Mineral drilling firm Foraco Q1 revenue rises 20% on new contracts

Foraco International SA

30/04/2026 12:19

Overview

France-based mineral drilling firm's Q1 revenue rose 20% yr/yr, driven by new contracts

Gross margin and net profit declined, reflecting ramp-up phase of new long-term contracts

Company deployed five new rigs and increased workforce 16% to support expansion

Outlook

Foraco expects increased activity from Q2 2026 as new rigs are deployed

Company sees potential for margin improvement as new contracts reach full efficiency

Foraco cites strong commodity prices and record backlog as supporting improved operating performance

Result Drivers

NEW CONTRACTS - Revenue growth was driven by the mobilization of new long-term contracts, especially in Canada, the United States, and South America

RAMP-UP PHASE IMPACT - Gross margin and net profit declined due to the ramp-up phase of new contracts, which typically generate lower margins initially

CAPACITY EXPANSION - Deployment of five new rigs and a 16% workforce increase supported operational capacity and future growth

Company press release: ID:nCNWpMmZFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$66.26 mln
$64.55 mln (2 Analysts)
Q1 Net Income
$94,000
Q1 EBITDA
$7.38 mln
Q1 Gross Profit
$7.09 mln
Q1 Operating Income
$2.06 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$4.50, about 50.5% above its April 29 closing price of C$2.99

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)