Highlights

  • PHX Energy reported Q3 2025 revenue of CAD 164.3 million, marking a 2.3% year-on-year increase driven by market share gains and steady activity levels
  • Q3 adjusted EBITDA declined year-on-year to CAD 27.9 million due to higher equipment repair costs and reduced high-margin RSS contributions
  • Looking ahead, PHX Energy expects stable activity in 2026

PHX Energy Services Corp. (TSX:PHX) is a Canada-based service provider primarily engaged in horizontal and directional drilling services. The company also offers web-based remote electronic drilling recorder technology and related services to oil and natural gas exploration and development companies across Canada, the United States, Albania, and Russia.

For the third quarter of 2025 (Q3 2025), PHX Energy reported revenue of CAD 164.3 million, up 2.3% year-on-year from CAD 160.6 million in the corresponding period last year. The company attributed the modest increase to market share gains and resilient activity levels, even as the broader drilling environment remained weaker.

Adjusted EBITDA for the quarter declined to CAD 27.9 million from CAD 29.0 million a year earlier, reflecting higher equipment repair costs and a lower contribution from high-margin RSS activity. Earnings also fell year-on-year to CAD 8.5 million, impacted by margin pressure and higher depreciation following recent fleet additions. Cash flows from operating activities decreased to CAD 20.1 million from CAD 28.7 million, driven by lower profitability and working capital movements in a softer industry cycle.

Recent Business Update

PHX Energy announced on December 15, 2025, that it had declared a quarterly cash dividend of CAD 0.20 per share. The dividend is payable on January 15, 2026, to shareholders on record as of December 31, 2025, and is designated as an eligible dividend for tax purposes.

Company Outlook

PHX Energy stated that it is entering 2026 positioned for resilience rather than aggressive growth, as management expects activity levels to remain steady in line with market conditions despite global uncertainty and lower commodity prices. The company indicated that growth capital expenditure will be directed toward higher-margin RSS and Atlas rentals, while retaining flexibility to scale back if conditions weaken. Management noted that a growing focus on drilling efficiency among operators is expected to support stable cash flows and ongoing shareholder returns.

Top Shareholders

The company’s top 10 shareholders collectively account for about 29.63% of the total shareholding. GMT Capital Corp. and Hooks (John Michael) are the largest shareholders, holding stakes of roughly 9.92% and 6.57%, respectively.

Stock Information

The stock recorded a gain of around 1.47% over the past week, while posting a decline of approximately 0.26% over the past month. It is currently trading below its average 52-week high of CAD 9.79 and above its 52-week low of CAD 6.64.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 12, 2026. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined: -

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.