Trican Well Service TSE: TCW reported second-quarter revenue that was broadly flat from a year earlier, while profitability declined amid seasonal breakup conditions, record June rainfall in central Alberta, lower equipment utilization and continued pricing pressure.
Revenue for the quarter totaled C$214.6 million, compared with C$213.8 million in the second quarter of 2025. Chief Financial Officer Scott Matson said lower activity and utilization during spring breakup, along with wet weather in certain operating regions during June, were largely offset by the contribution from Iron Horse, which Trican acquired in August 2025.
Adjusted EBITDA was C$22.6 million, or 11% of revenue, compared with C$44.9 million, or 21% of revenue, a year earlier. Matson also cited C$25.2 million of adjusted EBITDA after adding back the effect of cash-settled share-based compensation. He said lower activity, utilization and pricing pressure across service lines affected results, while the company continued to face challenges recovering increases in freight, fuel and other operating costs.
Trican posted a net loss of C$2.3 million, or C$0.01 per share, compared with net income of C$19.5 million, or C$0.11 per share, in the prior-year period. Higher depreciation and amortization related to Iron Horse, technology initiative expenses and increased share-based compensation also affected earnings.
Weather and Seasonality Weighed on Results
President and Chief Executive Officer Brad Fedora said the second quarter should not be viewed as representative of the rest of the year. He noted that June was the wettest June on record and the second-wettest month ever recorded in central Alberta, disrupting operations.
“We don’t get too fussed by Q2 results,” Fedora said, adding that the quarter was affected by seasonal breakup conditions and weather-related delays. The comparison with 2025 was also difficult, he said, because activity last year had been pulled forward into the second quarter amid concerns about water availability and wildfire-related access constraints later in the year.
Fedora said some deferred work, particularly in the Iron Horse business, may shift into the third quarter, although not all delayed work is necessarily recoverable because customers may not wait when equipment availability is constrained. He said Trican expects the third and fourth quarters to be strong, while cautioning against forecasting an “outsized” third quarter.
Iron Horse follows a traditional breakup profile and is not expected to contribute materially to EBITDA during the second quarter, Fedora said. He expects the oil-focused division to perform better during the second half, with customers signaling higher activity as long as oil prices remain supportive.
Natural Gas Technology Investments Continue
The company continued to invest in equipment designed to reduce diesel consumption and operating costs for customers. Quarterly capital expenditures totaled C$20.8 million, including C$9.5 million of maintenance capital and C$11.3 million of upgrade capital.
Upgrade spending included electrification of a fourth set of ancillary fracturing-support equipment and construction of what Trican described as Canada’s first fully natural-gas-fueled continuous heavy-duty hydraulic fracturing fleet. Fedora said natural gas can provide substantial fuel savings relative to diesel, particularly for high-intensity wells in the Duvernay.
The company has received its first natural-gas-powered Caterpillar engine, which Fedora said has performed better than expected in the field and can replace two conventional pumps. Trican expects its 10-pump natural-gas fleet to be operational in the fourth quarter.
Fedora said the combination of natural-gas-powered pumps and electric ancillary equipment could allow operations to consume nearly all natural gas at a location, potentially saving customers up to C$200,000 per day in fuel costs. He told analysts that there are only two such natural-gas spreads in the basin and that Trican expects demand for the equipment to exceed available capacity.
Trican also expects to receive its first compressed-natural-gas-fueled sand-hauling truck in August for use in the Grande Prairie area. Fedora said using CNG in a semi-truck could reduce fuel costs by about 60% while lowering maintenance requirements.
Operations, Market Position and Outlook
Fedora said activity remains focused on the Montney, Duvernay and shallower oil plays. Nearly 30% of Trican’s work is now in the Duvernay, a pressure-pumping-intensive region where longer wells, more stages and higher sand volumes are increasing time spent at well sites.
The company said it has customized equipment for the Duvernay that has helped lower maintenance costs and downtime. In its cementing business, Trican said it holds roughly 50% market share in the Montney and Duvernay and recently completed a Canadian record-length well of more than 9,600 meters for Paramount. The company expects its first hybrid cementing unit to be delivered in the fourth quarter.
Fedora also highlighted growth in last-mile logistics as sand consumption rises. He said the Canadian basin consumed about 4.5 million tons of sand in 2021 and could consume 8.5 million to 9 million tons this year. Trican expects its last-mile logistics operation to run at full utilization for the foreseeable future, he said.
On pricing, Fedora said he believes pricing bottomed in the first half of the year and should improve from current levels. However, he said price increases have so far largely offset cost inflation following the oil-price spike earlier in the year, resulting in a “net zero” effect on margins.
Cash Flow, Balance Sheet and Shareholder Returns
Trican generated C$13 million in free cash flow during the quarter and exited the period with C$15.4 million of cash, C$81 million of positive non-cash working capital and no outstanding debt. The company used working-capital proceeds to repay borrowings following the active winter season.
During the quarter, Trican repurchased and canceled 885,000 shares at a weighted average price of C$7.28 per share. It repurchased an additional 305,000 shares after quarter-end. The board also approved a C$0.055-per-share dividend, payable Sept. 30 to shareholders of record on Sept. 15.
Fedora said the debt-free balance sheet provides capacity for both share repurchases and acquisitions. The company expects to return about half of free cash flow to shareholders over the long term through dividends and buybacks, while also considering acquisition opportunities that it believes could add value.
About Trican Well Service (TSE:TCW)
Headquartered in Calgary, Alberta, Trican supplies oil and natural gas well servicing equipment and solutions to our customers through the drilling, completion, and production cycles. Our team of technical experts provide state of the art equipment, engineering support, reservoir expertise and laboratory services through the delivery of hydraulic fracturing, cementing, coiled tubing, nitrogen services and chemical sales for the oil and gas industry in Western Canada. Trican is the largest pressure pumping service company in Canada.
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