Reactivation spend showed up in the margin line
Precision Drilling (TSX: PD, NYSE: PDS) reported second-quarter 2026 results on July 28. Revenue was $452.8 million, up 11 percent year over year, led by stronger Canadian heavy-oil drilling and U.S. rig utilization. Adjusted EBITDA was $97.1 million, down 10 percent, as U.S. rig reactivation costs and weaker international margins offset the top line. The quarter included about $3 million of international restructuring charges and a $2 million share-based compensation recovery versus a $4 million expense in Q2 2025.
Completion and Production Services revenue rose to $65.6 million with adjusted EBITDA of $14.7 million, about 21 percent of revenue. Operating cash flow was $145.6 million. Precision reduced debt by $50 million in the quarter and repurchased $12 million of shares. Net loss attributable to shareholders was about $1.2 million.
Subsequent to quarter end, Precision received a Canada Revenue Agency notice of reassessment for 2018 denying certain intercompany dividend deductions. The company cited a potential maximum liability of about C$155 million excluding interest, said its position is appropriate, and intends to contest the reassessment. No liability has been recorded.