Total Energy Services Stock Earnings Reports

Key points for investors: Total Energy reported strong Q1 2026 operational and financial performance: consolidated revenue rose 25% year-over-year and EBITDA increased by $4.7 million, driven largely by a 55% surge in the Compression & Process Services (CPS) segment and improved results in Australia and upgraded rigs in Canada. CPS backlog hit a record $446.9 million (up 68% YoY), providing visibility into 2027. Geographic mix: 46% Canada, 32% U.S., 22% Australia. Gross margin declined 260 basis points YoY to 22% due to a higher mix of lower-margin CPS fabrication revenue. CDS (drilling) revenues rose modestly, but CDS and RTS segment margins were down due to reactivation costs, competitive U.S. pricing and mix changes; U.S. well servicing operations were discontinued in January. Balance sheet strength is a highlight: $91.4 million cash, positive working capital of $113.4 million, net cash position (cash exceeded bank debt by $46.4M), and comfortable covenant ratios. During the quarter the company spent $20.7M of capex, returned $6.5M via dividends and buybacks, repaid $10M of bank debt and grew quarter-end cash to $91.3M ($2.49/share). Operationally: Australian activity was strong but impacted by wet-season downtime; Australian rig/service rig counts increasing (13 drilling, 8 service rigs active in May); Canadian rig upgrades underway (conversion to AC electric triple expected Q1 2027) and U.S. rig reactivations are beginning (4 active rigs). Strategic growth actions: expanding U.S. fabrication in Weirton, WV (expected complete Q1 2027) which is expected to nearly double U.S. fabrication capacity; management is evaluating M&A opportunistically but remains disciplined. Risks/notes: a significant noncash share-based compensation charge (increase of $6.5M YoY) due to a 52% share-price increase reduced reported earnings; lead times for large engines have lengthened (now >3 years), complicating procurement and production planning.