Calfrac Reports Second Quarter 2026 Results

CALGARY, Alberta, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Calfrac Well Services Ltd. (“Calfrac” or “the Company”) (TSX: CFW) announces its financial and operating results for the three and six months ended June 30, 2026. The following press release should be read in conjunction with the management’s discussion and analysis and interim consolidated financial statements and notes thereto as at June 30, 2026. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated.

SECOND QUARTER 2026 HIGHLIGHTS

In the period, the Company:

• generated revenue of $426.7 million, an increase of six percent from $402.3 million in the second quarter of 2025, driven by stronger activity and improved utilization in North America;
• generated Adjusted EBITDA of $73.8 million (17 percent of revenue) versus $77.0 million (19 percent of revenue) in the second quarter of 2025 as improved profitability in North America was offset by normalization of pricing in Argentina;
• reported net income of $31.8 million ($0.32 per share diluted) compared to $15.3 million ($0.17 per share diluted) during the second quarter in 2025, reflecting stronger operating performance and lower interest expense;
• incurred capital expenditures of $15.1 million reflecting the Company’s continued commitment to disciplined capital allocation while maintaining high asset utilization;
• generated free cash flow of $29.5 million and cash flow from operating activities of $40.9 million, supporting debt reduction and continued strengthening of the Company’s balance sheet;
• repatriated US$18.1 million of cash from Argentina during the quarter, reflecting continued improvements to Argentina’s foreign exchange and cash repatriation framework and enhancing the Company’s financial flexibility;
• achieved its lowest level of net debt in over 10 years, including the net repayment of $68.5 million of principal during the first six months of 2026 resulting in a 36 percent reduction, from December 31, 2025, to $125.8 million at June 30, 2026;
• successfully completed the Company’s first wireline job in Argentina using its own wireline unit, marking an important milestone in the expansion of its integrated service offering and positioning the business to capture additional revenue and improve profitability on future programs; and
• received Toronto Stock Exchange approval to implement a Normal Course Issuer Bid permitting the repurchase of up to 5.0 million, or approximately 5 percent, of the Company’s outstanding common shares, opening an additional channel to enhance total shareholder return on a prudent and opportunistic basis.
  
  

Subsequent to June 30, 2026, the Company's Board of Directors approved approximately $22.6 million of incremental capital expenditures in 2026 to support strategic growth initiatives, including the expansion of coiled tubing capacity in Argentina associated with a recently awarded three-year committed contract and additional cementing capacity to support expected growth in the Vaca Muerta shale play.

SELECT FINANCIAL HIGHLIGHTS

Three Months Ended June 30,	2026	2025	Change
(C$000s, except per share amounts)	($)	($)	(%)
(unaudited)
Revenue	426,687	402,291	6
Adjusted EBITDA(1)	73,834	76,977	(4	)
Adjusted EBITDA %(1)	17	19	(11	)
Cash flows provided by (used in) operating activities	40,852	73,548	(44	)
Capital expenditures	15,064	40,834	(63	)
Free cash flow(1)	29,521	29,625	(0	)
Net income	31,825	15,325	108
Per share – basic(2)	0.32	0.17	88
Per share – diluted(2)	0.32	0.17	88

As at	June 30	December 31	Change
	2026	2025
(C$000s)	($)	($)	(%)
(unaudited)
Cash and cash equivalents	9,473	6,664	42
Working capital, calculated as:
Excluding cash and cash equivalents and the current portion of long-term debt	201,094	189,304	6
Including cash and cash equivalents and the current portion of long-term debt	157,234	155,968	1
Total assets, end of period	1,136,223	1,047,199	9
Long-term debt, end of period	135,236	203,425	(34	)
Net debt(1)(4)	125,763	196,761	(36	)
Total equity, end of period	739,803	664,279	11

⁽¹⁾ Refer to “Non-GAAP Measures” on page 3 for further information.
⁽²⁾ Basic and diluted shares outstanding have been restated to show the comparative impact of the rights offering that was completed in December 2025.
⁽³⁾ Refer to note 3 of the consolidated interim financial statements for further information.
⁽⁴⁾ Refer to note 9 of the consolidated interim financial statements for further information.

CEO’S MESSAGE
Through the first half of the year, Calfrac has continued to generate meaningful free cash flow, materially strengthening our balance sheet and enhancing our financial flexibility. This performance reflects the disciplined execution of our teams and a relentless focus on streamlining operations, improving cost efficiency, and reallocating personnel and equipment to the highest and best uses across the Company’s asset base.  

The strength of our balance sheet is allowing us to selectively reinvest in our core business while maintaining a disciplined approach to capital allocation. Calfrac’s diversified geographies and service lines provide a unique platform to direct capital toward the best returning opportunities across the Western Hemisphere. With the expansion of our 2026 capital program, we expect to strengthen and grow our coiled tubing and cementing service lines in Argentina demonstrating the attractive growth opportunities provided by our long-standing presence in the Vaca Muerta.

In Canada, we will continue to reinforce our position as a leading pressure pumping provider through the deployment of next-generation natural gas-powered pumping equipment. These investments are aligned with our commitment to operational excellence, customer service, and prudent financial stewardship. We believe this balanced approach—strengthening the balance sheet while reinvesting selectively in high-return opportunities—positions Calfrac to deliver sustainable performance and long-term value for our shareholders.

I strongly believe the Company’s position, strategy, and industry tailwinds put us in the best position we have been in quite some time. 

OUTLOOK

NORTH AMERICA

Activity levels in North America are expected to remain constructive through the second half of 2026. In the United States, customer activity has exceeded expectations from the start of the year, supported by a favorable commodity price environment and continued strength in completion activity. In Canada, customer activity remains broadly in line with expectations, although the timing of completion programs has shifted throughout the year in response to market conditions.

The Company remains focused on optimizing the deployment of its people and equipment across its operating footprint to maximize utilization and returns while maintaining high levels of customer service.

ARGENTINA

Argentina continues to represent one of the most attractive growth opportunities within Calfrac's portfolio. Activity in the Vaca Muerta shale play remains supported by ongoing investment in upstream development and export infrastructure, providing a strong foundation for continued long-term growth.

Calfrac recently secured a multi-year committed coiled tubing contract with a major Vaca Muerta producer, supporting additional investment in high-specification equipment and further strengthening the Company's integrated service offering in the country. The Company's cementing business continues to gain market share and expand its customer base.

While fracturing activity is expected to be lower in the third quarter due to customer scheduling considerations, utilization is expected to improve in the fourth quarter as customer completion programs accelerate.

CORPORATE

The Company remains focused on generating free cash flow, strengthening its balance sheet, and maintaining disciplined capital allocation. Following the net repayment of $68.5 million of debt principal during the first six months of 2026, management continues to prioritize debt reduction while selectively investing in high-return opportunities that enhance customer service capabilities and long-term competitiveness.

NON-GAAP MEASURES

Certain supplementary measures presented in this press release, including Adjusted EBITDA, Adjusted EBITDA percentage, Free Cash Flow, and Net Debt do not have any standardized meaning under International Financial Reporting Standards (IFRS) and, because IFRS have been incorporated as Canadian generally accepted accounting principles (GAAP), these supplementary measures are also non-GAAP measures. These measures have been described and presented to provide shareholders and potential investors with additional information regarding the Company’s financial results, liquidity, and ability to generate funds to finance its operations. These measures may not be comparable to similar measures presented by other entities, and are explained below.

Adjusted EBITDA is defined as net income or loss for the period less interest, taxes, depreciation and amortization, foreign exchange losses (gains), non-cash stock-based compensation, and gains and losses that are extraordinary or non-recurring. Adjusted EBITDA is presented because it gives an indication of the results from the Company’s principal business activities prior to consideration of how its activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges. Adjusted EBITDA is used by management to evaluate the performance of the Company and is also used as a basis for monitoring the Company’s compliance with covenants under the credit facility. Adjusted EBITDA for the period was calculated as follows:

Three Months Ended Jun. 30,
	2026		2025
(C$000s)	($)		($)
(unaudited)
Net income	31,825		15,325
Add back (deduct):
Depreciation	31,159		32,451
Foreign exchange losses (gains)	656		6,543
(Gain) loss on disposal of property, plant and equipment	(4,050	)	901
Restructuring charges	2,231		5,380
Stock-based compensation	260		—
Interest, net	3,252		7,961
Income taxes	8,501		8,416
Adjusted EBITDA	73,834		76,977

Adjusted EBITDA percentage is a non-GAAP financial ratio that is determined by dividing Adjusted EBITDA by revenue for the corresponding period.

Free cash flow is defined as net cash flows provided by or used in operating activities less lease obligation principal repayments and capital expenditures adjusted for proceeds received from the disposition of property, plant, and equipment. Free cash flow is used by management to assess the Company’s ability to generate cash from operations after funding maintenance and growth capital requirements and meeting key financial obligations. Management believes this measure provides investors with useful information regarding the Company’s capacity to reduce debt, maintain financial flexibility, and allocate capital in accordance with its strategic priorities. Free cash flow does not have a standardized meaning under IFRS Accounting Standard and may not be comparable to similar measures presented by other issuers.

	Three Months Ended June 30,
	2026		2025
(C$000s)	($)		($)
Net cash flows provided by (used in) operating activities	40,852		73,548
Add back (deduct):
Lease obligation principal repayments	(2,276	)	(2,553	)
Net capital expenditures	(9,055	)	(41,370	)
Free cash flow	29,521		29,625

Net Debt is defined as long-term debt less unamortized debt issuance costs less cash and cash equivalents. The calculation of net debt is disclosed in note 6 to the Company’s annual consolidated financial statements for the corresponding period.

OTHER NON-STANDARD FINANCIAL TERMS

MAINTENANCE CAPITAL

Maintenance capital refers to expenditures in respect of capital additions, replacements, and major refurbishments required to sustain the operating capacity, functionality, and useful life of the Company’s existing assets, equipment, and technology within their current specifications and capabilities.

OPTIMIZATION CAPITAL

Optimization capital refers to capital investments made to enhance the operating capabilities of the Company’s existing service fleet, including equipment upgrades, technology enhancements, emissions-reductions initiatives, automation, and other modifications that improve performance, reliability, efficiency, safety, or customer service capabilities. Such expenditures are distinct from maintenance capital required to sustain current operations and expansion capital intended to increase fleet capacity.

EXPANSION CAPITAL

Expansion capital refers to expenditures for new assets, equipment and technology that expand the size, capacity or scale of the Company’s operating fleets and operations, including investments in incremental pumping horsepower, coiled tubing units, wireline units, and ancillary operating equipment.

WORKING CAPITAL
Working capital is calculated as total current assets less total current liabilities. The Company has also provided a separate calculation of working capital that excludes cash and cash equivalents as well as the current portion of long-term debt as management believes this is a useful liquidity measure for investors and other stakeholders.

BUSINESS RISKS

The business of Calfrac is subject to certain risks and uncertainties. Prior to making any investment decision regarding Calfrac, investors should carefully consider, among other things, the risk factors set forth in the Company’s most recently filed Annual Information Form under the heading “Risk Factors” which is available on the SEDAR+ website at www.sedarplus.ca under the Company’s profile. Copies of the Annual Information Form may also be obtained on request without charge from Calfrac at Suite 601, 407 - 8th Avenue S.W., Calgary, Alberta, Canada, T2P 1E5, or at www.calfrac.com.

ADDITIONAL INFORMATION

Calfrac's common shares are publicly traded on the Toronto Stock Exchange under the trading symbol "CFW".

Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells with operations focused throughout North America and Argentina.

Further information regarding Calfrac Well Services Ltd., including the most recently filed Annual Information Form, can be accessed on the Company’s website at www.calfrac.com or under the Company’s profile at www.sedarplus.ca.

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
(C$000s, except per share data)	($)		($)		($)		($)
Revenue	426,687		402,291		732,052		772,348
Cost of sales	368,942		347,180		642,045		677,756
Gross profit	57,745		55,111		90,007		94,592
Expenses
Selling, general and administrative	17,561		15,965		31,843		31,642
Foreign exchange losses (gains)	656		6,543		(2,015	)	8,236
(Gain) loss on disposal of property, plant and equipment	(4,050	)	901		(4,546	)	1,025
Interest, net	3,252		7,961		6,476		15,905
	17,419		31,370		31,758		56,808
Income before income tax	40,326		23,741		58,249		37,784
Income tax expense (recovery)
Current	5,639		12,977		14,081		27,217
Deferred	2,862		(4,561	)	(6,541	)	(12,554	)
	8,501		8,416		7,540		14,663
Net income from continuing operations	31,825		15,325		50,709		23,121
Net loss from discontinued operations	—		(522	)	—		(2,703	)
Net income	31,825		14,803		50,709		20,418
Earnings (loss) per share – basic			Restated				Restated
Continuing operations	0.32		0.17		0.51		0.26
Discontinued operations	—		(0.01	)	—		(0.03	)
	0.32		0.17		0.51		0.23
Earnings (loss) per share – diluted
Continuing operations	0.32		0.17		0.50		0.26
Discontinued operations	—		(0.01	)	—		(0.03	)
	0.32		0.17		0.50		0.23

CONSOLIDATED BALANCE SHEETS

	June 30,		December 31,
	2026		2025
(C$000s)	($)		($)
ASSETS
Current assets
Cash and cash equivalents	9,473		6,664
Accounts receivable	346,914		242,348
Inventories	85,794		98,291
Prepaid expenses and deposits	15,365		10,084
	457,546		357,387
Non-current assets
Property, plant and equipment	642,128		656,096
Right-of-use assets	14,198		16,247
Deferred income tax assets	22,351		17,469
	678,677		689,812
Total assets	1,136,223		1,047,199
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities	226,540		134,110
Income taxes payable	11,997		18,778
Current portion of long-term debt	53,333		40,000
Current portion of lease obligations	8,442		8,531
	300,312		201,419
Non-current liabilities
Long-term liabilities	930		—
Long-term debt	81,903		163,425
Lease obligations	6,937		9,982
Deferred income tax liabilities	6,338		8,094
	96,108		181,501
Total liabilities	396,420		382,920
Capital stock	958,193		946,654
Contributed surplus	72,278		76,225
Accumulated deficit	(298,513	)	(349,222	)
Accumulated other comprehensive income	7,845		(9,378	)
Total equity	739,803		664,279
Total liabilities and equity	1,136,223		1,047,199

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
(C$000s)	($)		($)		($)		($)
CASH FLOWS PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net income	31,825		15,325		50,709		23,121
Adjusted for the following:
Depreciation	31,159		32,451		61,352		64,373
Stock-based compensation	260		—		416		(925	)
Net gain on foreign currency forwards not qualifying as hedges	—		(193	)	—		(193	)
Unrealized foreign exchange (gains) losses	(3,082	)	8,563		(5,404	)	10,409
(Gain) loss on disposal of property, plant and equipment	(4,050	)	901		(4,546	)	1,025
Interest, net	3,252		7,961		6,476		15,905
Interest paid	(3,507	)	(3,373	)	(6,540	)	(16,089	)
Deferred income taxes	2,862		(4,561	)	(6,541	)	(12,554	)
Changes in non-cash working capital	(17,867	)	16,474		(4,029	)	(18,574	)
Cash flows provided by operating activities from continuing operations	40,852		73,548		91,893		66,498
Cash flows provided by operating activities from discontinued operations	—		1,202		—		11,433
Net cash flows provided by operating activities	40,852		74,750		91,893		77,931
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(13,729	)	(43,271	)	(28,828	)	(81,769	)
Proceeds on disposal of property, plant and equipment	4,348		1,412		4,348		2,965
Proceeds on disposal of right-of-use assets	326		489		934		695
Cash flows used in investing activities from continuing operations	(9,055	)	(41,370	)	(23,546	)	(78,109	)
Cash flows used in investing activities from discontinued operations	—		(4,844	)	—		(6,301	)
Net cash flows used in investing activities	(9,055	)	(46,214	)	(23,546	)	(84,410	)
FINANCING ACTIVITIES
Issuance of long-term debt, net of debt issuance costs	30,856		20,000		30,811		50,000
Long-term debt repayments	(54,333	)	—		(99,333	)	(10,000	)
Lease obligation principal repayments	(2,276	)	(2,553	)	(4,407	)	(5,797	)
Net proceeds on issuance of common shares	1,978		—		7,176		71
Cash flows (used in) provided by financing activities from continuing operations	(23,775	)	17,447		(65,753	)	34,274
Cash flows provided by financing activities from discontinued operations	—		—		—		—
Net cash flows (used in) provided by financing activities	(23,775	)	17,447		(65,753	)	34,274
Effect of exchange rate changes on cash and cash equivalents	54		(13,431	)	215		(12,881	)
Increase in cash and cash equivalents	8,076		32,552		2,809		14,914
Cash and cash equivalents, beginning of period	1,397		33,138		6,664		50,776
Cash and cash equivalents, end of period	9,473		65,690		9,473		65,690

ADVISORIES
FORWARD-LOOKING STATEMENTS

In order to provide Calfrac shareholders and potential investors with information regarding the Company and its subsidiaries, including management’s assessment of Calfrac’s plans and future operations, certain statements contained in this press release, including statements that contain words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “forecast” or similar words suggesting future outcomes, are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, “forward-looking statements”).

In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to the expectations regarding trends in, and growth prospects of, the global oil and gas industry; the supply and demand fundamentals of the pressure pumping industry; activity, demand, utilization and outlook for the Company’s North America and Argentina operating segments, including (a) the constructive outlook in North America for the remainder of 2026 due to elevated crude oil pricing relative to expectations at the outset of the year, and (b) the robust activity outlook in the Vaca Muerta shale play of Argentina due to expanding midstream capacity and continued investment from domestic and international operators; operating and financing strategies, performance, priorities, metrics and estimates, including the Company’s plans to continue to (a) leverage the Company’s diversified geographies and service lines to direct assets, personnel and capital to the highest and best use, and (b) strengthen the balance sheet while pursuing select high-return investment opportunities; capital investment plans including the expected benefits of new coiled tubing and cementing investments in Argentina and investments in next-generation natural gas-powered pumping equipment in North America; the Company’s debt, liquidity and financial position, including the Company’s flexibility to reinvest in its core business while maintaining a disciplined approach to capital allocation; input costs, margin and service pricing trends and strategies; the Company’s ability and intentions to repatriate cash from Argentina; future financial resources and performance; future costs or potential liabilities; the Company’s service quality, safety record and competitive position; accounting policies, practices, standards and judgments of the Company; and the Company’s expectations and intentions with respect to the foregoing.

These statements are derived from certain assumptions and analyses made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors that it believes are appropriate in the circumstances, including, but not limited to, the economic and political environment in which the Company operates, including the continued implementation of Argentina economic reforms and investments in its oil and gas industry as well as the current state of the trade relations between Canada and the U.S. and its expected impact on the pressure pumping market in North America; the Company’s expectations for its customers’ capital budgets, demand for services and geographical areas of focus; the anticipated effects of artificial intelligence power requirements, and the commissioning of liquefied natural gas export terminals on supply and demand fundamentals for the oil and natural gas; industry equipment levels, including the number and type of active fracturing fleets marketed by the Company’s competitors; the continued effectiveness of cost reduction and efficiency measures instituted by the Company; the Company’s existing contracts and the status of current negotiations with key customers and suppliers; the likelihood that the current tax and regulatory regime will remain substantially unchanged; the level of merger and acquisition activity among oil and gas producers and its impact on the demand for well completion services; the effect of environmental, social and governance factors on customer and investor preferences and capital deployment; and the current status of the military conflicts in Ukraine and the Middle East (including its impact on shipping in the Strait of Hormuz and Bab al-Mandab Strait), U.S. and Venezuelan energy policies, and OPEC+ production decisions—and their effect on global oil and natural gas demand.

Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from the Company’s expectations. Such risk factors include but are not limited to: (A) industry risks, including but not limited to, global economic conditions and the level of exploration, development and production for oil and natural gas in North America and Argentina; an intensely competitive oilfield services industry; a shift in strategy by exploration and production companies prioritizing shareholder returns over production growth; excess equipment levels; and hazards inherent in the industry; (B) geopolitical risks, including but not limited to, international conflict; changes to the global trading system; shifts in government policy; foreign operations exposure, including risks relating to repatriation of cash from foreign jurisdictions, unsettled political conditions, war, foreign exchange rates and controls and sanctions; (C) business operations risks, including but not limited to, fleet reinvestment risk; a concentrated customer base; cybersecurity risks; risks related to artificial intelligence and technology; constraints on demand for the Company’s services due to mergers and acquisition activities; seasonal volatility; failure to maintain Company’s safety standards and record; and impacts of extreme weather and drought; (D) financial risks, including but not limited to, restrictions on the Company’s access to capital; direct and indirect exposure to volatile credit markets, including interest rate risk; fluctuations in currency exchange rates; and price escalation and availability of raw materials, diesel fuel and component parts; and (E) legal and regulatory risks, including but not limited to, health, safety and environmental laws and regulations; legal and administrative proceedings; federal, provincial and state legislative and regulatory initiatives and laws; and the direct and indirect costs of various existing and proposed climate change regulations. Further information about these and other risks and uncertainties may be found under the heading “Business Risks” above.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and there can be no assurance that actual results or developments anticipated by the Company will be realized, or that they will have the expected consequences or effects on the Company or its business or operations. These statements speak only as of the respective date of this press release or the document incorporated by reference herein. The Company assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities laws.

For further information, please contact:

Tyler Dahlseide, Chief Executive Officer
Scarlett Crockatt, Chief Financial Officer

Telephone: 403-266-6000
www.calfrac.com