Foraco International reports Q2 2025

LUNEL, France, July 31, 2025 /CNW/ – Foraco International SA (TSX:FAR) (“Foraco” or the “Company”), a leading global provider of drilling services, announces its financial results for the second quarter and first half of 2025. All figures are reported in US dollars unless otherwise noted.

Q2 2025 Highlights:

Revenue: US$69.1 million, compared to US$77.9 million in Q2 2024. At constant exchange rates, revenue decreased by US$5.8 million (-7.4%).

• Revenue breakdown:
  • Asia Pacific: Achieved another record quarter with revenue of US$24.7 million, up 11% YoY, driven by the ongoing commissioning of proprietary rigs and strong operational performance.
  • EMEA: Revenue rose to US$7.8 million, a 47% increase, supported by the start of significant new contracts for the region.
  • North America: Despite noticeable early wins in the US, revenue decreased by 21% to US$25.3 million, due to program discontinuations and delays in starting new contracts.
  • South America: Revenue fell to US$11.3 million (from US$18.2 million in Q2 2024), as Chile and Argentina entered the mobilization and learning curve phases of new long-term contracts, and Brazil faced client-driven mobilization delays.
• Profitability metrics:
  • Gross Margin: US$14.1 million (20.5% of revenue), compared to US$17.9 million (23.0%) in Q2 2024. Excluding one-off costs of US$1.0 million related to specific reorganization measures, gross margin stood at US$15.1 million (21.9%).
  • EBITDA: US$14.0 million (20.3% of revenue) or US$15.0 million (21.7% of revenue) excluding one-off costs, compared to US$16.4 million (21.0%) in Q2 2024.
  • Net Profit: US$6.0 million (9% of revenue), compared to US$7.8 million (10%).
  • Free Cash Flow: Negative US$7.1 million, mainly due to working capital requirements and Capex to support new contracts.
  • Net Debt: US$76.5 million, including IFRS 16 but US$69.5 million at constant FX, compared to US$78.7 million as of June 30, 2024.

Tim Bremner, CEO of Foraco, reflected on the quarter, stating, “In Q2 2025, we continued to focus on aligning our portfolio with high-potential regions and segments, driven by our investment in proprietary rigs and high-value contracts. While some regions face program discontinuations and delays in starting new contracts, we are seeing positive developments, with Asia Pacific achieving another robust quarter, the award of a significant long-term contract in Chile, and early wins, including four new contracts in the US to be executed in the second half of the year. We relocated more than 10 rigs across distant continents – including Europe, Chile, Canada, and the US – and continued to implement our tailored Capex program to support the execution of newly secured contracts.”

Fabien Sevestre, CFO of Foraco, shared insights into the financial performance, stating, “During this quarter, despite lower activity in America, we managed to maintain solid profitability supported by cost discipline and the resilient performance of our operations. Excluding the one-off costs of US$1.0 million related to a reorganization in South America, our EBITDA margin would have reached 21.7% compared to 21% in Q2 2024. The exit from Kazakhstan generated an accounting net gain of US$0.3 million. Working capital requirements, although still negative, improved significantly during the quarter, partially offsetting the impact of capital expenditures needed for new deployments. Net debt stands at US$76.5 million, as we remain committed to a disciplined capital allocation strategy, focusing on proprietary rigs and fleet modernization to sustain future growth.”

Income Statement

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