Foraco International (TSE:FAR) Issues Earnings Results
by Teresa Graham · The Cerbat GemForaco International (TSE:FAR – Get Free Report) issued its quarterly earnings data on Thursday. The company reported C$0.01 earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$92.11 million for the quarter. Foraco International had a net margin of 6.02% and a return on equity of 16.77%.
Here are the key takeaways from Foraco International’s conference call:
- Revenue increased to $66 million in Q1 from $55 million a year ago, driven by strong performance in Canada, the U.S. and South America, and management says a near-record order book provides strong forward visibility.
- Gross margin fell to 10.7% (EBITDA stable at $7.4 million) as many contracts remain in mobilization/ramp-up, leaving margins below historical levels though management expects improvement over the next two quarters.
- Working capital rose by $15 million and CapEx was $10 million to add five rigs, pushing net debt to $91 million; liquidity includes about $18 million of undrawn credit and management expects working capital to unwind by year-end.
- Utilization improved through the quarter—averaging ~40% but exiting above 50%—with five rigs deployed and four more planned, and the company expects utilization to continue rising toward mid-70% potential (targeting ~60% this year).
- Management highlights strong industry fundamentals (high gold/copper prices, electrification, infrastructure and AI-related demand) and reiterates a disciplined, selective growth strategy focused on scalable long-term projects.
Foraco International Stock Down 0.6%
Shares of Foraco International stock opened at C$3.13 on Friday. The company has a current ratio of 1.36, a quick ratio of 0.88 and a debt-to-equity ratio of 99.57. The company’s fifty day simple moving average is C$2.90 and its two-hundred day simple moving average is C$2.60. The company has a market cap of C$306.86 million, a P/E ratio of 20.06 and a beta of 1.10. Foraco International has a 12-month low of C$1.57 and a 12-month high of C$3.54.
Insider Transactions at Foraco International
In related news, Director William Warren Holmes acquired 17,000 shares of Foraco International stock in a transaction on Monday, March 16th. The shares were acquired at an average cost of C$2.84 per share, with a total value of C$48,280.00. Following the transaction, the director owned 450,001 shares in the company, valued at C$1,278,002.84. This trade represents a 3.93% increase in their ownership of the stock. Insiders own 35.74% of the company’s stock.
Analyst Ratings Changes
Separately, Desjardins boosted their price objective on shares of Foraco International from C$3.00 to C$4.50 and gave the company a “buy” rating in a research report on Tuesday, February 24th. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat, Foraco International has an average rating of “Buy” and an average price target of C$4.50.
Get Our Latest Stock Analysis on Foraco International
About Foraco International
Foraco International SA is the business of providing mineral and water drilling services and hydraulic drilling. It specializes in drilling in harsh environments and isolated locations including desert, and mountainous regions. The principal sources of revenue consist of drilling contracts for companies involved in mining and water exploration. The group has its operations in Europe, the Middle East and Africa, North America, South America and the Asia Pacific.