Precision Drilling Corporation (PDS) AI Stock Analysis

Precision Drilling Corporation delivers onshore drilling, completion, and production services to the oil and natural gas sectors across North America and the Middle East. Headquartered in Calgary, Canada, it operates through Contract Drilling Services and Completion and Production Services. Contract Drilling manages land and turnkey drilling solutions alongside rig equipment manufacturing and refurbishment. As of December 31, 2021, the fleet included 227 land drilling rigs, with 109 in Canada, 105 in the United States, and units across international regions such as Kuwait, Saudi Arabia, and Iraq's Kurdistan region. Completion and Production deploys 123 service rigs across Canada and the United States, offering surface equipment rentals and camp accommodations.

Precision Drilling posted a 5-year revenue compound annual growth rate of 20.2% from FY2020 to FY2025. Annual revenue expanded from $986.8M in FY2021 to $1.94B in FY2023, before contracting to $1.90B in FY2024 and $1.84B in FY2025. Operating margin declined from 31.5% in FY2023 to 11.1% in FY2024 and 5.7% in FY2025, while net income narrowed to $1.8M in FY2025. Across the trailing twelve months, revenue was $1.92B, operating margin stood at 3.2%, and EPS was -$1.74. For the latest quarter ended June 30, 2026, revenue increased 11.4% year-over-year, while quarterly earnings dropped 39.1%.

As of June 30, 2026, Precision Drilling held $66.3M in cash and short-term investments against total debt of $697.0M, resulting in net debt of $630.7M. Shareholders' equity was $1.60B against total assets of $2.73B, with a debt-to-equity ratio of 0.44 and a current ratio of 1.46. In FY2025, operating cash flow reached $411.8M and free cash flow totaled $148.6M. Capital allocation in FY2025 included $263.3M spent on capital expenditures and $75.6M deployed toward share buybacks, while share count increased 0.8% over five years.

With an enterprise value of $1.50B and a market capitalization of $1.08B, Precision Drilling trades at a forward P/E of 10.4x, below the 12.7x median of its US-listed Energy peers. Its price-to-sales of 0.6x and price-to-book of 0.9x both sit beneath peer medians of 1.8x for price-to-sales. However, its EV/EBITDA of 34.0x is well above the peer median of 8.0x. Over the past year, the stock returned 57.8%, outpacing the 16.8% return of the S&P 500 ETF, though its 5-year return of 73.4% lagged the benchmark's 83.0%.

Wall Street coverage consists of 4 Strong Buy, 4 Buy, and 2 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $101.53, implying an 18.6% upside from the last close of $85.61. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $2.05B and EPS of $6.59. For the next fiscal year, analysts anticipate revenue of $2.15B and EPS of $12.12. Precision Drilling missed EPS estimates across each of the last 4 quarters, with the next earnings release scheduled for October 27, 2026.

This page is an AI-written research summary of Precision Drilling Corporation (PDS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: PDS income statement, PDS balance sheet, PDS key metrics, PDS analyst forecast, PDS chart. See the PDS stock overview for the latest quote and news.