Pason Reports First Quarter 2025 Results and Declares Quarterly Dividend – Pason Sys (OTC:PSYTF)

CALGARY, AB, Might 1, 2025/ CNW/ – Pason Systems Inc. (” Pason” or the “Business”) PSI PSYTF revealed today its 2025 very first quarter outcomes and the statement of a quarterly dividend. The following press release must read in combination with the Business’s Management Conversation and Analysis (” MD&A”), the unaudited Condensed Consolidated Interim Financial Statements and associated notes for the 3 months ended March 31, 2025, in addition to the Yearly Info Type for the year ended December 31, 2024. All of these files are offered on SEDAR+ at www.sedarplus.ca.

Monetary Emphasizes

Pason produced $ 113.2 million in combined profits in the very first quarter of 2025, representing a 8% boost from the $ 104.8 million produced in the relative duration of 2024 and an outcome that continues to considerably outmatch underlying market conditions.

The North American Drilling organization system produced $ 75.8 million of profits in the very first quarter of 2025, a 3% boost over the relative duration of 2024 regardless of market conditions that continued to be tough. Market activity in The United States and Canada was 3% lower in the very first quarter of 2025 when compared to the very first quarter of 2024, driven by a decrease in United States land rig counts, a little balanced out by a boost in Canadian activity. Nevertheless, throughout this time Pason’s Profits per Market Day increased 7% to $ 1,067 from the relative 2024 duration. Profits per Market Day in the existing quarter represents increased item adoption throughout Pason’s innovation offering and likewise gained from strength in the United States dollar versus the Canadian dollar when compared to the previous year quarter. While an enhancing United States dollar adversely affected United States dollar sourced operating costs in the very first quarter of 2025, this boost was balanced out by lower levels of repair work. As an outcome, sector gross revenue of $ 46.8 million throughout the very first quarter of 2025 increased from $ 44.4 million in the 2024 relative duration, and shows the sector’s operating take advantage of and capability to outmatch market activity levels on a primarily repaired expense base.

The International Drilling organization system produced $ 14.0 million of profits and $ 5.8 million in gross revenue in the very first quarter of 2025, both representing reductions over the relative duration of 2024. Present quarter profits in this sector was affected by lower levels of activity within the Business’s Argentinian operations, due to a big client’s functional focus moving far from traditional wells towards more non-traditional drilling, causing a decrease in active rigs pending arise from this shift. While the sector’s expense base stays mostly repaired, existing quarter operating costs were affected by inflationary results and modifications in forex.

Market conditions for conclusions activity in The United States And Canada continued to be challenging in the very first quarter of 2025 with active frac spreads in the United States decreasing by 21% from the previous year relative duration. Nevertheless, versus this background the Business’s Conclusions sector produced $ 16.0 million in profits representing a 25% boost from the previous year relative duration. Throughout the very first quarter of 2025, business system balanced 32 IWS Active Jobs, up from 28 in the very first quarter of 2024, and up from 26 in the 4th quarter of 2024. Profits per IWS day of $ 5,486 likewise increased year over year by 9%, taking advantage of mix of active tasks and likewise from strength in the United States dollar. As the Conclusions sector grows its client base, Profits per IWS Day will vary depending upon the mix of innovation embraced among those existing clients. Section gross revenue of $ 1.6 million in the quarter compares to $ 1.2 million in the previous year relative quarter, and consists of $ 5.6 million of devaluation and amortization cost, of which $ 2.1 million connects to amortization cost on intangible properties obtained through the IWS Acquisition.

Profits produced by the Solar and Energy Storage organization system was $ 7.4 million, a 98% boost from the relative duration in 2024 and a brand-new quarterly record for the sector. Profits grew year over year with an increased variety of control systems provided in the existing quarter. With the boost in profits, operating costs were $ 6.5 million throughout the very first quarter of 2025 showing the expense of products offered on controls systems profits. Resulting sector gross revenue was $ 0.8 million for the very first quarter of 2025 compared to $ 0.2 million in the equivalent duration in 2024.

Pason produced $ 45.2 million in Adjusted EBITDA, or 39.9% of profits in the very first quarter of 2025, compared to $ 42.4 million or 40.5% of profits in the very first quarter of 2024. While Adjusted EBITDA grew year over year with increasing profits, a contrast of Adjusted EBITDA margins shows greater levels of profits produced by the Business’s Conclusions and Solar and Energy Storage sections at lower margins offered the financial investments produced the existing phase of development of those sections.

The Business tape-recorded earnings attributable to Pason of $ 20.0 million ($ 0.25 per share) in the very first quarter of 2025, compared to net earnings attributable to Pason of $ 69.5 million ($ 087 per share) tape-recorded in the matching duration in 2024. Very first quarter 2024 earnings attributable to Pason consisted of a non- repeating $ 50.8 million non-cash accounting gain recognized on the revaluation of the Business’s formerly held equity financial investment in IWS following the acquisition of all staying impressive typical shares not held by Pason on January 1, 2024

Sequentially, Q1 2025 combined profits of $ 113.2 million was a 5% boost from combined profits of $ 107.6 million produced in the 4th quarter of 2024. Changed EBITDA of $ 45.2 million or 39.9% of profits in the very first quarter of 2025 likewise increased from $ 42.1 million or 39.1% of profits in the 4th quarter of 2024. Very first quarter 2025 results gained from greater levels of Canadian drilling activity through the winter season drilling season and consecutive development in Profits per Market Day. Even more, the Business’s Conclusions and Solar and Energy Storage sections both grew profits sequentially, balancing out a consecutive decrease seen in the Business’s International Drilling sector as a outcome of decreased levels of activity in Argentina. The Business tape-recorded earnings attributable to Pason in the very first quarter of 2025 of $ 20.0 million ($ 0.25 per share) compared to earnings attributable to Pason of $ 16.9 million ($ 0.21 per share) in the 4th quarter of 2024 where the boost quarter over quarter shows greater levels of Adjusted EBITDA.

Pason’s balance sheet stays strong, with no interest bearing financial obligation, and $ 87.4 million in Overall Money as at March 31, 2025, compared to $ 80.8 million as at December 31, 2024 Pason produced money from running activities of $ 39.9 million in the very first quarter of 2025, compared to $ 35.8 million in the 4th quarter of 2024, which shows greater Adjusted EBITDA year over year.

Throughout the 3 months ended March 31, 2025, Pason invested $ 16.7 million in net capital investment, a reduction from $ 19.3 million in the very first quarter of 2024. Net capital investment in Q1 2025 consists of financial investments connected with supporting the ongoing development of the Business’s pressure control automation innovation offering for the conclusions sector, the continuous refresh of Pason’s drilling associated innovation platform and continued financial investments in the brand-new Pason Mud Analyzer. Resulting Free Capital in the very first quarter of 2025 was $ 23.2 million, compared to $ 11.7 million in the very same duration in 2024.

In the very first quarter of 2025, Pason returned $ 16.3 million to investors through the Business’s quarterly dividend of $ 10.3 million and $ 6.0 million in share repurchases.

President’s Message

The strength and durability of Pason’s competitive position was once again shown in our monetary and operating outcomes for the very first quarter of 2025. Consolidated profits increased by 8% year-over-year while North American drilling market activity reduced by 3%. We continue to outmatch underlying market activity through both increasing Profits per Market Day, mostly through growing item adoption, and creating greater levels of profits from our Conclusions and Solar and Energy Storage sections.

The compounding result of Pason’s ongoing outperformance versus North American drilling market activity is more apparent when taking a longer-term view. Profits per Market Day in North America has actually grown at a compound yearly development rate of 6.6% over the previous 10 years, leading to a 90% overall boost from $ 562 in the very first quarter of 2015 to $ 1,067 in the very first quarter of 2025. The effect of Pason’s development in creating extra sources of profits can likewise be translucented a historic contrast; very first quarter combined profits of $ 113.2 million was a little greater than $ 107.3 million in the very first quarter of 2013, a time when there were 2,216 active drilling rigs in North America compared to 785 active drilling rigs in the very first quarter of 2025.

Our International Drilling sector saw profits decrease 4% from the very first quarter of 2024, mostly due to lower levels of activity in our operations in Argentina arising from a modification in a big client’s functional focus far from traditional wells towards more non-traditional drilling. While this puts pressure on near-term activity as traditional advancement slows, in time we anticipate to take advantage of this shift through greater activity on non-traditional properties with greater adoption of a broader suite of services and products.

Our Conclusions sector produced profits of $ 16.0 million in the very first quarter, on the strength of year- over-year boosts in both the typical variety of IWS Active Jobs and Profits per IWS Day. Compared to the previous year duration, sector profits increased by 25%, while the reported variety of active United States frac spreads out reduced by 21%.

Energy Toolbase, our organization in the Solar and Energy Storage sector, likewise published strong lead to the very first quarter, with profits of $ 7.4 million representing a 98% boost from the previous year duration on the strength of extra control system shipment in the quarter. Reported profits from this sector will vary based upon the timing of control system shipment.

Changed EBITDA increased by 7% year-over-year to $ 45.2 million, with margins decreasing a little as an outcome of a higher contribution of profits from Completions and Solar and Energy Storage, where sector margins are lower owing to their existing phase of development and advancement. Net capital investment of $ 16.7 million were 13% lower than the very same duration of 2024. As an outcome, totally free capital for the quarter of $ 23.2 million represented a 98% boost from the very first quarter of 2024.

We returned $ 16.3 million to investors in the very first quarter through our routine dividend and share repurchases and are keeping our quarterly dividend at $ 0.13 per share. Our capital allotment concerns stay the same. Our greatest anticipated returns on capital originated from the financial investments we are making to grow our Conclusions organization and to continue the rollout of our Mud Analyzer in our drilling- associated organization. We continue to anticipate our 2025 capital program to overall around $ 65 million In the existing environment of unpredictability and market volatility, we favour keeping higher versatility to repurchase extra shares over greater dividends for incremental investor returns.

In current weeks, continuous trade conflicts, modifications to revealed OPEC+ production strategies, and growing issues about the capacity for financial recession have actually put higher concentrate on geopolitical elements. We expect that business might change their advancement strategies must their product cost projections alter; nevertheless, even in case of decreases in capital programs, we anticipate any activity reduces to be more modest in both depth and period as compared to previous market downturns. Today, the North American oil and gas market is consisted of a smaller sized variety of bigger, well-capitalized manufacturers with much more powerful balance sheets that can stand up to product cost modifications. Oil supply and need are more well balanced with oil storage levels at the low end of their 20-year variety. A more substantial quantity of existing activity is directed at keeping existing production levels, implying there is much less chance to minimize development capital. Whereas in previous recessions business had the ability to keep production by finishing formerly drilled wells, the existing stock of drilled however uncompleted wells (DUCs) seems at or near its minimum sustainable level; hence, we expect that efforts to keep production will need both drilling and conclusions activity. Experts have a more favorable outlook for gas principles, supported by development expectations from LNG jobs coming online and increased power need associated to information centre requirements to support expert system applications.

Our experience through previous cycles has actually been that keeping financial investments focused on service quality and innovation advancement through durations of unpredictability offers the best chance to broaden competitive spaces. We see chances for higher adoption of data-driven innovations in time in both drilling and conclusions, and we mean to guarantee our product or services offerings continue to develop to guarantee we can profit from those chances.

Quarterly Dividend

Pason revealed today that the Board of Directors have actually stated a quarterly dividend of thirteen cents ( C$ 0.13) per share on the business’s typical shares. The dividend will be paid on June 30, 2025 to investors of record at the close of organization on June 16, 2025

Very First Quarter Conference Call

Pason will be performing a teleconference for interested experts, brokers, financiers, and media agents to examine its 2025 very first quarter results at 9:00 a.m. (MT) on Friday, May 2, 2025. The teleconference dial-in numbers are 1-888-510-2154 or 1-437-900-0527, and the call will be at the same time audio webcast by means of:  www.pason.com/webcast You can access the fourteen-day replay by calling 1-888-660-6345 or 1-289-819-1450, utilizing password 02840 #.

An archived audio webcast of the teleconference will likewise be offered on Pason’s site at www.pason.com/investors.

Non-GAAP Financial Steps

A non-GAAP monetary step has actually the meaning set out in National Instrument 52-112 “Non-GAAP and Other Financial Steps Disclosure”.

The following non-GAAP procedures might not be equivalent to procedures utilized by other business. Management thinks these non-GAAP procedures offer readers with extra info concerning the Business’s operating efficiency, and capability to produce funds to fund its operations, fund its research study and advancement and capital investment program, and return capital to investors through dividends or share repurchases.

EBITDA and Changed EBITDA

EBITDA is specified as earnings before interest earnings and cost, earnings taxes, stock-based settlement cost, and devaluation and amortization cost. Changed EBITDA is specified as EBITDA, changed for forex, disability of home, plant, and devices, reorganizing expenses, net financial modifications, federal government wage support, revaluation of put responsibility, gain on formerly held equity interest and other products, which the Business does rule out to be in the typical course of continuing operations.(* )Management thinks that EBITDA and Adjusted EBITDA work additional procedures as they offer an indicator of the outcomes produced by the Business’s primary organization activities prior to the factor to consider of how these outcomes are taxed in numerous jurisdictions, how the outcomes are affected by forex or how the outcomes are affected by the Business’s accounting policies for equity-based settlement strategies.

Fix Up Earnings to EBITDA

3 Months Ended

Jun 30,

Fix up money from running activities to totally free money circulation

3 Months Ended

Jun 30,

Profits per Market Day

Profits per Market Day is specified as the overall profits produced from the North American Drilling sector over all active drilling rig days in the North American market. This metric offers a essential step of the North American Drilling sector’s capability to examine and handle item adoption, prices, and market share penetration. Drilling rig days are computed by utilizing accepted market sources.

IWS Active Jobs

IWS Active Jobs represents the typical variety of tasks each day that IWS is creating profits on through the leasing of its innovation using to clients throughout the reporting duration. This metric offers a crucial step of IWS’ market penetration.

Profits per IWS Day

Profits per IWS Day is specified as the overall profits produced by the Conclusions sector over all IWS active days throughout the quarter. IWS active days are computed by utilizing IWS Active Jobs in the reporting duration. This metric offers a crucial step of the IWS’ capability to examine and handle item adoption and prices.

Changed EBITDA as a portion of profits

Determined as changed EBITDA divided by profits.

Overall Money

Determined as the amount of money and money equivalents, and short-term financial investments from the Business’s Consolidated Balance Sheets. The Business’s brief term-investments are consisted of United States dollar bonds.

Forward Looking Info

Specific declarations included herein make up “positive declarations” and/or “positive info” under suitable securities laws ( jointly referred to as ” positive declarations”). Forward- looking declarations can typically be determined by the words “expect”, “anticipate”, “think”, “might”, “might”, “must”, “will”, “price quote”, “task”, “mean”, “strategy”, “outlook”, “projection” or expressions of a comparable nature recommending a future result or outlook.

Without restricting the foregoing, this file consists of, however is not restricted to, the following positive declarations: the Business’s development technique and associated schedules; divergence in activity levels in between the geographical areas in which we run; need changes for our product or services; the Business’s capability to increase or keep market share; predicted future worth, projection operating and monetary outcomes; scheduled capital investment; anticipated item efficiency and adoption, consisting of the timing, development and success thereof; possible dividends and dividend development technique; future usage and advancement of innovation; our monetary capability to satisfy long-lasting dedications not consisted of in liabilities; the collectability of receivables; the application of vital accounting quotes and judgements; treatment under governmental regulative and tax programs; and predicted increasing investor worth.

These positive declarations show the existing views of Pason with regard to future occasions and running efficiency since the date of this file. They go through recognized and unidentified dangers, unpredictabilities, presumptions, and other elements that might trigger real outcomes to be materially various from outcomes that are revealed or suggested by such positive declarations.

Although our company believe that these positive declarations are affordable based upon the info offered on the date such declarations are made and procedures utilized to prepare the info, such declarations are not warranties of future efficiency and readers are warned versus putting excessive dependence on positive declarations. By their nature, these declarations include a range of presumptions, understood and unidentified dangers and unpredictabilities and other elements, which might trigger real outcomes, levels of activity and accomplishments to vary materially from those revealed or suggested by such declarations. Such dangers and unpredictabilities consist of, however are not restricted to: the state of the economy; volatility in market activity levels and resulting client expenses on expedition and production activities; client need for existing and brand-new items; the market shift towards more effective drilling and conclusions activity and innovation to help because effectiveness; the effect of competitors; the loss of essential clients; the loss of essential workers; cybersecurity dangers; dependence on exclusive innovation and capability to safeguard the Business’s exclusive innovations; modifications to federal government guidelines (consisting of those associated to security, ecological, or tax); the effect of severe weather condition occasions and seasonality on our providers and on client operations; and war, terrorism, pandemics, social or political discontent that interferes with worldwide markets.

These dangers, unpredictabilities and presumptions consist of however are not restricted to those talked about in Pason’s Yearly Info Type for the year ended

December 31, 2024

under the heading, “Threat and Unpredictability,” in our management’s conversation and analysis for the year ended December 31, 2024, and in our other filings with Canadian securities regulators. These files are on file with the Canadian securities regulative authorities and might be accessed through the SEDAR+ site (www.sedarplus.ca) or through Pason’s site (www.pason.com). Positive declarations included in this file are specifically certified by this cautionary declaration. Other than to the degree needed by suitable law, Pason presumes no responsibility to openly upgrade or modify any positive declarations made in this file or otherwise, whether as an outcome of brand-new info, future occasions or otherwise. Pason Systems Inc.

Pason is a leading worldwide service provider of specialized information management systems for drilling rigs. Our services, that include information acquisition, wellsite reporting, remote interactions, web-based info management, and analytics, allow cooperation in between the rig and the workplace. Through Intelligent Wellhead Systems Inc. (” IWS”), we likewise offer crafted controls, information acquisition, and software application, to automate workflows and procedures for oil and gas well conclusions operations, enhancing wellsite security and effectiveness. Through Energy Toolbase Software Application, Inc. (” ETB”), we likewise offer product or services for the solar energy and energy storage market. ETB’s services allow task designers to design, control and display economics and efficiency of solar power and storage jobs.

Pason’s typical shares trade on the Toronto Stock Exchange and OTC Markets Group under the sign PSI and PSYTF, respectively. For more details about Pason Systems Inc., go to the business’s site at

www.pason.com

or contact investorrelations@pason.com. Extra info on dangers and unpredictabilities and other elements that might impact Pason’s operations or monetary outcomes are consisted of in Pason’s reports on file with the Canadian securities regulative authorities and might be accessed through the SEDAR+ site ( www.sedarplus.ca

) or through Pason’s site ( www.pason.com). SOURCE Pason Systems Inc.