AKITA Drilling Ltd. ("AKITA" or the "Company") announces net income of $13.9 million for the year ended December 31, 2025, compared to $12.8 million in 2024. The increase in net income in 2025 was driven by a very strong first half of the year in the Company's US and Canadian operating segments, and was tempered by a less active second half. Adjusted funds flow from operations increased to $46,601,000 in 2025, from $44,714,000 in 2024.
Colin Dease, AKITA's Chief Executive Officer stated: "We achieved our debt target of $35 million and initiated the return of capital to shareholders through a normal course issuer bid. While the world continues to experience geopolitical uncertainty, we are optimistic about the North American recovery in the oil and gas industry. We believe that 2026 will be a strong year for AKITA, and our team is focused on executing our strategy to deliver that success."
Activity for 2025 varied between the Canadian and US Divisions. The Canadian Division was more active in 2025 than in 2024, with 2,839 operating days in 2025 compared to 2,719 in 2024, and activity was split evenly through the year. By contrast, the US division saw a decline in operating days, with 2,825 operating days in 2025, compared to 3,025 in 2024, with approximately 60% of 2025 activity occurring in the first half of the year.
Capital spending in 2025 was 11% higher in 2025 than in 2024, driven largely by significant investments in Level IV inspections in the Canadian fleet, which are required every 1,200 operating days. The Company continued to strengthen its balance sheet by repaying an additional $15,000,000 of debt in 2025, bringing total debt repayment over the past three years to $59 million. Excluding capitalized transaction costs, total debt was $35,000,000 at year-end 2025.
In August of 2025, the Company initiated a Normal Course Issuer Bid ("NCIB") to repurchase shares in the open market. This decision reflects the Company's view that its shares are significantly undervalued and marks a strategic shift from an exclusive focus on debt reduction toward a more balanced capital allocation approach that includes both debt repayment and shareholder returns. During the five months the NCIB was active in 2025, the Company repurchased and cancelled 752,572 Class A Non-Voting shares at an average price of $2.09 per share.
CONSOLIDATED FINANCIAL HIGHLIGHTS
$Thousands except per share amounts
For the three months ended December 31,
For the year ended December 31,
2025
2024
Change
%
Change
2025
2024
Change
%
Change
Revenue
41,639
62,857
(21,218)
(34 %)
200,903
193,325
7,578
4 %
Operating and maintenance expenses
30,484
45,008
(14,524)
(32 %)
148,153
144,052
4,101
3 %
Operating margin
11,155
17,849
(6,694)
(38 %)
52,750
49,273
3,477
7 %
Margin %
27 %
28 %
(1 %)
(4 %)
26 %
25 %
1 %
3 %
Net cash from operating activities
11,127
5,946
5,181
87 %
44,008
30,264
13,744
45 %
Adjusted funds flow from operations(1)
10,437
18,634
(8,197)
(44 %)
46,601
44,714
1,887
4 %
Per share
0.26
0.47
(0.20)
(44 %)
1.17
1.13
0.05
4 %
Net income (loss)
1,443
9,609
(8,166)
(85 %)
13,917
12,863
1,054
8 %
Per share
0.03
0.24
(0.21)
(88 %)
0.35
0.32
0.03
9 %
Capital expenditures
8,160
9,604
(1,444)
(15 %)
31,609
28,043
3,566
13 %
Weighted average shares outstanding
39,501
39,734
(233)
(1 %)
39,675
39,730
(55)
(0 %)
Total assets
251,971
268,763
(16,792)
(6 %)
Total debt
35,000
50,000
(15,000)
(30 %)
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this release for further detail.
United States Operations
$Thousands except per day amounts
For the three months ended December 31,
For the year ended December 31,
2025
2024
Change
%
Change
2025
2024
Change
%
Change
Revenue US
21,577
38,832
(17,255)
(44 %)
128,074
129,090
(1,016)
(1 %)
Flow through charges(1)
(2,564)
