Canada's PHX Energy Q2 revenue beats estimates

PHX Energy reported a 9% increase in Q2 2025 revenue, surpassing analyst expectations with C$167.67 million. However, adjusted EBITDA fell 9% due to rising equipment costs. The company repurchased 100,000 shares and plans to renew its NCIB strategy. Despite a projected softer market in 2025, PHX anticipates strong activity and revenue growth, particularly in its Canadian RSS fleet and US expansion. Analysts maintain a "buy" rating, with a median 12-month price target of C$10.00, reflecting an 18.4% upside from its recent trading price of C$8.16.

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Overview

PHX Energy Q2 2025 revenue rises 9%, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 2025 declines 9% due to higher equipment costs
Company repurchased 100,000 shares, plans to renew NCIB strategy

Outlook

PHX Energy expects strong activity and revenue in H2 2025
Company anticipates continued growth in Canadian RSS fleet
PHX Energy sees US fleet expansion supporting revenue in declining rig count
Company expects softer market in 2025 due to tariffs, lower oil prices

Result Drivers

RECORD REVENUE - PHX Energy achieved highest Q2 revenue on record, driven by increased motor rental activity and RSS deployment
US REVENUE GROWTH - Despite weaker industry drilling activity, US division revenue grew 10%, supported by RSS and motor rentals
COST IMPACT - Profitability affected by higher equipment costs due to tariffs and inventory obsolescence provision

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$167.67 C$166.50

Revenue mln mln (2

Analysts

)

Q2 EPS C$0.17

Q2 C$27.36

Adjusted mln

EBITDA

Q2 FFO C$20.60

mln

Q2 Capex C$20.75

mln

Q2 FFO C$0.45

Per

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 is C$10.00, about 18.4% above its August 5 closing price of C$8.16
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: (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.)