Foraco International (FAR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $71 million, or $72 million excluding FX, down 9% year-over-year from $79 million in Q3 2024, reflecting operational progress, disciplined cost management, and resilient profitability.

• EBITDA for Q3 2025 was $14.2 million (20% of revenue), compared to a 21% margin in Q3 2024.

• Net profit for Q3 2025 was $5.5 million, with year-to-date net profit at $12.5 million.

• Three significant long-term contracts were awarded/renewed in Chile and Canada, valued at $140–150 million.

• Operations in South America and EMEA showed strong growth, while North America declined due to contract completions and deferrals.

Financial highlights

• Q3 2025 gross profit was $14 million (19.7% margin), down from $17 million (22%) in Q3 2024, mainly due to ramp-up of new contracts.

• G&A/SG&A expenses decreased 11% to $4.8 million (6.8% of revenue), stable year-over-year.

• EBIT was $9 million, down from $12 million in Q3 2024.

• Free cash flow for YTD Q3 2025 was negative $0.6 million due to working capital and capex for new contracts.

• Working capital requirements dropped to $7 million from $23 million year-over-year.

Outlook and guidance

• Management expects a rebound driven by renewed investment, higher rig utilization, and new contract awards/renewals totaling $140–150 million in Canada and Chile.

• Market conditions are strengthening, especially in Latin America, with a rebound in metal prices and exploration financing.

• Robust tender pipeline in North and Latin America, especially for gold and copper projects.

• Continued investment in new rigs and technology to support growth and redeployment of over 20 rigs internationally.

• Focus remains on efficiency, service quality, and positioning for sustained, profitable growth.