Geodrill (GEO) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong drilling demand and high fleet utilization at 76%, but margins were pressured by higher operating costs, labor costs, currency movements, and the ramp-up of Chilean operations.

• Revenue reached $48.4 million, down 1% year-over-year, reflecting sustained demand but margin pressure.

• The business ended the quarter stronger, with robust customer relationships and ongoing geographic expansion, especially in Chile.

• Expansion in Chile is ongoing, with short-term costs expected to yield long-term diversification and earnings benefits.

• Demand for drilling services remains robust, supported by favorable gold and copper prices and an active bidding environment.

Financial highlights

• Revenue was $48.4 million, down 1% year-over-year from Q1 2025.

• Gross profit was $7.2 million, with a gross margin of 15% versus 28% in Q1 2025.

• EBITDA was $5.9 million, with an EBITDA margin of 12% compared to 28% in Q1 2025.

• Net loss was $116,000, or nil per share, compared to net income of $5.6 million in Q1 2025.

• Net cash position of $1.9 million at quarter-end.

Outlook and guidance

• Margins are expected to improve throughout 2026 as South American operations ramp up and cost pressures ease.

• Margins in South America are not forecasted to reach West African levels but should normalize as operations mature.

• Margin improvement was observed month-over-month within Q1, with March being the strongest.

• The company remains focused on operational efficiency, cost management, and restoring margins.

• Active bidding pipeline in core African and South American markets.