Geodrill (GEO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 14% year-over-year to GHS 39 million ($39.0M), driven by South American expansion and strong West African demand.

• Gross profit declined to GHS 2.4 million ($2.4M) from GHS 8.4 million ($8.4M) in Q3 2024, reflecting operational challenges and cost absorption from expansion.

• EBITDA was GHS 4.3 million ($4.3M, 11% margin), down from GHS 7.6 million ($7.6M, 22% margin) in Q3 2024; net loss of GHS 1.5 million ($1.5M) compared to net income of GHS 2.6 million ($2.6M) last year.

• Multi-year, multi-rig contracts and an active bidding pipeline support future growth and resilience.

• Achieved 7.8 million man-hours without lost time injury, reflecting strong safety performance.

Financial highlights

• Q3 2025 revenue: GHS 39 million ($38.97M) vs. GHS 34.1 million ($34.09M) in Q3 2024; nine-month revenue: $138.07M vs. $109.94M year-over-year.

• Gross profit: GHS 2.4 million ($2.36M, 6% margin) vs. GHS 8.4 million ($8.35M, 24% margin) in Q3 2024.

• EBITDA: GHS 4.3 million ($4.26M, 11% margin) vs. GHS 7.6 million ($7.63M, 22% margin) in Q3 2024.

• Net loss: GHS 1.5 million ($1.51M, GHS 0.03/share) vs. net income of GHS 2.6 million ($2.61M, $0.06/share) in Q3 2024.

• Favorable impacts included a GHS 100,000 ($0.1M) credit recovery, GHS 800,000 ($0.8M) FX gain, and GHS 1.8 million ($1.8M) gain on equity investments.

Outlook and guidance

• Q4 expected to show improvements in Ghana, Côte d'Ivoire, Senegal, Egypt, and South America as operational challenges subside and new projects ramp up.

• Utilization rates are trending upward, expected to reach 75% in Q4 and potentially above 80% in Q1 and Q2 next year.

• Management anticipates margin recovery and improved returns as upfront costs in South America are absorbed and rigs become fully operational.

• Drilling services demand remains strong, supported by high gold and copper prices.

• Active bidding pipeline and new contracts in advanced stages indicate continued growth opportunities.