Ensign Energy Services Cuts Debt as 2025 Revenue and EBITDA Decline

Ensign Energy Services ( (TSE:ESI) ) has provided an announcement.

Ensign Energy Services reported 2025 revenue of $1.64 billion, down 3% from the prior year, with adjusted EBITDA falling 13% to $389.8 million and funds flow from operations declining 15%. The company posted a net loss attributable to common shareholders of $38.8 million as softer industry conditions weighed on results, particularly in international drilling and U.S. well servicing activity.

Despite weaker earnings, Ensign reduced total debt, net of cash, by $104.9 million to $918.6 million and extended the maturity of its $950 million revolving credit facility to late 2028, improving its liquidity profile. Management now expects to achieve its $600 million multi‑year debt reduction target in the first half of 2026 rather than by the end of 2025, reflecting both lower EBITDA and continued reinvestment in capital expenditures.

Operationally, Canadian drilling days slipped 3% while well servicing hours rose 5%, U.S. drilling days increased 2% but well servicing hours fell 19%, and international drilling days dropped 15%, underscoring uneven demand across regions. Interest expense fell 23% to $74.8 million due to lower debt levels and more favorable interest rates, partially offsetting the impact of weaker operating performance on the company’s financial results.

The most recent analyst rating on (TSE:ESI) stock is a Hold with a C$3.50 price target. To see the full list of analyst forecasts on Ensign Energy Services stock, see the TSE:ESI Stock Forecast page.

Spark’s Take on TSE:ESI Stock

According to Spark, TipRanks’ AI Analyst, TSE:ESI is a Neutral.

Ensign Energy Services’ overall score is driven by mixed financial performance and valuation concerns, offset by positive technical indicators and strategic initiatives highlighted in the earnings call. The company’s focus on debt reduction and securing long-term contracts provides a cautiously optimistic outlook, but challenges in profitability and revenue growth remain significant.

To see Spark’s full report on TSE:ESI stock, click here.

More about Ensign Energy Services

Ensign Energy Services Inc. is a Calgary-based oilfield services provider focused on contract drilling and well servicing operations. The company operates a large fleet of marketed rigs across Canada, the United States and international markets, with the U.S. segment contributing just over half of total revenue in 2025.

Average Trading Volume: 215,291

Technical Sentiment Signal: Buy

Current Market Cap: C$678.5M

For an in-depth examination of ESI stock, go to TipRanks’ Overview page.