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Highlights
- Calfrac reported CAD48.5 million in Adjusted EBITDA and CAD4.3 million in net income from continuing operations for Q3 2025.
- The Board approved a CAD35.0 million Rights Offering, supported by shareholders holding over 60% of outstanding common shares.
- Proceeds from the Rights Offering and credit facility drawdowns are expected to repay Calfrac’s 10.875% Second Lien Notes in December 2025.
Calfrac Well Services Ltd. (TSX:CFW) released its financial and operating results for the three and nine months ended September 30, 2025, alongside details of a new Rights Offering intended to raise CAD35.0 million. The company reported sequential and year-over-year improvements in North American operations and continued contributions from its Argentina segment, while outlining a financing plan aimed at reducing long-term debt.
Improved Operating Results Across Core Markets
Calfrac generated Adjusted EBITDA of CAD48.5 million and net income of CAD4.3 million from continuing operations during the third quarter of 2025. The improvement in North American performance was supported by a higher number of operating days per fleet and reductions in support personnel implemented earlier in the year. The company noted that operations in Argentina also contributed meaningfully to quarterly results, though below the elevated levels seen in the first half of 2025.
During the period, Calfrac was able to repatriate a significant amount of funds from Argentina, contributing to a decrease in long-term debt. Management highlighted the impact of these repatriations in improving overall liquidity.
New Rights Offering to Raise CAD35 Million
On November 13, 2025, Calfrac’s Board of Directors approved a Rights Offering intended to generate gross proceeds of CAD35.0 million. Eligible shareholders will receive one transferable right for each common share held on the record date. Each right allows the purchase of 0.1514872 of one common share at a subscription price of CAD2.69 per whole share. Approximately 6.6 rights will be needed to subscribe for one full share.
The subscription price represents a 15% discount to the volume-weighted average trading price of the common shares on the Toronto Stock Exchange over the five days prior to the announcement.
To support the financing, major shareholders—including George Armoyan, Ronald P. Mathison, Charles Pellerin, EdgePoint Investment Group Inc., and Brian Luborsky—have entered a standby purchase agreement to buy any unsubscribed shares. These holders collectively own more than 60% of Calfrac’s common shares.
Financing Plan to Reduce Debt
Completion of the Rights Offering, anticipated around December 23, 2025, will allow Calfrac to draw CAD120.0 million from its term loan facility. The company also expects up to CAD15.0 million in additional funding from either its syndicated or operating facility. Net proceeds from the Rights Offering and the credit facility drawdowns are intended to repay Calfrac Holdings LP’s 10.875% Second Lien Notes on or near the same date.
The offering remains subject to customary conditions, including regulatory approvals and final acceptance by the Toronto Stock Exchange.
Third-Quarter Financial Overview
During Q3 2025, Calfrac:
- generated revenue of CAD323.4 million, compared with CAD431.0 million in Q3 2024, mainly due to lower activity in Argentina and a smaller North American footprint;
- reported Adjusted EBITDA of CAD48.5 million versus CAD65.0 million in the prior year;
- delivered CAD30.1 million in cash flow from operating activities, up from CAD16.5 million in Q3 2024;
- posted net income from continuing operations of CAD4.3 million compared with a net loss of CAD6.7 million a year earlier;
- increased working capital to CAD257.6 million from CAD229.9 million at year-end 2024;
- invested CAD32.8 million in capital expenditures, including CAD19.9 million toward equipment additions in Argentina.
Subsequent to quarter-end, Calfrac’s lenders agreed to amendments permitting lower shareholder contribution requirements for drawing the term loan and enabling access to up to CAD15.0 million from existing credit facilities for repayment of the Second Lien Notes.
