Aug 13, 2026 earnings call — Revenue guidance raised after Q2 record
Raised combined revenue guidance to a range of $1.6 billion to $1.8 billion, with a new midpoint of $1.7 billion.
Revenue $0.3B (est $0.2B) · EPS $0.23 (est $0.23) · Next-quarter revenue outlook $1.7B
Key quotes
"Revenue has increased approximately 31% compound annual rate from the first half of 2024 through the first half of 2026, and first half 2026 revenue was 14% above the second half of 2025."
"We are concentrating on investment for assets and scopes that meet our return thresholds with incremental investments targeting IRRs above 40% and a clear line of sight towards gross profit margins in the 15% range."
"Record contractual backlog of approximately $3.8 billion as of June 30 underpins our full year expectations."
Analyst Q&A 6
Why revenue guide up but EBITDA flat
Q (Joseph Reagor · ROTH Capital Partners): He asked if higher revenue guidance comes from items that also raised costs, which would explain unchanged EBITDA. He also asked if higher diesel costs will affect margins or push revenue to the high end.
A: They said the revenue strength was mainly a first-half effect and that the EBITDA result is consistent with first-half expectations, so it reflects costs. They also said diesel costs have no impact on their revenue or EBITDA margin because for most operations fuel is a flow-through.
"No, there's no impact to us either on revenue or EBITDA margin." — Barry Palmer (CEO)
Fuel services win and IMC margin outlook
Q (Adam Thalhimer · Thompson, Davis): He asked for more detail on the fuel services contract won in July and whether it creates more similar opportunities. He also asked if that award was included in the Q2 backlog and for an update on IMC integration and margins.
A: They said the fuel services win was a great result, it opens doors, and they expect to win one, two or maybe three more as contracts come up. They confirmed the award is included in the Q2 backlog as part of $3.8... and said IMC integration is going very well but IMC margins are not quite as high because much of their work is unit-rate.
"As far as the margins go, they're not quite as high as what we would expect on the equipment rental side in the Queensland business because a lot of the work that they do is unit rate work." — Barry Palmer (CEO)
Oil sands fleet plan and 2026 CapEx
Q (Tim Monachello · ATB Cormark): He asked what they will do with the fleet assets beyond the 260 identified for oil sands work, what investments those remaining assets need, and how that shows up in CapEx for 2026 and 2027. He also asked if demand in the oil sands is inflecting and about the Australia bid pipeline decline.
A: They said the 260 are multi-life large assets they plan to use; the remainder are smaller or underutilized units they may bring back to work, move to Australia, or sell if the price is right. They said 2026 CapEx to get availability above 70% is probably in the $50 million range, that the work requires major component change-outs (sometimes million-dollar items), they are seeing strong demand in the oil sands, and in Australia they missed one large project but still see opportunity and remain shortlisted on others.
"We're probably in the $50 million range for 2026 to get us where we need to be." — Barry Palmer (CEO)
Free cash flow conversion target
Q (Roman Pshenychnyi · National Bank of Canada): He asked how free cash flow conversion will look going forward now that IMC is a lower-capital business. He also asked whether the 30% conversion target should hold next year.
A: They said IMC is about 15% of the business, so the conversion target of 30% remains. They expect to reach that when working capital is neutral and do not think IMC will meaningfully change the conversion target; they also said there is no reason the 30% can't hold next year and margin work could even increase it.
"I think given IMC is 15% of our business, the conversion target of 30% remains." — Jason Veenstra (CFO)
Unit-rate contracts and Canada opportunities
Q (Sean Jack · Raymond James): He asked whether IMC's unit-rate contracts will become more common across the broader business or stay isolated. He also asked for any commentary on demand and excitement in Canada and the U.S. beyond the current bid pipeline.
A: They said unit-rate work is already very common in Western Australia and they expect that to remain the status quo. They said they have captured most of what excites them in the Canadian bid pipeline but are very encouraged by Nuna, which has had small wins recently and positions them for larger follow-on projects across Nunavut, Northern Quebec, Ontario and the Northwest Territories as RFPs are released.
"I would say it will kind of stay pretty much the status quo as it's been." — Barry Palmer (CEO)
Higher salaries/rentals and sustaining CapEx
Q (Christopher Thompson · CIBC): He asked what drove the quarter-over-quarter rise in salaries and wages. He also asked if the higher third-party rentals and salaries in COGS are a run rate, whether the rentals increase is driven by Australia, if Australia growth CapEx includes IMC, and how sustaining CapEx should trend after H1.
A: They said the salaries increase is primarily IMC-related because IMC has a G&A function. They said the third-party rentals spike is not a steady run rate but is temporary while they bring their own fleet in and that the rentals increase is Australia-driven; they confirmed Australia growth capex includes IMC and growth at the lithium mine. They added sustaining capital for the year is now a little north of $200 million as they commit to improving oil sands mechanical availability above 70%, and Australia is on track.
"I'm assuming you're looking at G&A and cost of sales as well, but that's primarily IMC related." — Jason Veenstra (CFO)