Q3 2025 Foraco International SA Earnings Call Transcript
Key Points
- Foraco International SA (FRACF) secured three significant long-term contracts in Chile and Canada, valued at $150 million, showcasing their ability to deliver diversified services.
- Revenue in South America increased by 25%, indicating strong operational momentum and growing customer demand.
- EMEA region saw a 32% revenue growth, driven by the ramp-up of previously initiated contracts.
- The company reported a decrease in SG&A expenses by 11%, reflecting effective cost management.
- Foraco International SA (FRACF) is well-positioned to benefit from strengthening market conditions and increased demand for drilling services, particularly in Latin America.
- Q3 2025 revenue decreased to $71 million from $79 million in the same period last year, indicating a decline in overall revenue.
- EBITDA margin decreased from 21% in Q3 2024 to 20% in Q3 2025, reflecting a slight decline in profitability.
- North American revenue decreased by 29% due to the completion and deferral of certain Canadian contracts.
- Gross margin decreased from 22% in Q3 2024 to 20% in Q3 2025, primarily due to the phasing and ramp-up of new contracts with lower initial margins.
- Net debt increased to $72 million as of September 30, 2025, compared to $61 million at the end of 2024, indicating higher financial leverage.
Good morning ladies and gentlemen, and welcome to the Foraco third quarter 2025 earnings call. (Operator Instructions). This call is being recorded on Thursday, October 30th, 2025.
I would now like to turn the conference over to Tim Bremner. Please go ahead.
Thank you, operator.
Good morning, everyone, and welcome to Foraco International's Q3 2025 earnings call. I am Tim Bremner, CEO of Foraco, and joining me today is Fabien Sevestre, our CFO.
Earlier today, we released our third quarter 2025 financial results via CMW Newswire prior to the opening of the TSX.
If you do not yet receive a copy, you can find it on our website at wwwforaco.com.
Following our comments, we will open the call for questions which will be moderated by our operator.
This quarter continued to show operational progress and disciplined cost management across our business.
Foraco reported Q3 2025
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