Total Energy Services Inc.

Total said Q2 2026 was a record quarter. On a year-over-year basis, consolidated revenue increased 31% and EBITDA increased $15.5 million. Consolidated gross margin was 22%, down 157 basis points from 2025. CPS revenue increased 37%, CDS revenue increased 33%, RTS revenue increased 16%, and well servicing revenue increased 11% versus last year. The fabrication sales backlog reached $554.5 million at June 30, up 82% from $303.9 million a year ago and 24% from $446.9 million at March 31. Financially, the company reported $81.9 million of positive working capital, including $50.5 million of cash, and cash on hand exceeded bank debt by $25.5 million. Looking ahead, management said the backlog provides visibility into 2028, Weirton construction is scheduled to be completed by Q1 2027, and the facility should begin to materially expand CPS throughput over 2027. The board approved a $32.7 million increase to the 2026 capital budget; projected 2026 capital commitments are $144.6 million, including $102 million of growth capital and $42.6 million of maintenance capital.

Dan Halyk said the quarter reflected the payoff from the past two years of investment in rig upgrades and compression capacity. He pointed to market share gains in Canada, strong North American demand for compression and process equipment, and an improving Australian well servicing business. His tone was upbeat but disciplined: he emphasized that the company is still being selective on capital, capacity, and M&A, and that future growth will depend on backlog conversion, staffing, and component lead times.

Yuliya Gorbach emphasized that results were driven by strong demand in CPS and by upgraded rigs in Australia and Canada. She said second-quarter revenue rose 31% year over year, EBITDA increased $15.5 million, and gross margin was 22%, down 157 basis points because CPS now makes up a larger share of revenue and that segment typically carries lower margins. She also noted $3 million of additional gain on sale of property, plant and equipment, partly offset by $2.3 million of nonrecurring U.S. rig reactivation and legacy legal costs. Balance sheet liquidity remained strong at $81.9 million of working capital and $50.5 million of cash, with net cash position and bank covenants comfortably met.

Analysts focused on whether CPS momentum can continue, how much Weirton will expand capacity, and whether margins on new backlog are holding up. Management said Q2 throughput was not anomalous, but bigger gains in CPS will not show fully until the new Weirton facility is completed and staffed in 2027; in the meantime, lead times on engines and other inputs remain a constraint. Questions also centered on Australia, Canada rig upgrades, and M&A: Halyk said Australia’s growth is mostly from market share gains rather than a new basin, Canada is seeing strong demand for upgraded rigs, and the company is actively looking at deals but will remain disciplined versus share buybacks and organic investment.