Strategic transformation and operational recovery
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our number one choice. Tap here.
-
Achieved first positive adjusted EBITDA in eight quarters, indicating a successful pivot toward a simplified portfolio and higher-yielding businesses.
-
Performance was primarily driven by the leasing segment, specifically the deployment of aviation assets and improved utilization in gas-weighted basins.
-
Aggressive cost restructuring reduced SG&A expenses by 38% sequentially, and management targeted a long-term annual run rate of $11 million to $12 million.
-
The lodging segment generated gross margins of 40%, the highest in five quarters, due to strong customer activity and inherent operating leverage.
-
The drilling and sand segments experienced significant sequential revenue growth of 180% and 129% respectively, although margins remain pressured by anticipated maintenance and price 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 is undergoing an operational reset under new leadership to improve project oversight and cost discipline in the fiber optics business.
Accelerated growth and profitability prospects
-
It raised 2026 revenue growth guidance to over 60%, up from the previous estimate of 50%, driven by continued momentum in the rental segment.
-
Moved forward the timeline for full-year adjusted EBITDA profitability by one year, and is now expected to be positive for full-year 2026.
-
It anticipates the drilling segment will reach positive EBITDA in 2026 as anticipated utilization increases and maintenance costs normalize.
-
It expects demand for fiber optics to increase 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 the six newly acquired engines scheduled to be leased during the second quarter.
An action. Nvidia-level potential. More than 30 million investors trust Moby to find them first. Get the choice. Tap here.
Capital allocation and risk factors
-
It initiated share buybacks for the first time since 2023, indicating management’s view that the share price does not reflect the company’s $125.1 million cash position.
-
It maintains a debt-free balance sheet with $125.1 million in liquidity to support opportunistic capital deployment and new buybacks.
-
An EBITDA surplus was identified in the infrastructure segment for the remainder of 2026 due to the ongoing operational restart.
-
Sand segment margins remain a risk factor as the company works to optimize rail car leasing and competitive pricing in the Montney region.