Canada · Delayed Price · Currency is CAD Foraco International Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 20% year-over-year to $66 million in Q1 2026, with strong gains in North and South America. Margins were impacted by ramp-up costs, but improvement is expected as projects mature and utilization rises in the coming quarters.
Fiscal Year 2025
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Q4 2025 marked a turning point with revenue up 8% year-over-year and a record $404 million order book, 90% from tier one customers. Full year revenue declined, but strong demand, higher utilization, and improved margins are expected in 2026.
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Q3 2025 revenue declined year-over-year, but operational progress and cost discipline were evident. New long-term contracts worth $150 million were secured, and market conditions, especially in Latin America, are improving with a robust tender pipeline and rising gold and copper demand.
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Q2 2025 revenue declined year-over-year but margins remained strong due to cost control and efficiency. New contracts, especially in Latin America, and increased exposure to gold, copper, and water support a positive outlook for the second half of 2025.
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Q1 2025 revenue fell to $55 million from $77 million year-over-year, mainly due to project delays, regional exits, and FX impacts. Gross margin dropped to 14%, but the water segment saw strong growth, and management expects improved results as operations ramp up.
Fiscal Year 2024
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Q4 and full-year 2024 saw revenue declines due to reduced junior activity, regional exits, and FX, but margins and net income remained resilient. Asia-Pacific delivered record results, while North America and Latin America faced delays. Management expects growth in gold contracts and a stronger H2 2025.
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Q3 2024 revenue fell 18% year-over-year, but North America and Australia achieved record results, offsetting declines in South America and EMEA. Margins narrowed, but long-term contracts and new rig deployments support a positive outlook, especially in critical metals and water services.
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A global drilling services leader is focusing on Tier One clients, innovation, and water services to drive growth, with a strong presence in EV metals and a strategy to redeploy rigs to safer, high-potential markets. Financial discipline and long-term relationships underpin future expansion.
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Q2 2024 saw revenue and margins decline year-over-year due to early winter in South America and a strategic pivot to stable jurisdictions, but North America and Asia Pacific achieved record results. Management remains confident in a return to growth as new rigs are deployed and market conditions improve.