Total Energy Services Inc
TSX:TOT
Total Energy Services Inc
Total Energy Services, Inc. engages in the provision of products and services to the oil and natural gas industry. The company is headquartered in Calgary, Alberta and currently employs 1,751 full-time employees. The firm provides a variety of products and services to the energy and other resource industries. The firm operates through four business units: Contract Drilling Services (CDS), Rentals and Transportation Services (RTS), Compression and Process Services (CPS), and Well Servicing (WS). The RTS segment includes the contracting of drilling equipment and the provision of labor to operate the equipment. The RTS segment includes the rental and transportation of equipment used in energy and other industrial operations. The CPS segment includes the fabrication, sale, rental and servicing of gas compression and process equipment. The WS segment includes the contracting of service rigs and the provision of labor to operate the equipment. The firm provides equipment's to drilling, completion, production, transportation, oil and gas process equipment and natural gas compression needs.
Total Energy Services, Inc. engages in the provision of products and services to the oil and natural gas industry. The company is headquartered in Calgary, Alberta and currently employs 1,751 full-time employees. The firm provides a variety of products and services to the energy and other resource industries. The firm operates through four business units: Contract Drilling Services (CDS), Rentals and Transportation Services (RTS), Compression and Process Services (CPS), and Well Servicing (WS). The RTS segment includes the contracting of drilling equipment and the provision of labor to operate the equipment. The RTS segment includes the rental and transportation of equipment used in energy and other industrial operations. The CPS segment includes the fabrication, sale, rental and servicing of gas compression and process equipment. The WS segment includes the contracting of service rigs and the provision of labor to operate the equipment. The firm provides equipment's to drilling, completion, production, transportation, oil and gas process equipment and natural gas compression needs.
Revenue Growth: Consolidated third quarter revenue increased by 8% year-over-year, driven by strength in Australian operations and continued strong North American demand for compression and process equipment.
Margin Pressure: Gross margin declined by 209 basis points to 22% due to increased revenue from lower-margin segments and cost inflation, with CPS segment margins particularly impacted.
Strong Backlog: Fabrication sales backlog reached a record $380.8 million at quarter end, up 25% sequentially, providing visibility into the second half of 2026.
Australian Expansion: Australian rig count will reach an all-time high of 13, with continued investments in upgrades and long-term contracts driving growth and market share gains.
Compression Market: North American demand for compression equipment remains very strong with long lead times for inputs, supporting robust order flow and capacity expansion plans.
Balance Sheet: Positive working capital of $115.5 million and $57.1 million in cash at quarter end, with low leverage and strong banking covenant coverage.
Acquisition Strategy: Management remains open to both small and large acquisitions to build scale, especially in North America, supported by a strong financial position.
