Foraco International (FAR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $71 million, down 9% year-over-year, with gross margin at 19.7% and net profit at $5.5 million, reflecting operational progress and disciplined cost management.

• EBITDA for Q3 2025 was $14.2 million (20% of revenue), compared to a 21% margin in Q3 2024.

• Year-to-date revenue was $195.1 million, down 16% from the prior year, with EBITDA at $35.2 million and net profit at $12.5 million.

• Three significant long-term contracts were awarded/renewed in Chile and Canada, valued at $150 million.

• Operations in South America and EMEA showed strong growth, while North America declined due to contract completions and deferrals.

Financial highlights

• Q3 2025 revenue: $71 million (-9% YoY); mining 86%, water 14%; gross profit: $14 million (19.7% margin); EBITDA: $14.2 million (20% margin); net profit: $5.5 million (8% margin).

• YTD Q3 2025 revenue: $195.1 million (-16% YoY); gross profit: $35.9 million (18.4% margin); EBITDA: $35.2 million (18.1% margin); net profit: $12.5 million.

• G&A/SG&A expenses decreased 11% to $4.8 million, or 6.8% of revenue; EBIT was $9 million vs. $12 million in Q3 2024.

• Free cash flow for YTD Q3 2025 was negative $0.6 million due to working capital and capex for new contracts.

• Net debt at 09-30-2025 was $72 million, up from $61 million at 12-31-2024, but down from $78.3 million a year earlier.

Outlook and guidance

• Market conditions are strengthening, especially in Latin America, with a rebound in metal prices and exploration financing.

• Robust tender pipeline in North and Latin America, especially for gold and copper projects.

• Management expects a rebound driven by renewed investment and higher rig utilization, supported by new contract awards and long-term renewals totaling $140 million to $150 million in Canada and Chile.

• Strategy focuses on superior margins, strong free cash flow, and disciplined capital allocation.

• Focus remains on efficiency, service quality, and positioning for sustained, profitable growth.