 plans to invest $245 million, cut debt by $100 million, and allocate up to 50% of pre-debt free cash flow to buybacks.

Positive

• Q4 revenue +2.2% to $479 million
• Adjusted EBITDA +4.9% in Q4 to $126 million
• Ended 2025 with ~1.2x Net Debt to Adjusted EBITDA
• Available liquidity of more than $445 million
• 2026 plan: invest $245 million and allocate up to 50% of free cash flow to buybacks

Negative

• Q4 net loss of $42 million
• $67 million non-cash charge for decommissioning 31 rigs
• $17 million non-cash drill pipe charge
• 2025 revenue down 3.1% year over year to $1,844 million
• Adjusted EBITDA for full year declined 6.1% to $489.6 million

Key Figures

Q4 2025 Revenue: $478.5M Q4 2025 Adjusted EBITDA: $126.4M Q4 Net loss to shareholders: $(42.2)M +5 more

8 metrics

Q4 2025 Revenue $478.5M Three months ended Dec 31, 2025

Q4 2025 Adjusted EBITDA $126.4M Three months ended Dec 31, 2025

Q4 Net loss to shareholders $(42.2)M Includes $67M rig decommissioning and $17M drill pipe non-cash charges

Cash from operations $126.1M Three months ended Dec 31, 2025

Debt reduction $101M Year ended Dec 31, 2025

Share repurchases $76M Year ended Dec 31, 2025

Capital expenditures $263M 2025 capex, including $107M for upgrades

Long-term debt $679.3M As of Dec 31, 2025 (down from $812.5M in 2024)

Market Reality Check

Price: $89.94 Vol: Volume 119,196 is 1.28x t...

normal vol

$89.94 Last Close

Volume Volume 119,196 is 1.28x the 20-day average of 93,293 ahead of/after earnings. normal

Technical Price 89.94 trades above the 200-day MA at 58 and is 0.45% below the 52-week high.

Peers on Argus

PDS is up 3.12%, while momentum-screened peers NBR and NE are down 6.29% and 4.3...

2 Down

PDS is up 3.12%, while momentum-screened peers NBR and NE are down 6.29% and 4.39%, respectively, indicating a stock-specific reaction despite broader sector dynamics.

Common Catalyst Earnings season in oil & gas drilling (PDS and NBR both reporting results).

Previous Earnings Reports

5 past events · Latest: Apr 23 (Neutral)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 23	Q1 2025 earnings	Neutral	+1.3%	Reported Q1 2025 revenue decline but maintained profitability and reduced debt.
Feb 12	Q4 2024 earnings	Negative	-0.8%	Q4 2024 revenue and earnings fell versus 2023 despite meeting capital targets.
Oct 29	Q3 2024 earnings	Negative	+7.0%	Q3 2024 revenue and earnings declined, but shares reacted positively.
Jul 30	Q2 2024 earnings	Positive	+6.8%	Q2 2024 showed solid EBITDA and debt reduction despite softer revenue.
Apr 25	Q1 2024 earnings	Neutral	+1.3%	Q1 2024 earnings release with modestly positive share reaction.

Pattern Detected

Earnings releases have usually produced modestly positive moves, with one notable divergence where shares rose despite weaker metrics.

Recent Company History

Over the past two years, PDS earnings updates have typically driven moderate reactions, with average moves around 3%. Prior quarters showed revenue declines versus 2023 but ongoing profitability and steady debt reduction. The company has repeatedly emphasized balance sheet improvement and share repurchases. Today’s Q4 and full-year 2025 results continue themes of capital returns, rig upgrades, and leverage reduction, while net results softened due to non-cash charges, fitting the recent pattern of operational strength amid mixed headline earnings.

Historical Comparison

earnings

+3.1 %

Average Historical Move

Historical Analysis

In the past five earnings releases, PDS moved an average of 3.11%. Today’s 3.12% move on Q4 and full-year 2025 results is very much in line with its typical earnings reaction.

Typical Pattern

Earnings releases since early 2024 show slightly softer revenue versus 2023 but continued focus on debt reduction, share repurchases, and maintaining positive EBITDA across quarters.

Market Pulse Summary

This announcement details Q4 and full-year 2025 results, highlighting revenue of $1.84B, Adjusted EB...

Analysis

This announcement details Q4 and full-year 2025 results, highlighting revenue of $1.84B, Adjusted EBITDA of $490M, and full-year net earnings of $3M. Management underscores $101M of debt reduction, $76M of share repurchases, and 27 rig upgrades funded by customers. Historically, earnings events have prompted moderate stock moves. Key factors to monitor include rig utilization by region, capital spending levels, and continued progress on lowering long-term debt.

Key Terms

adjusted ebitda, international financial reporting standards (ifrs), working capital

3 terms

adjusted ebitda financial

"This release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings (loss) before income taxes..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

international financial reporting standards (ifrs) regulatory

"These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards..."

A set of globally accepted accounting rules companies use to prepare financial statements so their numbers speak the same language across borders. For investors, IFRS matters because it makes it easier to compare profitability, assets and liabilities between companies the way a common recipe or measuring tape lets you judge two cakes or two rooms fairly, which helps assess value and risk more reliably.

working capital financial

"Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities."

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

AI-generated analysis. Not financial advice.

CALGARY, Alberta, Feb. 11, 2026 (GLOBE NEWSWIRE) -- This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this release. This release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings (loss) before income taxes, loss (gain) on investments and other assets, finance charges, foreign exchange, loss on asset decommissioning, loss (gain) on asset disposals, and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) Accounting Standards and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this release.

Precision Drilling Corporation (“Precision” or the “Company”) (TSX:PD; NYSE:PDS) announces 2025 fourth quarter results and capital allocation plans for 2026 to drive shareholder value.

Financial Highlights and 2026 Capital Allocation Plans

• Revenue in the fourth quarter was $479 million compared to $468 million in the same quarter last year as higher rig activity in the U.S. was partially offset by lower international activity.
• Adjusted EBITDA⁽¹⁾ was $126 million, including $6 million of share-based compensation expense. In 2024, fourth quarter Adjusted EBITDA was $121 million and included a share-based compensation expense of $15 million.
• Net loss attributable to shareholders was $42 million and included a non-cash asset charge of $67 million related to decommissioning drilling rigs and a non-cash charge of $17 million related to drill pipe. In the fourth quarter of 2024, net earnings attributable to shareholders was $15 million.
• Cash provided by operations during the quarter was $126 million, funding capital expenditures of $81 million and share repurchases of $22 million, while building our cash balance by $47 million.
• We continued to strengthen our financial position, ending the year with a Net Debt to Adjusted EBITDA ratio⁽¹⁾ of approximately 1.2 times and more than $445 million of available liquidity.
• For the year ended December 31, 2025, we achieved our annual debt reduction and return of shareholder capital targets, reducing debt by $101 million and repurchasing $76 million of common shares.
• Based on our current outlook, in 2026 we expect to invest $245 million in our fleet and infrastructure, reduce debt by $100 million, and allocate up to 50% of free cash flow, before debt repayments, toward share repurchases.
  
  

Operational Highlights

• Canada averaged 66 active drilling rigs, slightly up from 65 active rigs in the same quarter last year.
• Canadian revenue per utilization day was $35,241 and comparable to $35,675 in the fourth quarter of 2024.
• U.S. averaged 37 active drilling rigs, up 9% from the fourth quarter of 2024 while average activity was down 42 rigs or 7%⁽²⁾. For the past three quarters, our U.S. rig utilization increased 25%, contrary to an industry decrease of 8%⁽²⁾.
• U.S. revenue per utilization day was US$30,904 and similar to US$30,991 in the same period last year.
• Internationally, we averaged seven active rigs versus eight in the fourth quarter of 2024, while revenue per utilization day was US$53,505 compared to US$49,636 in 2024.
• Canadian well service rig operating hours were 61,231, increasing 6% over the same quarter in 2024.

^{(1)    See "FINANACIAL MEASURES AND RATOS".}

MANAGEMENT COMMENTARY

Precision's President and CEO, Carey Ford, provided the following commentary: “In 2026, Precision enters its 75^th year of delivering High Performance, High Value results to our customers and shareholders. We continue to meet the evolving needs of the energy industry by attracting, developing, and retaining the highest-quality people, and by delivering advanced, scalable technology across our fleet. Our ability to execute reliably and support our customers’ development plans has been central to our long-standing track record of success. This enduring foundation supports Precision as we deliver sustained, long-term value for shareholders.

"Our fourth quarter and full year 2025 financial and operational results underscore the effectiveness of Precision’s High Performance, High Value strategy. For the year, our people delivered on our capital commitments to shareholders, with a combined $176 million allocated to debt reduction and share repurchases, while investing $263 million in equipment and technology-driven initiatives that will continue to differentiate Precision in the industry. For the quarter, we grew revenue, Adjusted EBITDA, funds provided by operations, as well as our Canadian and U.S. market share, compared to the fourth quarter of 2024. We look to build on these trends in 2026.

"Today, Precision is the second-most-active North American driller, with 123 rigs working from northern British Columbia to south Texas and from New Mexico to Pennsylvania. Our customers are demanding safe, efficient, and repeatable results, and we meet those demands with our fleet of Super Series drilling rigs, Alpha^TM digital technologies, and EverGreen^TM environmental solutions. Although oil and natural gas prices remain volatile, our customers are taking a disciplined approach to their development plans, driving steady activity for Precision and supporting rig upgrades.

"Precision’s ability to leverage our cross-border scale and vertical integration to complete rig upgrades for customers was on full display in 2025. During the year, we upgraded 27 drilling rigs, enhancing the performance capability of our fleet and deepening relationships with several key customers in both Canada and the U.S., while generating attractive returns. We expect this competitive advantage in upgrading our drilling rigs will support our market position in the future. 

"Complementing our North American drilling operations are our international drilling operations with seven contracted rigs in the Middle East and our Completion and Production Services business, where our market-leading well service and rental position in Canada continues to generate robust free cash flow.

“This year we are excited to build on our momentum and advance our High Performance, High Value strategy by delivering on our 2026 strategic priorities that include driving revenue growth through performance-driven technology, operational excellence, and deeper customer relationships; maximizing free cash flow through disciplined capital allocation; and enhancing shareholder returns with targeted debt reduction and direct capital returns.

“I would like to recognize the dedication of our field leadership and crews to safety and customer service, and congratulate all Precision employees on an excellent 2025 and their enthusiasm for the future," concluded Mr. Ford.

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

	For the three months ended December 31,												For the year ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2025				2024			% Change					2025				2024			% Change
Revenue		478,508				468,171				2.2				1,843,704				1,902,328				(3.1	)
Adjusted EBITDA(1)		126,386				120,526				4.9				489,615				521,221				(6.1	)
Net earnings (loss)		(41,868	)			14,930				(380.4	)			3,094				111,330				(97.2	)
Net earnings (loss) attributable to shareholders		(42,175	)			14,795				(385.1	)			1,842				111,195				(98.3	)
Cash provided by operations		126,114				162,791				(22.5	)			412,897				482,083				(14.4	)
Funds provided by operations(1)		124,750				120,535				3.5				435,423				463,372				(6.0	)
Cash used in investing activities		53,879				61,954				(13.0	)			208,324				202,986				2.6
Capital spending by spend category(1)
Expansion and upgrade		25,291				21,565				17.3				106,908				52,066				105.3
Maintenance and infrastructure		56,143				37,335				50.4				156,590				164,632				(4.9	)
Proceeds on sale of property, plant and equipment		(17,244	)			(8,570	)			101.2				(39,038	)			(30,395	)			28.4
Net capital spending(1)		64,190				50,330				27.5				224,460				186,303				20.5
Net earnings (loss) attributable to shareholders per share:
Basic		(3.23	)			1.06				(404.7	)			0.14				7.81				(98.2	)
Diluted		(3.23	)			1.06				(404.7	)			0.14				7.81				(98.2	)
Weighted average shares outstanding:
Basic		13,052				13,982				(6.7	)			13,334				14,229				(6.3	)
Diluted		13,052				13,987				(6.7	)			13,341				14,234				(6.3	)

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.}

Operating Highlights

	For the three months ended December 31,												For the year ended December 31,
	2025				2024				% Change				2025				2024				% Change
Contract drilling rig fleet		184				214				(14.0	)			184				214				(14.0	)
Drilling rig utilization days:
Canada		6,095				6,018				1.3				23,121				23,685				(2.4	)
U.S.		3,362				3,084				9.0				12,427				12,969				(4.2	)
International		644				736				(12.5	)			2,698				2,928				(7.9	)
Revenue per utilization day:
Canada (Cdn$)		35,241				35,675				(1.2	)			35,576				34,797				2.2
U.S. (US$)		30,904				30,991				(0.3	)			31,480				32,531				(3.2	)
International (US$)		53,505				49,636				7.8				52,195				51,227				1.9
Operating costs per utilization day:
Canada (Cdn$)		21,109				21,116				(0.0	)			21,305				20,424				4.3
U.S. (US$)		22,150				21,698				2.1				22,489				22,009				2.2
Service rig fleet(1)		145				160				(9.4	)			145				160				(9.4	)
Service rig operating hours(1)		61,231				57,932				5.7				234,166				242,479				(3.4	)

^{(1) The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025.}

Drilling Activity

	Average for the quarter ended 2024															Average for the quarter ended 2025
	Mar. 31				June 30				Sept. 30				Dec. 31				Mar. 31				June 30				Sept. 30				Dec. 31
Average Precision active rig count(1):
Canada		73				49				72				65				74				50				63				66
U.S.		38				36				35				34				30				33				36				37
International		8				8				8				8				8				7				7				7
Total		119				93				115				107				112				90				106				110

^{(1)    Average number of drilling rigs working or moving.}

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	December 31, 2025				December 31, 2024
Working capital(1)		186,815				162,592
Cash		85,781				73,771
Long-term debt		679,291				812,469
Total long-term financial liabilities(1)		746,944				888,173
Total assets		2,726,690				2,956,315
Long-term debt to long-term debt plus equity ratio (1)		0.30				0.33

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.}

Summary for the three months ended December 31, 2025:

• Revenue in the fourth quarter was $479 million compared to $468 million in the same period last year primarily due to higher drilling activity in the U.S., offset in part by lower international drilling activity. Revenue from our Canadian drilling and Completion and Production operations were comparable with the fourth quarter of 2024.
• Adjusted EBITDA was $126 million compared to $121 million in the fourth quarter of 2024. Stronger activity in U.S. drilling and a lower share-based compensation expense were partially offset by lower international drilling activity and higher rig reactivation costs. For additional information on share-based compensation, which was $6 million versus $15 million in the same period last year, please refer to "Other Items" later in this release.
• Net loss attributable to shareholders was $42 million or a loss of $3.23 per share compared to net earnings of $15 million or $1.06 per share for the same period last year. During the quarter, we recorded a non-cash asset charge of $67 million related to decommissioning 31 of our 215 marketable drilling rigs that no longer aligned with Precision's advanced technology and performance standards. We also recorded a non-cash charge of $17 million related to drill pipe as more complex drilling programs have reduced the useful life of this asset.
• Cash provided by operations was $126 million and we repurchased 256,580 shares for $22 million and increased our cash balance by $47 million. As at December 31, 2025, Precision had more than $445 million in available liquidity.
• In Canada, our revenue per utilization day less operating costs per utilization day was $14,132 and comparable to $14,559 in the fourth quarter in 2024. Quarterly operating costs per utilization day remained in line with 2024.
• In the U.S., our revenue per utilization day less operating costs per utilization day was US$8,754 compared to US$9,293 in the same period last year, due to additional rig reactivation costs totaling US$713 per day in the fourth quarter of 2025 compared to US$338 per day in 2024.
• Internationally, revenue per utilization day was US$53,505 compared to US$49,636 in 2024, as the prior year was negatively impacted by non-billable utilization days related to planned rig recertifications. The increase in revenue per utilization day was more than offset by lower international activity and our realized revenue declined to US$34 million in the fourth quarter compared to US$37 million in 2024. In May 2025, one drilling rig was temporarily suspended in the Kingdom of Saudi Arabia, reducing our active rig count to seven for the remainder of the year. During the fourth quarter of 2025, we incurred costs to reactivate this rig, which began operating in early February.
• Completion and Production Services revenue was $71 million versus $69 million generated in the fourth quarter of 2024 even though we wound down our U.S. well service operations in the second quarter of 2025. Adjusted EBITDA was $17 million compared to $16 million in the fourth quarter of 2024 as robust demand and pricing for our Canadian completion and production services more than offset the shut down of our U.S. operations.
• General and administrative expenses were $29 million versus $35 million in the fourth quarter of 2024, primarily due to lower share-based compensation expense.
• Capital expenditures were $81 million compared to $59 million in the fourth quarter of 2024 and included $56 million for maintenance and $25 million for upgrades.⁽¹⁾

^{(1)    See “FINANCIAL MEASURES AND RATIOS.”}

Summary for the year ended December 31, 2025:

• Revenue for the year was $1,844 million, representing a 3% decrease from $1,902 million in 2024. Revenue was negatively impacted by lower U.S. drilling activity and day rates year over year and lower U.S. service rig activity as we wound down our U.S. well servicing operations in the second quarter of 2025.
• Adjusted EBITDA was $490 million versus $521 million in 2024. The decrease was primarily driven by U.S. drilling, which was in part offset by lower share-based compensation expense of $24 million compared to $47 million in 2024. Please refer to “Other Items” later in this release for additional information on share-based compensation.
• Net earnings attributable to shareholders was $3 million or $0.14 per share compared to $111 million or $7.81 per share in 2024. The decrease was due to lower Adjusted EBITDA, decommissioning charges of $67 million, additional drill pipe charges of $17 million, and a higher deferred income tax expense related to our U.S. operations, partially offset by lower finance charges. Please refer to “Other Items” later in this release for additional information on income taxes.
• Finance charges were $57 million and decreased $13 million as a result of our lower outstanding debt, partially offset by the impact of the weakening Canadian dollar on our U.S. dollar-denominated interest expense.
• General and administrative costs were $114 million compared to $132 million in 2024, primarily the result of lower share-based compensation expense.
• Cash provided by operations was $413 million, allowing us to reduce debt by $101 million, redeem $222 million (US$160 million) of 2026 unsecured senior notes, while drawing $122 million on our Senior Credit Facility, and repurchase 1,024,002 shares for $76 million. As at December 31, 2025, Precision had 12,932,399 shares outstanding, compared to 13,779,502 as at December 31, 2024, representing a decrease of 6%.
• Capital expenditures were $263 million and included $157 million for maintenance, infrastructure, and intangible assets, and $107 million for upgrades, including 27 major rig upgrades. By comparison, in 2024 capital expenditures were $217 million and included $165 million for maintenance, infrastructure, and intangible assets, and $52 million for upgrades. The overall $47 million increase was driven by strong demand for customer-funded upgrades, offset in part by reduced maintenance expenditures due to lower U.S. and international activity.
  
  

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities established at the beginning of every year.

Below we summarize the results of our 2025 strategic priorities.

1. Maximize free cash flow through disciplined capital deployment and strict cost management.
   • Generated cash from operations of $413 million, allowing us to fund 27 major rig upgrades, meet our debt reduction and share purchase goals, and increase our cash balance by $12 million year over year.
   • On track to realize approximately $10 million in annual savings by proactively reducing fixed costs in the first quarter of 2025 to address market uncertainty.
   • Delivered resilient operating margins in Canada and the U.S. even though average industry activity declined⁽¹⁾.
   • Sustained Completion and Production Services Adjusted EBITDA and free cash flow generation even though we wound down our U.S. well service operation in the second quarter.
2. Enhance shareholder returns through debt reduction and share repurchases.  Plan to reduce debt by at least $100 million and allocate 35% to 45% of free cash flow before debt repayments for share repurchases.
   • Reduced debt by $101 million and ended the year with a Net Debt to Adjusted EBITDA ratio of 1.2 times. On track to achieve a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
   • Well positioned to meet our long-term debt reduction target of $700 million between 2022 and 2027. As at December 31, 2025, we have reduced debt by $535 million since the beginning of 2022.
   • Returned $76 million to shareholders through share repurchases, achieving the midpoint of our target range, and reducing our outstanding shares by 6%.
   • Renewed our Normal Course Issuer Bid (NCIB) in September, allowing repurchases of up to 10% of the public float.
3. Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.
   • Invested $107 million in upgrade capital, including 27 major customer-funded rig upgrades in Canada and the U.S.
   • Relocated two Super Triple rigs from the U.S. to Canada under long-term contracts.
   • Grew our leading Canadian drilling rig market share year over year⁽¹⁾ and maintained strong pricing with revenue per utilization day improving 2%.
   • Grew U.S. rig utilization in 2025 from a low of 27 active rigs in February to a peak of 40 active rigs in October and exited the year with 36 active rigs.
   • Continued to expand our EverGreen^TM product offering across our Super Series fleet, increasing revenue 22% year over year.

2026 Strategic Priorities

1. Drive revenue growth and deepen customer relationships through contracted upgrades, continuous operational excellence, and by leveraging our performance-driven technology as a key competitive differentiator.
2. Maximize free cash flow through strategic capital deployment and sustained cost discipline.
3. Enhance shareholder returns by reducing debt $100 million in 2026 and allocating up to 50% of free cash flow, before debt repayments, directly to shareholders. 

^{(1)   See “SEGMENT REVIEW OF CONTRACT DRILLING SERVICES".}

OUTLOOK

Near-term expectations for global energy demand growth remain tempered by persistent geopolitical uncertainties and continued signs of oversupply. However, this narrative has started to soften as demand indicators stabilize, particularly in natural gas markets, where accelerating LNG supply growth and strengthening consumption in key regions, including Asia and Europe, are expected to support a more constructive demand outlook in 2026.

Looking further ahead, we believe the long-term fundamentals for energy remain favorable, underpinned by economic expansion, rising energy needs from emerging economies, and sustained global appetite for LNG driven by the continued build-out of LNG infrastructure and trade flows. Additionally, natural gas-fired power generation is poised for multi-year structural growth as data centers scale rapidly to meet AI driven electricity demand.

In Canada, constructive commodity prices for heavy oil and condensate, plus additional takeaway capacity for both oil and natural gas continue to support Canadian activity. LNG Canada made its first shipment at the beginning of July and as customers take a long-term view of this business, demand for our Super Triple rigs is near full capacity. The Trans Mountain pipeline expansion continues to support heavy oil production, driving our Super Single rig utilization toward full capacity. We currently have 85 rigs active, after peaking at 87 rigs in January, and expect our winter drilling season activity to exceed last year's level.

In the U.S., while volatile WTI oil prices and drilling efficiencies continue to suppress oil-targeted rig activity, the natural gas rig count increased approximately 20% in 2025 as customers became more constructive on LNG off-take and AI demand. We capitalized on these emerging opportunities in natural gas basins such as the Haynesville and Marcellus and increased our U.S. drilling rig utilization days 25% over the last nine months of 2025. We currently have 38 rigs active and continue to have encouraging customer conversations that could result in additional activity increases in 2026.

Internationally, we currently have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia, supported by contracts that extend into 2027 and 2028. In early 2026, one Kuwait rig was demobilized and activity was backfilled by reactivating our rig in Saudi Arabia that had been temporarily suspended in 2025. While the Saudi Arabia rig generates a lower operating margin, this transition maintains overall utilization levels in 2026. We continue to seek opportunities to increase our international utilization by pursuing long-term, contract-backed investments.

As the premier well service provider in Canada, the long-term outlook for this business is positive, driven by increased takeaway capacity from the Trans Mountain pipeline expansion and LNG Canada, and our High Performance, High Value service offering. We expect customer demand and pricing to remain strong into the foreseeable future, assuming no significant change in market conditions.

Overall, our outlook for the year is constructive and will continue to be commodity price dependent. In Canada, we expect our first quarter activity to surpass activity a year ago, as our 32 Super Triple and 47 available Super Single rigs are nearly fully utilized. In the U.S., we expect activity to be steady quarter over quarter, with some potential upside. Our operating margins in Canada should average between $14,000 and $15,000 per utilization day for the first quarter of 2026, which is consistent with the margin we reported in the first quarter of 2025. In the U.S., we expect our first quarter operating margins to remain stable and average between US$8,000 and US$9,000 per utilization day.

Capital spending in 2026 is expected to be $245 million and capital spending by spend category⁽¹⁾ includes $182 million for maintenance, infrastructure, and intangibles and $63 million for expansion and upgrades. The 2026 capital plan may fluctuate with activity levels and customer contract upgrade opportunities.

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.}

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at February 11, 2026. For the quarter ending after December 31, 2025, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at February 11, 2026		Average for the quarter ended 2025																Average				Average for the quarter ended 2026																Average
		Mar. 31				June 30				Sept. 30				Dec. 31				2025				Mar. 31				June 30				Sept. 30				Dec. 31				2026
Average rigs under term contract:
Canada			20				18				16				21				19				22				20				16				15				18
U.S.			16				16				17				17				17				14				10				6				3				8
International			8				7				7				7				7				7				7				7				7				7
Total			44				41				40				45				43				43				37				29				25				33

SEGMENTED FINANCIAL RESULTS

Precision operates primarily in Canada, the United States and certain international locations, in two industry segments: Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental, and camp services.

	For the three months ended December 31,												For the year ended December 31,
(Stated in thousands of Canadian dollars)		2025			2024				% Change					2025			2024				% Change
Revenue:
Contract Drilling Services		410,284				402,610				1.9				1,576,036				1,617,735				(2.6	)
Completion and Production Services		70,940				68,830				3.1				278,818				294,817				(5.4	)
Inter-segment eliminations		(2,716	)			(3,269	)			(16.9	)			(11,150	)			(10,224	)			9.1
		478,508				468,171				2.2				1,843,704				1,902,328				(3.1	)
Adjusted EBITDA:(1)
Contract Drilling Services		124,498				125,683				(0.9	)			488,796				532,345				(8.2	)
Completion and Production Services		17,287				15,895				8.8				63,980				66,681				(4.1	)
Corporate and Other		(15,399	)			(21,052	)			(26.9	)			(63,161	)			(77,805	)			(18.8	)
		126,386				120,526				4.9				489,615				521,221				(6.1	)
Depreciation and amortization		88,523				82,210				7.7				317,904				309,314				2.8
Loss (gain) on asset disposals		4,128				(1,913	)			(315.8	)			(8,623	)			(16,148	)			(46.6	)
Loss on asset decommissioning		67,080				—			NM					67,080				—			NM
Foreign exchange		(675	)			1,487				(145.4	)			(1,208	)			2,259				(153.5	)
Finance charges		12,829				16,281				(21.2	)			57,197				69,753				(18.0	)
Loss (gain) on investments and other assets		(187	)			1,814				(110.3	)			1,344				1,484				(9.4	)
Net earnings (loss) before income tax		(45,312	)			20,647				(319.5	)			55,921				154,559				(63.8	)
Income taxes		(3,444	)			5,717				(160.2	)			52,827				43,229				22.2
Net earnings (loss)		(41,868	)			14,930				(380.4	)			3,094				111,330				(97.2	)
Non-controlling interest		307				135				127.4				1,252				135				827.4
Net earnings (loss) attributable to shareholders		(42,175	)			14,795				(385.1	)			1,842				111,195				(98.3	)

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.}

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended December 31,												For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2025				2024			% Change					2025				2024			% Change
Revenue		410,284				402,610				1.9				1,576,036				1,617,735				(2.6	)
Expenses:
Operating		274,724				264,858				3.7				1,045,884				1,041,068				0.5
General and administrative		11,062				12,069				(8.3	)			41,356				44,322				(6.7	)
Adjusted EBITDA(1)		124,498				125,683				(0.9	)			488,796				532,345				(8.2	)
Adjusted EBITDA as a percentage of revenue(1)		30.3	%			31.2	%							31.0	%			32.9	%

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.}

Canadian onshore drilling statistics:(1)	2025								2024
	Precision				Industry(2)				Precision				Industry(2)
Average number of active land rigs for quarters ended:
March 31		74				214				73				208
June 30		50				127				49				134
September 30		63				176				72				207
December 31		66				185				65				194
Year to date average		63				176				65				186

^{(1)    Canadian operations only.
(2)    Baker Hughes rig counts.}

United States onshore drilling statistics:(1)	2025								2024
	Precision				Industry(2)				Precision				Industry(2)
Average number of active land rigs for quarters ended:
March 31		30				572				38				602
June 30		33				556				36				583
September 30		36				525				35				565
December 31		37				527				34				569
Year to date average		34				545				36				580

^{(1)    United States lower 48 operations only.
(2)    Baker Hughes rig counts.}

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended December 31,												For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2025				2024			% Change					2025				2024
Revenue		70,940				68,830				3.1				278,818				294,817				(5.4	)
Expenses:
Operating		51,001				50,714				0.6				204,915				217,842				(5.9	)
General and administrative		2,652				2,221				19.4				9,923				10,294				(3.6	)
Adjusted EBITDA(1)		17,287				15,895				8.8				63,980				66,681				(4.1	)
Adjusted EBITDA as a percentage of revenue(1)		24.4	%			23.1	%							22.9	%			22.6	%
Well servicing statistics:
Number of service rigs (end of period)(2)		145				160				(9.4	)			145				160				(9.4	)
Service rig operating hours(2)		61,231				57,932				5.7				234,166				242,479				(3.4	)

^{(1)    See “FINANCIAL MEASURES AND RATIOS”.
(2)    The service rig fleet and service rig operating hours exclude our U.S. operations that we wound down in the second quarter of 2025.}

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2024 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars)	2025				2024				2025				2024
Cash settled share-based incentive plans		5,852				14,018				18,202				42,828
Equity settled share-based incentive plans		21				1,071				5,543				4,588
Total share-based incentive compensation plan expense		5,873				15,089				23,745				47,416
Allocated:
Operating		1,999				3,709				6,689				11,868
General and Administrative		3,874				11,380				17,056				35,548
		5,873				15,089				23,745				47,416

The majority of our share-based compensation plans are classified as cash-settled and impacted by changes in our share price. For the year ended December 31, 2025 our share-based compensation expense was $24 million compared to $47 million last year, as our share price appreciation was less in 2025 compared to 2024.

Income Taxes

In 2025, we recognized an income tax expense of $53 million with a significant portion related to a higher deferred income tax expense pertaining to our U.S. operations. We waived certain U.S. tax deductions to mitigate minimum taxes that the Corporation became subject to as a result of stronger operating results. Consequently, Precision does not expect to be subject to U.S. income tax for several years. The waiving of these U.S. tax deductions has been accounted for as a change in tax estimate and adjusted prospectively, resulting in an increase to deferred tax expense and corresponding increase to the deferred tax liability.

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures
We reference certain additional Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS Accounting Standards to assess performance because we believe they provide useful supplemental information to investors.
Adjusted EBITDA		We believe Adjusted EBITDA (earnings (loss) before income taxes, loss (gain) on investments and other assets, finance charges, foreign exchange, loss on asset decommissioning, loss (gain) on asset disposals, and depreciation and amortization), as reported in our Unaudited Condensed Interim Consolidated Statements of Net Earnings (Loss) and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. The most directly comparable financial measure is net earnings.

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars)		2025				2024				2025				2024
Adjusted EBITDA by segment:
Contract Drilling Services		124,498				125,683				488,796				532,345
Completion and Production Services		17,287				15,895				63,980				66,681
Corporate and Other		(15,399	)			(21,052	)			(63,161	)			(77,805	)
Adjusted EBITDA		126,386				120,526				489,615				521,221
Depreciation and amortization		88,523				82,210				317,904				309,314
Loss (gain) on asset disposals		4,128				(1,913	)			(8,623	)			(16,148	)
Loss on asset decommissioning		67,080				—				67,080				—
Foreign exchange		(675	)			1,487				(1,208	)			2,259
Finance charges		12,829				16,281				57,197				69,753
Loss (gain) on investments and other assets		(187	)			1,814				1,344				1,484
Income taxes		(3,444	)			5,717				52,827				43,229
Net earnings (loss)		(41,868	)			14,930				3,094				111,330
Non-controlling interests		307				135				1,252				135
Net earnings (loss) attributable to shareholders		(42,175	)			14,795				1,842				111,195

Funds Provided by (Used in) Operations

We believe funds provided by (used in) operations, as reported in our Unaudited Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances. The most directly comparable financial measure is cash provided by (used in) operations.

Net Capital Spending

We believe net capital spending is a useful measure as it provides an indication of our primary investment activities. The most directly comparable financial measure is cash provided by (used in) investing activities. Net capital spending is calculated as follows:

		For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars)			2025				2024				2025				2024
Capital spending by spend category
Expansion and upgrade			25,291				21,565				106,908				52,066
Maintenance, infrastructure and intangibles			56,143				37,335				156,590				164,632
			81,434				58,900				263,498				216,698
Proceeds on sale of property, plant and equipment			(17,244	)			(8,570	)			(39,038	)			(30,395	)
Net capital spending			64,190				50,330				224,460				186,303
Proceeds from sale of investments and other assets			—				—				—				(3,623	)
Purchase of investments and other assets			—				718				21				725
Receipt of finance lease payments			(225	)			(208	)			(851	)			(799	)
Changes in non-cash working capital balances			(10,086	)			11,114				(15,306	)			20,380
Cash used in investing activities			53,879				61,954				208,324				202,986

Working Capital

We define working capital as current assets less current liabilities, as reported in our Unaudited Condensed Interim Consolidated Statements of Financial Position. Working capital is calculated as follows:

	December 31,				December 31,
(Stated in thousands of Canadian dollars)		2025				2024
Current assets		486,915				501,284
Current liabilities		(300,100	)			(338,692	)
Working capital		186,815				162,592

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Unaudited Condensed Interim Consolidated Statements of Financial Position. Total long-term financial liabilities is calculated as follows:

	December 31,				December 31,
(Stated in thousands of Canadian dollars)		2025				2024
Total non-current liabilities		837,707				935,624
Deferred tax liabilities		(90,763	)			(47,451	)
Total long-term financial liabilities		746,944				888,173

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
Adjusted EBITDA % of Revenue		We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Unaudited Condensed Interim Consolidated Statements of Net Earnings (Loss), provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.
Long-term debt to long-term debt plus equity		We believe that long-term debt (as reported in our Unaudited Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.
Net Debt to Adjusted EBITDA		We believe that the Net Debt (long-term debt plus current portion of long-term debt less cash, as reported in our Unaudited Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.
Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.
Capital Spending by Spend Category		We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as "could", "should", "can", "anticipate", "estimate", "intend", "plan", "expect", "believe", "will", "may", "continue", "project", "potential" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information and statements").

In particular, forward-looking information and statements include, but are not limited to, the following:

• our strategic priorities for 2026;
• future shareholder returns;
• our capital expenditures, free cash flow allocation and debt reduction plans for 2026 and beyond;
• anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2026;
• the average number of term contracts in place for 2026;
• customer adoption of Alpha^TM technologies and EverGreen^TM suite of environmental solutions;
• potential commercial opportunities and rig contract renewals; and
• our future debt reduction plans.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

• our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
• the status of current negotiations with our customers and vendors;
• customer focus on safety performance;
• existing term contracts are neither renewed nor terminated prematurely;
• our ability to deliver rigs to customers on a timely basis;
• the impact of an increase/decrease in capital spending; and
• the general stability of the economic and political environments in the jurisdictions where we operate.
  
  

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

• volatility in the price and demand for oil and natural gas;
• fluctuations in the level of oil and natural gas exploration and development activities;
• fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
• our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
• changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
• shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
• liquidity of the capital markets to fund customer drilling programs;
• availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
• the impact of weather and seasonal conditions on operations and facilities;
• the impact of tariffs and trade disputes;
• competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
• ability to improve our rig technology to improve drilling efficiency;
• general economic, market or business conditions;
• the availability of qualified personnel and management;
• a decline in our safety performance which could result in lower demand for our services;
• changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
• terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
• fluctuations in foreign exchange, interest rates and tax rates; and
• other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.
  
  

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2024, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)		December 31, 2025				December 31, 2024
ASSETS
Current assets:
Cash		$	85,781			$	73,771
Accounts receivable			352,142				378,712
Inventory			48,992				43,300
Assets held for sale			—				5,501
Total current assets			486,915				501,284
Non-current assets:
Deferred tax assets			2,235				6,559
Property, plant and equipment			2,159,212				2,356,173
Intangibles			9,470				12,997
Right-of-use assets			56,817				66,032
Finance lease receivables			4,474				4,806
Investments and other assets			7,567				8,464
Total non-current assets			2,239,775				2,455,031
Total assets		$	2,726,690			$	2,956,315
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	280,652			$	314,355
Income taxes payable			1,670				3,778
Current portion of lease obligations			17,778				20,559
Total current liabilities			300,100				338,692
Non-current liabilities:
Share-based compensation			13,780				13,666
Provisions and other			6,704				7,472
Lease obligations			47,169				54,566
Long-term debt			679,291				812,469
Deferred tax liabilities			90,763				47,451
Total non-current liabilities			837,707				935,624
Equity:
Shareholders’ capital			2,238,766				2,301,729
Contributed surplus			79,270				77,557
Accumulated other comprehensive income			165,020				199,020
Deficit			(898,992	)			(900,834	)
Total equity attributable to shareholders			1,584,064				1,677,472
Non-controlling interest			4,819				4,527
Total equity			1,588,883				1,681,999
Total liabilities and equity		$	2,726,690			$	2,956,315

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) (UNAUDITED)

		Three Months Ended December 31,								Year Ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2025				2024				2025				2024
Revenue		$	478,508			$	468,171			$	1,843,704			$	1,902,328
Expenses:
Operating			323,009				312,303				1,239,649				1,248,686
General and administrative			29,113				35,342				114,440				132,421
Earnings before income taxes, loss (gain) on investments and other assets, finance charges, foreign exchange, loss on asset decommissioning, loss (gain) on asset
Depreciation and amortization			88,523				82,210				317,904				309,314
Loss (gain) on asset disposals			4,128				(1,913	)			(8,623	)			(16,148	)
Loss on asset decommissioning			67,080				—				67,080				—
Foreign exchange			(675	)			1,487				(1,208	)			2,259
Finance charges			12,829				16,281				57,197				69,753
Loss (gain) on investments and other assets			(187	)			1,814				1,344				1,484
Earnings (loss) before income taxes			(45,312	)			20,647				55,921				154,559
Income taxes:
Current			—				2,811				3,307				7,470
Deferred			(3,444	)			2,906				49,520				35,759
			(3,444	)			5,717				52,827				43,229
Net earnings (loss)		$	(41,868	)		$	14,930			$	3,094			$	111,330
Attributable to:
Shareholders of Precision Drilling Corporation		$	(42,175	)		$	14,795			$	1,842			$	111,195
Non-controlling interests		$	307			$	135			$	1,252			$	135
Net earnings (loss) per share attributable to share- holders of Precision Drilling Corporation:
Basic		$	(3.23	)		$	1.06			$	0.14			$	7.81
Diluted		$	(3.23	)		$	1.06			$	0.14			$	7.81

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

		Three Months Ended December 31,								Year Ended December 31,
(Stated in thousands of Canadian dollars)		2025				2024				2025				2024
Net earnings (loss)		$	(41,868	)		$	14,930			$	3,094			$	111,330
Unrealized gain (loss) on translation of assets  and liabilities of operations denominated in foreign currency			(19,503	)			89,412				(68,830	)			119,821
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt			9,072				(49,744	)			34,830				(69,027	)
Tax expense related to net investment hedge of long-term debt			—				750				—				750
Comprehensive income (loss)		$	(52,299	)		$	55,348			$	(30,906	)		$	162,874
Attributable to:
Shareholders of Precision Drilling Corporation		$	(52,606	)		$	55,213			$	(32,158	)		$	162,739
Non-controlling interests		$	307			$	135			$	1,252			$	135

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Three Months Ended December 31,								Year Ended December 31,
(Stated in thousands of Canadian dollars)		2025				2024				2025				2024
Cash provided by (used in):
Operations:
Net earnings (loss)		$	(41,868	)		$	14,930			$	3,094			$	111,330
Adjustments for:
Long-term compensation plans			2,523				4,398				14,521				18,888
Depreciation and amortization			88,523				82,210				317,904				309,314
Gain on asset disposals			4,128				(1,913	)			(8,623	)			(16,148	)
Loss on asset decommissioning			67,080				—				67,080				—
Unrealized foreign exchange			(620	)			1,477				(1,654	)			2,442
Finance charges			12,829				16,281				57,197				69,753
Income taxes			(3,444	)			5,717				52,827				43,229
Other			(420	)			(392	)			(439	)			(272	)
Loss (gain) on investments and other assets			(187	)			1,814				1,344				1,484
Income taxes paid			(878	)			(1,617	)			(5,638	)			(6,459	)
Income taxes recovered			62				27				67				85
Interest paid			(3,246	)			(2,806	)			(63,491	)			(72,241	)
Interest received			268				409				1,234				1,967
Funds provided by operations			124,750				120,535				435,423				463,372
Changes in non-cash working capital balances			1,364				42,256				(22,526	)			18,711
Cash provided by operations			126,114				162,791				412,897				482,083
Investments:
Purchase of property, plant and equipment			(81,410	)			(58,900	)			(263,474	)			(216,647	)
Purchase of intangibles			(24	)			—				(24	)			(51	)
Proceeds on sale of property, plant and equipment			17,244				8,570				39,038				30,395
Proceeds from sale of investments and other assets			—				—				—				3,623
Purchase of investments and other assets			—				(718	)			(21	)			(725	)
Receipt of finance lease payments			225				208				851				799
Changes in non-cash working capital balances			10,086				(11,114	)			15,306				(20,380	)
Cash used in investing activities			(53,879	)			(61,954	)			(208,324	)			(202,986	)
Financing:
Issuance of long-term debt			10,000				17,078				148,780				27,978
Repayment of long-term debt			(10,000	)			(41,813	)			(249,439	)			(204,319	)
Repurchase of share capital			(21,565	)			(25,023	)			(75,623	)			(75,488	)
Issuance of common shares from the exercise of options			210				—				418				686
Debt amendment fees			(20	)			(46	)			(717	)			(1,363	)
Distributions to non-controlling interest			—				—				(831	)			—
Lease payments			(3,504	)			(3,266	)			(14,867	)			(13,271	)
Funding from non-controlling interest			—				—				—				4,392
Cash used in financing activities			(24,879	)			(53,070	)			(192,279	)			(261,385	)
Effect of exchange rate changes on cash			114				1,700				(284	)			1,877
Increase in cash			47,470				49,467				12,010				19,589
Cash, beginning of period			38,311				24,304				73,771				54,182
Cash, end of period		$	85,781			$	73,771			$	85,781			$	73,771

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

		Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)		Shareholders’ Capital				Contributed Surplus				Accumulated Other Comprehensive Income				Deficit				Total				Non- controlling interest				Total Equity
Balance at January 1, 2025		$	2,301,729			$	77,557			$	199,020			$	(900,834	)		$	1,677,472			$	4,527			$	1,681,999
Net earnings for the period			—				—				—				1,842				1,842				1,252				3,094
Other comprehensive income for the period			—				—				(34,000	)			—				(34,000	)			—				(34,000	)
Share options exercised			599				(181	)			—				—				418				—				418
Settlement of Executive Performance and Restricted Share Units			11,651				(2,790	)			—				—				8,861				—				8,861
Distributions to non-controlling interest			—				—				—				—				—				(960	)			(960	)
Share repurchases			(76,857	)			—				—				—				(76,857	)			—				(76,857	)
Redemption of non-management directors share units			1,644				(859	)			—				—				785				—				785
Share-based compensation expense			—				5,543				—				—				5,543				—				5,543
Balance at December 31, 2025		$	2,238,766			$	79,270			$	165,020			$	(898,992	)		$	1,584,064			$	4,819			$	1,588,883

		Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)		Shareholders’ Capital				Contributed Surplus				Accumulated Other Comprehensive Income				Deficit				Total				Non- controlling interest				Total Equity
Balance at January 1, 2024		$	2,365,129			$	75,086			$	147,476			$	(1,012,029	)		$	1,575,662			$	—			$	1,575,662
Net earnings for the period			—				—				—				111,195				111,195				135				111,330
Other comprehensive income for the period			—				—				51,544				—				51,544				—				51,544
Settlement of Executive Performance and Restricted Share Units			21,846				(1,479	)			—				—				20,367				—				20,367
Share options exercised			978				(292	)			—				—				686				—				686
Share repurchases			(86,570	)			—				—				—				(86,570	)			—				(86,570	)
Redemption of non-management directors share units			346				(346	)			—				—				—				—				—
Share-based compensation expense			—				4,588				—				—				4,588				—				4,588
Funding from non-controlling interest			—				—				—				—				—				4,392				4,392
Balance at December 31, 2024		$	2,301,729			$	77,557			$	199,020			$	(900,834	)		$	1,677,472			$	4,527			$	1,681,999

2025 FOURTH QUARTER RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, February 12, 2026.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register-conf.media-server.com/register/BI8ce0356cb5f6441baed7b455664272f2

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website until the following quarterly conference all is posted.

https://edge.media-server.com/mmc/p/gfacaf25

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, rental equipment and camps all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

FAQ

What did Precision Drilling (PDS) report for Q4 2025 revenue and Adjusted EBITDA?

Precision reported $479 million in Q4 2025 revenue and $126 million Adjusted EBITDA. According to the company, U.S. activity supported revenue growth while international activity was lower, and share-based compensation declined versus prior year.

Why did Precision Drilling (PDS) record a net loss in Q4 2025?

Precision reported a $42 million net loss in Q4 2025 primarily due to non-cash charges. According to the company, this included a $67 million rig decommissioning charge and a $17 million drill pipe charge.

How strong was Precision Drilling's balance sheet at year-end 2025 (PDS)?

Precision ended 2025 with approximately 1.2x Net Debt to Adjusted EBITDA and over $445 million of available liquidity. According to the company, they reduced debt by $101 million during 2025.

What are Precision Drilling's (PDS) capital allocation plans for 2026?

For 2026 Precision plans to invest $245 million, reduce debt by $100 million, and allocate up to 50% of free cash flow before debt repayments to share repurchases. According to the company, this supports targeted shareholder returns.

How did Precision Drilling (PDS) perform by region in Q4 2025?

U.S. activity increased, Canada remained comparable, and international activity fell in Q4 2025. According to the company, U.S. rig utilization and revenue per day supported growth while international active rigs declined to seven.

What drove the increase in Precision Drilling's Q4 2025 Adjusted EBITDA?

Adjusted EBITDA rose to $126 million driven by stronger U.S. drilling activity and lower share-based compensation. According to the company, higher rig reactivation costs and lower international activity partially offset those gains.