Ensign Engy Services (TSE:ESI)
TSX:ESI
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Ensign Energy Services
(TSX:ESI)
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Rating:57Neutral
Price Target:
C$4.00
▲(23.08% Upside)
Action:ReiteratedDate:05/09/26
The score is held back primarily by weakened financial performance (net losses and margin compression) and a negative P/E that reflects that earnings pressure. Offsetting this, the stock’s technical trend is positive (price above key moving averages with positive MACD), and the earnings call highlighted improving debt reduction trajectory and stronger contract visibility, though near-term headwinds (EBITDA/revenue declines, international weakness, and pricing/geopolitical risks) temper the outlook.
Positive Factors
Debt reduction progress
Meaningful debt paydown and management guidance to hit a $600M reduction by H1 2026 materially improves leverage and reduces interest burden. Lower gross debt and declining interest costs increase financial flexibility, lower refinancing risk, and support disciplined reinvestment over coming quarters.
Negative Factors
Profitability deterioration
Consecutive net losses and revenue declines with compressed margins have pushed returns negative, limiting the company's ability to self-fund growth or accelerate deleveraging. Persistent loss-making results threaten ROE, reduce retained earnings, and constrain strategic optionality until pricing or utilization improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt reduction progress
Meaningful debt paydown and management guidance to hit a $600M reduction by H1 2026 materially improves leverage and reduces interest burden. Lower gross debt and declining interest costs increase financial flexibility, lower refinancing risk, and support disciplined reinvestment over coming quarters.
Read all positive factors
Ensign Energy Services (ESI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$707.49M
Dividend YieldN/A
Average Volume (3M)164.91K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth-4.09%
EPS Growth-238.21%
CountryCA
Employees4,160
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-0.29
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$3.94Price Target Upside21.15% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.14
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
ESI primarily makes money by contracting its equipment and field crews to E&P companies under service agreements and earning fees for performing drilling and well-servicing work. Key revenue streams include: (1) Contract drilling revenue: ESI prov...
Ensign Energy Services Earnings Call Summary
Earnings Call Date:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 31, 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
38
Negative
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.62B | 1.64B | 1.68B | 1.79B | 1.58B | 995.59M |
| Gross Profit | 88.91M | 99.94M | 151.74M | 240.87M | 141.11M | -36.79M |
| EBITDA | 362.55M | 386.66M | 429.44M | 481.91M | 402.84M | 202.14M |
| Net Income | -53.57M | -38.76M | -20.75M | 41.24M | 8.13M | -156.01M |
Balance Sheet | ||||||
| Total Assets | 2.68B | 2.64B | 2.91B | 2.95B | 3.18B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 17.94M | 16.19M | 28.11M | 20.50M | 49.88M | 13.30M |
| Total Debt | 972.35M | 967.03M | 1.08B | 1.23B | 1.46B | 1.46B |
| Total Liabilities | 1.39B | 1.36B | 1.54B | 1.64B | 1.90B | 1.78B |
| Stockholders Equity | 1.29B | 1.28B | 1.37B | 1.31B | 1.29B | 1.19B |
Cash Flow | ||||||
| Free Cash Flow | 62.61M | 57.61M | 293.13M | 184.46M | 145.57M | 113.39M |
| Operating Cash Flow | 283.65M | 251.98M | 471.79M | 360.30M | 319.96M | 178.64M |
| Investing Cash Flow | -167.70M | -162.87M | -130.79M | -152.63M | -121.46M | -174.59M |
| Financing Cash Flow | -114.53M | -100.30M | -334.67M | -366.28M | -162.04M | -35.03M |
Ensign Energy Services Technical Analysis
Neutral
3.25
Price Trends
3.54
Negative
3.15
Positive
2.75
Positive
Market Momentum
-0.05
Positive
37.29
Neutral
18.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ESI, the sentiment is Neutral. The current price of 3.25 is below the 20-day moving average (MA) of 3.55, below the 50-day MA of 3.54, and above the 200-day MA of 2.75, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.29 is Neutral, neither overbought nor oversold. The STOCH value of 18.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$239.27M | 13.32 | 6.39% | ― | -16.94% | -72.54% | |
71 Outperform | C$171.04M | -14.79 | 7.65% | ― | -9.81% | -85.26% | |
66 Neutral | C$503.17M | 16.82 | 19.38% | 10.44% | 1.82% | -23.16% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | C$1.56B | 25.47 | -0.94% | ― | 0.14% | -115.19% | |
59 Neutral | C$101.87M | 15.34 | -2.38% | ― | -11.45% | -314.67% | |
57 Neutral | C$707.49M | -15.01 | -2.94% | ― | -4.09% | -238.21% |
* Energy Sector Average
TSE:ESI
Ensign Energy Services
3.84
1.73
81.99%
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Ensign Energy Services Corporate Events
Executive/Board ChangesShareholder Meetings
Ensign Energy Services Sets AGM Date and Unveils CFO Succession Plan
Positive
Mar 31, 2026
Ensign Energy Services Inc., a Calgary-headquartered global oilfield services contractor with significant land-based drilling and well servicing operations across Canada, the U.S. and international markets, continues to focus on premium drilling, ...
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.