Yahoo Finance

• Q4 Revenue: $147 million, down from $256 million in Q3.

• Q4 Adjusted EBITDA: $4 million or 3% margin, compared to $44 million or 17% margin in Q3.

• 2024 Full Year Revenue: $955 million, up from $946 million in 2023.

• 2024 Full Year Adjusted EBITDA: $169 million or 18% margin, up from $164 million or 17% margin in 2023.

• Q4 Net Loss: $45 million or $0.23 per share, compared to a net loss of $5.5 million or $0.08 per share in Q3.

• 2024 Full Year Net Income: $2 million or $0.02 per diluted share, compared to $50 million or $0.67 per diluted share in 2023.

• Canadian Segment Q4 Revenue: $110 million, down from $211 million in Q3.

• Canadian Segment Full Year Revenue: $723 million, up from $580 million in 2023.

• U.S. Segment Q4 Revenue: $37 million, down from $45 million in Q3.

• U.S. Segment Full Year Revenue: $232 million, down from $366 million in 2023.

• Q4 Free Cash Flow: Negative $17 million, compared to $28 million positive in Q3.

• 2024 Full Year Free Cash Flow: $86 million, up from $83 million in 2023.

• Q4 Capital Expenditures: $19 million, with $8 million for sustaining and $11 million for optimization.

• 2024 Full Year Capital Expenditures: $94 million, down from $105 million in 2023.

• Net Debt at End of Q4: $53 million, down from $88 million at the end of 2023.

• Warning! GuruFocus has detected 6 Warning Signs with UPLD.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• STEP Energy Services Ltd (SNVVF) achieved a record year for its Canadian geographic region with full-year revenue of $723 million, significantly up from $580 million in 2023.

• The company successfully reduced its net debt to $53 million by the end of 2024, down from $88 million at the end of 2023 and $142 million at the end of 2022.

• STEP's North American pressure pumping business pumped a record 2.3 million tonnes of proppant in 2024, marking an 8% increase from 2023.

• The company has invested $162 million in optimization capital since 2022, resulting in a state-of-the-art fleet with 88% dual fuel capability, reducing costs and emissions.

• STEP Energy Services Ltd (SNVVF) ended the year with a positive free cash flow of $86 million, up from $83 million in 2023.

Negative Points

• STEP Energy Services Ltd (SNVVF) reported a net loss of $45 million in Q4 2024, significantly higher than the $5.5 million loss in the prior quarter.

• The company decided to wind down its US fracturing service line due to repeated loss of contracts to larger competitors, resulting in a noncash impairment of $23.9 million.

• Q4 2024 revenue was $147 million, down from $256 million in Q3, with adjusted EBITDA dropping to $4 million from $44 million in the previous quarter.

• The weakening Canadian dollar against the US dollar led to margin compression, particularly affecting proppant costs purchased from the US.

• STEP Energy Services Ltd (SNVVF) faced challenges in the US market due to significant consolidation in the E&P space, which intensified price competition and led to the suspension of its US-based fracturing operations.