Trican Well Service TSE: TCW reported higher first-quarter revenue as activity increased and the company benefited from a full quarter of contribution from the Iron Horse acquisition, while management said pricing pressure and cost inflation weighed on margins.
Scott Matson, Trican’s chief financial officer, said revenue for the first quarter of 2026 was CAD 330.3 million, up from CAD 259.1 million in the same quarter of 2025. Matson said adjusted EBITDA was CAD 70.1 million, or 21% of revenue, compared with CAD 61.3 million, or 24% of revenue, in the prior-year quarter. He also said EBITDA after adding back cash-settled stock-based compensation was CAD 77.7 million, or 24% of revenue, compared with CAD 62.3 million, or 24% of revenue, a year earlier.
Net earnings were CAD 30.3 million, or CAD 0.14 per share on both a basic and diluted basis, compared with CAD 31.9 million, or CAD 0.17 per share, in the first quarter of 2025. Matson said earnings were affected by higher depreciation tied to Iron Horse, technology initiative expenses and higher stock-based compensation.
The company generated CAD 49.6 million of free cash flow in the quarter. Capital expenditures totaled CAD 18.5 million, including CAD 9.6 million of maintenance capital and CAD 8.9 million of upgrade capital. Matson said the upgrade spending was mainly directed toward electrifying Trican’s fourth set of ancillary fracturing support equipment and maintaining the productive capability of active equipment.
Balance Sheet and Capital Returns
Matson said Trican exited the quarter with positive non-cash working capital of CAD 142.7 million and net debt of CAD 29.8 million, both down meaningfully from Dec. 31, 2025. The reduction in net debt was mainly the result of working capital harvest and free cash flow generated during the period.
The company remained active under its normal course issuer bid, and Matson said Trican continued to repurchase shares when market prices presented what management considered a favorable investment opportunity. He also said the board approved a dividend of CAD 0.0055 per share, representing approximately CAD 11.6 million in aggregate payments to shareholders. The dividend is scheduled to be paid June 30, 2026, to shareholders of record as of June 15, 2026.
Brad Fedora, Trican’s president and chief executive officer, said share repurchases have been a major investment avenue for the company, describing the NCIB as “M&A, sort of risk-free M&A with a very good target company.” Matson added that Trican has bought back 53% of shares outstanding from the beginning of the 2017-2018 period.
Pricing Pressure and Cost Inflation
Fedora said the first quarter “went pretty much as expected,” with strong activity but “quite a bit of pricing pressure.” He said management hopes the first quarter represents the bottom for pricing. The quarter was also affected by weather, including warm conditions in February that created choppy activity, followed by colder weather late in March that helped the company make up lost ground.
Fedora said higher oil prices have driven inflation through Trican’s value chain, affecting fuel, chemicals, steel, sand and transportation. He said the company has implemented fuel surcharges and is working to raise prices to offset cost increases, adding that customers have generally been cooperative.
In response to a question from Keith Mackey of RBC Capital, Fedora said the supply-demand balance in Canadian pressure pumping has been “fairly balanced,” but growing sand volumes and longer time on location should tighten capacity over time. He said pricing in the first quarter was pressured partly by competitors seeking to fill schedules after a difficult fourth quarter and uncertain outlook.
Technology Remains Central to Strategy
Fedora emphasized customer interest in Trican’s technology and operating efficiencies, particularly its ability to use natural gas in fracturing pumps and electric ancillary equipment. He said fuel savings from burning natural gas rather than diesel can exceed CAD 100,000 per day and may be approaching CAD 150,000 per day.
Fedora said Trican has 86 Tier 4 fracturing pumps and four sets of electric ancillary equipment, including blenders, chemical vans, data vans and sand assets. He said the combination of Tier 4 pumps and electric equipment provides high substitution rates that he described as industry-leading in North America.
The company has also received its first 100% Cat G3520 natural gas fracturing pumper. Fedora said testing was completed in the first quarter and the unit has recently moved into field operations. He said Trican expects 10 of the pumps to be available in the field in the fall, likely around September or October, depending on testing and fabrication timelines.
Division Updates
Fedora said all four divisions — Trican fracturing, Iron Horse, cementing and coiled tubing — are performing well and aligned with the company’s strategic direction.
- Trican fracturing: Fedora said the deep work division remains focused on the Montney and Duvernay, where wells are becoming longer, stage counts are increasing and more sand is being pumped per well. He said meters drilled and sand pumped are now more relevant indicators than well count.
- Iron Horse: Fedora said the division was affected by oil prices below CAD 60 but has rebounded as oil prices improved. He said clients are returning to the field earlier, adding wells to budgets and renewing focus on shallower, oilier parts of the basin. Management expects stronger performance in the second half of the year.
- Cementing: Fedora said Trican ran a trial program in the SAGD market in the first quarter that went well. The company may invest in infrastructure to make that a permanent area if it secures customer commitments.
- Coiled tubing: Fedora said 2025 was the division’s best year and management expects 2026 to be better. He said longer wells are creating extended-reach challenges, and Trican is working with tool companies to better service customers.
Outlook
Fedora said the second quarter is proceeding as expected and remains weather dependent. He said revenue appears slightly ahead of last year, but margins are expected to be lower because of cost inflation tied to higher oil prices.
Management expects some customers, particularly in oil-focused areas, to return to work earlier than anticipated. Fedora said budgets may expand in the second half of the year, though likely after original budgets are exhausted in the fall and early winter.
Fedora said Trican remains constructive on Western Canada, citing rising industry activity, expected strengthening in natural gas prices, potential market share growth from technology advantages, increasing well intensity, expansion in cementing and coiled tubing, and growth in logistics. He said sand pumped in Canada increased from about 4.5 million tons in 2021 to 8.5 million tons in 2025, and analysts generally expect the trend to continue.
Fedora said Trican currently expects to be debt-free or slightly cash positive by year-end, depending on the level of investment in its NCIB. He said the company expects to return approximately 50% of free cash flow to shareholders over time through dividends and share repurchases, while retaining flexibility for organic growth and potential acquisitions.
About Trican Well Service TSE: TCW
Trican Well Service Ltd is an equipment services company. It provides products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily through its continuing pressure pumping operations in Canada. The company offers services related to coiled tubing, pipeline service, cementing, fracturing and reservoir solutions.
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