Want to see TSE:PD full AI Analyst Report?
Top Page
Precision Drilling
(NYSE:PD)
Select Model
Select Model
Rating:54Neutral
Price Target:
C$105.00
▼(-12.15% Downside)
Action:Reiterated
Date:07/30/26
The score is held up by resilient cash generation and an improved leverage profile, plus generally positive forward operating guidance (activity ramp and targeted margin recovery). It is weighed down by weakened profitability versus prior periods, a technically weak share-price trend (below major moving averages), unattractive earnings-based valuation due to losses, and elevated uncertainty from the CRA reassessment and near-term margin/cash flow timing pressures.
Positive Factors
Cash Generation
Sustained positive operating cash flow and FCF provide durable funding for capex, debt reduction and shareholder returns. Strong cash conversion versus accounting earnings also de-risks cyclical earnings swings and supports execution of multi-quarter strategic priorities.
Negative Factors
Profitability Deterioration
A sharp swing from strong 2023 margins to near break-even erodes return on capital and reduces the company’s buffer to absorb cyclical downturns. Persistent margin pressure suggests structural cost or pricing headwinds that could limit reinvestment and sustainable earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating cash flow and FCF provide durable funding for capex, debt reduction and shareholder returns. Strong cash conversion versus accounting earnings also de-risks cyclical earnings swings and supports execution of multi-quarter strategic priorities.
Read all positive factors
Precision Drilling (PD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.44B
Dividend YieldN/A
Average Volume (3M)70.25K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth3.86%
EPS Growth-132.87%
CountryCA
Employees5,245
SectorEnergy
Sector Strength52
IndustryOil & Gas Drilling
Share Statistics
EPS (TTM)-2.48
Shares Outstanding12,746,458
10 Day Avg. Volume59,360
30 Day Avg. Volume70,249
Financial Highlights & Ratios
PEG Ratio-7.16
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$161.83Price Target Upside35.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)7.58
Revenue Forecast (FY)C$2.04B
Precision Drilling Business Overview & Revenue Model
Company Description
Precision Drilling Corporation, a Calgary, Canada-based enterprise, provides a full suite of onshore drilling, completion, and production services. The company supports exploration and production firms in the oil and natural gas, as well as geothe...
How the Company Makes Money
Precision Drilling primarily earns revenue by providing contract land drilling services to oil and gas producers. Customers pay for the use of PD’s drilling rigs, crews, and operating support under drilling contracts whose pricing typically reflec...
Precision Drilling Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress and execution against strategic priorities — notable revenue growth (Q2 +11%), record Canadian rig activity, expanded contracts and customers, robotics and remote operations advancements, strong cash from operations and active debt reduction — all of which support a positive trajectory. Offsetting items include a decline in EBITDA versus prior year, a small net loss, U.S. margin pressure from reactivation costs, international rate softness and a material tax reassessment risk from the CRA. Management provided forward guidance for margin recovery into Q4, reaffirmed capital discipline (full‑year CapEx $265M) and balance sheet targets, and highlighted liquidity and buyback plans, suggesting confidence in execution despite near-term headwinds.Positive Updates
Revenue Growth
Second quarter 2026 revenues increased 11% year-over-year, and year-to-date revenue grew 8%, driven by stronger activity in Canada and a rebound in U.S. operations.
Negative Updates
Adjusted EBITDA and Profitability Pressure
Q2 adjusted EBITDA was $97 million ($95M before share‑based compensation recovery) versus prior year Q2 EBITDA of $108 million ($112M before SBC expense) — an approximate decline of ~10% versus prior year. Net earnings were a loss of $1 million compared with net earnings of $16 million in Q2 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Second quarter 2026 revenues increased 11% year-over-year, and year-to-date revenue grew 8%, driven by stronger activity in Canada and a rebound in U.S. operations.
Read all positive updates
Company Guidance
The company guided that Q3 activity will continue to ramp: Canada average rig counts are expected in the low‑to‑mid‑70s (versus 63 a year ago) with daily operating margins of $12,000–$13,000; the U.S. is expected to average in the low‑40s rigs with Q3 daily margins of US$7,000–US$8,000 (with margins expected to approach ~US$10,000 in Q4) and about five reactivations expected in Q3 (reactivation costs ~US$1,500–US$2,000/day); internationally the company expects to run seven rigs in Q3 with margins lower than prior year and plans the idled Kuwait rig back to work under a 5‑year contract, bringing international rigs to eight by mid‑2027 after $12–$15M of refurbishment. Full‑year 2026 guidance includes $265M capital spending ( $172M sustaining/infrastructure, $93M upgrades), depreciation of $320M, cash interest ≈ $45M, an effective tax rate of ~25%–30%, SG&A ≈ $95M before share‑based comp, share‑based comp guidance $25M–$45M (at $100–$140 share price), a plan to reduce debt by $100M in 2026 (already $75M reduced at midyear), up to 50% of free cash flow available for buybacks (midyear buybacks $16M), average cost of debt 6.7% and total liquidity > $502M; Q3 is expected to be a heavier working‑capital quarter with cash generation rebounding in Q4, and C&P EBITDA is expected to remain in line with prior year.Precision Drilling Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92B | 1.84B | 1.90B | 1.94B | 1.62B | 986.85M |
| Gross Profit | 337.59M | 286.15M | 1.59B | 733.31M | 213.56M | 6.38M |
| EBITDA | 467.85M | 489.62M | 535.85M | 657.73M | 311.61M | 191.19M |
| Net Income | -32.76M | 1.84M | 111.19M | 289.24M | -34.29M | -177.39M |
Balance Sheet | ||||||
| Total Assets | 2.73B | 2.73B | 2.96B | 3.02B | 2.88B | 2.66B |
| Cash, Cash Equivalents and Short-Term Investments | 66.29M | 85.78M | 73.77M | 54.18M | 21.59M | 40.59M |
| Total Debt | 697.02M | 744.24M | 887.59M | 992.19M | 1.15B | 1.17B |
| Total Liabilities | 1.12B | 1.14B | 1.27B | 1.44B | 1.65B | 1.44B |
| Stockholders Equity | 1.60B | 1.58B | 1.68B | 1.58B | 1.23B | 1.23B |
Cash Flow | ||||||
| Free Cash Flow | 118.59M | 148.71M | 265.38M | 273.82M | 52.85M | 63.28M |
| Operating Cash Flow | 410.69M | 412.18M | 482.08M | 500.57M | 237.10M | 139.22M |
| Investing Cash Flow | -244.54M | -208.32M | -202.99M | -214.78M | -144.41M | -56.61M |
| Financing Cash Flow | -148.16M | -191.56M | -261.38M | -251.97M | -113.17M | -149.91M |
Precision Drilling Technical Analysis
Positive
119.52
Price Trends
117.48
Negative
123.43
Negative
112.52
Positive
Market Momentum
-1.98
Negative
53.25
Neutral
71.17
Neutral
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 119.52 is above the 20-day moving average (MA) of 112.80, above the 50-day MA of 117.48, and above the 200-day MA of 112.52, indicating a neutral trend. The MACD of -1.98 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 71.17 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | C$551.00M | 12.00 | 20.25% | 9.10% | 1.48% | -12.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
57 Neutral | C$239.54M | 16.55 | 5.29% | ― | 5.08% | -31.76% | |
54 Neutral | C$1.44B | -46.47 | -2.03% | ― | 3.86% | -132.87% | |
52 Neutral | C$628.64M | -16.20 | -4.13% | ― | -1.48% | -6.74% | |
51 Neutral | C$113.07M | -4.16 | -9.63% | ― | -10.90% | -349.06% |
* Energy Sector Average
TSE:PD
Precision Drilling
115.35
38.51
50.12%
TSE:ACX
ACT Energy Technologies
6.35
1.74
37.74%
TSE:ESI
Ensign Energy Services
3.54
1.47
71.01%
TSE:PHX
PHX Energy Services
12.24
5.33
77.24%
TSE:WRG
Western Energy Services
3.20
1.11
52.74%
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.