Q1 2026 Foraco International SA Earnings Call Transcript
Key Points
- Revenue for Q1 2026 increased to $66 million from $55 million in Q1 2025, indicating strong growth.
- North America showed a robust performance with a 39% increase in revenue, driven by new contracts in Canada and the U.S.
- South America nearly doubled its revenue year-over-year, highlighting strong demand in the region.
- The company maintains a robust order book near record levels, providing strong visibility for future growth.
- Foraco International SA is well-positioned to capitalize on growth opportunities, particularly in the second half of 2026, by investing in fleet and workforce.
- EBITDA margins were impacted by mobilization and ramp-up costs of new contracts, remaining stable at $7.4 million.
- Gross margin decreased to 10.7% from 14.1% last year, as some operations are still in ramp-up mode.
- Net debt increased to $91 million due to working capital build and CapEx program, although this was expected.
- Utilization rates were around 50% at the end of Q1, indicating room for improvement.
- Labor markets are tighter, posing challenges in recruiting and staffing projects efficiently.
Good morning and welcome to FORACO International's first quarter 2026 results conference call. All participants will be in a listen-only mode until the question-and-answer session.
I will now turn the call over to Tim Bremner, Chief Executive Officer. Please go ahead.
Thank you, Kelsey, and good morning, everyone.
Thank you for joining us today to discuss Foraco's results for the first quarter ending March 31, 2026.
Joining me on the call is Fabien Sevestre, our Chief Financial Officer, who will walk you through the financial results and key drivers.
Before we begin, please note that our comments today may include forward-looking statements, which are subject to risks and uncertainties.
Now turning to the quarter.
As a reminder, Q1 is traditionally one of our weaker periods due to seasonality and the restart after the holiday break, which impacts activity across several of our regions.
Revenue for the quarter was $66 million,
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