Precision Drilling Corp. (TSE:PD)
TSX:PD
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Precision Drilling
(TSX:PD)
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Rating:63Neutral
Price Target:
C$150.00
▲(6.45% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by improving financial health (better leverage and generally solid cash generation) and constructive earnings-call guidance supporting ongoing operating momentum. These positives are tempered by highly stretched valuation (very high P/E), cyclical/variable profitability (including 2025 near break-even net income), and technical signals that look overextended despite a strong uptrend.
Positive Factors
Improved Leverage
Meaningful deleveraging improves financial flexibility and reduces refinancing risk. Lower leverage supports sustained capex, targeted upgrades and higher allocation to shareholder returns while providing a larger buffer through oilfield activity cycles, strengthening multi-quarter resilience.
Negative Factors
Cyclical Profitability
Core earnings remain highly exposed to E&P activity swings, producing volatile revenue and inconsistent reported net income. Near-break-even 2025 results signal that below-the-line items and cycle sensitivity can rapidly erode profitability, complicating durable earnings visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage
Meaningful deleveraging improves financial flexibility and reduces refinancing risk. Lower leverage supports sustained capex, targeted upgrades and higher allocation to shareholder returns while providing a larger buffer through oilfield activity cycles, strengthening multi-quarter resilience.
Read all positive factors
Precision Drilling (PD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.82B
Dividend YieldN/A
Average Volume (3M)102.04K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-5.55%
EPS Growth-74.96%
CountryCA
Employees5,504
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-3.23
Shares Outstanding12,945,419
10 Day Avg. Volume98,436
30 Day Avg. Volume102,044
Financial Highlights & Ratios
PEG Ratio-7.26
Price to Book (P/B)0.83
Price to Sales (P/S)0.71
P/FCF Ratio8.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$143.92Price Target Upside2.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)8.02
Revenue Forecast (FY)C$1.89B
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. T...
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 drillin...
Precision Drilling Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlights disciplined capital allocation, strengthened balance sheet, resilient operating margins, executed share buybacks, growing U.S. activity and strong free cash flow and liquidity. These positives were partially offset by significant noncash Q4 charges for rig decommissioning and drill pipe, some international softness and ongoing cost pressures in the C&P division. Management provided constructive forward guidance for rig activity and margins, a clear deleveraging roadmap and capital-light international growth initiatives, while acknowledging short-term contract visibility risks in the U.S.Positive Updates
Adjusted EBITDA and Underlying Profitability
Q4 adjusted EBITDA of $126 million ($132M before share-based compensation) versus prior year $121 million, representing a ~4% increase in adjusted EBITDA year-over-year. Excluding one-time noncash charges, Q4 net income would have been +$42 million versus $15 million in Q4 2024 (an increase of ~180%).
Negative Updates
Q4 Net Loss Driven by Large One-Time Noncash Charges
Reported net loss of $42 million in Q4 that includes a $67 million noncash decommissioning charge for rigs and a $17 million noncash drill pipe charge (total ~$84M), materially impacting reported earnings despite positive operating performance excluding these items.
Read all updates
Q4-2025 Updates
Positive
Negative
Adjusted EBITDA and Underlying Profitability
Q4 adjusted EBITDA of $126 million ($132M before share-based compensation) versus prior year $121 million, representing a ~4% increase in adjusted EBITDA year-over-year. Excluding one-time noncash charges, Q4 net income would have been +$42 million versus $15 million in Q4 2024 (an increase of ~180%).
Read all positive updates
Company Guidance
Precision guided Q1 2026 to peak at 87 rigs in Canada (all 32 Super Triples, 47 Super Singles and several Tele Doubles) with average Q1 rigs expected to exceed prior-year Q1’s 74 and Canadian operating margins of $14,000–$15,000/day; the U.S. is expected to average ~37 rigs (in line with Q4) with margins of USD 8,000–9,000/day; internationally they plan to run 7 rigs (margins lower than prior year) and expect a USD 2 million one‑time reactivation charge; C&P EBITDA is expected to slightly exceed prior year Q1. For full-year 2026, capex is budgeted at $245 million (sustaining/infrastructure $182m; upgrades $63m), depreciation ~$305m, cash interest ~$45m, effective tax rate ~25–30% (low cash taxes), SG&A ~ $95m before share‑based comp, share‑based comp guidance $25–$45m (assuming share price $100–$140); Precision enters 2026 with net debt/adjusted EBITDA of 1.2x (target <1x), average cost of debt 6.6% and over $445 million of liquidity, and plans to increase free cash flow allocated to shareholders up to 50%.Precision Drilling Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
63
Positive
| 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
Positive
140.91
Price Trends
118.38
Positive
104.37
Positive
89.66
Positive
Market Momentum
6.01
Negative
82.48
Negative
91.19
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 140.91 is above the 20-day moving average (MA) of 127.26, above the 50-day MA of 118.38, and above the 200-day MA of 89.66, indicating a bullish trend. The MACD of 6.01 indicates Negative momentum. The RSI at 82.48 is Negative, neither overbought nor oversold. The STOCH value of 91.19 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
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:PD
Precision Drilling
140.55
73.79
110.53%
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90.53%
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6.82
1.56
29.66%
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57.14%
TSE:PHX
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67.14%
TSE:WRG
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3.11
0.84
37.31%
Precision Drilling Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Precision Drilling Gains Dual Listing on NYSE Texas to Broaden U.S. Market Reach
Positive
Feb 27, 2026
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 co...
Business Operations and StrategyStock BuybackFinancial Disclosures
Precision Drilling Hits 2025 Debt Target, Boosts Buybacks Amid Strong Rig Demand
Positive
Jan 6, 2026
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...
Financial Disclosures
Precision Drilling Sets February Date for 2025 Year-End Results Call
Neutral
Jan 5, 2026
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, ...
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.