May 11th, 2026

The call conveyed strong operational execution, sizable year-over-year revenue and earnings growth, a healthy balance sheet (net leverage 0.66x) and a clear capital return plan — all backed by a robust regional tender pipeline and Jafurah momentum. Near-term headwinds include geopolitical disruptions in March, ~$4M of incremental freight costs, FX losses (~$3.6M), seasonal working capital pressure (negative Q1 free cash flow of $5.3M) and higher input costs (e.g., diesel). Management views many of these as temporary and expects sequential margin and cash flow improvement; on balance, the positives (record revenue, material earnings improvement, strong execution, capital-return initiatives and low leverage) outweigh the transitory lowlights.

Company Guidance

Management guided to continued robust year‑over‑year growth and sequential margin improvement in Q2 (driven by the Jafurah ramp), with Q2 interest expense around $6.5M, an ETR of 22.5%, and Q2 operating and free cash flow expected to rebound similar to Q2 ’25; full‑year 2026 CapEx is targeted at ~$180M, free‑cash‑flow conversion of ~35–40% of adjusted EBITDA, and maintained full‑year margins of roughly 21–21.5% on a clear path to a $2.0B revenue target. Quarterly/Q1 context and balance‑sheet targets include Q1 revenue $404.6M (+1.6% sequential, +33.5% YoY), adjusted EBITDA $76.7M (~19% margin), adjusted diluted EPS $0.26, net income $23.8M, operating cash flow $30.7M, free cash flow -$5.3M, Q1 CapEx $36M, incremental Q1 freight/logistics headwinds of ~$4M; gross debt $287.4M, net debt $194.4M (net debt/adjusted EBITDA 0.66x), target net leverage ≤1.0x, and ROCE ≈10.9%. In addition, management announced capital returns: a quarterly dividend beginning Q4 ’26 of $0.10/share ($0.40 annually) and a $50M share repurchase program over the next 12 months.