CES Energy Solutions Corp., based in Calgary, reported record revenue of CAD574 mn ($419.9 mn) for the second quarter of 2025, an increase of 4% compared to the same period in 2024. This growth was driven by strong market share and higher service intensity, despite a decline in drilling activity in the United States and Canada. Quarterly net income reached CAD51.8 mn ($37.9 mn), up 8% year-on-year.
Performance in the United States and Canada
Revenue generated in the United States reached a record CAD405.6 mn ($296.8 mn), up 4% year-on-year, supported by a historic 25% market share in drilling fluids. In Canada, revenue totalled CAD168.4 mn ($123.1 mn), up 4% year-on-year despite a seasonal 40% drop in rig count. Canadian market share reached 36% for the quarter.
Financial results and shareholder returns
Adjusted EBITDAC (earnings before interest, taxes, depreciation, amortisation and specific charges) stood at CAD88.3 mn ($64.6 mn), representing 15.4% of revenue. The company paid CAD9.5 mn ($7 mn) in dividends and repurchased CAD31.3 mn ($22.9 mn) worth of shares, equivalent to around 2.2% of outstanding shares. Free cash flow reached CAD35.3 mn ($25.8 mn), compared with CAD54.8 mn ($40 mn) a year earlier.
Financial structure and acquisitions
As of June 30, 2025, total debt stood at CAD490.9 mn ($358.9 mn), up from December 2024, mainly due to share buybacks and the acquisition of Fossil Fluids LLC for CAD14.2 mn ($10.4 mn). This transaction strengthens CES’s regional presence in the US Mid-Continent. Working capital surplus was CAD671.6 mn ($491.4 mn).
Outlook and investments
For 2025, CES expects net capital expenditures of around CAD80 mn ($58.5 mn), evenly split between maintenance and expansion. The company anticipates that growing demand for specialised chemical solutions in drilling and production, supported by lasting sector trends, will keep activity at high levels.
