ACT Energy Technologies reports Q1 2026 interim results

Canada NewsWire CALGARY, AB , May 8, 2026 /CNW/ - (TSX: ACX) ACT Energy Technologies Ltd (the "Company" or "ACT")'s news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. For a full disclosure of forward-looking statements and the risks to which they are subject, see the 'Forward-Looking Statements' section in this news release. This news release contains references to Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Net debt, Working capital and Net capital expenditures.

These terms do not have standardized meanings prescribed under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and may not be comparable to similar measures used by other companies. See the 'Non-GAAP measures' section in this news release for definitions and tabular calculations. 2026 Q1 FINANCIAL RESULTS Revenues of $144.5 million in 2026 Q1 increased 7% compared to $135.4 million one year ago. Strong growth in our Canadian segment plus the acquisition of Texas-based Stryker Directional on January 5, 2026 were the primary factors.

Adjusted EBITDAS ( 1 ) of $22.9 million grew 16% versus $19.7 million in the first quarter of last year. Adjusted EBITDAS margins (1) increased to 15.9% from 14.6% a year ago. Canadian operating days ( 2 ) grew 5% despite the average Canadian rig count falling by 4% year over year.

The Company closed the acquisition of Oklahoma-based SB Directional on April 1, 2026 as part of a countercyclical effort to continue adding size, scale and management depth in our U.S. business segment. U.S. operating days (2) grew 64% sequentially versus the total achieved in 2025 Q4 due to increases in our pre-existing base business and contributions from the recent Stryker acquisition. On April 29, 2026, the Company also announced the early $USD 20.0 million repayment of the exchangeable subordinated promissory note.

ACT used its available term facility to repay the note. PRESIDENT'S MESSAGE Comments from President & CEO Tom Connors: "The first quarter represented an important inflection point for the Company. We delivered continued growth and expansion in our Canadian operations, while executing a transformational consolidation of our U.S. directional and rental businesses into a single, leaner and more focused operating platform.

The integration of Stryker Energy Directional Services in January and SB Directional Services in April meaningfully strengthens our U.S. footprint, expands our customer base and adds scale as we position the business for an improving activity environment as we move through 2026 and into 2027. "In Canada, our market presence, expanding technology offering and focus on high‑performance service delivery once again positioned us among the most active directional drilling providers during the quarter. Operating days increased 5% year‑over‑year, despite a 4% decline in the Western Canadian rig count.

While our foundation remains multilateral drilling, the continued adoption of rotary steerable and advanced technologies supported incremental activity and is expected to remain a key driver of utilization throughout the remainder of the year. "In the United States, activity levels began to recover from the trough experienced in the fourth quarter of 2025, with operating days increasing sequentially by 13% in our pre-existing U.S. base business, and 64% overall when including the acquired Stryker business. The consolidation of management teams, optimization of the rental fleet and increased focus on higher‑value rotary steerable work are improving the operating trajectory of the business.

As industry consolidation has reduced competitive capacity, we believe our streamlined operating model and expanding direct‑to‑operator relationships position us to benefit from even modest improvements in overall activity levels. "Challenging market conditions throughout 2025 and early 2026 have also created attractive counter‑cyclical acquisition opportunities. The acquisitions of Stryker and SB added two experienced management teams, complementary customers and more than 30 incremental operating jobs per day.

The integration of our proprietary motor and rotary steerable technology across the combined platform is expected to drive improved margins and returns over time. "Our 2026 capital allocation strategy remains disciplined and balanced. We will continue to evaluate organic growth initiatives and accretive acquisitions while maintaining a conservative leverage profile.

In parallel, we remain committed to returning capital to shareholders through optimal investments allowing for future debt reduction and investment into our Normal Course Issuer Bid and will continue to deploy capital in a measured and value‑focused manner. "Overall, we are executing on strategic initiatives that strengthen the business and enhance operating leverage. With recent additions, an expanded technology offering and a more efficient operating structure, we believe the Company is well positioned to capture improving market conditions as activity levels gradually recover," said Tom Connors, ACT President and Chief Executive Officer.

FINANCIAL HIGHLIGHTS   OUTLOOK Global energy markets entered 2026 with improving supply‑demand fundamentals. Recent geopolitical instability has introduced additional uncertainty but has also reinforced the importance of secure North American supply, supporting a constructive medium‑term commodity price environment. While public E&P capital programs are expected to remain disciplined in the near term, incremental activity from private operators is likely, providing modest upward pressure on drilling and completion activity.

In Canada, second‑quarter activity is expected to be stronger than the prior year, supported by continued adoption of rotary steerable technology and the compelling economics of multi‑lateral drilling. Seasonal spring breakup and weather‑related disruptions may create short‑term variability; however, underlying demand fundamentals remain supportive. In the United States, the combined platform is currently operating at a high‑water mark of more than 60 active jobs and is expected to steadily build activity as the year progresses.

Industry consolidation, reduced service capacity and increased technology differentiation are expected to benefit well‑capitalized, technically capable service providers. From an oilfield services perspective, activity recovery is likely to be gradual rather than cyclical in nature, favoring companies with scale, strong balance sheets and differentiated technology. We believe our expanded footprint, integrated service model and focus on higher‑margin, technology‑enabled work position the Company to outperform as activity levels normalize.

RESULTS OF OPERATIONS Financial Operational   Summary The Company delivered solid momentum in 2026 Q1, with higher operating days (1 ) across both Canada and the U.S. - driven in particular by the successful integration of the recent Stryker acquisition - serving as a catalyst for revenue growth over the prior period. Gross margin and Adjusted Gross Margin percentages (2 ) remained stable, reflecting disciplined operational execution. Strengthened market position in Canada resulting from deployment of additional technologies, combined with the acquisition of Stryker in US, translated into increased activity levels and meaningful revenue gains compared to the same quarter last year.

Adjusted gross margins (2) improved alongside higher revenues, while overall gross margin saw modest growth due to increased depreciation tied to the ongoing rollout of Rime MWD systems. Overall, 2026 Q1 demonstrates a business that is scaling effectively, integrating acquisitions successfully, and building a stronger platform for sustained growth across both core markets. SEGMENTED INFORMATION United States Revenues U.S. revenues were $83.2 million in 2026 Q1, an increase of $1.6 million or 2%, compared to $81.6 million in 2025 Q1.

The Company experienced a 5% increase in operating days (1) in 2026 Q1 (2026 Q1 - 3,184 days; 2025 Q1 - 3,040 days). The Company's activity increased despite a 4% decrease in the average U.S. land rig count, mainly due to recent Stryker acquisition.  The average revenues per operating day (1 ) decreased 3% in 2026 Q1 (2026 Q1 - $26,122 per day; 2025 Q1 - $26,847 per day).The decline is primarily due to the 4% decrease in the average USD-CAD foreign exchange rate over the prior period. Direct costs U.S. direct costs included in cost of sales were $66.1 million in 2026 Q1, a increase of $4.0 million or 6%, compared to $62.1 million in 2025 Q1.

Direct costs as a percentage of revenues were 80% in 2026 Q1, compared to 76% in 2025 Q1. The increase is mainly due to re-activation of certain equipment to offset rental costs, which resulted in higher maintenance expenses, the benefit is expected to be realized in future periods. Additionally, as the Company began to increase activity, certain of this work required new generation rental technologies, which the Company expects to displace in the upcoming months at minimal capital investment with quick paybacks.

Canadian Revenues Canadian revenues were $61.3 million in 2026 Q1, an increase of $7.6 million or 14%, compared to $53.7 million in 2025 Q1, due to a 5% increase in operating days (1) in 2026 Q1 (2026 - 4,473 days; 2025 - 4,254 days). Canadian operating days (1) increased 5% in Q1 2026, compared to Q1 2025, despite a 4% decrease in the Western Canadian rig count (1) . The main reasons are the use of ancillary technologies, new customers and delay in seasonal spring break in activities.

The average revenues per operating day (1) increased by 8% in 2026 Q1 (2026 - $13,702 per day; 2025 - $12,633 per day). The increase in the average revenues per operating day (1) is mainly attributable to a favorable job mix requiring additional revenue generating technologies. Direct costs Canadian direct costs included in cost of sales were $38.6 million in 2026 Q1, an increase of $2.8 million or 8%, compared to $35.7 million in 2025 Q1.

The increase is mainly due to higher repair, third-party rental and labour costs in 2026 Q1, consistent with higher activity levels. As a percentage of revenues, direct costs were 63% in 2026 Q1, compared to 66% in 2025 Q1. CONSOLIDATED Revenues The Company's revenues were $144.5 million in 2026 Q1, an increase of $9.1 million or 7%, compared to $135.4 million in 2025 Q1.

The increase is driven by a 5% increase in operating days (1) (2026 Q1 - 7,657 days; 2025 Q1 - 7,294 days) and by a 2% increase in the average revenues per operating day (1) (2026 Q1 - $18,867; 2025 Q1 - $18,557). Direct Costs The Company recognized $104.7 million of direct costs in 2026 Q1, an increase of $6.8 million or 7%, compared to $97.9 million in 2025 Q1. The increase is mainly due to higher labour and repair costs resulting from the increase in operating days (1) .

Direct costs as a percentage of revenues remained stable at 72% in 2026 Q1 and 2025 Q1. Gross margin and Adjusted gross margin (2)   The Gross margin and Adjusted gross margin percentages (2 ) remained relatively consistent in 2026 Q1 compared to 2025 Q1. Depreciation and amortization expense Depreciation and amortization expense included in cost of sales increased to $9.7 million in 2026 Q1, compared to $7.3 million in 2025 Q1, mainly due to addition of Stryker assets and a higher portion of the MWD build-out being depreciated.

Selling, general and administrative ("SG&A") expenses   The Company recognized direct costs included in SG&A expenses of $16.9 million in 2026 Q1, which were slightly higher than $16.4 million in 2025 Q1. As a result of SG&A being more fixed cost in nature, against higher revenues, direct costs included in SG&A expenses as a percentage of revenues were the same 12% in 2026 Q1, compared to 12% in  2025 Q1. Depreciation and amortization included in SG&A expenses was $3.2 million in 2026 Q1, compared to $2.8 million in 2025 Q1.

The slight increases are mainly due to amortization expense coming from recent Stryker acquisition. Stock-based compensation included in SG&A expenses were $0.5 million in 2026 Q1, compared to $0.5 million in 2025 Q1. Research and development ("R&D") costs The Company recognized R&D costs of $1.4 million in 2026 Q1, compared to $1.4 million in 2025 Q1.

R&D costs include salaries, benefits, purchased materials and shop supply costs related to new product development and technology and engineering. Write-off of property, plant and equipment The Company recognized a write-off of property, plant and equipment of $1.0 million in 2026 Q1, compared to $0.2 million in 2025 Q1. The write-offs related to equipment lost-in-hole and damaged beyond repair.

Lost-in-hole equipment and damaged beyond repair reimbursements from customers are based on service agreements held with clients and are recognized as revenue. Finance costs Finance costs - loans and borrowings and promissory notes were $2.3 million, an increase of $0.1 million, compared to $2.2 million in 2025 Q1. The increase is mainly due to a higher outstanding balance of loans and borrowings in 2026 Q1 compared to 2025 Q1 and issuance of promissory notes related to Stryker acquisition (refer to Transactions section of this News Release), offset by lower average borrowing costs.

In addition, the Company had finance costs of $0.4 million in 2026 Q1, related to lease liabilities, compared to $0.3 million in 2025 Q1. Foreign exchange The Company recognized a foreign exchange gain of $2.3 million in 2026 Q1 , compared to a foreign exchange loss of $0.3 million in 2025 Q1. During 2026 Q1 the Canadian dollar exchange rate increased by 1% from $1.37 at December 31, 2025 to $1.39 at March 31, 2026.

Therefore the Company recognized foreign exchange loss of $0.6 million on revaluation of the Company's USD denominated balances and foreign exchange gain of $2.9 million on revaluation of the intercompany loans issued by the parent company to its self-sustaining foreign subsidiaries. The offsetting foreign exchange loss on intercompany loans held by the subsidiaries is recognized as part of the translation of foreign operations within other comprehensive income, as described below.  The Company's foreign operations are denominated in USD and differences due to fluctuations in the foreign currency exchange rates are recorded in other comprehensive income. The Company recognized a foreign currency translation gain on foreign operations of $1.0 million in 2026 Q1, compared to a loss of $0.1 million in 2025 Q1.  Income tax expense (recovery) The Company recognized an income tax expense of $1.7 million in 2026 Q1, compared to an income tax recovery of $1.2 million in 2025 Q1.

Income tax expense (recovery) is recognized based upon expected annualized rates using the statutory rates of 23% for both Canada and the U.S. adjusted for key items that will affect the Company's actual tax for the period.   LIQUIDITY AND CAPITAL RESOURCES Annually, the Company's principal source of liquidity is cash generated from its operations. In addition, the Company has the ability to fund liquidity requirements through its credit facility and the issuance of additional debt and/or equity, if available. The Company remains focused on sustaining reasonable levels of Net debt (1 ) , deploying excess Free cash flow (1) and utilizing excess available capital resources for high return investment opportunities, including the NCIB and strategic and accretive acquisitions.  In order to facilitate the management of its liquidity, the Company prepares an annual budget, which is updated, as necessary, depending on varying factors, including changes in capital structure, execution of the Company's business plan and general industry conditions.

The annual budget is approved by the Board of Directors and updated forecasts are prepared as the fiscal year progresses with changes reviewed by the Board of Directors. Cash flow - operating activities was $(0.2) million in 2026 Q1, compared to $18.7 million in 2025 Q1. The Company's first quarter usually results in an investment in working capital as it is a period of high activity in Canada.

Canadian activity in 2026 Q1 was higher than prior years, resulting in a higher investment in working capital during 2026 Q1 than the prior year. Additionally, increased activity in the U.S. relative to 2025 Q4 contributed to additional investment into working capital. Free cash flow (1) of $9.1 million in 2026 Q1, compared to Free cash flow (1) of $5.7 million in 2025 Q1.

The increase is attributable to higher revenues and  Adjusted EBITDA (1) levels combined with lower capital expenditures.  At March 31, 2026, the Company had working capital (1) , excluding current portion of debt (loans and borrowings and promissory notes) of $87.7 million (December 31, 2025 - $84.1 million). Normal course issuer bid During the three months ended March 31, 2026, 279,072 (2025 - 742,699) common shares were purchased under the NCIB for a total purchase amount of $1.6 million (2024 - $4.5 million) at an average price of $5.78 (2025 - $6.09) per common share. A portion of the purchase amount reduced share capital by $1.5 million (2025 - $4.2 million) and the residual purchase amount of $0.1 million (2025 - $0.3 million) was recorded to the surplus.

In connection with the NCIB, the Company established an automatic securities purchase plan ("the Plan"). Accordingly, the Company may repurchase its common shares under the Plan on any trading day during the NCIB, including during regulatory restrictions or self-imposed trading blackout periods. The Plan commenced on August 11, 2025, and will terminate on August 10, 2026.

As at March 31, 2026, the Company did not recognize accrued liability for the common shares to be purchased under the Plan. As at December 31, 2025, the accrued liability related to the reduction of share capital was $1.4 million. During the three months ended March 31, 2026, the Company reversed the previously recognized accrual, resulting in a net decrease to share capital of $1.4 million.

Subsequent to December 31, 2026, the Company purchased 6,000 common shares for a total purchase amount of $0.04 million, at an average purchase price of $6.50 per common share. Syndicated and revolving credit facilities On March 24, 2026, the Company entered into a Sixth Amended and Restated Credit Agreement with its existing syndicate of lenders co-lead by ATB Financial and Royal Bank of Canada ("Amended Credit Agreement"). The Amended Credit Agreement took effect as at April 1, 2026 in connection with the closing of the SB Directional Services acquisition on April 1, 2026 (see Transactions section in this News Release).

The Amended Credit Agreement provided for the following: As at March 31, 2026, $53.6 million of the $124.0 million Revolving Facility remained undrawn. No repayments were made on the Revolving Facility subsequent to quarter-end. At March 31, 2026, the Company was in compliance with all covenants, including its financial covenants, which were as follows: Consolidated Funded Debt to Consolidated Credit Agreement EBITDA ratio shall not exceed 2.5 : 1.0 (calculated - 1.2); and Consolidated Interest Coverage ratio shall not be less than 3.0 :1.0 (calculated - 12.4).

Contractual obligations and contingencies As at March 31, 2026, the Company's commitment to capital is approximately $7.2 million (December 31, 2025 - $3.7 million), which is expected to be incurred over the next six months. The Company holds six letters of credit totaling $1.8 million (December 31, 2025 - $1.7 million) related to rent payments, corporate credit cards and a utilities deposit. The Company is involved in various other legal claims and tax audits associated with the normal course of operations.

The Company believes that any liabilities that may arise pertaining to such matters would not have a material impact on its financial position. Refer to the 'Provision' section in this News Release for more details. The following table outlines the anticipated payments related to contractual commitments subsequent to March 31, 2026: Capital structure As at May 7, 2026, the Company has 38,547,049 common share and 2,006,742 stock options.

NET CAPITAL EXPENDITURES                                                                  The following table details the Company's Net capital expenditures (1) : Equipment additions totaling $11.4 million included $0.8 million of items previously purchased and held in inventory for the Rime MWD system build-out in 2026 Q1. As at March 31, 2026, property, plant and equipment included $3.3 million (December 31, 2025 - $1.8 million) of MWD equipment not yet being depreciated as they are currently being manufactured and tested. Depreciation of the assets will commence upon the assets being fully operational.

Given the current market uncertainty, the Company's 2026 gross and Net capital expenditures (1 ) budget will be dynamic and adjusted to reflect management's expectation of future activity levels. Currently, the Company's target Net capital expenditures (1) budget is anticipated to relate to sustaining and growth capital expenditures that will enhance realized gross margin percentage levels, including optimizing ACT's high-performance mud motors, MWD in both Canada and the U.S., and selective RSS deployments. ACT intends to fund its 2026 capital plan from cash flow - operating activities.

TRANSACTIONS On January 5, 2026 the Company acquired all the assets of Stryker Energy Directional Services, LLC for total purchase consideration of $32.8 million.  Stryker was founded in 2010 and based in Conroe, Texas, it is a well-established directional drilling services provider with a highly experienced management team and a strong operating history across the Southern United States. In 2025, Stryker averaged approximately 17 active jobs per operating day, including work utilizing RSS technology. See the notes to the financial statements for further details on the purchase price allocation.

On April 1, 2026, the Company acquired the directional drilling services business of SB Directional Services. The total consideration is estimated around $66.1 million. The consideration is comprised of US$30 million in cash and US$17.6 million, or 3,624,232 in ACT common shares.

The acquisition of SB Directional adds to ACT's position as one of the leading independent directional drilling companies in the US, increasing exposure in the Anadarko and Permian basins. In connection with the SB Acquisition, the Company entered into a Sixth Amended and Restated Credit Agreement with its existing syndicate of lenders co-lead by ATB Financial and Royal Bank of Canada (refer to Liquidity and Capital Resources section of this News Release). NON-GAAP MEASURES ACT uses certain performance measures throughout this News Release that are not defined under IFRS Accounting Standards or Generally Accepted Accounting Principles ("GAAP").

These non-GAAP measures do not have a standardized meaning and may differ from that of other organizations, and accordingly, may not be comparable. Investors should be cautioned that these measures should not be construed as alternatives to IFRS Accounting Standards measures as an indicator of ACT's performance. These measures include the Adjusted gross margin, Adjusted gross margin percentage, Adjusted EBITDAS, Adjusted EBITDAS margin percentage, Free cash flow, Net debt, Working capital and Net capital expenditures.

Management believes these measures provide supplemental financial information that is useful in the evaluation of ACT's operations. These non-GAAP measures are defined as follows: The following tables provide reconciliations from the IFRS Accounting Standards to non-GAAP measures included in this News Release. Adjusted gross margin Adjusted EBITDAS Free cash flow Net debt SUPPLEMENTARY FINANCIAL MEASURES AND OTHER DEFINITIONS COMMON INDUSTRY TERMS INDUSTRY PRICING METRICS Common industry pricing metrics that affect our business directly, such as $CAD/$US foreign exchange, and indirectly through our customer's cash flows, such as WTI and and US NYMEX natural gas, are as follows: FORWARD LOOKING STATEMENTS This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws.  All statements other than statements of present or historical fact are forward-looking statements.  Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes.  In particular, this News Release contains forward-looking statements relating to, among other things: The 2026 Net capital expenditure budget and financing thereof; Given the current market uncertainty, partly as a result of the enacted and proposed U.S. tariffs, the Company's 2026 Net capital expenditure budget will be dynamic and adjusted to reflect management's expectation of future activity levels; The first quarter represented an important inflection point for the Company.

The integration of Stryker Energy Directional Services in January and SB Directional Services in April meaningfully strengthens the U.S. footprint, expands the Company's customer base and adds scale as the Company positions the business for an improving activity environment as it moves through 2026 and into 2027. In Canada, the Company's market presence, expanding technology offering and focus on high‑performance service delivery once again positioned it among the most active directional drilling providers during the quarter. While the Company's foundation remains multilateral drilling, the continued adoption of rotary steerable and advanced technologies supported incremental activity and is expected to remain a key driver of utilization throughout the remainder of the year.

As industry consolidation has reduced competitive capacity, the Company believes its streamlined operating model and expanding direct‑to‑operator relationships position it to benefit from even modest improvements in overall activity levels. The acquisitions of Stryker and SB added two experienced management teams, complementary customers and more than 30 incremental operating jobs per day. The integration of our proprietary motor and rotary steerable technology across the combined platform is expected to drive improved margins and returns over time.

The Company's 2026 capital allocation strategy remains disciplined and balanced. The Company will continue to evaluate organic growth initiatives and accretive acquisitions while maintaining a conservative leverage profile. In parallel, the Company remains committed to returning capital to shareholders through optimal investments allowing for future debt reduction and investment into our Normal Course Issuer Bid and will continue to deploy capital in a measured and value‑focused manner.

The benefit of re-activation of certain equipment is expected to be realized in future periods. As the Company began to increase activity, certain of this work required new generation rental technologies, which the Company expects to displace in the upcoming months at minimal capital investment with quick paybacks. Overall, we are executing on strategic initiatives that strengthen the business and enhance operating leverage.

With recent additions, an expanded technology offering and a more efficient operating structure, we believe the Company is well positioned to capture improving market conditions as activity levels gradually recover. Global energy markets entered 2026 with improving supply‑demand fundamentals. Recent geopolitical instability has introduced additional uncertainty but has also reinforced the importance of secure North American supply, supporting a constructive medium‑term commodity price environment.

While public E&P capital programs are expected to remain disciplined in the near term, incremental activity from private operators is likely, providing modest upward pressure on drilling and completion activity. In Canada, second‑quarter activity is expected to be stronger than the prior year, supported by continued adoption of rotary steerable technology and the compelling economics of multi‑lateral drilling. Seasonal spring breakup and weather‑related disruptions may create short‑term variability; however, underlying demand fundamentals remain supportive.

In the United States, the combined platform is currently operating at a high‑water mark of more than 60 active jobs and is expected to steadily build activity as the year progresses. Industry consolidation, reduced service capacity and increased technology differentiation are expected to benefit well‑capitalized, technically capable service providers. From an oilfield services perspective, activity recovery is likely to be gradual rather than cyclical in nature, favoring companies with scale, strong balance sheets and differentiated technology.

The Company believes its expanded footprint, integrated service model and focus on higher‑margin, technology‑enabled work position the Company to outperform as activity levels normalize. The Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements.

Those material factors and assumptions are based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources.  In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements.  You are cautioned that the following list of material factors and assumptions is not exhaustive.  Specific material factors and assumptions include, but are not limited to: the performance of ACT's business; impact of economic and social trends; oil and natural gas commodity prices and production levels; capital expenditure programs and other expenditures by ACT and its customers; the ability of ACT to attract and retain key management personnel; the ability of ACT to retain and hire qualified personnel; the ability of ACT to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities; the ability of ACT to maintain good working relationships with key suppliers; the ability of ACT to retain customers, market its services successfully to existing and new customers and reliance on major customers; risks associated with technology development and intellectual property rights; obsolescence of ACT's equipment and/or technology; the ability of ACT to maintain safety performance; the ability of ACT to obtain adequate and timely financing on acceptable terms; the ability of ACT to comply with the terms and conditions of its credit facility; the ability to obtain sufficient insurance coverage to mitigate operational risks; currency exchange and interest rates; risks associated with future foreign operations; the ability of ACT to integrate its transactions and the benefits of any acquisitions, dispositions and business development efforts; environmental risks; business risks resulting from weather, disasters and related to information technology; changes under governmental regulatory regimes including tariffs and tax, environmental, climate and other laws in Canada and the U.S.; and competitive risks. Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties some of which are described herein.  Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.  These risks and uncertainties include, but are not limited to, the risks identified in this News Release and in the Company's Annual Information Form under the heading "Risk Factors".  Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. All forward-looking statements contained in this News Release are expressly qualified by this cautionary statement.

Further information about the factors affecting forward-looking statements is available in the Company's current Annual Information Form that has been filed with Canadian provincial securities commissions and is available on www.sedar plus.ca and the Company's website ( www.actenergy.com ). CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at March   31, 2026 and December   31, 2025 Canadian dollars in '000s CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three months ended March 31, 2026 and 2025 Canadian dollars in '000s except per share amounts CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Three months ended March 31, 2026 and 2025 Canadian dollars in '000s   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended March 31, 2026 and 2025 Canadian dollars in '000s ACT Energy Technologies Ltd., based in Calgary, Alberta, Canada, is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. and Canada under Altitude Energy Partners, Discovery Downhole Services in the U.S., and Rime Downhole Technologies, LLC in the U.S.. ACT's common shares are publicly-traded on the Toronto Stock Exchange under the symbol "ACX".

ACT is a trusted partner to North American energy companies requiring high performance directional drilling services and related downhole technologies. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs. Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs.

For more information, visit www.actenergy.com . Requests for further information should be directed to: Tom Connors, President, Chief Executive Officer or Rob Skilnick, Chief Financial Officer 6030 - 3 Street S.E., Calgary, Alberta T2H 1K2 Telephone: 403.265.2560 Fax: 403.262.4682 www.actenergy.com SOURCE ACT Energy Technologies LTD. View original content: http://www.newswire.ca/en/releases/archive/May2026/08/c3293.html Canada Newswire May 8, 2026 - 3:00 AM PDT News by QuoteMedia www.quotemedia.com