Canada's Trican Well Service Q3 profit rises on higher activity, Iron Horse contribution

By Reuters News


Overview

  • Canada oilfield services firm's Q3 revenue rose yr/yr but missed analyst expectations

  • Q3 adjusted EBITDA increased to C$87.7 mln from C$59.5 mln a year earlier

  • Company returned C$53 mln to shareholders through dividends and share buybacks in Q3


Outlook

  • Trican budgets C$122 mln for 2026 capital spending, focused on fleet reliability, efficiency and modernization

  • Trican expects initial deployment of its natural gas-fueled fracturing fleet in Q4 2026 and full field readiness in 2027

  • Expanding LNG export capacity and improved oil market access expected to support measured growth through 2027


Result Drivers

  • HIGHER ACTIVITY AND UTILIZATION - Co said increased operating activity and improved utilization levels drove higher Q3 results

  • IRON HORSE ACQUISITION - Full-quarter contribution from Iron Horse acquisition added to operating scale and service capabilities

  • SUPPORTIVE COMMODITY PRICES - Co said commodity prices remained supportive of customer activity, especially for oil and liquids-focused producers


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

C$338.30 mln

C$355.90 mln (3 Analysts)

Q3 Net Income

Beat

C$48 mln

C$43 mln (2 Analysts)

Q3 Adjusted EBITDA

C$87.70 mln

Q3 Free Cash Flow

C$66 mln

Q3 Gross Profit

C$74.50 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy"

  • Wall Street's median 12-month price target for Trican Well Service Ltd. is C$8.00, about 15.6% above its October 27 closing price of C$6.92

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Oct 26 - ConocoPhillips to reduce workforce in Canada

  • Oct 27 - Baker Hughes Q3 net income down by a third on Chart deal costs despite revenue, adj EPS beat

  • Oct 27 - Nabors Q3 revenue beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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