CES Energy Solutions Corp (TSE:CEU)
TSX:CEU
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CES Energy Solutions
(TSX:CEU)
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Rating:71Outperform
Price Target:
C$19.50
â–²(13.57% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (improved profitability, strong ROE, and solid recent free cash flow), partially offset by still-meaningful debt and some margin/cash-flow quality watch-outs. Technicals are mixed with near-term weakness versus key short-term averages despite a longer-term uptrend, and valuation/income support is only moderate (P/E ~19, ~1% yield).
Positive Factors
Revenue & Profitability Improvement
CES has meaningfully raised revenue and moved net margins from roughly 4–5% in 2021–2022 to the low-8% range TTM. That structural improvement suggests better pricing, cost control and product/mix execution, supporting sustainable operating leverage across cycles.
Negative Factors
Meaningful Absolute Debt
Despite improving ratios, a roughly $470M absolute debt load is sizable in oilfield services. In a downturn, interest and principal obligations can strain cash flow, limit reinvestment or M&A activity, and elevate refinancing and covenant risks over months.
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Positive Factors
Negative Factors
Revenue & Profitability Improvement
CES has meaningfully raised revenue and moved net margins from roughly 4–5% in 2021–2022 to the low-8% range TTM. That structural improvement suggests better pricing, cost control and product/mix execution, supporting sustainable operating leverage across cycles.
Read all positive factors
CES Energy Solutions (CEU) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$3.63B
Dividend Yield1.29%
Average Volume (3M)1.06M
Price to Earnings (P/E)17.3
Beta (1Y)0.99
Revenue Growth6.08%
EPS Growth24.69%
CountryCA
Employees2,532
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.98
Shares Outstanding209,781,540
10 Day Avg. Volume823,254
30 Day Avg. Volume1,062,624
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)3.36
Price to Sales (P/S)1.08
P/FCF Ratio13.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.93Price Target Upside21.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.02
Revenue Forecast (FY)C$2.73B
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,...
How the Company Makes Money
CES Energy Solutions primarily makes money by selling consumable chemical products and delivering supporting services to upstream oil and gas operators, with revenue generally tied to industry activity levels (e.g., drilling and production volumes...
CES Energy Solutions Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance in terms of revenue growth and market share gains, particularly in the U.S. and Canadian markets. However, the company faced margin pressures due to tariff uncertainties and staffing challenges. Despite these challenges, the overall sentiment leans positive due to the record-breaking revenue and strategic growth initiatives.Positive Updates
Record-Breaking Revenue
Quarterly revenue reached $574 million, a 3.5% increase over Q2 of 2024, with U.S. revenue setting an all-time record of $405.6 million and Canadian revenue hitting a Q2 record of $168.4 million.
Negative Updates
Margin Pressures
Margins in the first half of 2025 were adversely affected by persistent tariff uncertainties and staffing versus revenue levels, leading to a lower adjusted EBITDAC margin of 15.4%.
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Q2-2025 Updates
Positive
Negative
Record-Breaking Revenue
Quarterly revenue reached $574 million, a 3.5% increase over Q2 of 2024, with U.S. revenue setting an all-time record of $405.6 million and Canadian revenue hitting a Q2 record of $168.4 million.
Read all positive updates
Company Guidance
During the CES Energy Solutions Second Quarter 2025 Results Conference Call, the company reported several key metrics and offered guidance for the remainder of the year. The quarterly revenue reached $574 million, marking a 3.5% increase from Q2 2024, with the U.S. contributing a record $405.6 million and Canada $168.4 million. The EBITDA for the quarter was $88.3 million, representing a 15.4% margin, while the total debt to trailing 12 months EBITDA stood at 1.25x. CES also highlighted a strong North American market share of over 28.2% in the land rig sector, with a record market share of 37.5% in the Permian Basin. The company completed its goal of repurchasing 19.2 million shares under the prior NCIB and renewed this for 18.9 million shares for 2025-2026. Capital allocation plans include an anticipated CapEx of $80 million for 2025 and continued strategic acquisitions. Despite challenges such as tariffs and staffing costs, CES remains optimistic about growth prospects in 2025 and 2026, driven by infrastructure projects and increased natural gas demand.CES Energy Solutions Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.54B | 2.49B | 2.35B | 2.16B | 1.92B | 1.20B |
| Gross Profit | 597.19M | 573.44M | 581.08M | 479.35M | 396.95M | 261.08M |
| EBITDA | 358.87M | 373.77M | 355.93M | 300.59M | 230.34M | 141.86M |
| Net Income | 210.88M | 204.72M | 191.11M | 154.64M | 95.22M | 49.88M |
Balance Sheet | ||||||
| Total Assets | 1.69B | 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 | 0.00 |
| Total Debt | 469.91M | 481.54M | 436.78M | 463.72M | 551.13M | 437.20M |
| Total Liabilities | 850.54M | 816.33M | 725.10M | 719.27M | 801.95M | 600.92M |
| Stockholders Equity | 843.56M | 801.52M | 814.23M | 658.00M | 609.05M | 486.68M |
Cash Flow | ||||||
| Free Cash Flow | 205.92M | 199.21M | 211.55M | 227.88M | -55.91M | -101.83M |
| Operating Cash Flow | 294.37M | 285.37M | 304.66M | 301.78M | -2.74M | -74.41M |
| Investing Cash Flow | -100.21M | -104.88M | -95.22M | -71.83M | -46.79M | -12.76M |
| Financing Cash Flow | -194.16M | -180.49M | -209.45M | -229.95M | 49.53M | 68.91M |
CES Energy Solutions Technical Analysis
Neutral
17.17
Price Trends
18.23
Negative
16.82
Positive
13.39
Positive
Market Momentum
-0.16
Positive
40.49
Neutral
9.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CEU, the sentiment is Neutral. The current price of 17.17 is below the 20-day moving average (MA) of 18.23, below the 50-day MA of 18.23, and above the 200-day MA of 13.39, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CEU.
CES Energy Solutions Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | C$1.57B | 14.20 | 17.25% | 3.57% | 20.60% | 6.72% | |
82 Outperform | C$889.08M | 11.21 | 13.24% | 2.57% | 18.21% | 29.33% | |
72 Outperform | C$4.20B | 31.76 | 7.72% | 0.74% | 11.15% | 10.92% | |
71 Outperform | C$3.63B | 17.26 | 26.01% | 1.29% | 6.08% | 24.69% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | C$3.33B | 45.70 | 9.99% | 0.43% | 65.16% | -18.37% |
* Energy Sector Average
TSE:CEU
CES Energy Solutions
17.32
11.14
180.26%
TSE:EFX
Enerflex
34.48
24.71
252.74%
TSE:TOT
Total Energy Services
24.40
14.25
140.37%
TSE:TVK
TerraVest
153.78
-15.39
-9.10%
TSE:TCW
Trican Well Service
7.46
3.24
76.86%
CES Energy Solutions Corporate Events
Business Operations and StrategyFinancial Disclosures
CES Energy Solutions Sets Q1 2026 Results Call for May 8
Positive
Apr 13, 2026
CES Energy Solutions Corp. will release its first-quarter 2026 financial results after markets close on May 7, 2026, and hold a conference call the following morning, May 8, at 9:00 a.m. MT, led by President and CEO Ken Zinger. The call, accessibl...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
CES Energy Solutions Posts Record 2025 Results and Lifts Dividend 29%
Positive
Mar 10, 2026
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 acqu...
Business Operations and StrategyFinancial Disclosures
CES Energy Solutions Sets Date for Q4 and Full-Year 2025 Results Call
Positive
Feb 12, 2026
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. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.