Foraco Q2 revenue falls 11% to $69.1 mln

Overview

• Foraco Q2 2025 revenue falls 11% yr/yr to $69.1 mln

• EBITDA for Q2 2025 down to $14.0 mln, impacted by lower activity

• Gross margin declines due to new contract ramp-ups and one-off costs

Outlook

• Foraco expects positive developments in Asia Pacific and new US contracts

• Company focuses on high-potential regions and proprietary rigs for growth

• Foraco anticipates growth in Chile with a significant long-term contract

• Company sees continued investment in fleet modernization for future growth

Result Drivers

• ASIA PACIFIC GROWTH - Revenue up 11% driven by commissioning of proprietary rigs and strong operational performance

• NORTH AMERICA DECLINE - Revenue fell 21% due to program discontinuations and contract delays

• SOUTH AMERICA CHALLENGES - Revenue impacted by mobilization phases and client-driven delays in Brazil

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the mining support services & equipment peer group is "buy."

• Wall Street's median 12-month price target for Foraco International SA is C$3.50, about 53.4% above its July 30 closing price of C$1.63

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nCNWHWp0Ta