The earnings call presented a mixed picture with significant challenges such as decreased sand sales and revenue, a drop in adjusted EBITDA, and challenges in the natural gas market due to external factors. However, the company is making strategic moves with infrastructure expansion, asset acquisition, debt reduction, and share repurchases. The overall sentiment leans towards caution due to the highlighted challenges outweighing the progress made.
Company Guidance
During the Source Energy Services Third Quarter 2025 Results Conference Call, CEO Scott Melbourn and CFO Derren Newell provided detailed guidance on the company's performance and future expectations. The company experienced a 31% decrease in sand sales volumes, totaling 665,000 metric tons, resulting in a corresponding $42 million decline in sand revenue compared to the previous year. Despite reduced activity in Q3 due to weaker commodity prices and economic uncertainty, Source anticipates a strong rebound in Q4 and expects 2025 proppant demand to be on par with or slightly exceed 2024 levels. Adjusted EBITDA for the quarter was $20.3 million, down by $15.1 million from Q3 2024. The company also focused on financial discipline, reducing outstanding debt by $11.7 million and repurchasing 392,000 shares through their normal course issuer bid. Looking ahead, Source anticipates growth in 2026 driven by increased LNG export capabilities and continues to expand its infrastructure, including the Peace River facility, which is set for further expansion to 3 million tonnes per year. Capital expenditures were reported at $18.5 million for Q3, with future investments depending on market conditions and customer demand.
Infrastructure Expansion and Asset Acquisition
The Peace River mine expansion to 1 million tonnes processing capacity is nearing completion, and the Taylor terminal became fully operational during the quarter. Source also acquired sand processing assets at a very attractive price, which will be used for future expansion.
Debt Reduction and Share Repurchases
The company reduced outstanding debt by $11.7 million this quarter and a total of $19.9 million for the year. Additionally, 392,000 shares have been repurchased since May, including 167,500 in Q3, enhancing shareholder value.
Source Energy Services Ltd (TSE:SHLE) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:SHLE Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 06, 2025
C$12.21
C$10.71
-12.29%
Jul 30, 2025
C$14.98
C$13.80
-7.88%
May 08, 2025
C$10.40
C$11.96
+15.00%
Feb 27, 2025
C$12.40
C$11.62
-6.29%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Source Energy Services Ltd (TSE:SHLE) report earnings?
Source Energy Services Ltd (TSE:SHLE) is schdueled to report earning on Mar 05, 2026, After Close (Confirmed).
What is Source Energy Services Ltd (TSE:SHLE) earnings time?
Source Energy Services Ltd (TSE:SHLE) earnings time is at Mar 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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