Ensign Engy Services (TSE:ESI)
TSX:ESI
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Ensign Energy Services
(TSX:ESI)
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Rating:56Neutral
Price Target:
C$3.50
▼(-4.37% Downside)
Action:ReiteratedDate:03/07/26
The score is held back primarily by weaker recent profitability and a sharp TTM revenue decline, despite resilient operating/free cash flow and improving leverage. Technicals are mildly supportive with the stock holding above key medium/long-term moving averages, while valuation is constrained by negative earnings. Earnings-call commentary adds moderate support via debt-reduction progress and improved contract visibility, but is tempered by YoY EBITDA contraction and international/U.S. pricing headwinds.
Positive Factors
Cash generation
Sustained positive operating and free cash flow despite recent earnings weakness shows the business still converts drilling activity into cash. This supports funding maintenance capex, customer-funded upgrades, and continued debt paydown, preserving financial flexibility through cycles.
Negative Factors
Revenue decline & net loss
A severe TTM revenue drop and return to net losses signal demand and pricing deterioration that can persist across quarters in a cyclical drilling market. Thin gross and operating margins leave limited room to absorb further activity shocks, pressuring returns and capital allocation priorities.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive operating and free cash flow despite recent earnings weakness shows the business still converts drilling activity into cash. This supports funding maintenance capex, customer-funded upgrades, and continued debt paydown, preserving financial flexibility through cycles.
Read all positive factors
Ensign Energy Services (ESI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$689.07M
Dividend YieldN/A
Average Volume (3M)164.91K
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth-2.47%
EPS Growth-246.73%
CountryCA
Employees4,160
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.07
Shares Outstanding184,242,520
10 Day Avg. Volume151,251
30 Day Avg. Volume164,913
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.36
Price to Sales (P/S)0.29
P/FCF Ratio8.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.67Price Target Upside0.27% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)-0.11
Revenue Forecast (FY)C$1.66B
Ensign Energy Services Business Overview & Revenue Model
Company Description
Ensign Energy Services Inc., together with its subsidiaries, provides oilfield services to the crude oil and natural gas industries in Canada, the United States, and internationally. The company offers shallow, intermediate, and deep well drilling...
How the Company Makes Money
Ensign Energy Services generates revenue primarily through its various service offerings in the oil and gas industry. The main revenue streams include contract drilling services, which involve providing drilling rigs and crews to oil and gas compa...
Ensign Energy Services Earnings Call Summary
Earnings Call Date:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call balanced notable operational and strategic positives — meaningful debt reduction progress, expanded forward contract coverage ($1.2B), strong technology adoption (EDGE deployments on 60% of rigs and new DGS/ATC products), Canadian EBITDA gains, and customer-funded upgrades — against clear near-term financial and market headwinds, including revenue down 2–3% YoY, adjusted EBITDA down 13% for the year, international activity weakness (international operating days -15%), increased net capex and geopolitical/insurance concerns in the Middle East and Venezuela. Management tone was constructive and focused on debt reduction, disciplined capex and technology-driven margin improvement, but material YoY profitability declines and external risks temper the outlook.Positive Updates
Debt Reduction Progress
Repurchased/repaid $80.3M of debt in 2025 with a total net decrease of ~$105M (including FX); management expects the $600M debt reduction target to be achieved in H1 2026 given current plans.
Negative Updates
Revenue Decline
Total revenue decreased to $418.8M in Q4 2025 (down 2% YoY from $426.5M) and $1.64B for full-year 2025 (down 3% YoY from $1.68B).
Read all updates
Q4-2025 Updates
Positive
Negative
Debt Reduction Progress
Repurchased/repaid $80.3M of debt in 2025 with a total net decrease of ~$105M (including FX); management expects the $600M debt reduction target to be achieved in H1 2026 given current plans.
Read all positive updates
Company Guidance
Guidance highlights: management budgeted 2026 maintenance capex of ~$161.4M plus ~$32.8M of selective upgrade capex (≈$24M customer‑funded), expects to grow a $1.2B forward contract book with ~60% of the fleet contracted, and reiterated a near‑term focus on debt reduction (after ~$80.3M of debt repayments and a ~$105M net debt decrease in 2025, net debt was cited near ~$918.6M) with the stated $600M debt‑reduction target now likely to be achieved in H1‑2026; operational guidance emphasized steady demand (Q4 total operating days +1% — U.S. +14%, Canada -8%, international -8%; FY operating days -3% — U.S. +2%, Canada -3%, international -15%), alongside technology rollouts (EDGE installs +15% in 2025 to ~60% of rigs, adding roughly $1,000–$2,600/day on high‑spec triples and ~10 EDGE rigs/year at ~$1,000–$1,500/day average margin), and reiterated 2025 financial baselines to compare against (Q4 revenue $418.8M, Q4 adjusted EBITDA $107.5M; FY revenue $1.64B, FY adjusted EBITDA $389.8M), while noting minimum credit‑facility liquidity must be met before any NCIB/buyback consideration.Ensign Energy Services Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.64B | 1.68B | 1.79B | 1.58B | 995.59M |
| Gross Profit | 99.94M | 151.74M | 240.87M | 141.11M | -36.79M |
| EBITDA | 386.66M | 429.44M | 481.91M | 402.84M | 202.14M |
| Net Income | -38.76M | -20.75M | 41.24M | 8.13M | -156.01M |
Balance Sheet | |||||
| Total Assets | 2.64B | 2.91B | 2.95B | 3.18B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 16.19M | 28.11M | 20.50M | 49.88M | 13.30M |
| Total Debt | 967.03M | 1.08B | 1.23B | 1.46B | 1.46B |
| Total Liabilities | 1.36B | 1.54B | 1.64B | 1.90B | 1.78B |
| Stockholders Equity | 1.28B | 1.37B | 1.31B | 1.29B | 1.19B |
Cash Flow | |||||
| Free Cash Flow | 57.61M | 293.13M | 184.46M | 145.57M | 113.39M |
| Operating Cash Flow | 251.98M | 471.79M | 360.30M | 319.96M | 178.64M |
| Investing Cash Flow | -162.87M | -130.79M | -152.63M | -121.46M | -174.59M |
| Financing Cash Flow | -100.30M | -334.67M | -366.28M | -162.04M | -35.03M |
Ensign Energy Services Technical Analysis
Positive
3.66
Price Trends
3.41
Positive
2.99
Positive
2.66
Positive
Market Momentum
0.08
Negative
54.68
Neutral
67.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESI, the sentiment is Positive. The current price of 3.66 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.41, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 67.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ESI.
Ensign Energy Services Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$238.13M | 10.82 | 11.29% | ― | -16.20% | -38.85% | |
71 Outperform | C$140.42M | 5.79 | 7.65% | ― | 24.94% | 956.65% | |
69 Neutral | C$620.22M | 6.22 | 24.11% | 10.44% | 8.98% | -27.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | C$1.82B | -7.62 | 0.11% | ― | -5.55% | -74.96% | |
56 Neutral | C$689.07M | -12.07 | -2.94% | ― | -2.47% | -246.73% | |
55 Neutral | C$105.25M | -2.72 | -2.38% | ― | -0.38% | 6.98% |
* Energy Sector Average
TSE:ESI
Ensign Energy Services
3.74
1.36
57.14%
TSE:PD
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140.55
73.79
110.53%
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90.53%
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6.82
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29.66%
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TSE:WRG
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37.31%
Ensign Energy Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Ensign Energy Services Cuts Debt as 2025 Revenue and EBITDA Decline
Negative
Mar 6, 2026
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 share...
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.