ACT Energy Technologies Reports Q3 2025 Results Amid Challenging Market
Calgary-based ACT Energy Technologies Ltd. (TSX: ACX) has reported resilient third-quarter 2025 financial results, navigating a challenging economic climate. The company maintained a 20% Adjusted EBITDAS margin, even as revenue decreased by 20% to $118.3 million, primarily due to reduced industry activity in the U.S.
Net income saw a reduction to $15.2 million from $26.2 million in Q3 2024, influenced by lower revenues and the absence of a prior year’s tax recovery. However, ACT's operational efficiencies led to an increase in free cash flow to $18.2 million.
A key highlight from CEO Tom Connors was the successful deployment of proprietary Measurement-While-Drilling (MWD) systems in the U.S., projected to reduce rental expenses by $10 million USD in 2025. This focus on advanced technology aligns with Calgary's ongoing push for innovation within the energy sector, where local firms are driving advancements in efficiency and sustainability.
While Canadian operations experienced an 11% downturn in operating days, improved revenue per day, also bolstered by advanced technologies, mitigated the impact. Looking ahead, ACT anticipates a strong winter drilling season in Canada and a gradual recovery in U.S. activities. This outlook is supported by broader industry predictions for Western Canada, with 2025 expected to see the highest oil and natural gas well drilling activity in a decade.
ACT Energy Technologies maintains a strong liquidity position with $68.7 million in undrawn credit capacity and has focused on shareholder returns by repurchasing 1.35 million shares and reducing borrowings by $7.6 million in the first nine months of 2025. The company's strategic focus on technological advancements and disciplined financial management positions it well within Calgary's resilient and evolving energy landscape.
