Foraco Q2 revenue falls 11% to $69.1 mln

Foraco International SA

31/07/2025 11:17

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$69.06 mln
Q2 Net Income
$6.02 mln
Q2 EBITDA
$14 mln
Q2 Gross Profit
$14.13 mln
Q2 Operating Income
$9.69 mln


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

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)