Foraco International Reports Q4 & FY 2025 Audited Results
Foraco International Reports Q4 & FY 2025 Audited Results |
| [02-March-2026] |
Increased Activity QoQ and Record Backlog Providing Strong Visibility for 2026 and Beyond TORONTO, March 2, 2026 /CNW/ - Foraco International SA (TSX: FAR) ("Foraco" or the "Company"), a leading global provider of drilling services, today reported its financial results for the three-month and year ended December 31, 2025. All amounts are expressed in US dollars (US$) unless otherwise stated.
Q4 2025 Highlights:
Management Comments Tim Bremner, Chief Executive Officer of Foraco, stated, "In Q4 2025, South America was the Group's main growth driver, with revenue nearly doubling year-on-year on the back of new long-term contracts, while North America and Asia Pacific were impacted by the early seasonal break in drilling operations compared to last year. FY 2025 was a transition year for the Group. During the period we successfully strengthened the Group's commercial activity, which resulted in a record backlog at year-end. We also reinforced our management structure, gained new clients mainly in gold, capitalized on our water segment, relocated assets across regions, redeployed the company within Canada and developed the United States. As at December 31, 2025, the order backlog for continuing operations reached a record level of US$ 404.4 million, compared with US$ 220.5 million as at December 31, 2024. With most major mobilizations now completed, the Group enters FY 2026 with a solid operational base, supporting a progressive recovery in performance." Fabien Sevestre, Chief Financial Officer of Foraco, added, "During the quarter, we secured and began executing several long-term contracts in key regions. Capital expenditure was executed to support these contracts and longer-term growth. Throughout Q4 and FY 2025, we maintained strict financial discipline. We generated positive free cash flow and secured financing lines to support growth. We preserved a solid balance sheet, with full compliance with financial covenants. Cost control remained strict. Working capital was stable at US$ 0.6 million, reflecting sound management. All the above enhances revenue visibility for FY 2026 and supports improved cash conversion." Income Statement
Highlights – Q4 2025 Revenue
Profitability
Highlights – FY 2025 Revenue For the year ended December 31, 2025, the revenue amounted to US$258.2 million compared to US$293.5 million in FY 2024. Profitability
Net debt
Backlog
Financial results Revenue
Q4 2025 Revenue in Q4 2025 was US$63.1 million, compared to US$60.8 million in Q4 2024. At constant exchange rates, revenue increased by US$5.0 million (+8.2%). Activity in North America decreased by 13% to US$20.4 million in Q4 2025, compared to US$23.5 million in Q4 2024. This decrease was primarily driven by the discontinuation of certain client programs in Canada partially offset by the start-up of new contracts in the United States. Asia Pacific decreased by 22% compared to Q4 2024 due to the earlier seasonal break in drilling operations compared to last year. Revenue in South America increased by 95% to US$19.3 million, compared to US$9.9 million in Q4 2024. In Chile, the company continued to mobilize new rigs under long-term contracts initiated in the previous quarter. In Brazil, additional long-term contracts were mobilized and revenue increased by 60% compared to Q4 2024. These new projects remain in the learning-curve phase, temporarily impacting both revenue and margins. In the EMEA region, revenue grew by 15% at US$5.8 million in Q4 2025, compared to US$5.1 million in Q4 2024 supported by the start-up of new contracts during the previous period. Overall, rig utilization rate in Q4 2025 was 40% compared to 35% in Q4 2024. FY 2025 FY 2025 revenue totaled US$258.2 million, down from US$293.5 million in FY 2024. In Asia Pacific, FY 2025 revenue amounted to US$86.3 million, a 3% increase (6% excluding adverse foreign exchange) compared to FY 2024. This growth was primarily attributable to successful operations and the commissioning of new proprietary rigs. Revenue in South America totaled US$57.1 million in FY 2025, down 14% from US$66.8 million in FY 2024. After delays in the mobilization process due to client-driven program rescheduling, the Company started new long-term contracts which are currently in the mobilization and learning curve phases, temporarily impacting both revenue and margins. In the EMEA region, revenue increased by 5% to US$25.4 million, compared to 24.3 million in FY 2024. Excluding the exit from CIS and certain West African countries, revenue increased by US$6.7 million or 43%. Gross profit
Q4 2025 The Q4 2025 gross margin, including depreciation within cost of sales, was US$10.1 million (16.0% of revenue) compared to US$11.3 million (18.5% of revenue) in Q4 2024. The decline in the mining segment's gross margin was primarily due to the phasing and ramp-up of new contracts, which are typically associated with lower initial margins. Gross profit in the water segment slightly increased as a percentage of revenue. FY 2025 The FY 2025 gross margin including depreciation within cost of sales was US$46.0 million (17.8% of revenue) compared to US$63.1 million (21.5% of revenue) in FY 2024. Selling, General and Administrative Expenses
Q4 2025 SG&A expenses decreased by 3% compared to the prior-year quarter. As a percentage of revenue, SG&A decreased to 7.9% (8.4% in Q4 2024). FY 2025 SG&A decreased 14% compared to last year. As a percentage of revenue, SG&A remained stable at approximately 7.5% of revenue. Operating result
Q4 2025 The operating profit was US$5.1 million compared to US$6.1 million in the same quarter last year. FY 2025 The FY 2025 operating profit was US$26.9 million compared to US$42.5 million in FY 2024. On May 22, 2025, Foraco sold its 50% stake in its Kazakh subsidiary, Eastern Drilling Company LLP, generating a net gain of US$289 thousand, which was recorded under "Other Operating Income" in the Company's consolidated financial statements for the nine-month period ended December 31, 2025. Financial position The following table provides a summary of the Company's cash flows for FY 2025 and FY 2024:
In FY 2025, the cash generated from operations before working capital requirements amounted to US$45.7 million compared to US$60.5 million in FY 2024. During the same period, working capital requirements were US$0.6 million, a decrease compared to the same period last year, primarily driven by tightened control on working capital management and the reduction in activity. During the period, Capex totaled US$22.7 million in cash compared to US$18.9 million in FY 2024. Capex primarily relates to new rigs, and the acquisition of ancillary equipment and rods to support new contracts. Strategy The Company's strategy is to assist its customers in exploring or managing their deposits throughout the entire cycle, with a special focus on the life of mine activity. The Company intends to continue developing and growing its services across the world with a focus on stable jurisdictions, high tech drilling services, optimal commodities mix including battery metals and gold - with a significant presence in water related drilling services - and a gradual implementation of remote-controlled rigs and other advanced digital applications. The Company expects to execute its strategy primarily through organic growth and targeted acquisitions. The Company addressed the environmental, social and governance (ESG) requirements, and implemented a pragmatic and measurable approach to ESG with quantitative KPIs to maximize improvement and efficiencies. Currency exchange rates. The exchange rates for the periods under review are provided in the Management's Discussion and Analysis of Q4 2025. Non-IFRS measures EBITDA represents Net income before interest expense, income taxes, depreciation, amortization and non-cash share based compensation expenses. EBITDA is a non-IFRS quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. The Company believes that the presentation of EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the drilling industry. EBITDA is not defined in IFRS and should not be considered to be an alternative to Profit for the period or Operating profit or any other financial metric required by such accounting principles. Net debt corresponds to the current and non-current portions of borrowings and the consideration of payables related to acquisitions, net of cash and cash equivalents. The Company's lease obligations are included in the net debt calculation. Reconciliation of the EBITDA is as follows:
Conference call and webcast On March 2, 2026, Company Management will conduct a conference call at 10:30 am Eastern Time to review the financial results. The call will be hosted by Tim Bremner, CEO, and Fabien Sevestre, CFO. You can join the call by dialing 1-888-699-1199 or 1-416-945-7677. You will be put on hold until the conference call begins. A live audio webcast of the Conference Call will also be available https://app.webinar.net/PZXEKwm9ejW An archived replay of the webcast will be available for 90 days. About Foraco International SA Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 16 countries across five continents. For more information about Foraco, visit www.foraco.com. "Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release." Caution concerning forward-looking statements This document may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information include estimates, forecasts, information, and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified using words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereof or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 2, 2025, which is filed with the Canadian regulators on SEDAR+ (www.sedarplus.com). The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. SOURCE Foraco International SA | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: Toronto:FAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
