CES Energy Solutions (CEU) AI Stock Analysis

• Market Cap: C$3.90B
• Dividend Yield: 1.29%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.35
• Revenue Growth: 5.79%
• EPS Growth: -5.08%
• Country: CA
• Employees: 2,532
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.32
• Shares Outstanding: 209,781,540
• 10 Day Avg. Volume: 823,254
• 30 Day Avg. Volume: 1,062,624
• PEG Ratio: 0.98
• Price to Book (P/B): 3.36
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 13.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$18.72
• Price Target Upside: 0.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): C$2.63B

• Rating: 75 Outperform
• Price Target: C$20.50 ▲(10.16% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by solid financial performance (strong profitability and positive free cash flow) and supportive trend strength. The main offsets are recent margin softening, slightly higher leverage and weaker cash conversion, plus technically overextended momentum that can increase pullback risk. Valuation appears reasonable with a moderate P/E and a small dividend yield.

Positive Factors

Profitability & FCF

Consistent mid-teens EBITDA and positive free cash flow show CES converts operating performance into cash. Durable cash generation supports reinvestment in blending/manufacturing, field service coverage, and disciplined debt reduction across energy cycles, strengthening long-term resilience.

Revenue Growth Trend

Sustained revenue expansion through 2025 reflects growing penetration of chemical and services offerings. Multi-year top-line growth supports scale economics, better absorption of fixed costs and capacity utilization, improving the odds of margin recovery and capital returns over months to years.

Business Model & Stickiness

Selling specialized, consumable chemistries plus field services creates recurring, high‑touch revenue and customer stickiness. Technical solutions and integrated service delivery raise switching costs, enable cross‑sell and pricing power, supporting sustainable demand and margin durability.

Negative Factors

Margin Compression

Reported margin compression versus 2024 suggests structural cost or pricing headwinds. Persistent erosion of gross and operating margins reduces free cash flow and weakens the company’s cushion against cyclical downturns, constraining reinvestment and shareholder returns over the medium term.

Rising Leverage

Leverage creeping higher in a cyclical oilfield services sector tightens financial flexibility. Elevated debt levels increase refinancing and covenant risk during activity troughs and may limit the company's ability to invest in capacity, pursue M&A, or return capital without raising cost of capital.

Weaker Cash Conversion

Operating cash covered less of reported earnings and FCF lagged net income, indicating working capital or investment demands. Weakened cash conversion can constrain deleveraging, capex funding and dividend growth, raising reliance on external financing in tougher activity periods.

CES Energy Solutions Business Overview & Revenue Model

Company Description

CES Energy Solutions Corp., together with its subsidiaries, designs, implements, and manufactures advanced consumable fluids and specialty chemicals. It provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets. The company's solutions include corrosion inhibitors, demulsifiers, H2S scavengers, paraffin control products, surfactants, scale inhibitors, biocides, and other specialty products. It also designs and implements drilling fluid systems and completion solutions for oil and gas producers; designs and manufactures production and specialty chemicals for use in the oil and natural gas production markets, the stimulation and fracturing markets, and the pipeline and midstream markets; and operates trucks and trailers to transport products in the oil and gas industry. In addition, the company provides environmental consulting, water management services, and drilling fluids waste disposal services primarily to oil and gas producers; and laboratory services. It serves oil and natural gas industry, including multinational producers, intermediate oil and natural gas operators, independent juniors, and joint ventures, as well as pipeline and mid-stream markets in western Canada and the United States. The company was formerly known as Canadian Energy Services & Technology Corp. and changed its name to CES Energy Solutions Corp. in June 2017. CES Energy Solutions Corp. was incorporated in 1986 and is headquartered in Calgary, Canada.

How the Company Makes Money

CES Energy Solutions makes money primarily by selling and delivering consumable chemical products and associated services to oil and gas producers and drilling contractors. Its core revenue stream is the supply of specialty oilfield chemistries (formulated products that are blended/manufactured and then transported and applied at the wellsite) used in drilling and production workflows; customers pay based on volumes delivered and/or chemicals consumed per job or per well, with pricing influenced by product mix, technical requirements, and activity levels. A second revenue component comes from service delivery tied to those chemical sales—field personnel, logistics, and technical support that ensure products are correctly applied and performance targets are met—typically billed as part of an integrated job charge or as service/handling components alongside product revenue. Additional revenue is generated from distribution of related consumables/equipment and from manufacturing/blending activities supporting its product portfolio, where earnings are driven by gross margin on manufactured/distributed products and the utilization of its facilities and supply chain. Overall, earnings are highly dependent on upstream oil and gas activity (drilling, completion, and production volumes), customer spending levels, commodity-price-driven demand, and the company’s ability to maintain pricing and margins through product differentiation, scale procurement, and operating efficiency.

CES Energy Solutions Financial Statement Overview

Summary

Strong multi-year recovery with solid profitability (2025 net margin ~8%, EBIT ~11%, EBITDA ~15%) and consistently positive free cash flow. Offsetting this, margins compressed versus 2024, leverage ticked up year over year (debt-to-equity ~0.60 vs ~0.54), and cash conversion weakened (operating cash flow coverage below 1.0; FCF ~70% of net income).

Income Statement

CES shows a strong multi-year recovery and solid profitability. Revenue expanded materially from 2021 to 2025, with 2025 revenue up modestly versus 2024, while net profit remained healthy at ~8% and operating profitability stayed strong (EBIT margin ~11% and EBITDA margin ~15% in 2025). A key weakness is margin compression versus 2024 (lower gross and operating margins), suggesting some cost or pricing pressure even as earnings continued to grow.

Balance Sheet

The balance sheet looks generally sound with moderate leverage and strong returns for the equity base. Debt-to-equity improved meaningfully versus earlier years and sits around 0.60 in 2025, while return on equity is strong (~26%). The main watch item is leverage creeping up versus 2024 (debt-to-equity rising from ~0.54 to ~0.60) and equity slightly lower year over year, which can reduce flexibility in a more volatile oilfield services cycle.

Cash Flow

Cash generation is healthy, with positive operating cash flow and solid free cash flow in 2025, and free cash flow showing strong year-over-year growth. That said, cash conversion weakened versus 2024: operating cash flow covered less of earnings in 2025 (coverage below 1.0), and free cash flow remains below net income (around 70%), indicating working-capital or investment demands are absorbing some reported profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.49B	2.35B	2.16B	1.92B	1.20B
Gross Profit	573.44M	581.08M	479.35M	396.95M	261.08M
EBITDA	373.77M	355.93M	300.59M	230.34M	141.86M
Net Income	204.72M	191.11M	154.64M	95.22M	49.88M
Balance Sheet
Total Assets	1.62B	1.54B	1.38B	1.41B	1.09B
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	0.00	0.00
Total Debt	481.54M	436.78M	463.72M	551.13M	437.20M
Total Liabilities	816.33M	725.10M	719.27M	801.95M	600.92M
Stockholders Equity	801.52M	814.23M	658.00M	609.05M	486.68M
Cash Flow
Free Cash Flow	199.21M	211.55M	227.88M	-55.91M	-101.83M
Operating Cash Flow	285.37M	304.66M	301.78M	-2.74M	-74.41M
Investing Cash Flow	-104.88M	-95.22M	-71.83M	-46.79M	-12.76M
Financing Cash Flow	-180.49M	-209.45M	-229.95M	49.53M	68.91M

CES Energy Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CEU, the sentiment is Positive. The current price of 18.61 is above the 20-day moving average (MA) of 17.44, above the 50-day MA of 15.72, and above the 200-day MA of 10.75, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 76.48 is Negative, neither overbought nor oversold. The STOCH value of 74.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CEU.

CES Energy Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	79 Outperform	C$803.45M	7.49	12.57%	2.57%	15.58%	47.55%
TCW	76 Outperform	C$1.55B	10.23	18.06%	3.57%	9.24%	6.35%
CEU	75 Outperform	C$3.90B	13.15	22.00%	1.29%	5.79%	-5.08%
EFX	75 Outperform	C$3.57B	-8.18	6.74%	0.74%	5.92%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	54 Neutral	C$2.97B	26.86	14.09%	0.43%	50.38%	25.63%

CES Energy Solutions Corporate Events

CES Energy Solutions Posts Record 2025 Results and Lifts Dividend 29%

CES Energy Solutions reported record fourth-quarter 2025 revenue of $664.5 million, up 10% year over year, and record annual revenue of $2.5 billion, driven by strong market share gains, higher service intensity, and contributions from recent acquisitions. Adjusted EBITDAC reached $113.2 million for the quarter and $404.6 million for the year, and the company generated solid free cash flow while maintaining conservative leverage of 1.23x.

The company returned $174.9 million to shareholders in 2025 through dividends and share repurchases, buying back 16.8 million shares, or about 7.5% of its float, and announced a 29% increase to its quarterly dividend to $0.055 per share. Management highlighted continued demand for its chemical solutions in both the U.S. and Canada, with drilling fluids market share rising to 25% in the U.S. and over 40% in Canada, reinforcing CES’s competitive position despite softer rig counts.

The most recent analyst rating on (TSE:CEU) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on CES Energy Solutions stock, see the TSE:CEU Stock Forecast page.

CES Energy Solutions Sets Date for Q4 and Full-Year 2025 Results Call

CES Energy Solutions Corp. will release its financial results for the fourth quarter and full year ended December 31, 2025, after markets close on March 10, 2026, and will host a conference call the following morning, March 11, 2026, at 9:00 a.m. MT. President and Chief Executive Officer Ken Zinger will lead the call, which will be accessible via telephone and webcast, with a recording available on the company’s website for approximately 90 days, signaling continued engagement with investors and stakeholders around its financial performance.

The planned results release and call underscore CES’s effort to maintain transparency on its operations and capital-light growth strategy amid ongoing demand for drilling fluids and production chemicals in North America. By providing multiple access points to the webcast and archiving it for an extended period, the company facilitates broader investor access and reinforces its positioning as a key supplier in the oilfield chemical solutions market.

The most recent analyst rating on (TSE:CEU) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on CES Energy Solutions stock, see the TSE:CEU Stock Forecast page.