Overview

* PHX Energy Q3 revenue grows 2% yr/yr but misses analyst expectations

* Earnings for Q3 decline due to increased depreciation and equipment servicing costs

Outlook

* PHX Energy expects global instability and higher costs to impact future profitability

* Company approved a preliminary 2026 capital expenditure budget of C$60 mln

* PHX Energy plans to expand RSS and Atlas motor rental fleets in 2026

Result Drivers

* US DIVISION GROWTH - US division revenue increased by 3% despite a 7% decline in industry rig count

* HIGHER COSTS - Increased equipment parts and repair costs due to diverse RSS fleet and inflation

* DECREASED HIGH-MARGIN REVENUE - Lower profitability due to decreased RSS activity and motor equipment sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss C$164.33 C$175

Revenue mln mln (1

Analyst)

Q3 EPS C$0.16

Q3 C$27.90

Adjusted mln

EBITDA

Q3 FFO C$21.34

mln

Q3 Capex C$16.52

mln

Q3 FFO C$0.46

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas drilling peer group is "buy"

* Wall Street's median 12-month price target for PHX Energy Services Corp ( PHXHF ) is C$9.50, about 19.2% above its November 3 closing price of C$7.68

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)