Precision Drilling (PD) AI Stock Analysis

• Market Cap: C$1.71B
• Dividend Yield: N/A
• Average Volume (3M): 101.67K
• Price to Earnings (P/E): 713.0
• Beta (1Y): 1.12
• Revenue Growth: -5.55%
• EPS Growth: -74.96%
• Country: CA
• Employees: 5,504
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Drilling
• EPS (TTM): -3.23
• Shares Outstanding: 12,945,419
• 10 Day Avg. Volume: 94,558
• 30 Day Avg. Volume: 101,666
• PEG Ratio: -7.26
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 8.83
• 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$137.50
• Price Target Upside: 4.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 8.02
• Revenue Forecast (FY): C$1.89B

• Rating: 62 Neutral
• Price Target: C$134.00 ▲(1.45% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is supported by improving financial strength and solid operating/cash-flow recovery, plus strong bullish technical momentum. It is held back most by earnings variability (near break-even net income in 2025 despite healthy operating results) and a very weak valuation signal from the extremely high P/E.

Positive Factors

Improving leverage & strengthened balance sheet

Debt reduction and lower leverage (debt-to-equity near 0.5x) materially improve financial flexibility. This allows Precision to fund maintenance and selective rig upgrades, pay down obligations and better absorb cyclical downturns, supporting multi-quarter capital allocation and resilience.

Consistent positive operating cash flow

Sustained positive operating cash flow that covered net income through 2023–2025 signals underlying earnings quality and durable cash generation from operations. Reliable OCF supports working capital, routine capex and debt reduction without persistent reliance on external financing.

Diversified drilling and services business model

A multi-stream business model (day-rate rig contracts plus directional drilling, downhole tools and support services) spreads revenue exposure and enables upsell to existing customers. Technology-enabled services and higher-spec rigs can drive stickier relationships and higher-margin work over time.

Negative Factors

Revenue cyclicality and volatility

Sales swings reflect sensitivity to E&P activity and commodity cycles, making utilization and day-rate visibility uncertain. This cyclical revenue profile complicates multi-quarter planning, constrains steady margin expansion, and increases execution risk when market activity softens.

Choppy and declining free cash flow in 2025

While operating cash flow is solid, uneven free cash flow reduces capacity for consistent investment, dividends or buybacks. A meaningful FCF decline in 2025 increases reliance on working-capital timing or external funding for growth or capex, weakening financial predictability.

Earnings volatility and below-the-line pressures

Net income near break-even despite healthy operating results implies significant below-the-line costs or one-offs can erase operational gains. Persistent bottom-line variability undermines retained earnings, complicates long-term return forecasts and heightens sensitivity to non-operational items.

Precision Drilling Business Overview & Revenue Model

Company Description

Precision Drilling Corporation, a drilling company, provides onshore drilling, completion, and production services to exploration and production companies in the oil and natural gas and geothermal industries in North America and the Middle East. The company operates in two segments, Contract Drilling Services; and Completion and Production Services. The Contract Drilling Services segment offers onshore well drilling services to exploration and production companies in the oil and natural gas industry. This segment's services include land and turnkey drilling; and procurement and distribution of oilfield supplies, as well as manufacture and refurbishment of drilling and service rig equipment. As of December 31, 2021, it operated 227 land drilling rigs, including 109 in Canada; 105 in the United States; 6 in Kuwait; 4 in Saudi Arabia; 2 in the Kurdistan region of Iraq; and 1 in the country of Georgia. As of December 31, 2021, this segment also operated 47 AlphaTM rigs with commercial AlphaAutomation; 18 AlphaApps; 4 grid power capable rigs; and 60 natural gas or bi-fuel rigs. The Completion and Production Services segment provides service rigs for well completion, workover, abandonment, maintenance, and re-entry preparation services; wellsite accommodations; oilfield surface equipment rentals; and camp and catering services to oil and natural gas exploration and production companies. As of December 31, 2021, it operated 123 well completion and workover service rigs, including 113 in Canada and 10 in the United States; 1,900 oilfield rental items, including surface storage, small-flow wastewater treatment, power generation, and solids control equipment; 109 wellsite accommodation units; 943 drill camp beds; 822 base camp beds; and three kitchen diners in Canada. Precision Drilling Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.

How the Company Makes Money

PD makes money primarily by contracting its drilling rigs and related drilling services to exploration and production (E&P) companies. Its key revenue streams generally include: (1) Contract drilling services: revenue earned from providing drilling rigs, crews, and associated equipment to drill customer wells, typically billed under day-rate or similar contractual structures where revenue depends on rig utilization (working vs. idle), contracted pricing, and contract term/conditions. This stream is driven by the size and capability of the active rig fleet, customer demand, and activity levels in the oil and gas market. (2) Completion and production services / drilling-support services: revenue from ancillary services that support the drilling process, such as directional drilling and downhole tool/technology services, which may be priced on a per-day, per-run, per-foot/metre, or job basis depending on the service and contract. (3) Other revenue and reimbursements: in some contracts, customers reimburse certain pass-through costs (e.g., consumables or third-party services), which can contribute to reported revenue depending on accounting presentation. Overall earnings are influenced by rig day rates, utilization, operating costs (labor, maintenance, fuel, logistics), and the mix of higher-spec rigs and technology-enabled services. Specific material partnerships contributing to earnings: null.

Precision Drilling Financial Statement Overview

Summary

Financials show a clear recovery from the 2020–2022 loss period with improved operating profitability and meaningfully lower leverage. However, revenue remains cyclical/volatile and 2025 net income fell to near break-even despite decent EBIT, raising concerns about bottom-line durability. Cash generation is generally positive, but free cash flow has been choppy and weakened in 2025.

Income Statement

Revenue has been volatile: strong growth in 2022 and 2025, but flat-to-down in 2024. Profitability improved materially from deep losses in 2020–2022 to solid operating margins in 2023–2025, with EBITDA margins remaining healthy; however, net income deteriorated sharply in 2025 to near break-even despite decent EBIT, signaling heavier below-the-line costs and/or one-time items. Overall, the core earnings profile looks stronger than a few years ago, but reported bottom-line consistency is a key weakness.

Balance Sheet

Leverage has improved meaningfully versus 2020–2022, with debt-to-equity stepping down from roughly ~0.9–1.0x to ~0.5x in 2024–2025 and total debt trending lower. Equity is sizable and relatively stable, supporting financial flexibility. The main watch-out is that the business remains cyclical, and returns on equity have swung from negative (2020–2022) to strong (2023) and then more modest (2024), indicating performance can change quickly with industry conditions.

Cash Flow

Operating cash flow has been consistently positive and improved substantially versus 2021–2022, and it covered net income by more than 1x in 2023–2025, which supports earnings quality. Free cash flow is positive across recent years, but it has been choppy and declined meaningfully in 2025 (and was modest in 2022), suggesting higher reinvestment needs and/or working-capital swings. In short: solid cash generation, but free-cash-flow stability is not yet dependable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.84B	1.90B	1.94B	1.62B	986.85M
Gross Profit	286.15M	1.59B	733.31M	213.56M	6.38M
EBITDA	489.62M	535.85M	657.73M	311.61M	191.19M
Net Income	1.84M	111.19M	289.24M	-34.29M	-177.39M
Balance Sheet
Total Assets	2.73B	2.96B	3.02B	2.88B	2.66B
Cash, Cash Equivalents and Short-Term Investments	85.78M	73.77M	54.18M	21.59M	40.59M
Total Debt	791.41M	887.59M	992.19M	1.15B	1.17B
Total Liabilities	1.14B	1.27B	1.44B	1.65B	1.44B
Stockholders Equity	1.58B	1.68B	1.58B	1.23B	1.23B
Cash Flow
Free Cash Flow	148.71M	265.38M	273.82M	52.85M	63.28M
Operating Cash Flow	412.18M	482.08M	500.57M	237.10M	139.22M
Investing Cash Flow	-208.32M	-202.99M	-214.78M	-144.41M	-56.61M
Financing Cash Flow	-191.56M	-261.38M	-251.97M	-113.17M	-149.91M

Precision Drilling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PD, the sentiment is Positive. The current price of 132.09 is above the 20-day moving average (MA) of 123.54, above the 50-day MA of 115.31, and above the 200-day MA of 88.17, indicating a bullish trend. The MACD of 4.56 indicates Negative momentum. The RSI at 77.29 is Negative, neither overbought nor oversold. The STOCH value of 85.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PD.

Precision Drilling Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACX	72 Outperform	C$261.68M	2.74	11.29%	―	-16.20%	-38.85%
AKT.A	71 Outperform	C$133.61M	5.79	12.34%	―	24.94%	956.65%
PHX	69 Neutral	C$600.26M	6.22	24.11%	10.44%	8.98%	-27.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PD	62 Neutral	C$1.71B	712.96	0.11%	―	-5.55%	-74.96%
ESI	56 Neutral	C$690.91M	-12.07	-2.94%	―	-2.47%	-246.73%
WRG	55 Neutral	C$105.93M	-2.72	-2.38%	―	-0.38%	6.98%

Precision Drilling Corporate Events

Precision Drilling Gains Dual Listing on NYSE Texas to Broaden U.S. Market Reach

Precision Drilling Corporation, a major oilfield services contractor, provides high-performance drilling services to the energy sector through its Super Series rig fleet and Alpha digital automation platform, while reinforcing its environmental commitments via its EverGreen solutions suite. The company also supplies well service rigs, rental equipment, camps, and technical support, giving energy producers a full-service operational partner.

The company’s common shares have been approved for dual listing on NYSE Texas, a fully electronic equities exchange based in Dallas that launched in 2025, while retaining Precision’s primary listing on the New York Stock Exchange under the PDS ticker. Precision’s shares will begin trading on NYSE Texas on March 2, 2026, and will continue to trade on the Toronto Stock Exchange under the PD symbol, a move that broadens the firm’s U.S. market access and could enhance liquidity and visibility among investors focused on the energy and drilling sector.

The most recent analyst rating on (TSE:PD) stock is a Hold with a C$129.00 price target. To see the full list of analyst forecasts on Precision Drilling stock, see the TSE:PD Stock Forecast page.

Precision Drilling Hits 2025 Debt Target, Boosts Buybacks Amid Strong Rig Demand

Precision Drilling announced it met its 2025 capital allocation objectives, including reducing debt by $101 million, ending the year with approximately $85 million in cash and $447 million in total available liquidity, and returning $76 million to shareholders through share repurchases that cut its share count by 6%. The company highlighted progress toward its longer-term goal of repaying $700 million of debt between 2022 and 2027 and lowering its Net Debt to Adjusted EBITDA ratio below 1.0 times, noting that it has already reduced debt by $535 million over four years and significantly lowered annual interest expense, with plans to further deleverage and increase buybacks in 2026. Operationally, Precision reported strong demand in Canada for its Super Series rigs and technology and environmental offerings, with high winter utilization, while U.S. activity remained steady amid a recovering natural gas rig market; the company also moved to streamline its fleet by decommissioning 31 underutilized rigs and recording non-cash asset charges tied to aging equipment, signaling an ongoing shift toward more advanced, higher-margin drilling assets.

The most recent analyst rating on (TSE:PD) stock is a Buy with a C$81.00 price target. To see the full list of analyst forecasts on Precision Drilling stock, see the TSE:PD Stock Forecast page.

Precision Drilling Sets February Date for 2025 Year-End Results Call

Precision Drilling Corporation will release its fourth-quarter and full-year 2025 financial results after markets close on February 11, 2026, followed by a conference call and webcast on February 12 to discuss the performance. The scheduled call, which requires advance registration for dial-in details and will also be available via webcast replay on the company’s website, underscores Precision’s ongoing engagement with investors and other stakeholders as it reports on its operational and financial trajectory in a changing energy services market.

The most recent analyst rating on (TSE:PD) stock is a Buy with a C$81.00 price target. To see the full list of analyst forecasts on Precision Drilling stock, see the TSE:PD Stock Forecast page.