Overview

* Foraco Q2 2025 revenue falls 11% yr/yr to $69.1 mln

* EBITDA for Q2 2025 down to $14.0 mln, impacted by lower activity

* Gross margin declines due to new contract ramp-ups and one-off costs

Outlook

* Foraco ( FRACF ) expects positive developments in Asia Pacific and new US contracts

* Company focuses on high-potential regions and proprietary rigs for growth

* Foraco ( FRACF ) anticipates growth in Chile with a significant long-term contract

* Company sees continued investment in fleet modernization for future growth

Result Drivers

* ASIA PACIFIC GROWTH - Revenue up 11% driven by commissioning of proprietary rigs and strong operational performance

* NORTH AMERICA DECLINE - Revenue fell 21% due to program discontinuations and contract delays

* SOUTH AMERICA CHALLENGES - Revenue impacted by mobilization phases and client-driven delays in Brazil

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $69.06

Revenue mln

Q2 Net $6.02

Income mln

Q2 $14 mln

EBITDA

Q2 Gross $14.13

Profit mln

Q2 $9.69

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the mining support services & equipment peer group is "buy."

* Wall Street's median 12-month price target for Foraco International SA ( FRACF ) is C$3.50, about 53.4% above its July 30 closing price of C$1.63

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)