Precision Drilling says 2026 Q1 revenue rose to $526M as utilization climbed in Canada and the U.S. Adjusted EBITDA was $124M, while the company lifted its 2026 capex budget to $265M.
CALGARY, Alberta — Precision Drilling has released its 2026 first-quarter unaudited results, painting a picture of improving activity in North America even as earnings were pressured by costs tied to share compensation and depreciation.
Revenue climbed to $526 million in the quarter, up 6% from $496 million a year earlier, with the gain driven by higher utilization across its Canadian and U.S.. drilling and well service operations.. The company said the increase more than offset weaker international results, where fewer rigs were actively contracted compared with the same period in 2025.
The key story for investors is the split between top-line growth and earnings performance.. Adjusted EBITDA came in at $124 million, down from $137 million in the first quarter of 2025.. Precision attributed the decline largely to higher share-based compensation expense—$19 million versus $3 million—along with increased costs associated with rig reactivations.. Net earnings attributable to shareholders fell to $17 million from $35 million.
Cash generation remained solid.. Precision reported $63 million of cash provided by operations, using it to repurchase $4 million of common shares and reduce debt by $25 million.. The company also ended the quarter with $41 million of cash and more than $430 million in available liquidity—figures that matter in an industry where projects and schedules can move quickly.
Utilization rises in Canada and the U.S.
Operationally, Precision pointed to a year-over-year improvement in activity.. In Canada, the average number of active rigs increased to 79 from 74, and in the U.S.. active rigs rose to 37 from 30.. The company said its utilization days expanded even in a market where industry activity declined year over year, underscoring that Precision’s contracted and fleet management approach is holding up.
Canadian revenue per utilization day decreased to $35,021 from $35,601, which Precision linked to rig mix—specifically proportionately fewer active Super Triples.. In the U.S., revenue per utilization day increased to US$33,715 from US$33,157, though the company noted that excluding certain turnkey and idle-but-contracted revenue streams, revenue per utilization day remained essentially comparable to the prior year.
# Where technology and fleet upgrades fit
Precision also continued to emphasize its Alpha™ digital technology platform, describing it as a way to unlock performance gains through automation, data analytics, and real-time optimization.. The company connected that push to “record drilling results” for customers in Canada and the U.S.. It also highlighted targeted contracted rig upgrades, including two Canadian Super Triple drilling rig upgrades that it says are part of why activity and performance are trending in the right direction.
Capex up for 2026 as activity outlook firms
Alongside the quarterly results, Precision revised its 2026 capital budget to $265 million from $245 million.. The company linked the increase to the contracted Canadian rig upgrades and higher expected activity in Canada and the U.S.. It also reported first-quarter capital expenditures of $65 million, slightly above the $60 million spent in the same quarter of 2025.
Management framed the operating environment as increasingly complex, citing global volatility and heightened geopolitical tensions in the Middle East.. In the company’s view, that backdrop is pushing commodity and financial market swings, along with stronger scrutiny of the energy industry overall—factors that can change how quickly customers move from planning to drilling.
From a practical standpoint, those market shifts show up in how fast rigs are booked, how long contracts last, and how much companies are willing to spend on equipment and upgrades.. Precision’s approach, as it described it, is to prioritize safety and reliable execution first, then use fleet upgrades and technology to deliver predictable outcomes for customers.
What the market may watch next
Looking ahead, Precision said it expects second-quarter activity to be above last year’s level in Canada, supported by demand for pad-capable Super Triple and Super Single rigs and what it described as a robust oil price environment.. In the U.S., the company said it experienced contract churn in March and April but expects active rig counts to return to the high 30s in June.. It also pointed to increased inquiries about rig availability, implying room for further additions and pricing strength later in the year.
Internationally, Precision reported seven rigs under contract versus eight in the first quarter of 2025, with revenue per utilization day rising to US$51,596 from US$49,419—attributed mainly to higher mobilization revenue.. In the Middle East, the company said its international rigs are supported by long-term contracts extending into 2027 and 2028, and it expects seven active rigs for the remainder of the year.
For shareholders, the next question is whether cash flow and debt reduction can offset earnings volatility tied to share-based compensation and depreciation changes.. Precision reiterated a disciplined capital allocation strategy, targeting balance sheet strength, free cash flow generation, and shareholder returns.. It also set an explicit direction for debt reduction in 2026 and reaffirmed published shareholder return commitments for the year.
With North American utilization improving while costs squeeze margins, the company’s updated capex plan and its operational guidance for coming quarters may be the most important signals as the industry navigates uncertainty and customers weigh their next drilling decisions.