Foraco International (TSE:FAR) Releases Earnings Results

Foraco International (TSE:FAR) released its earnings results on Thursday. The company reported C$0.01 earnings per share (EPS) for the quarter, FiscalAI reports. Foraco International had a return on equity of 16.77% and a net margin of 6.02%.The business had revenue of C$92.11 million for the quarter.

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 Up 5.4%

FAR opened at C$3.15 on Friday. The business’s fifty day moving average is C$2.90 and its two-hundred day moving average is C$2.60. The company has a debt-to-equity ratio of 99.57, a quick ratio of 0.88 and a current ratio of 1.36. The company has a market cap of C$308.82 million, a price-to-earnings ratio of 20.19 and a beta of 1.10. Foraco International has a one year low of C$1.57 and a one year high of C$3.54.

Insider Buying and Selling

In other news, Director William Warren Holmes bought 17,000 shares of the firm’s stock in a transaction on Monday, March 16th. The shares were bought at an average cost of C$2.84 per share, for a total transaction of C$48,280.00. Following the completion of 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.

Wall Street Analysts Forecast Growth

Separately, Desjardins lifted their price target on Foraco International from C$3.00 to C$4.50 and gave the company a “buy” rating in a research note on Tuesday, February 24th. One investment analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, Foraco International has an average rating of “Buy” and an average target price of C$4.50.

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.