Precision Drilling Q3 profit reaches C$20.9M

Precision has seven active international rigs under five-year term contracts and expects an idle Kuwait rig to return to work in mid-2027.

Rhea-AI Filing Summary

Precision Drilling Corporation (PDS) reported third-quarter 2026 revenue of C$531.652 million, up 15.0% year over year, and Adjusted EBITDA of C$125.116 million, up 6.4%. Shareholder-attributable net earnings were C$20.917 million versus a C$6.761 million loss; cash provided by operations was C$70.813 million, down 6.7%. Higher activity in Canada and the U.S. contributed to results; U.S. rig reactivations and increased international operating costs also affected expenses.

For the first nine months, revenue was C$1,510.503 million, up 10.6%, while Adjusted EBITDA was C$346.118 million, down 4.7%, and shareholder-attributable earnings were C$37.098 million, down 15.7%. Precision raised its 2026 capital budget to $275 million–$285 million and expects $100 million of debt reduction. It expects fourth-quarter U.S. operating margins of US$9,500–US$10,500 per utilization day as rig reactivations slow. Precision disclosed the CRA’s 2018 reassessment denying deductions of intercompany dividends and a proposal for 2019–2022 on the same basis, with no reassessments received for those years. It plans to object and estimates a maximum tax liability of approximately $155 million, excluding interest, if the deductions are ultimately disallowed.

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Positive

• Moderate pointThird-quarter revenue rose 15.0% to C$531.652 million.
• Moderate pointThird-quarter Adjusted EBITDA increased 6.4% to C$125.116 million.
• Moderate pointQuarterly shareholder-attributable earnings reached C$20.917 million, versus a C$6.761 million loss.

Negative

• Moderate pointQuarterly cash provided by operations declined 6.7% to C$70.813 million.
• Minor pointNine-month shareholder-attributable earnings fell 15.7% to C$37.098 million.

Filing Explained

Under Precision’s stated rule, an issued reassessment requires payment of half the assessed tax and interest while disputed, refundable with interest if Precision prevails.

Precision Drilling’s third-quarter report lists $143 million of property-and-equipment purchase commitments at September 30, 2026, with payments expected through 2028.

For the CRA intercompany-dividend deduction dispute, Precision says that once reassessments are issued it must pay 50% of assessed tax and interest until the issue is resolved; if it prevails, amounts paid are refundable with interest.

Precision expects additional reassessment notices for subsequent tax years over the next 24 months.

Key Figures

Revenue: C$531.652 million Adjusted EBITDA: C$125.116 million Net earnings attributable to shareholders: C$20.917 million +5 more

8 metrics

Revenue C$531.652 million Three months ended September 30, 2026; up 15.0% year over year

Adjusted EBITDA C$125.116 million Three months ended September 30, 2026; up 6.4% year over year

Net earnings attributable to shareholders C$20.917 million Three months ended September 30, 2026; compared with a C$6.761 million loss in 2025

Cash provided by operations C$70.813 million Three months ended September 30, 2026; down 6.7% year over year

Net earnings attributable to shareholders C$37.098 million Nine months ended September 30, 2026; down 15.7% year over year

2026 capital budget $275 million to $285 million Revised from $265 million

Debt reduction target $100 million 2026 target

Maximum estimated tax liability Approximately $155 million, excluding interest Conditional estimate if Precision is ultimately determined not entitled to deduct the intercompany dividends

Key Terms

Adjusted EBITDA, utilization day, term contracts, Automated Share Purchase Plan, +2 more

6 terms

Adjusted EBITDA financial

"Adjusted EBITDA (earnings 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.

utilization day technical

"US$9,500 and US$10,500 per utilization day"

A utilization day counts one day that a patient occupies a hospital bed or consumes a specific health service, used to measure how much a facility, program, or treatment is being used over time. For investors, tracking utilization days helps estimate revenue tied to patient volume, gauge demand for capacity or devices, and compare operational efficiency—similar to counting hotel room-nights to understand occupancy and income.

term contracts financial

"all under five-year term contracts extending into 2027 and 2028"

Automated Share Purchase Plan financial

"Automated Share Purchase Plan (ASPP)"

Notice of Reassessment regulatory

"received a Notice of Reassessment (NOR) from the Canada Revenue Agency"

A notice of reassessment is a formal communication from a tax authority that changes a previously issued tax assessment, detailing adjusted income, deductions, or tax owed plus any interest or penalties. It matters to investors because it can create unexpected tax liabilities or refunds for a company or individual, like receiving a revised bill after a utility audit, and can affect cash flow, reported profits, and the certainty of past financial statements.

IFRS 18 financial

"IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did PDS perform in the third quarter of 2026?

Precision Drilling reported third-quarter revenue of C$531.652 million, up 15.0%, and Adjusted EBITDA of C$125.116 million, up 6.4%. Net earnings attributable to shareholders were C$20.917 million, compared with a C$6.761 million loss in the prior-year quarter.

What is PDS’s 2026 capital budget?

Precision raised its 2026 capital budget to $275 million to $285 million. It expects approximately $172 million for maintenance, infrastructure and intangibles, and $103 million to $113 million for expansion and upgrades.

What is the status of PDS’s CRA tax reassessment?

The CRA issued a 2018 Notice of Reassessment denying the intercompany dividend deduction, and Precision said it will file a Notice of Objection. The CRA also proposed the same treatment for 2019–2022, but no reassessments for those years had been received. Precision says existing tax pools mean the reassessments are not expected to affect taxes payable until 2024–2027; it has not recognized a liability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/28/2026 - 06:03 AM EDT Accepted by SEC EDGAR 10/27/2026 - 08:00 PM EDT Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Section 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

For the month of, October 2026

Commission File Number: 001-14534

Precision Drilling Corporation

(Exact name of registrant as specified in its charter)

800, 525 - 8 Avenue S.W.
Calgary, Alberta
Canada T2P 1G1

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F            Form 40-F    X  

SIGNATURE

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: October 27, 2026		PRECISION DRILLING CORPORATION
	By:	/s/Dustin D Honing
	Name:	Dustin D. Honing
	Title:	Chief Financial Officer

Exhibit DESCRIPTION

31.1 Certification of Chief Executive Officer, Carey Ford, regarding the “Certification of Interim Filings” pursuant to Form 52-109F2.

31.2 Certification of Chief Financial Officer, Dustin Honing, regarding the “Certification of Interim Filings” pursuant to Form 52-109F2.

99.1 Management’s Discussion and Analysis for the period ended September 30, 2026.

99.2 Consolidated Financial Statements for the period ended September 30, 2026.

Exhibit 99.1

PRECISION DRILLING CORPORATION

Third Quarter Report for the three and nine months ended September 30, 2026 and 2025

This report is dated October 27, 2026, and 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 report. This report contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), 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 report.

Precision Drilling Corporation ("Precision" or the "Company") (TSX:PD; NYSE:PDS) announces its 2026 third quarter results, highlighted by revenue, Adjusted EBITDA and net earnings growth driven by higher activity in Canada and the U.S., with U.S. margins expected to inflect higher in the fourth quarter.

Financial Highlights

· Revenue increased 15% to $532 million, compared with $462 million in the third quarter of 2025, supported by stronger drilling activity in North America and higher average U.S. day rates, which more than offset lower international results.

· Adjusted EBITDA⁽¹⁾ increased 6% to $125 million from $118 million in 2025, primarily due to stronger activity in North America, partially offset by higher U.S. rig reactivation costs and lower international margins. Share-based compensation expense was $8 million in the third quarter of 2026 compared to $11 million in 2025.

· Net earnings attributable to shareholders in the third quarter was $21 million compared with a net loss of $7 million in 2025. This increase was primarily due to higher deferred income tax expense in 2025 related to our U.S. operations, partially offset by $8 million of additional depreciation expense in 2026 resulting from our previously communicated change in useful life estimates.

· Cash provided by operations during the quarter was $71 million compared to $76 million, allowing for the repurchase of $31 million of common shares.

· Capital expenditures were $82 million compared to $69 million in the third quarter of 2025. Precision has revised its 2026 capital budget from $265 million to a range of $275 million to $285 million to accommodate long-lead deliveries and a pending upgrade opportunity, which would have multiple rigs contracted through 2029 for a large Canadian producer. Capital spending by spend category⁽¹⁾ is expected to include approximately $172 million for maintenance, infrastructure, and intangibles and $103 million to $113 million for expansion and upgrades.

Operational Highlights

· Canada averaged 73 active rigs, up 16% compared to 63 active rigs in the third quarter of 2025, in line with higher industry activity⁽²⁾.

· Canadian revenue per utilization day was $33,654 compared to $34,193 in 2025. The modest reduction reflects rig mix rather than pricing, as robust heavy oil activity increased utilization of Super Single rigs by 18% year over year.

· U.S. averaged 43 active rigs, up 19% compared to 36 active rigs in the third quarter of 2025, reflecting our improved customer base and competitive position. This growth outpaced the U.S. industry’s 10% increase in activity.

· U.S. revenue per utilization day increased to US$33,270 from US$31,040 in the same period last year, driven by higher average day rates and increased technology revenue.

· Internationally, we had seven active rigs during the quarter, with three in the Kingdom of Saudi Arabia and four in Kuwait, compared with two and five rigs, respectively, in 2025. This change in rig mix and planned rig recertifications, resulting in non-billable days, decreased revenue per utilization day to US$46,304 from US$53,811.

· Canadian well servicing rig operating hours increased 6% compared to the same quarter in 2025. Higher oil prices drove incremental demand as customers looked to maximize cash flows, while Adjusted EBITDA increased 10%.

(1) See "FINANCIAL MEASURES AND RATIOS."

(2) See "SEGMENT REVIEW OF CONTRACT DRILLING SERVICES."

1

SELECT FINANCIAL AND OPERATING INFORMATION

Financial Highlights

		For the three months ended September 30,												For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except per share amounts. Weighted average shares outstanding are stated in thousands.)		2026				2025				% Change				2026				2025				% Change
Revenue			531,652				462,250				15.0				1,510,503				1,365,196				10.6
Adjusted EBITDA(1)			125,116				117,632				6.4				346,118				363,229				(4.7	)
Net earnings (loss)			21,286				(6,472	)			428.9				38,238				44,962				(15.0	)
Net earnings (loss) attributable to shareholders			20,917				(6,761	)			409.4				37,098				44,017				(15.7	)
Cash provided by operations			70,813				75,869				(6.7	)			279,536				286,783				(2.5	)
Cash used in investing activities			78,739				61,194				28.7				208,202				154,445				34.8
Capital spending by spend category(1)
Expansion and upgrade			24,015				35,314				(32.0	)			84,556				81,617				3.6
Maintenance and infrastructure			58,467				34,012				71.9				139,290				100,447				38.7
Proceeds on sale			(4,822	)			(6,200	)			(22.2	)			(19,122	)			(21,794	)			(12.3	)
Net capital spending(1)			77,660				63,126				23.0				204,724				160,270				27.7
Net earnings (loss) attributable to shareholders per share:
Basic			1.65				(0.51	)			423.5				2.89				3.28				(11.9	)
Diluted			1.65				(0.51	)			423.5				2.89				3.09				(6.5	)
Weighted average shares outstanding:
Basic			12,676				13,211				(4.0	)			12,845				13,430				(4.4	)
Diluted			12,686				13,211				(4.0	)			12,854				14,070				(8.6	)

(1) See "FINANCIAL MEASURES AND RATIOS."

Operating Highlights

		For the three months ended September 30,												For the nine months ended September 30,
		2026				2025				% Change				2026				2025				% Change
Contract drilling rig fleet			184				215				(14.4	)			184				215				(14.4	)
Drilling rig utilization days:
Canada			6,675				5,766				15.8				19,302				17,026				13.4
U.S.			3,968				3,341				18.8				10,516				9,065				16.0
International			644				644				—				1,892				2,044				(7.4	)
Revenue per utilization day:
Canada (Cdn$)			33,654				34,193				(1.6	)			34,670				35,695				(2.9	)
U.S. (US$)			33,270				31,040				7.2				33,268				31,693				5.0
International (US$)			46,304				53,811				(14.0	)			49,433				52,037				(5.0	)
Operating costs per utilization day:
Canada (Cdn$)			20,837				21,186				(1.6	)			21,017				21,375				(1.7	)
U.S. (US$)			25,617				22,340				14.7				25,559				22,709				12.6
Service rig fleet (registered)			150				148				1.4				150				148				1.4
Service rig operating hours			67,071				63,522				5.6				189,944				172,936				9.8

Drilling Activity

		Average for the quarter ended 2025																Average for the quarter ended 2026
		Mar. 31				June 30				Sept. 30				Dec. 31				Mar. 31				June 30				Sept. 30
Average Precision active rig count(1):
Canada			74				50				63				66				79				61				73
U.S.			30				33				36				37				37				35				43
International			8				7				7				7				7				7				7
Total			112				90				106				110				123				103				123

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

2

Financial Position

(Stated in thousands of Canadian dollars, except ratios)		September 30, 2026				December 31, 2025
Working capital(1)			163,850				186,815
Cash			23,177				85,781
Long-term debt			629,116				679,291
Total long-term financial liabilities(1)			698,478				746,944
Total assets			2,765,893				2,726,690
Long-term debt to long-term debt plus equity ratio(1)			0.28				0.30

(1) See "FINANCIAL MEASURES AND RATIOS."

Summary for the three months ended September 30, 2026:

· Revenue in the third quarter was $532 million, up $69 million from 2025. Canadian revenue increased by $33 million, as higher oil prices supported increased demand for drilling and well servicing activity. U.S. revenue increased by $42 million, driven by increased rig utilization, higher average day rates and increased technology revenue. These increases were partially offset by lower international results of $6 million due to rig mix and planned rig recertifications resulting in non-billable days.

· Adjusted EBITDA increased 6% to $125 million from $118 million in the third quarter of 2025, primarily due to stronger activity in North America and share-based compensation expense of $8 million compared to $11 million in 2025. These increases were partially offset by higher U.S. rig reactivation costs, as we reactivated six rigs during the quarter compared to four in 2025 and lower international margins resulting from a change in rig mix and higher international operating expenses due to geopolitical tensions in the Middle East. For additional information on share-based compensation, please refer to "Other Items" later in this report.

· Net earnings attributable to shareholders was $21 million or $1.65 per share compared to a net loss of $7 million or $0.51 per share for the same period last year. The increase was primarily due to lower income tax expense, as 2025 included a $33 million deferred income tax expense related to the waiving of certain U.S. tax deductions. Net earnings in 2026 included $8 million of additional depreciation expense from the change in useful life estimates effective January 1, 2026. For additional information on depreciation, please refer to "Other Items" later in this report.

· Cash provided by operations was $71 million in the third quarter of 2026. During the quarter, the Company repurchased 269,331 shares for $31 million. Precision ended the quarter with $23 million of cash and more than $460 million in available liquidity.

· In Canada, our operating margin⁽¹⁾ was $12,817 compared to $13,007 in the same period last year, primarily due to a higher Super Single rig mix, as robust heavy oil activity increased utilization of these rigs 18% year over year.

· In the U.S., our operating margin was US$7,653, down from US$8,700 in 2025. Although revenue increased by 29% during the quarter, margins were impacted by higher rig reactivations. Reactivation costs averaged US$2,125 per utilization day as we reactivated six rigs and positioned the business to support higher activity levels, compared with US$502 per utilization day in 2025 when four rigs were reactivated.

· Internationally, we had seven active rigs during the quarter, with three in Saudi Arabia and four in Kuwait, compared with two and five rigs, respectively, in the third quarter of 2025. Revenue per utilization day decreased to US$46,304 from US$53,811 in the same period last year primarily due to the change in rig mix and planned rig recertifications that resulted in non-billable utilization days. As a result, revenue decreased to US$30 million in the third quarter of 2026 compared to US$35 million in 2025.

· Completion and Production Services revenue was $81 million, an increase of $6 million compared with 2025, primarily due to stronger customer demand for well services and surface rental equipment driven by higher oil prices. Adjusted EBITDA was $21 million, representing 26%⁽²⁾ of revenue, consistent with the third quarter of 2025.

· Capital expenditures were $82 million compared to $69 million in the third quarter of 2025 and included $58 million for maintenance of existing assets and infrastructure, driven by higher activity, and $24 million for upgrades⁽²⁾ due to increased customer demand.

(1) Defined as revenue per utilization day less operating costs per utilization day.

(2) See "FINANCIAL MEASURES AND RATIOS."

Summary for the nine months ended September 30, 2026:

· Revenue for the first nine months of 2026 was $1,511 million, an increase of $145 million from the same period in 2025. Canadian revenue increased by $83 million due to higher drilling, well servicing and drilling related rentals activity, while U.S. revenue increased by $82 million due to improved drilling activity and higher average day rates. These increases were partially offset by lower international drilling revenue.

3

· Adjusted EBITDA decreased 5% to $346 million from $363 million in 2025, primarily due to lower upfront capital payments in Canada, increased operating costs in the U.S. and internationally and higher share-based compensation expense as our share price appreciated 16% during the first nine months of 2026. For additional information on share-based compensation, please refer to "Other Items" later in this report.

· Net earnings attributable to shareholders was $37 million or $2.89 per share, compared to $44 million or $3.28 per share, in the same period last year. The decrease in net earnings was primarily due to the impact of lower EBITDA results and increased depreciation expense of $30 million from the change in useful life estimates, partially offset by higher deferred income tax expense related to our U.S. operations in 2025. For additional information on depreciation, please refer to "Other Items" later in this report.

· General and administrative expenses were $99 million compared to $85 million in the first nine months of 2025, with the increase primarily due to higher share-based compensation expense and international restructuring costs.

· Cash provided by operations was $280 million and the Company repurchased 405,621 shares for $47 million and reduced long-term debt by $75 million.

· Capital expenditures were $224 million compared to $182 million in the first nine months of 2025 and included $139 million for the maintenance of existing assets and infrastructure, driven by higher activity, and $85 million for customer-driven upgrades.

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 that we establish at the beginning of every year.

Precision’s 2026 strategic priorities and the progress made during the third quarter are summarized below.

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.

· Grew rig utilization 16% in Canada and 19% in the U.S. year over year, outpacing industry activity in each region.

· Increased rig day rate pricing in the U.S. compared to the previous quarter and the third quarter of 2025.

· Strengthened our U.S. customer base, increasing the number of drilling rigs working for major producers.

2. Maximize free cash flow through strategic capital deployment and sustained cost discipline.

· Generated cash from operations of $71 million, allowing Precision to buy back shares and reinvest in high-return fleet upgrades to meet customer demand.

· Reactivated six rigs in the U.S., to meet customer demand and position Precision for future growth opportunities.

· Annual capital budget of between $275 million to $285 million, includes strategic customer upgrades to 25 drilling rigs across Canada and the U.S., backed by long-term contracts.

3. Enhance shareholder returns by reducing debt by $100 million in 2026 and allocating up to 50% of free cash flow, before debt repayments, directly to shareholders.

· Returned $31 million to shareholders by repurchasing 269,331 shares during the quarter. Year to date, we have repurchased $47 million of shares and remain committed to our annual guidance target.

· As of September 30, 2026, we have reduced debt by $75 million during the year and continue to target a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times.

· Well positioned to meet our long-term debt reduction target of $700 million between 2022 and 2027, having reduced our debt by $610 million since the beginning of 2022.

(1) See "FINANCIAL MEASURES AND RATIOS."

OUTLOOK

Ongoing geopolitical uncertainty and relatively tight global crude oil inventories have reinforced the importance of secure and reliable energy supply, supporting constructive oil prices and customer investment confidence. While customers remain focused on capital discipline and financial returns, we continue to see sustained demand for high-performance drilling rigs and well service equipment. Assuming commodity prices remain supportive and market conditions do not materially change, we expect North American drilling and completion activity to remain resilient and broadly consistent with current levels through the remainder of the year with growth potential emerging early in 2027.

4

In Canada, favorable heavy oil and condensate prices continue to support producer economics and steady upstream investment across oil and natural gas formations. Demand for our Super Series rigs remains robust, and we expect near full utilization of this rig class during the winter drilling season.

In the U.S., oil-directed drilling activity has continued to strengthen, with the oil rig count increasing since May and industry expectations pointing to further growth over the next 12 months. We have increased our oil-weighted activity while maintaining a strong position in key natural gas basins, including the Haynesville and Marcellus. We see opportunities for incremental activity as market conditions improve, while remaining focused on deepening customer relationships and strengthening margins.

Internationally, our crews continue to safely deliver services to our customers despite minor activity disruptions and incremental costs related to the Middle East tensions. We have seven active rigs, including four in Kuwait and three in the Kingdom of Saudi Arabia, all under five-year term contracts extending into 2027 and 2028. We expect our idle rig in Kuwait to return to work in mid-2027 under a five-year contract, following planned recertifications and upgrades. Crew-related operating costs are expected to remain elevated while regional tensions persist. We continue to pursue opportunities for our one idle international rig.

As Canada's premier well service provider, we remain optimistic about the long-term outlook for our Completion and Production Services business. We expect demand to remain strong through early 2027, supported by favorable commodity prices and egress capacity, as producers continue to focus on cash flow generation. Our High Performance, High Value service offering continues to support customer demand. Our growing drilling and service rentals businesses are delivering incremental year-over-year revenue and profitable growth, while strengthening our differentiated, full-service offering to customers. We see opportunities for continued growth in this part of the business.

Overall, our outlook for the remainder of the year and into 2027 remains constructive. For the fourth quarter, our operating margins in Canada are expected to remain consistent to our reported margins in the fourth quarter of 2025, averaging between $13,500 and $14,500 per utilization day. In the U.S., we expect a step change in operating margins as the pace of our rig reactivations slows, with operating margins averaging between US$9,500 and US$10,500 per utilization day.

We remain committed to shareholder returns and expect to achieve our $100 million debt repayment target for the year while continuing to actively repurchase shares in the fourth quarter, building on the $47 million of buybacks completed to date.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as of October 27, 2026. For the quarter ending after September 30, 2026, 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 October 27, 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				21				19				28				28				24
U.S.			16				16				17				17				17				15				15				19				18				17
International			8				7				7				7				7				7				7				7				7				7
Total			44				41				40				45				43				43				41				54				53				48

In Canada, because of the seasonal nature of well site access, term contracted rigs normally generate 250-300 utilization days per rig year. Accordingly, our anticipated Canadian rigs under term contract may fluctuate as customers complete their commitments earlier than projected. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year. In accordance with the seasonality of our business and varying levels of rig count, we generally experience builds of working capital in the first and third quarters and releases of working capital in the second and fourth quarters.

5

Capital Spending and Free Cash Flow Allocation

Precision has revised its 2026 capital budget from $265 million to a range of $275 million to $285 million to accommodate long-lead deliveries and a pending upgrade opportunity, which would have multiple rigs contracted through 2029 for a large Canadian producer. Capital spending by spend category⁽¹⁾ is expected to include approximately $172 million for maintenance, infrastructure, and intangibles and $103 million to $113 million for expansion and upgrades. We expect to spend approximately $252 million to $262 million in the Contract Drilling Services segment, $17 million in the Completion and Production Services segment and $6 million in the Corporate and Other segment. At September 30, 2026, Precision had capital commitments of $143 million, with payments expected through 2028.

We remain committed to our 2026 debt reduction plan, reducing debt by $100 million and positioning us near our long-term target and sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times. In 2026, we intend to allocate up to 50% of free cash flow before debt repayments to share repurchases.

(1) See "FINANCIAL MEASURES AND RATIOS."

Commodity Prices

Third quarter average West Texas Intermediate and Western Canadian Select oil prices increased by 32% and 35%, respectively, compared with the same period last year, as ongoing geopolitical tensions in the Middle East continued to support higher oil prices. The average AECO natural gas price increased by 146%, supported by stronger natural gas demand and increased export capacity from the ramp-up of LNG Canada, while the average Henry Hub natural gas price decreased by 6% compared with the same period last year.

		For the three months ended September 30,								Year ended December 31,
		2026				2025				2025
Average oil and natural gas prices
Oil
West Texas Intermediate (per barrel) (US$)			85.89				64.93				64.81
Western Canadian Select (per barrel) (CDN$)			100.92				74.95				75.28
Natural gas
United States
Henry Hub (per MMBtu) (US$)			2.89				3.07				3.63
Canada
AECO (per MMBtu) (CDN$)			1.50				0.61				1.69

Source: Sproule Escalated Price Forecast as of September 30, 2026.

6

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rigs, procurement and distribution of oilfield supplies, and the manufacture, sale and repair of drilling equipment; and Completion and Production Services, which includes our service rigs, oilfield equipment rental, and camp services.

		For the three months ended September 30,												For the nine months ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				% Change				2026				2025				% Change
Revenue
Contract Drilling Services			454,190				390,943				16.2				1,293,043				1,165,752				10.9
Completion and Production Services			80,785				74,612				8.3				226,348				207,878				8.9
Inter-segment eliminations			(3,323	)			(3,305	)			0.5				(8,888	)			(8,434	)			5.4
			531,652				462,250				15.0				1,510,503				1,365,196				10.6
Adjusted EBITDA:(1)
Contract Drilling Services			121,470				116,860				3.9				349,147				364,298				(4.2	)
Completion and Production Services			21,221				19,271				10.1				52,476				46,693				12.4
Corporate and Other			(17,575	)			(18,499	)			(5.0	)			(55,505	)			(47,762	)			16.2
			125,116				117,632				6.4				346,118				363,229				(4.7	)
Depreciation and amortization			82,586				79,487				3.9				249,594				229,381				8.8
Gain on asset disposals			(2,950	)			(3,454	)			(14.6	)			(5,130	)			(12,751	)			(59.8	)
Foreign exchange			246				717				(65.7	)			1,031				(533	)			(293.4	)
Finance charges			12,433				13,751				(9.6	)			37,090				44,368				(16.4	)
(Gain) loss on investments and other assets			120				(94	)			(227.7	)			650				1,531				(57.5	)
Net earnings before income tax			32,681				27,225				20.0				62,883				101,233				(37.9	)
Income taxes			11,395				33,697				(66.2	)			24,645				56,271				(56.2	)
Net earnings (loss)			21,286				(6,472	)			428.9				38,238				44,962				15.0
Non-controlling interest			369				289				27.7				1,140				945				20.6
Net earnings (loss) attributable to shareholders			20,917				(6,761	)			409.4				37,098				44,017				15.7

(1) See "FINANCIAL MEASURES AND RATIOS."

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

		For the three months ended September 30,												For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except where noted)		2026				2025				% Change				2026				2025				% Change
Revenue			454,190				390,943				16.2				1,293,043				1,165,752				10.9
Expenses:
Operating			322,211				264,300				21.9				908,240				771,160				17.8
General and administrative			10,509				9,783				7.4				35,656				30,294				17.7
Adjusted EBITDA(1)			121,470				116,860				3.9				349,147				364,298				(4.2	)
Adjusted EBITDA as a percentage of revenue(1)			26.7	%			29.9	%							27.0	%			31.3	%

(1) See "FINANCIAL MEASURES AND RATIOS."

Canadian onshore drilling statistics:(1)		2026								2025
		Precision				Industry(2)				Precision				Industry(2)
Average number of active land rigs for quarters ended:
March 31			79				199				74				214
June 30			61				147				50				127
September 30			73				203				63				176
Year to date average			71				183				62				172

(1) Canadian operations only.

(2) Source: Baker Hughes rig counts.

United States onshore drilling statistics:(1)		2026								2025
		Precision				Industry(2)				Precision				Industry(2)
Average number of active land rigs for quarters ended:
March 31			37				530				30				572
June 30			35				538				33				556
September 30			43				575				36				525
Year to date average			38				548				33				551

(1) United States lower 48 operations only.

(2) Source: Baker Hughes rig counts.

7

Revenue from Contract Drilling Services was $454 million compared to $391 million in the third quarter of 2025, due to increased drilling rig activity in North America, offset in part by lower international results. Precision's Canada and U.S. drilling rig utilization days increased by 16% and 19%, respectively. U.S. revenue per utilization day increased 7% due to higher average day rates and technology revenue. International revenue decreased by 14%, primarily due to lower revenue per utilization day of US$46,304 compared with US$53,811 in the same period last year, reflecting a change in rig mix and planned rig recertifications that resulted in non-billable utilization days.

Operating expenses increased 22% in 2026 compared with the third quarter of 2025, primarily related to 17% increase in drilling activity in North America, additional U.S. rig reactivations and higher international operating expenses, partially offset by changes in rig mix in Canada. In the U.S., rig reactivation costs averaged US$2,125 per utilization day as we reactivated six rigs and positioned the business to support higher activity levels, compared with US$502 per utilization day in 2025 when four rigs were reactivated. Internationally, operating expenses increased due to a change in rig mix and incremental costs associated with the geopolitical tensions in the Middle East.

Adjusted EBITDA was $121 million for the quarter and represented 27% of revenue compared to 30% in 2025.

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

		For the three months ended September 30,												For the nine months ended September 30,
(Stated in thousands of Canadian dollars, except where noted)		2026				2025				% Change				2026				2025				% Change
Revenue			80,785				74,612				8.3				226,348				207,878				8.9
Expenses:
Operating			56,804				52,832				7.5				165,992				153,914				7.8
General and administrative			2,760				2,509				10.0				7,880				7,271				8.4
Adjusted EBITDA(1)			21,221				19,271				10.1				52,476				46,693				12.4
Adjusted EBITDA as a percentage of revenue(1)			26.3	%			25.8	%							23.2	%			22.5	%
Well servicing statistics:
Number of service rigs (registered)			150				148				1.4				150				148				1.4
Service rig operating hours			67,071				63,522				5.6				189,944				172,936				9.8

(1) See "FINANCIAL MEASURES AND RATIOS."

Completion and Production Services revenue was $81 million in the third quarter of 2026, compared to $75 million in the same period of 2025. The increase was primarily due to 18% higher drilling-related rental activity and 6% higher well servicing activity. Higher oil prices drove incremental demand as customers looked to maximize cash flows.

Adjusted EBITDA increased 10% to $21 million in the third quarter of 2026, driven by higher drilling-related rental and well servicing revenue and lower start-up costs as more rigs worked continuously throughout the quarter.

SEGMENT REVIEW OF CORPORATE AND OTHER

Our Corporate and Other segment provides support functions to our operating segments. The Corporate and Other segment had negative Adjusted EBITDA of $18 million, largely consistent with the third 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 2025 Annual Report.

8

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

		For the three months ended September 30,								For the nine months ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				2026				2025
Cash settled share-based incentive plans			5,794				9,285				18,198				12,350
Equity settled share-based incentive plans			1,760				1,544				6,677				5,521
Total share-based incentive compensation plan expense			7,554				10,829				24,875				17,871
Allocated:
Operating			1,690				2,308				5,933				4,690
General and administrative			5,864				8,521				18,942				13,182
			7,554				10,829				24,875				17,872

Our cash-settled share-based compensation expense for the quarter was $6 million compared with an expense of $9 million in 2025. The expense in the third quarter of 2026 was primarily due to our share price appreciating 5%, compared with 22% in the third quarter of 2025.

During the first quarters of 2025 and 2026, we issued Executive Restricted Share Units (Executive RSUs) to certain senior executives that were aligned with our annual compensation framework. These issuances resulted in an equity-settled share-based compensation expense of $2 million in the third quarter of both 2026 and 2025. As of September 30, 2026, the majority of our share-based compensation plans were classified as cash-settled and will be impacted by changes in our share price. Although accounted for as cash-settled, Precision retains the ability to settle certain vested units in common shares at its discretion.

Contingencies

In the 2018 to 2023 tax years, Precision deducted certain intercompany dividends received in connection with a preferred share financing. In late July 2026, Precision received a Notice of Reassessment (NOR) from the Canada Revenue Agency (CRA) relating to its 2018 tax year, denying the deduction of such intercompany dividends. In addition to the 2018 NOR, Precision received a proposal from the CRA for the 2019 to 2022 tax years on the same basis, but no reassessments have been received at this time.

Precision will file a Notice of Objection to the 2018 NOR and intends to vigorously contest the 2018 NOR as well as any additional reassessments that may be issued by the CRA in respect of the intercompany dividends received. The Company and its tax advisors reaffirm that the Company’s tax filing position is appropriate. As such, Precision has not recognized a liability in its unaudited interim consolidated financial statements with respect to the reassessment.

Due to existing tax pools, the CRA’s reassessment of the 2018 tax year and anticipated reassessments of the 2019 to 2023 tax years are not expected to impact taxes payable until the 2024 to 2027 tax years. Additional notices of reassessment for the subsequent tax years are expected to be issued over the next 24 months. If it is ultimately determined that the Company is not entitled to deduct the intercompany dividends, we estimate a maximum tax liability of approximately $155 million, excluding interest.

Once reassessments are issued, Precision will be required to pay 50% of the assessed tax liability and interest, until the issue has been resolved. If Precision is ultimately successful in defending its position, then any taxes and interest paid to the CRA will be refunded plus interest, and if the CRA is successful then any remaining taxes and interest payable will have to be remitted by Precision.

Depreciation

In 2025, we reviewed our drilling rig equipment and revised the estimated useful life of drill pipe, effective January 1, 2026, as more complex drilling programs have reduced the useful life of this asset class. This revision resulted in additional depreciation expense of $8 million in the third quarter of 2026 and $30 million year to date.

LIQUIDITY AND CAPITAL RESOURCES

The oilfield services business is inherently cyclical in nature. To manage this, we focus on maintaining a strong balance sheet in order to have the financial flexibility to manage our growth and cash flow regardless of where we are in the business cycle. We maintain a variable operating cost structure so we can be responsive to changes in demand.

9

Our maintenance capital expenditures are tightly governed and highly responsive to activity levels with additional cost savings leverage provided through our internal manufacturing and supply divisions. Term contracts on upgrade or expansion capital projects provide more certainty of future revenues and return on our capital investments.

Liquidity

Amount		Availability		Used for		Maturity
Senior Credit Facility (secured)
US$375 million (extendible, revolving term credit facility with US$375 million accordion feature)		US$46 million drawn with US$60 million in outstanding letters of credit		General corporate purposes		October 31, 2028(1)
Operating facilities (secured)
$40 million		Undrawn, except $4 million in outstanding letters of credit		Letters of credit and general corporate purposes
US$15 million		Undrawn		Short-term working capital requirements
Demand letter of credit facility (secured)
US$40 million		Undrawn, except US$18 million in outstanding letters of credit		Letters of credit
Unsecured senior notes (unsecured)
US$400 million – 6.875%		Fully drawn		Debt redemption and repurchases		January 15, 2029

(1) US$43 million will expire on June 28, 2027.

As of September 30, 2026, we had a total of $635 million outstanding under our Senior Credit Facility and unsecured senior notes as compared with $687 million at December 31, 2025. The current blended cash interest cost of our debt is approximately 6.7%.

Senior Credit Facility

Our Senior Credit Facility requires that we comply with certain covenants including a leverage ratio of consolidated senior debt to consolidated Covenant EBITDA of less than 2.5:1. For purposes of calculating the leverage ratio, consolidated senior debt only includes secured indebtedness. The Senior Credit Facility limits the redemption and repurchase of junior debt subject to a pro forma senior net leverage covenant test of less than or equal to 1.75:1.

Unsecured Senior Notes

The unsecured senior notes require that we comply with certain restrictive and financial covenants, including an incurrence based consolidated interest coverage ratio test of consolidated cash flow, as defined in the senior note agreements, to consolidated interest expense of greater than 2.0:1 for the most recent four consecutive fiscal quarters. In the event our consolidated interest coverage ratio is less than 2.0:1 for the most recent four consecutive fiscal quarters, the unsecured senior notes restrict our ability to incur additional indebtedness.

Covenants

As at September 30, 2026, we were in compliance with the covenants of our Senior Credit Facility.

	Covenant		At September 30, 2026
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA(1)	< 2.50			0.14
Consolidated covenant EBITDA to consolidated interest expense	> 2.50			10.27

(1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

Impact of foreign exchange rates

The following table summarizes the average and closing Canada-U.S. foreign exchange rates.

		For the three months ended September 30,								For the nine months ended September 30,								At December 31,
		2026				2025				2026				2025				2025
Canada-U.S. foreign exchange rates
Average			1.40				1.38				1.39				1.40				—
Closing			1.42				1.39				1.42				1.39				1.37

10

Hedge of investments in foreign operations

We utilize foreign currency long-term debt to hedge our exposure to changes in the carrying value of our net investment in certain foreign operations as a result of changes in foreign exchange rates.

We have designated our U.S. dollar-denominated long-term debt as a net investment hedge in our U.S. operations and other foreign operations that have a U.S. dollar functional currency. To be accounted for as a hedge, the foreign currency denominated long-term debt must be designated and documented as such and must be effective at inception and on an ongoing basis. We recognize the effective amount of this hedge (net of tax) in other comprehensive income. We recognize ineffective amounts (if any) in net earnings (loss).

Outstanding share data

As of October 27, 2026, we had 12,538,736 common shares, 115,065 Deferred Share Units (DSUs), and 140,521 equity-based awards outstanding.

The outstanding DSUs were granted under the old DSU Plan, the 2012 DSU Plan and the 2024 DSU Plan and assume settlement of each DSU for one common share.

The outstanding equity-based awards consist of Restricted Share Units (RSUs) and Performance Share Units (PSUs) which may be settled through the issuance of common shares from treasury. As of October 27, 2026, all 140,521 equity-based awards outstanding were Executive RSUs and assume settlement of each Executive RSU for one common share.

Our DSU, PSU and RSU Plans are governed by our Omnibus Equity Incentive Plan (the Omnibus Plan). More information about the Omnibus Plan can be found in our Management Information Circular, available on our website and on SEDAR+ (www.sedarplus.ca).

QUARTERLY FINANCIAL SUMMARY

(Stated in thousands of Canadian dollars, except per share amounts)		2025				2026
Quarters ended		December 31				March 31				June 30				September 30
Revenue			478,508				526,051				452,800				531,652
Adjusted EBITDA(1)			126,386				123,947				97,055				125,116
Net earnings (loss) attributable to shareholders			(42,175	)			17,376				(1,195	)			20,917
Net earnings (loss) attributable to shareholders per basic share			(3.23	)			1.34				(0.09	)			1.65
Net earnings (loss) attributable to shareholders per diluted share			(3.23	)			1.34				(0.52	)			1.65
Cash provided by operations			126,114				63,154				145,569				70,813

(Stated in thousands of Canadian dollars, except per share amounts)		2024				2025
Quarters ended		December 31				March 31				June 30				September 30
Revenue			468,171				496,331				406,615				462,250
Adjusted EBITDA(1)			120,526				137,497				108,100				117,632
Net earnings attributable to shareholders			14,795				34,511				16,267				(6,761	)
Net earnings attributable to shareholders per basic share			1.06				2.52				1.21				(0.51	)
Net earnings attributable to shareholders per diluted share			1.06				2.20				1.07				(0.51	)
Cash provided by operations			162,791				63,419				147,495				75,869

(1) See "FINANCIAL MEASURES AND RATIOS."

CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

Because of the nature of our business, we are required to make judgements and estimates in preparing our Condensed Consolidated Interim Financial Statements that could materially affect the amounts recognized. Our judgements and estimates are based on our past experiences and assumptions we believe are reasonable in the circumstances. The critical judgements and estimates used in preparing the Condensed Consolidated Interim Financial Statements are described in our 2025 Annual Report.

CHANGE IN ACCOUNTING POLICY

Effective January 1, 2026, Precision has prospectively adopted Amendments to the Classification and Measurement of Financial Instruments, as issued May 2024. The amendments relate to IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments. The amendments clarify the timing of recognition and derecognition of financial assets and liabilities. The amendments require opening balances of financial assets, financial liabilities, and retained earnings be adjusted to recognize the effect of the initial application if retrospective application is not selected. The initial application did not result in a material impact to the financial statements.

11

ACCOUNTING STANDARDS AND AMENDMENTS NOT YET EFFECTIVE

IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1 Presentation of Financial Statements and is effective for annual reporting periods beginning on or after January 1, 2027.

Precision has substantially completed its assessment of IFRS 18 and is finalizing the related implementation, processes and controls. IFRS 18 is expected to change the presentation and disclosure of the Company’s financial performance but is not expected to change the recognition or measurement of transactions or the Company’s net earnings.

Precision will classify all income and expenses into five categories in the consolidated statement of net earnings, namely the operating, investing, financing, discontinued operations and income tax categories. Precision expects to continue presenting operating expenses using a combination of function and nature. Where required under IFRS 18, additional disclosures will be provided in the notes to the financial statements for specified expenses by nature included within operating expense line items presented by function. Foreign exchange gains and losses will generally be classified in the same category as the income or expenses arising from the underlying items. Within the consolidated statement of net earnings, the newly defined subtotals of operating profit and profit before financing and income taxes will be presented. Net earnings are not expected to change.

IFRS 18 also amends the consolidated statement of cash flows. The Company expects to use operating profit as the starting point for presenting operating cash flows under the indirect method. Specific cash flows will be moved between the operating, investing and financing categories, as required under the new standard.

Certain financial statement captions within the consolidated statement of financial position and the notes to the financial statements will be further aggregated or disaggregated to reflect the requirements of IFRS 18 and labels of ‘other’ will be more accurately defined or balances will be disaggregated.

Precision expects some metrics to meet the definition of management-defined performance measures and, accordingly, to provide the required explanations and reconciliation in a single note to the financial statements.

The standard will be applied retrospectively and requires comparative information to be restated. The Company is finalizing the detailed presentation, comparative information and disclosures that will be included in its consolidated financial statements upon adoption.

EVALUATION OF CONTROLS AND PROCEDURES

Based on their evaluation as at December 31, 2025, Precision’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the United States Securities Exchange Act of 1934, as amended (the Exchange Act)), were effective to ensure that information required to be disclosed by the Company in reports that are filed or submitted to Canadian and U.S. securities authorities is recorded, processed, summarized and reported within the time periods specified in Canadian and U.S. securities laws. In addition, as of September 30, 2026, there were no changes in the internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the three months ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Management will continue to periodically evaluate the Company’s disclosure controls and procedures and internal control over financial reporting and will make any modifications from time to time as deemed necessary.

Based on their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements, and even those controls determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

12

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 before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals and depreciation and amortization), as reported in our 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 September 30,								For the nine months ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				2026				2025
Adjusted EBITDA by segment:
Contract Drilling Services			121,470				116,860				349,147				364,298
Completion and Production Services			21,221				19,271				52,476				46,693
Corporate and Other			(17,575	)			(18,499	)			(55,505	)			(47,762	)
Adjusted EBITDA			125,116				117,632				346,118				363,229
Depreciation and amortization			82,586				79,487				249,594				229,381
Gain on asset disposals			(2,950	)			(3,454	)			(5,130	)			(12,751	)
Foreign exchange			246				717				1,031				(533	)
Finance charges			12,433				13,751				37,090				44,368
(Gain) loss on investments and other assets			120				(94	)			650				1,531
Income taxes			11,395				33,697				24,645				56,271
Net earnings (loss)			21,286				(6,472	)			38,238				44,962
Non-controlling interest			369				289				1,140				945
Net earnings (loss) attributable to shareholders			20,917				(6,761	)			37,098				44,017

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 September 30,								For the nine months ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				2026				2025
Capital spending by spend category
Expansion and upgrade			24,015				35,314				84,556				81,617
Maintenance and infrastructure			58,467				34,012				139,290				100,447
Capital expenditures			82,482				69,326				223,846				182,064
Proceeds on sale of property, plant and equipment			(4,822	)			(6,200	)			(19,122	)			(21,794	)
Net capital spending			77,660				63,126				204,724				160,270
Proceeds from sale of investments and other assets			—				—				(400	)			—
Purchase of investments and other assets			—				10				698				21
Receipt of finance lease payments			(253	)			(209	)			(756	)			(626	)
Changes in non-cash working capital balances			1,332				(1,733	)			3,936				(5,220	)
Cash used in investing activities			78,739				61,194				208,202				154,445

13

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

		September 30,				December 31,
(Stated in thousands of Canadian dollars)		2026				2025
Current assets			502,632				486,915
Current liabilities			(338,782	)			(300,100	)
Working capital			163,850				186,815

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 Condensed Interim Consolidated Statements of Financial Position.   Total long-term financial liabilities is calculated as follows:

		September 30,				December 31,
(Stated in thousands of Canadian dollars)		2026				2025
Total non-current liabilities			814,605				837,707
Deferred tax liabilities			(116,127	)			(90,763	)
Total long-term financial liabilities			698,478				746,944

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 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 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 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 or maintenance and infrastructure.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this report, 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").

14

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

· our 2026 strategic priorities;

· 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; and

· potential commercial opportunities and rig contract renewals.

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;

· continued market demand for our drilling rigs;

· our ability to deliver rigs to customers on a timely basis;

· the impact of an increase/decrease in capital spending;

· the general stability of the economic and political environments in the jurisdictions where we operate in; and

· anticipated rig utilization, operating margins, active rig counts and customer activity levels.

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 disadvantage;

· 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 physical, regulatory and transition impacts of climate change;

· the impact of weather and seasonal conditions on operations and facilities;

· the impact of tariffs, trade disputes, sanctions, export controls and other trade restrictions;

· competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;

· geopolitical instability or armed conflicts, including in regions where we operate may impact operations, personnel, logistics, customer activity and commodity markets;

· 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;

· the impact of inflation and supply chain disruptions;

· business interruptions related to cybersecurity risks;

· 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, acts of war, social, civil and political unrest in the foreign jurisdictions or regions 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 foregoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results is 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, 2025, which may be accessed on Precision’s SEDAR+ profile or under Precision’s EDGAR profile. The forward-looking information and statements contained in this report 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.

15

 Exhibit 99.2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)		September 30, 2026				December 31, 2025
ASSETS
Current assets:
Cash		$	23,177			$	85,781
Accounts receivable			422,728				352,142
Inventory			56,727				48,992
Total current assets			502,632				486,915
Non-current assets:
Deferred tax assets			4,127				2,235
Property, plant and equipment			2,180,528				2,159,212
Intangibles			6,801				9,470
Right-of-use assets			61,189				56,817
Finance lease receivables			3,865				4,474
Investments and other assets			6,751				7,567
Total non-current assets			2,263,261				2,239,775
Total assets		$	2,765,893			$	2,726,690
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	317,788			$	280,652
Income taxes payable			1,475				1,670
Current portion of lease obligations			19,519				17,778
Total current liabilities			338,782				300,100
Non-current liabilities:
Share-based compensation (Note 7)			11,388				13,780
Provisions and other			6,965				6,704
Lease obligations			51,009				47,169
Long-term debt (Note 5)			629,116				679,291
Deferred tax liabilities			116,127				90,763
Total non-current liabilities			814,605				837,707
Total liabilities			1,153,387				1,137,807
Equity:
Shareholders’ capital (Note 8)			2,174,599				2,238,766
Contributed surplus			81,092				79,270
Accumulated other comprehensive income			189,696				165,020
Deficit			(838,090	)			(898,992	)
Total equity attributable to shareholders			1,607,297				1,584,064
Non-controlling interest			5,209				4,819
Total equity			1,612,506				1,588,883
Total liabilities and equity		$	2,765,893			$	2,726,690

See accompanying notes to condensed interim consolidated financial statements.

1

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

		Three Months Ended September 30,								Nine Months Ended September 30,
(Stated in thousands of Canadian dollars, except per share amounts)		2026				2025				2026				2025
Revenue (Note 3)		$	531,652			$	462,250			$	1,510,503			$	1,365,196
Expenses:
Operating			375,692				313,827				1,065,344				916,640
General and administrative			30,844				30,791				99,041				85,327
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, gain on asset disposals, and depreciation and amortization			125,116				117,632				346,118				363,229
Depreciation and amortization			82,586				79,487				249,594				229,381
Gain on asset disposals			(2,950	)			(3,454	)			(5,130	)			(12,751	)
Foreign exchange			246				717				1,031				(533	)
Finance charges (Note 6)			12,433				13,751				37,090				44,368
(Gain) loss on investments and other assets			120				(94	)			650				1,531
Earnings before income taxes			32,681				27,225				62,883				101,233
Income taxes:
Current			894				1,133				2,292				3,307
Deferred			10,501				32,564				22,353				52,964
			11,395				33,697				24,645				56,271
Net earnings (loss)		$	21,286			$	(6,472	)		$	38,238			$	44,962
Attributable to:
Shareholders of Precision Drilling Corporation		$	20,917			$	(6,761	)		$	37,098			$	44,017
Non-controlling interest		$	369			$	289			$	1,140			$	945
Net earnings (loss) per share attributable to share-holders of Precision Drilling Corporation (Note 9):
Basic		$	1.65			$	(0.51	)		$	2.89			$	3.28
Diluted		$	1.65			$	(0.51	)		$	2.89			$	3.09

See accompanying notes to condensed interim consolidated financial statements.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

		Three Months Ended September 30,								Nine Months Ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				2026				2025
Net earnings (loss)		$	21,286			$	(6,472	)		$	38,238			$	44,962
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency			4,409				30,777				47,572				(49,327	)
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt			(2,138	)			(14,715	)			(22,896	)			25,758
Comprehensive income		$	23,557			$	9,590			$	62,914			$	21,393
Attributable to:
Shareholders of Precision Drilling Corporation		$	23,188			$	9,301			$	61,774			$	20,448
Non-controlling interest		$	369			$	289			$	1,140			$	945

See accompanying notes to condensed interim consolidated financial statements.

2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

		Three Months Ended September 30,								Nine Months Ended September 30,
(Stated in thousands of Canadian dollars)		2026				2025				2026				2025
Cash provided by (used in):
Operations:
Net earnings (loss)		$	21,286			$	(6,472	)		$	38,238			$	44,962
Adjustments for:
Long-term compensation plans			4,579				5,608				16,379				11,998
Depreciation and amortization			82,586				79,487				249,594				229,381
Gain on asset disposals			(2,950	)			(3,454	)			(5,130	)			(12,751	)
Foreign exchange			(161	)			1,380				726				(1,034	)
Finance charges			12,433				13,751				37,090				44,368
Income taxes			11,395				33,697				24,645				56,271
Other			1				2				14				(19	)
(Gain) loss on investments and other assets			120				(94	)			650				1,531
Income taxes paid			(156	)			(593	)			(2,309	)			(4,760	)
Income taxes recovered			39				5				39				5
Interest paid			(21,898	)			(26,987	)			(46,525	)			(60,245	)
Interest received			720				211				1,528				966
Funds provided by operations			107,994				96,541				314,939				310,673
Changes in non-cash working capital balances			(37,181	)			(20,672	)			(35,403	)			(23,890	)
Cash provided by operations			70,813				75,869				279,536				286,783
Investments:
Purchase of property, plant and equipment			(82,482	)			(69,326	)			(223,846	)			(182,064	)
Proceeds on sale of property, plant and equipment			4,822				6,200				19,122				21,794
Proceeds from sale of investments and other assets			—				—				400				—
Purchase of investments and other assets			—				(10	)			(698	)			(21	)
Receipt of finance lease payments			253				209				756				626
Changes in non-cash working capital balances			(1,332	)			1,733				(3,936	)			5,220
Cash used in investing activities			(78,739	)			(61,194	)			(208,202	)			(154,445	)
Financing:
Issuance of long-term debt			123,130				128,780				126,130				138,780
Repayment of long-term debt			(123,153	)			(138,475	)			(201,194	)			(239,439	)
Repurchase of share capital (Note 8)			(30,557	)			(8,802	)			(46,582	)			(54,058	)
Issuance of common shares from the exercise of options			—				208				195				208
Debt amendment fees			—				(697	)			—				(697	)
Distributions to non-controlling interest			(578	)			(831	)			(878	)			(831	)
Lease payments			(3,905	)			(3,854	)			(12,359	)			(11,363	)
Cash used in financing activities			(35,063	)			(23,671	)			(134,688	)			(167,400	)
Effect of exchange rate changes on cash			(126	)			609				750				(398	)
Decrease in cash			(43,115	)			(8,387	)			(62,604	)			(35,460	)
Cash, beginning of period			66,292				46,698				85,781				73,771
Cash, end of period		$	23,177			$	38,311			$	23,177			$	38,311

See accompanying notes to condensed interim consolidated financial statements.

3

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, 2026		$	2,238,766			$	79,270			$	165,020			$	(898,992	)		$	1,584,064			$	4,819			$	1,588,883
Net earnings for the period			—				—				—				37,098				37,098				1,140				38,238
Other comprehensive income for the period			—				—				24,676				—				24,676				—				24,676
Share options exercised			279				(84	)			—				—				195				—				195
Settlement of Executive Performance and Restricted Share Units (Note 8)			4,095				(4,095	)			—				—				—				—				—
Distributions to Non-Controlling Interest			—				—				—				—				—				(750	)			(750	)
Share repurchases (Note 8)			(71,217	)			—				—				23,804				(47,413	)			—				(47,413	)
Liability reversal for automated share purchase plan (Note 8)			10,000				—				—				—				10,000				—				10,000
Liability for automated share purchase plan (Note 8)			(8,000	)			—				—				—				(8,000	)			—				(8,000	)
Redemption of non-management directors share units			676				(676	)			—				—				—				—				—
Share-based compensation expense (Note 7)			—				6,677				—				—				6,677				—				6,677
Balance at September 30, 2026		$	2,174,599			$	81,092			$	189,696			$	(838,090	)		$	1,607,297			$	5,209			$	1,612,506

		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			—				—				—				44,017				44,017				945				44,962
Other comprehensive income for the period			—				—				(23,569	)			—				(23,569	)			—				(23,569	)
Share options exercised			299				(91	)			—				—				208				—				208
Settlement of Executive Performance and Restricted Share Units			11,651				(2,790	)			—				—				8,861				—				8,861
Distributions to Non-Controlling Interest			—				—				—				—				—				(831	)			(831	)
Share repurchases			(54,889	)			—				—				—				(54,889	)			—				(54,889	)
Liability reversal for automated share purchase plan			10,000				—				—				—				10,000				—				10,000
Liability for automated share purchase plan			(5,000	)			—				—				—				(5,000	)			—				(5,000	)
Redemption of non-management directors share units			606				(606	)			—				—				—				—				—
Share-based compensation expense			—				5,521				—				—				5,521				—				5,521
Balance at September 30, 2025		$	2,264,396			$	79,591			$	175,451			$	(856,817	)		$	1,662,621			$	4,641			$	1,667,262

See accompanying notes to condensed interim consolidated financial statements.

4

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Tabular amounts are stated in thousands of Canadian dollars except share numbers and per share amounts)

NOTE 1. DESCRIPTION OF BUSINESS

Precision Drilling Corporation (Precision or the Corporation) is incorporated under the laws of the Province of Alberta, Canada and is a provider of contract drilling and completion and production services primarily to oil and natural gas and geothermal exploration and production companies in Canada, the United States and certain international locations.

NOTE 2. BASIS OF PRESENTATION

(a) Statement of Compliance

These condensed interim consolidated financial statements have been prepared based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

These condensed interim consolidated financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated annual financial statements of the Corporation as at and for the year ended December 31, 2025.

These condensed interim consolidated financial statements were prepared using accounting policies and application methods consistent with those used in the preparation of the Corporation’s consolidated annual financial statements for the year ended December 31, 2025, except as described in Note 2(c).

These condensed interim consolidated financial statements were approved by the Board of Directors on October 27, 2026.

(b) Use of Estimates and Judgements

The preparation of the condensed interim consolidated financial statements requires management to make estimates and judgements that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingencies. These estimates and judgements are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The estimation of anticipated future events involves uncertainty and, consequently, the estimates used in preparation of the condensed interim consolidated financial statements may change as future events unfold, more experience is acquired, or the Corporation’s operating environment changes.

Significant estimates and judgements used in the preparation of these condensed interim consolidated financial statements remained unchanged from those disclosed in the Corporation’s consolidated annual financial statements for the year ended December 31, 2025.

The impacts of geopolitical events, such as the imposed tariffs between Canada and the U.S., regional conflicts, especially in oil producing areas, can materially impact energy markets, interest and inflation rates, and supply chains, resulting in higher levels of volatility and uncertainty. Ongoing U.S. military operations involving Iran and the resulting conflict in the Middle East have impacted global oil supply and increased volatility in global oil prices. Management has, to the extent reasonable, incorporated known facts and circumstances into the estimates made, however, actual results could differ from those estimates and those differences could be material.

(c) Change in Accounting Policy

Effective January 1, 2026, the Corporation has prospectively adopted Amendments to the Classification and Measurement of Financial Instruments, as issued May 2024. The amendments relate to IFRS 7 Financial Instruments: Disclosures and IFRS 9 Financial Instruments. The amendments clarify the timing of recognition and derecognition of financial assets and liabilities. The amendments require opening balances of financial assets, financial liabilities, and retained earnings be adjusted to recognize the effect of the initial application if retrospective application is not selected. The initial application did not result in a material impact to the financial statements. The Corporation has applied the election related to electronic payment systems.

(d) Accounting Standards and Amendments not yet Effective

IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1 Presentation of Financial Statements and is effective for annual reporting periods beginning on or after January 1, 2027.

5

Precision has substantially completed its assessment of IFRS 18 and is finalizing the related implementation, processes and controls. IFRS 18 is expected to change the presentation and disclosure of the Corporation’s financial performance but is not expected to change the recognition or measurement of transactions or the Corporation’s net earnings.

Precision will classify all income and expenses into five categories in the consolidated statement of net earnings, namely the operating, investing, financing, discontinued operations and income tax categories. Precision expects to continue presenting operating expenses using a combination of function and nature. Where required under IFRS 18, additional disclosures will be provided in the notes to the financial statements for specified expenses by nature included within operating expense line items presented by function. Foreign exchange gains and losses will generally be classified in the same category as the income or expenses arising from the underlying items. Within the consolidated statement of net earnings, the newly defined subtotals of operating profit and profit before financing and income taxes will be presented. Net earnings are not expected to change.

IFRS 18 also amends the consolidated statement of cash flows. The Corporation expects to use operating profit as the starting point for presenting operating cash flows under the indirect method. Specific cash flows will be moved between the operating, investing and financing categories, as required under the new standard.

Certain financial statement captions within the consolidated statement of financial position and the notes to the financial statements will be further aggregated or disaggregated to reflect the requirements of IFRS 18 and labels of ‘other’ will be more accurately defined or balances will be disaggregated.

Precision expects some metrics to meet the definition of management-defined performance measures and, accordingly, to provide the required explanations and reconciliation in a single note to the financial statements.

The standard will be applied retrospectively and requires comparative information to be restated. The Corporation is finalizing the detailed presentation, comparative information and disclosures that will be included in its consolidated financial statements upon adoption.

NOTE 3. Revenue

(a) Disaggregation of revenue

The following table includes a reconciliation of disaggregated revenue by reportable segment. Revenue has been disaggregated by primary geographical market and type of service provided.

Three Months Ended September 30, 2026		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Canada		$	227,752			$	80,785			$	—			$	(3,323	)		$	305,214
United States			184,711				—				—				—				184,711
International			41,727				—				—				—				41,727
		$	454,190			$	80,785			$	—			$	(3,323	)		$	531,652
Day rate/hourly services		$	450,721			$	80,785			$	—			$	(758	)		$	530,748
Shortfall payments/idle but contracted			364				—				—				—				364
Other			3,105				—				—				(2,565	)			540
		$	454,190			$	80,785			$	—			$	(3,323	)		$	531,652

6

Three Months Ended September 30, 2025		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Canada		$	200,434			$	74,612			$	—			$	(3,305	)		$	271,741
United States			142,794				—				—				—				142,794
International			47,715				—				—				—				47,715
		$	390,943			$	74,612			$	—			$	(3,305	)		$	462,250
Day rate/hourly services		$	387,660			$	74,612			$	—			$	(791	)		$	461,481
Other			3,283				—				—				(2,514	)			769
		$	390,943			$	74,612			$	—			$	(3,305	)		$	462,250

Nine Months Ended September 30, 2026		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Canada		$	678,747			$	226,348			$	—			$	(8,888	)		$	896,207
United States			484,723				—				—				—				484,723
International			129,573				—				—				—				129,573
		$	1,293,043			$	226,348			$	—			$	(8,888	)		$	1,510,503
Day rate/hourly services		$	1,274,454			$	226,348			$	—			$	(2,471	)		$	1,498,331
Shortfall payments/idle but contracted			583				—				—				—				583
Turnkey drilling services			8,453				—				—				—				8,453
Other			9,553				—				—				(6,417	)			3,136
		$	1,293,043			$	226,348			$	—			$	(8,888	)		$	1,510,503

Nine Months Ended September 30, 2025		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Canada		$	615,899			$	206,156			$	—			$	(8,434	)		$	813,621
United States			401,221				1,722				—				—				402,943
International			148,632				—				—				—				148,632
		$	1,165,752			$	207,878			$	—			$	(8,434	)		$	1,365,196
Day rate/hourly services		$	1,152,627			$	207,878			$	—			$	(2,243	)		$	1,358,262
Shortfall payments/idle but contracted			4,975				—				—				—				4,975
Other			8,150				—				—				(6,191	)			1,959
		$	1,165,752			$	207,878			$	—			$	(8,434	)		$	1,365,196

(b) Seasonality

Precision has operations that are carried on in Canada which represent approximately 59% (2025 – 60%) of consolidated revenue for the nine months ended September 30, 2026 and 44% (2025 – 43%) of consolidated total assets as at September 30, 2026. The ability to move heavy equipment in Canadian oil and natural gas fields is dependent on weather conditions. As warm weather returns in the spring, the winter's frost comes out of the ground rendering many secondary roads incapable of supporting the weight of heavy equipment until they have thoroughly dried out. The duration of this “spring break-up” has a direct impact on Precision’s activity levels. In addition, many exploration and production areas in northern Canada are accessible only in winter months when the ground is frozen hard enough to support equipment. The timing of freeze up and spring break-up affects the ability to move equipment in and out of these areas. As a result, late March through May is traditionally Precision’s slowest time in this region.

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NOTE 4. SEGMENTED INFORMATION

The Corporation has two reportable operating segments; Contract Drilling Services and Completion and Production Services. Contract Drilling Services includes drilling rigs, procurement and distribution of oilfield supplies, and manufacture, sale and repair of drilling equipment. Completion and Production Services includes service rigs, oilfield equipment rental and camp services. The Corporation provides services primarily in Canada, the United States and certain international locations.

Three Months Ended September 30, 2026		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Revenue		$	454,190			$	80,785			$	—			$	(3,323	)		$	531,652
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals,and depreciation and amortization			121,470				21,221				(17,575	)			—				125,116
Depreciation and amortization			74,013				6,303				2,270				—				82,586
(Gain) loss on asset disposals			(2,164	)			(786	)			—				—				(2,950	)
Foreign exchange			94				1				151				—				246
Finance charges			249				106				12,078				—				12,433
(Gain) loss on investments and other assets			—				—				120				—				120
Income taxes (recovery)			1,685				(13	)			9,723				—				11,395
Net earnings (loss) for reportable segments			47,593				15,610				(41,917	)			—				21,286
Total assets			2,433,652				251,596				80,645				—				2,765,893
Capital expenditures			78,368				3,438				676				—				82,482

Three Months Ended September 30, 2025		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Revenue		$	390,943			$	74,612			$	—			$	(3,305	)		$	462,250
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals,and depreciation and amortization			116,860				19,271				(18,499	)			—				117,632
Depreciation and amortization			71,337				5,715				2,435				—				79,487
(Gain) loss on asset disposals			(1,714	)			(846	)			(894	)			—				(3,454	)
Foreign exchange			315				9				393				—				717
Finance charges			147				94				13,510				—				13,751
(Gain) loss on investments and other assets			(473	)			—				379				—				(94	)
Income taxes (recovery)			19,315				(141	)			14,523				—				33,697
Net earnings (loss) for reportable segments			27,933				14,440				(48,845	)			—				(6,472	)
Total assets			2,426,270				242,074				132,551				—				2,800,895
Capital expenditures			65,041				4,259				26				—				69,326

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Nine Months Ended September 30, 2026		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Revenue		$	1,293,043			$	226,348			$	—			$	(8,888	)		$	1,510,503
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals,and depreciation and amortization			349,147				52,476				(55,505	)			—				346,118
Depreciation and amortization			224,845				17,909				6,840				—				249,594
(Gain) loss on asset disposals			(3,989	)			(1,160	)			19				—				(5,130	)
Foreign exchange			282				2				747				—				1,031
Finance charges			267				325				36,498				—				37,090
(Gain) loss on investments and other assets			(463	)			—				1,113				—				650
Income taxes (recovery)			(17,394	)			7				42,032				—				24,645
Net earnings (loss) for reportable segments			145,599				35,393				(142,754	)			—				38,238
Total assets			2,433,652				251,596				80,645				—				2,765,893
Capital expenditures			208,373				12,675				2,798				—				223,846

Nine Months Ended September 30, 2025		Contract Drilling Services				Completion and Production Services				Corporate and Other				Inter- Segment Eliminations				Total
Revenue		$	1,165,752			$	207,878			$	—			$	(8,434	)		$	1,365,196
Earnings before income taxes, (gain) loss on investments and other assets, finance charges, foreign exchange, (gain) loss on asset disposals,and depreciation and amortization			364,298				46,693				(47,762	)			—				363,229
Depreciation and amortization			205,091				16,938				7,352				—				229,381
(Gain) loss on asset disposals			(7,153	)			(4,659	)			(939	)			—				(12,751	)
Foreign exchange			274				27				(834	)			—				(533	)
Finance charges			536				299				43,533				—				44,368
(Gain) loss on investments and other assets			895				—				636				—				1,531
Income taxes (recovery)			11,265				(496	)			45,502				—				56,271
Net earnings (loss) for reportable segments			153,390				34,584				(143,012	)			—				44,962
Total assets			2,426,270				242,074				132,551				—				2,800,895
Capital expenditures			171,364				10,491				209				—				182,064

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NOTE 5. LONG-TERM DEBT

			U.S. Denominated Facilities								Canadian Facilities and Translated U.S. Facilities
			September 30,				December 31,				September 30,				December 31,
			2026				2025				2026				2025
Long-Term Debt
Senior Credit Facility:
U.S. Denominated Borrowings		US$	46,000			$	80,000			$	65,461			$	109,809
Canadian Denominated Borrowings			—				—				—				28,000
Unsecured Senior Notes:
6.875% senior notes due 2029			400,000				400,000				569,224				549,044
		US$	446,000			$	480,000				634,685				686,853
Less net unamortized debt issue costs											(5,569	)			(7,562	)
										$	629,116			$	679,291

		Senior Credit Facility				Unsecured Senior Notes				Debt Issue Costs and Original Issue Discount				Total
Long-term debt December 31, 2025		$	137,809			$	549,044			$	(7,562	)		$	679,291
Changes from financing cash flows:
Proceeds from Senior Credit Facility			126,130				—				—				126,130
Repayment of Senior Credit Facility			(201,194	)			—				—				(201,194	)
			62,745				549,044				(7,562	)			604,227
Amortization of debt issue costs			—				—				1,993				1,993
Foreign exchange adjustment			2,716				20,180				—				22,896
Long-term debt September 30, 2026		$	65,461			$	569,224			$	(5,569	)		$	629,116

(a)       Covenants

As at September 30, 2026, Precision was in compliance with the covenants of the Senior Credit Facility.

	Covenant		As at September 30, 2026
Senior Credit Facility
Consolidated senior debt to consolidated covenant EBITDA(1)	< 2.50			0.14
Consolidated covenant EBITDA to consolidated interest expense	> 2.50			10.27

(1) For purposes of calculating the leverage ratio consolidated senior debt only includes secured indebtedness.

NOTE 6. FINANCE CHARGES

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Interest:
Long-term debt		$	10,874			$	12,351			$	33,361			$	40,063
Lease obligations			980				990				2,939				3,128
Other			133				(118	)			280				2
Income			(228	)			(291	)			(1,483	)			(1,202	)
Amortization of debt issue costs, loan commitment fees and original issue discount			674				819				1,993				2,377
Finance charges		$	12,433			$	13,751			$	37,090			$	44,368

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NOTE 7. SHARE-BASED COMPENSATION PLANS

(a)       Liability Classified Plans

		Restricted Share Units				Performance Share Units				Non-Management Directors’ DSUs				Total
December 31, 2025		$	9,220			$	17,513			$	10,321			$	37,054
Expensed during period(1)			5,354				11,041				1,803				18,198
Payments and redemptions			(7,116	)			(8,372	)			—				(15,488	)
Foreign exchange			(26	)			(37	)			—				(63	)
September 30, 2026		$	7,432			$	20,145			$	12,124			$	39,701
Current(2)		$	5,307			$	10,882			$	12,124			$	28,313
Long-term			2,125				9,263				—				11,388
		$	7,432			$	20,145			$	12,124			$	39,701

(1) Included in General and administrative expenses for the three and nine months ended September 30, 2026 were $4,104 and $12,265, respectively. Included in Operating expenses for the three and nine months ended September 30, 2026 were $1,690 and $5,933, respectively.

(2) The current portion of the share-based compensation liability is included in Accounts payable and accrued liabilities.

Restricted Share Units and Performance Share Units

A summary of the activity under the Restricted Share Unit (RSU) and the Performance Share Unit (PSU) plans is presented below:

		RSUs Outstanding				PSUs Outstanding
December 31, 2025			132,279				310,932
Granted			53,657				98,531
Redeemed			(64,585	)			(87,001	)
Forfeited			(13,277	)			(11,636	)
September 30, 2026			108,074				310,826

Non-Management Directors – Deferred Share Units Plan

A summary of the activity under the non-management director Deferred Share Unit (DSU) plan is presented below:

		DSUs Outstanding
December 31, 2025			104,799
Granted			1,013
September 30, 2026			105,812

(b)       Equity Settled Plans

Executive Restricted Share Units Plan

Precision granted Executive RSUs to certain senior executives with the intention of settling them in voting shares of the Corporation either issued from treasury or purchased in the open market. Granted units vest annually over a three-year term.

		Executive RSUs Outstanding				Weighted Average Fair Value
December 31, 2025			128,430			$	81.63
Granted			71,213				122.46
Redeemed			(49,327	)			84.68
Forfeited			(3,902	)			95.10
September 30, 2026			146,414			$	100.24

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Included in net earnings (loss) for the three months and nine months ended September 30, 2026 were expenses of $2 million (2025 – $2 million) and $6 million (2025 – $5 million), respectively.

Non-Management Directors – Deferred Share Unit Plans

A summary of the activity under the non-management director DSU plans is presented below:

Deferred share units		Outstanding- 2012 Plan				Outstanding- 2024 Plan
December 31, 2025			1,470				7,343
Granted			—				6,308
Redeemed			—				(7,280	)
September 30, 2026			1,470				6,371

Included in net earnings (loss) for the three and nine months ended September 30, 2026 were expenses of nil (2025 – nil) and $1 million (2025 – $1 million), respectively.

NOTE 8. SHAREHOLDERS’ CAPITAL

Common shares		Shares				Amount
December 31, 2025			12,932,399			$	2,238,766
Reversal of share repurchase liability — December 31, 2025			—				10,000
Share repurchase liability — September 30, 2026			—				(8,000	)
Settlement of PSUs and RSUs			48,865				4,095
Share options exercised			2,725				279
Share repurchases			(405,621	)			(71,217	)
Redemption of non-management directors share units			7,280				676
September 30, 2026			12,585,648			$	2,174,599

(a)       Normal Course Issuer Bid

For the period ended September 30, 2026, Precision repurchased and cancelled a total of 405,621 (2025 – 767,422) common shares for cash of $47 million (2025 – $54 million) and recorded $1 million (2025 – $1 million) Canadian share buy back tax.

(b)       Automated Share Purchase Plan

Prior to September 30, 2026, Precision entered into an Automated Share Purchase Plan (ASPP) with an independent broker to permit the repurchase of common shares during its internal blackout period. The volume of purchases is determined by the broker in its sole discretion based on purchase price and maximum volume parameters established by the Corporation under the ASPP. The Corporation accrues a liability for purchases estimated to occur during the blackout period based on the parameters of the NCIB and the ASPP. As at September 30, 2026, Precision accrued a liability of $8 million in accounts payable and accrued liabilities with a corresponding decrease to share capital.

NOTE 9. PER SHARE AMOUNTS

The following tables reconcile net earnings (loss) and weighted average shares outstanding used in computing basic and diluted net earnings (loss) per share:

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net earnings (loss) attributable to shareholders – basic		$	20,917			$	(6,761	)		$	37,098			$	44,017
Effect of share options and other equity    compensation plans			—				—				—				(580	)
Net earnings (loss) attributable to shareholders – diluted		$	20,917			$	(6,761	)		$	37,098			$	43,437

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		Three Months Ended September 30,								Nine Months Ended September 30,
(Stated in thousands)		2026				2025				2026				2025
Weighted average shares outstanding – basic			12,676				13,211				12,845				13,430
Effect of share options and other equity  compensation plans(1)			10				—				9				640
Weighted average shares outstanding – diluted			12,686				13,211				12,854				14,070

(1) For the three months ended September 30, 2026, 105,516 DSUs (2025 – 132,932), all outstanding PSUs (2025 – 414,880) and all outstanding RSUs (2025 – 75,039) were excluded from the calculation as their effect was anti-dilutive. For the nine months ended September 30, 2026, 105,192 DSUs (2025 – nil) and all outstanding PSUs (2025 – nil) and RSUs (2025 – nil) were excluded from the calculation as their effect was anti-dilutive

NOTE 10. CAPITAL COMMITMENTS

At September 30, 2026, Precision had commitments to purchase property, plant and equipment totaling $143 million (2025 – $165 million) with payments expected through 2028.

NOTE 11. FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates their fair value due to the relatively short period to maturity of the instruments. At the end of each reporting period, investments and other assets are measured at their estimated fair value, with changes in fair value recognized in profit or loss. Amounts drawn on the Senior Credit Facility, measured at amortized cost, approximate fair value as this indebtedness is subject to floating rates of interest and the interest rate swap is classified as a derivative fair valued through profit or loss. The fair value of the unsecured senior notes at September 30, 2026 was approximately $569 million (December 31, 2025 – $555 million).

Financial assets and liabilities recorded or disclosed at fair value in the consolidated statement of financial position are categorized based upon the level of judgement associated with the inputs used to measure their fair value. Hierarchical levels are based on the amount of subjectivity associated with the inputs in the fair value determination and are as follows:

Level I—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level II—Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level III—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The estimated fair value of unsecured senior notes and interest rate swap is based on Level II inputs. The fair value is estimated considering the risk-free interest rates on government debt instruments of similar maturities, adjusted for estimated credit risk, industry risk and market risk premiums.

NOTE 12. CONTINGENCIES

The business and operations of the Corporation are complex and the Corporation has executed a number of significant financings, business combinations, acquisitions and dispositions over the course of its history. The computation of income taxes payable as a result of these transactions involves many complex factors as well as the Corporation's interpretation of relevant tax legislation and regulations. The Corporation's management believes that the provision for income tax is adequate and in accordance with IFRS and applicable legislation and regulations. However, there are tax filing positions that have been and can still be the subject of review by taxation authorities who may successfully challenge the Corporation's interpretation of the applicable tax legislation and regulations, with the result that additional taxes could be payable by the Corporation.

In the 2018 to 2023 tax years, Precision deducted certain intercompany dividends received in connection with a preferred share financing. In late July 2026, Precision received a Notice of Reassessment (NOR) from the Canada Revenue Agency (CRA) relating to its 2018 tax year, denying the deduction of such intercompany dividends. In addition to the 2018 NOR, Precision received a proposal from the CRA for the 2019 to 2022 tax years on the same basis, but no reassessments have been received at this time.

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Precision will file a Notice of Objection to the 2018 NOR and intends to vigorously contest the 2018 NOR as well as any additional reassessments that may be issued by the CRA in respect of the intercompany dividends received. The Corporation and its tax advisors reaffirm that the Corporation's tax filing position is appropriate. As such, Precision has not recognized a liability in its unaudited interim consolidated financial statements with respect to the reassessment.

Due to existing tax pools, the CRA's reassessment of the 2018 tax year and anticipated reassessments of the 2019 to 2023 tax years are not expected to impact taxes payable until the 2024 to 2027 tax years. Additional notices of reassessment for subsequent tax years are expected to be issued over the next 24 months. If it is ultimately determined that the Corporation is not entitled to deduct the intercompany dividends, we estimate a maximum tax liability of approximately $155 million, excluding interest.

Once reassessments are issued, Precision will be required to pay 50% of the assessed tax liability and interest, until the issue has been resolved. If Precision is ultimately successful in defending its position, then any taxes and interest paid to the CRA will be refunded plus interest, and if the CRA is successful then any remaining taxes and interest payable will have to be remitted by Precision.

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SHAREHOLDER INFORMATION   STOCK EXCHANGE LISTINGS Shares of Precision Drilling Corporation are listed on the Toronto Stock Exchange under the trading symbol PD and on the New York Stock Exchange and NYSE Texas, Inc., under the trading symbol PDS.   TRANSFER AGENT AND REGISTRAR Computershare Trust Company of Canada Calgary, Alberta   TRANSFER POINT Computershare Trust Company NA Canton, Massachusetts   Q3 2026 TRADING PROFILE Toronto (TSX: PD) High: $131.13 Low: $101.22 Close: $114.59 Volume Traded: 4,560,768   New York (NYSE: PDS) High: US$94.58 Low: US$71.92 Close: US$80.58 Volume Traded: 6,806,462   ACCOUNT QUESTIONS Precision’s Transfer Agent can help you with a variety of shareholder related services, including:   • change of address • lost unit certificates • transfer of shares to another person • estate settlement   Computershare Trust Company of Canada 100 University Avenue 9th Floor, North Tower Toronto, Ontario M5J 2Y1 Canada   1-800-564-6253 (toll free in Canada and the United States) 1-514-982-7555 (international direct dialing) Email: service@computershare.com   ONLINE INFORMATION To receive news releases by email, or to view this interim report online, please visit Precision’s website at www.precisiondrilling.com and refer to the Investor Relations section. Additional information relating to Precision, including the Annual Information Form, Annual Report and Management Information Circular has been filed with SEDAR+ and is available at www.sedarplus.ca and on the EDGAR website www.sec.gov CORPORATE INFORMATION   DIRECTORS William T. Donovan Carey T. Ford Steven W. Krablin Lori A. Lancaster Susan M. MacKenzie Kevin O. Meyers David W. Williams   OFFICERS Carey T. Ford President and Chief Executive Officer   Dustin D. Honing Chief Financial Officer   Thomas M. Alford President, Well Servicing   Veronica H. Foley Chief Legal & Compliance Officer   Shuja U. Goraya Chief Technology Officer & President, International   Darren J. Ruhr Chief Administrative Officer   Gene C. Stahl Chief Operating Officer   AUDITORS PricewaterhouseCoopers LLP Calgary, Alberta   HEAD OFFICE Suite 800, 525 8th Avenue SW Calgary, Alberta, T2P 1G1 Canada Telephone: 403-716-4500 Facsimile: 403-264-0251 Email: info@precisiondrilling.com www.precisiondrilling.com

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Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EXHIBIT 99.1 390.9 KB
• EX-99.2 EXHIBIT 99.2 447.4 KB

Financial & Certifications

• EX-31.1 EXHIBIT 31.1 10.2 KB
• EX-31.2 EXHIBIT 31.2 10.1 KB