Strategic Transformation and Operational Recovery
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Achieved first positive adjusted EBITDA in eight quarters, signaling a successful pivot toward a simplified portfolio and higher-return businesses.
Performance was primarily driven by the rental segment, specifically the deployment of aviation assets and improved utilization in gas-weighted basins.
Aggressive cost restructuring reduced SG&A by 38% sequentially, with management targeting a long-term annual run rate of $11 million to $12 million.
Accommodations segment delivered 40% gross margins, the highest in five quarters, due to strong customer activity and inherent operating leverage.
Drilling and sand segments saw significant sequential revenue growth of 180% and 129% respectively, though margins remain pressured by front-loaded maintenance and pricing competition.
Management executed a strategic ‘buy-and-sell’ approach in aviation, monetizing an APU at a 20% gross IRR to recycle capital into higher-yielding assets.
Infrastructure services are undergoing an operational reset under new leadership to improve project oversight and cost discipline in the fiber optic business.
Accelerated Profitability and Growth Outlook
Raised 2026 revenue growth guidance to greater than 60%, up from the previous 50% estimate, led by continued momentum in the rental segment.
Pulled forward the timeline for full-year adjusted EBITDA profitability by one year, now expecting to be positive for the full year of 2026.
Anticipates drilling segment will reach positive EBITDA in 2026 as utilization builds and front-loaded maintenance costs normalize.
Expects fiber optic demand to build in the second half of 2026 and into 2027, supported by a $1.9 million investment in the fiber optic fleet.
Aviation portfolio growth is expected to continue with four of six newly acquired engines slated to go on lease during the second quarter.
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Capital Allocation and Risk Factors
Initiated share repurchases for the first time since 2023, signaling management’s view that the stock price does not reflect the company’s $125.1 million cash position.
Maintains a debt-free balance sheet with $125.1 million in liquidity to support opportunistic capital deployment and further buybacks.
Identified an EBITDA overhang in the infrastructure segment for the remainder of 2026 due to the ongoing operational reset.
Sand segment margins remain a risk factor as the company works through railcar lease optimization and competitive pricing in the Montney region.
