Precision Drilling Reports 15% Revenue Growth in Q3 2026 Driven by North American Activity
Precision Drilling (PDS) reported a 15% year-over-year revenue increase to $532 million for the third quarter of 2026, fueled by rising drilling activity across North America. The company is successfully leveraging customer contract commitments to fund rig upgrades, which expanded its Canadian contract book from 16 to 28 rigs over the past year. While recent reactivations in the United States temporarily compressed margins due to $2,130 per day in start-up costs, the expansion doubled the company's active rig count in the Permian Basin to 16. Management expects margin expansion as these reactivations conclude. Additionally, proprietary digital technologies like Alpha and Evergreen are seeing record demand, contributing significantly to revenue growth. Financially, Precision Drilling has reduced debt by $75 million through the first nine months of the year and remains on track to hit a $100 million debt reduction target for 2026. With stabilizing U.S. drilling activity and rising inquiries for early 2027, the company is prioritizing share repurchases as leverage reaches target levels.
Tickers: $PDS
Topics: Drilling Activity Fleet Expansion Operational Efficiency Revenue Growth