Foraco International (FAR) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue was $293.5 million, down from $370 million in 2023, due to reduced junior activity, regional exits, and FX headwinds; Q4 2024 revenue was $61 million, down from $86.6 million in Q4 2023.

• EBITDA for Q4 2024 was $13.9 million (23% margin before one-off costs), and FY 2024 EBITDA was $66.6 million (22.7% margin) excluding one-offs.

• Net income attributable to shareholders was stable year-over-year, with FY 2024 net profit at $27.8 million versus $28.7 million in 2023.

• North America and Asia-Pacific delivered record results, while South America and EMEA saw significant declines due to project delays and exits from unstable regions.

Financial highlights

• Q4 2024 gross margin was $11.3 million (18.5% of revenue), down from $26 million (30%) in Q4 2023; FY 2024 gross profit was $63.1 million (21.5%).

• Q4 2024 EBIT was $6.1 million, down from $13 million in Q4 2023; FY 2024 EBIT was $43 million (15% of revenue) vs. $67 million (18%) in 2023.

• SG&A expenses decreased 20% to $5.1 million in Q4 2024, and FY 2024 SG&A was down 17%, stable as a percentage of revenue.

• CapEx for 2024 was $19 million, mainly for new rigs in Australia and Rhodes.

• Free cash flow was $10.4 million, impacted by a $10 million delay in receivables collection at year-end.

Outlook and guidance

• Order backlog for FY 2025 was $200.6 million at year-end, down from $236.1 million, with a slow start expected in H1 2025 and improvement anticipated in H2, especially in Latin America.

• Optimism for increased gold-related contracts and growth in the U.S., Latin America, and Australia.

• Management remains confident in navigating market challenges and preserving shareholder value.