Total Energy Services (TOT) AI Stock Analysis

• Market Cap: C$707.28M
• Dividend Yield: 2.57%
• Average Volume (3M): 53.61K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.60
• Revenue Growth: 15.58%
• EPS Growth: 47.55%
• Country: CA
• Employees: 2,051
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.63
• Shares Outstanding: 37,186,000
• 10 Day Avg. Volume: 54,344
• 30 Day Avg. Volume: 53,612
• PEG Ratio: 0.27
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 5.49
• 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$24.00
• Price Target Upside: 56.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.25
• Revenue Forecast (FY): C$1.14B

• Rating: 79 Outperform
• Price Target: C$22.00 ▲(43.88% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strengthening financial performance and a conservative balance sheet, supported by attractive valuation (low P/E) and positive technical trend. Offsetting factors are earnings-call margin/EBITDA pressures and regional softness in North American operations, which temper the outlook despite strong backlog and liquidity.

Positive Factors

Conservative balance sheet

Low leverage and a materially reduced debt profile provide durable financial flexibility. With senior bank debt to EBITDA of ~0.25 and improving equity, the company can fund capex, bid on contracts, and withstand industry cyclicality without forced asset sales or costly refinancing.

Strong cash generation

Robust operating cash flow and rising free cash flow underpin reinvestment capacity and deleveraging potential. Consistent cash generation supports fleet upgrades, backlog execution and shareholder returns, improving resilience across multi-year upstream spending cycles.

Backlog and geographic diversification

A sizable, growing fabrication backlog provides multi-quarter revenue visibility and cadence for aftermarket servicing. Combined with strengthened Australian operations and multi-market exposure, this diversification reduces single-market revenue sensitivity and supports steadier long-term cash flow.

Negative Factors

Margin pressure and EBITDA decline

Sustained margin compression from a higher mix of lower-margin segments, FX headwinds and rising costs can erode long-term profitability and free cash flow. If structural, these pressures reduce funds for capex and weaken returns despite topline growth.

North American activity weakness

Heavy exposure to North American drilling and well servicing means regional slowdowns materially reduce utilization and pricing power. Prolonged U.S. weakness would amplify cyclicality, causing underused fleet, lower dayrates and steeper earnings volatility across reporting periods.

Uneven cash conversion and reinvestment needs

While FCF improved in 2025, historically inconsistent conversion and significant reinvestment/working-capital needs constrain predictable cash available for dividends, buybacks or rapid expansion. This variability raises execution risk in downturns or capex cycles.

Total Energy Services Business Overview & Revenue Model

Company Description

Total Energy Services Inc. provides various products and services to the oil and natural gas industry primarily in Canada, the United States, and Australia. It operates through four segments: Contract Drilling Services, Rentals and Transportation Services, Compression and Process Services and Well Servicing. The Contract Drilling Services segment offers contract drilling services to oil and gas exploration and development companies. As of December 31, 2021, it operated a total fleet of 95 drilling rigs. The Rentals and Transportation Services segment provides drilling, completion and production rental equipment, and oilfield transportation services in western Canada and in the United States. This segment owned and operated a fleet of 79 heavy trucks. The Compression and Process Services segment offers gas compression services; and designs and packages skid style compressors and proprietary trailer-mounted compressors under the NOMAD brand in Canada and the United States, the European Union, Australia, and Mexico. It had 53,800 horsepower of compression in its rental fleet. The Well Servicing segment offers well services. This segment operated a total fleet of 83 well servicing rigs across Western Canada, mid-western United States, and Australia. The company was founded in 1996 and is headquartered in Calgary, Canada.

How the Company Makes Money

Total Energy Services makes money by selling oilfield services and renting specialized equipment used in drilling and producing oil and natural gas. Its key revenue streams typically include: (1) Contract drilling revenue earned by operating drilling rigs for producers under day-rate or contract-based arrangements, where revenue is driven by rig utilization (days worked), pricing (day rates), and additional billables tied to drilling operations. (2) Equipment rental and transportation revenue from renting oilfield-related equipment (and providing related hauling/transport) to customers; earnings depend on fleet utilization, rental rates, and service volumes. (3) Compression and process equipment revenue generated by supplying, installing, renting, and servicing natural gas compression and processing-related equipment; revenue is influenced by demand for compression in producing basins, equipment sales/packaging activity, rental/lease arrangements, and aftermarket service/maintenance work. (4) Well servicing and completion-support revenue (where applicable within its service offerings) from providing crews/equipment for maintenance, workovers, or other wellsite support; revenue depends on service hours, job volumes, and pricing. Across segments, profitability and cash flow are heavily influenced by upstream capital spending cycles, commodity-price-driven activity levels, and the company’s ability to keep rigs and rental/compression fleets utilized at favorable rates. Specific customer names, contract terms, or partnership details: null.

Total Energy Services Financial Statement Overview

Summary

Overall fundamentals are solid: improving profitability and earnings (2022–2025), strong operating cash flow and rising free cash flow, and a conservatively financed balance sheet with low leverage and strengthening ROE. Offsets include mixed margin trends and uneven cash conversion, consistent with cyclicality in prior down-cycle years.

Income Statement

Profitability and scale have improved materially versus earlier years, with 2025 showing solid margins (about 14% gross margin and ~7% net margin) and strong operating profit. Revenue growth in 2025 remained positive (~5%), and net income has risen consistently from 2022–2025. Offsetting this, margins have been somewhat mixed (gross margin slightly lower than 2023–2024 and EBITDA margin down from 2024), and the business has a history of cyclical pressure (losses in 2020–2021).

Balance Sheet

Leverage looks conservative and improving: total debt declined meaningfully from 2020–2021 levels, and debt relative to equity is low in 2025 (~0.14), supporting financial flexibility. Equity has grown steadily alongside rising assets, and returns on equity have strengthened to low-double-digits (~12% in 2025). The main watch item is that returns can be cyclical given the industry backdrop and past down-cycle performance.

Cash Flow

Cash generation is a clear strength: operating cash flow increased to ~195M in 2025 and free cash flow rose to ~101M with strong growth versus 2024. However, free cash flow remains only about half of net income in 2025, suggesting heavier reinvestment/working-capital needs or variability in conversion. Free cash flow growth has also been uneven historically (decline in 2023), consistent with a more cyclical cash profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06B	906.78M	892.40M	759.81M	431.58M
Gross Profit	151.91M	135.09M	133.34M	91.19M	25.42M
EBITDA	184.33M	171.84M	168.96M	131.32M	85.97M
Net Income	74.22M	60.80M	41.63M	38.01M	-428.00K
Balance Sheet
Total Assets	1.00B	937.71M	861.66M	878.62M	813.52M
Cash, Cash Equivalents and Short-Term Investments	59.64M	38.42M	47.94M	34.06M	33.37M
Total Debt	82.14M	126.49M	108.76M	134.79M	202.65M
Total Liabilities	398.79M	366.67M	330.90M	356.59M	320.08M
Stockholders Equity	600.93M	570.80M	530.24M	521.47M	492.88M
Cash Flow
Free Cash Flow	101.35M	74.83M	70.70M	86.67M	60.59M
Operating Cash Flow	195.06M	165.92M	145.95M	143.40M	89.58M
Investing Cash Flow	-71.80M	-132.88M	-66.83M	-42.26M	-14.25M
Financing Cash Flow	-102.04M	-42.56M	-65.24M	-100.44M	-64.95M

Total Energy Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TOT, the sentiment is Positive. The current price of 15.29 is below the 20-day moving average (MA) of 18.09, below the 50-day MA of 16.81, and above the 200-day MA of 13.83, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 60.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TOT.

Total Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	79 Outperform	C$707.28M	7.49	10.51%	2.57%	15.58%	47.55%
CEU	75 Outperform	$3.83B	13.15	22.00%	1.29%	5.79%	-5.08%
TCW	75 Outperform	C$1.47B	10.23	18.06%	3.57%	9.24%	6.35%
SHLE	67 Neutral	C$202.61M	6.13	15.59%	―	-0.39%	-86.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$519.13M	15.42	3.06%	―	-8.13%	-28.00%
MCB	57 Neutral	C$72.65M	8.76	11.40%	3.26%	15.91%	-2.15%

Total Energy Services Corporate Events

Total Energy Services Sets March 11 Call to Discuss Q4 2025 Results

Total Energy Services Inc. has scheduled a conference call and webcast for March 11, 2026, at 9:00 a.m. Mountain Time, to discuss its financial results for the fourth quarter ended December 31, 2025, with President and CEO Daniel Halyk hosting. The live and archived webcast, along with a time-limited telephone replay, underscores the company’s ongoing efforts to maintain transparency and engagement with shareholders and broader market participants as it reports on its latest quarterly performance.

The most recent analyst rating on (TSE:TOT) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Total Energy Services stock, see the TSE:TOT Stock Forecast page.

Total Energy Services Sets $55.8 Million 2026 Capex Budget and Raises Dividend

Total Energy Services Inc. has set a preliminary 2026 capital expenditure budget of $55.8 million, split between $34.8 million of maintenance capital and $21.0 million of growth capital, to be funded from cash on hand and operating cash flow. The plan emphasizes equipment upkeep, new drill pipe, an ERP system upgrade across all business segments, and the purchase of a U.S. operating facility for its Compression and Process Services division, while growth spending will focus on a new long-term contracted service rig in Australia and expansion of the North American natural gas compression fleet. An additional $24.5 million of 2025 capital commitments will roll into 2026, mainly tied to U.S. fabrication expansion for CPS, reactivating an idle Australian service rig, and upgrading active Canadian drilling rigs. The board has also approved a 20% increase in the quarterly dividend to $0.12 per share starting with the quarter ending March 31, 2026, signalling management’s confidence in the company’s cash generation and ongoing international and North American growth initiatives.

The most recent analyst rating on (TSE:TOT) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Total Energy Services stock, see the TSE:TOT Stock Forecast page.