Foraco International (TSE:FAR) Announces Quarterly Earnings Results

Foraco International (TSE:FAR) posted its quarterly earnings results on Thursday. The company reported C$0.01 earnings per share for the quarter, FiscalAI reports. Foraco International had a net margin of 6.02% and a return on equity of 16.77%. 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 Price Performance

Shares of TSE:FAR traded up C$0.16 on Thursday, reaching C$3.15. 637,078 shares of the company were exchanged, compared to its average volume of 206,549. Foraco International has a 1-year low of C$1.57 and a 1-year high of C$3.54. 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 has a 50-day moving average of C$2.90 and a 200-day moving average of C$2.60. The firm has a market cap of C$308.82 million, a price-to-earnings ratio of 20.19 and a beta of 1.10.

Analyst Ratings Changes

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

Insider Activity at Foraco International

In other Foraco International news, Director William Warren Holmes acquired 17,000 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were acquired at an average cost of C$2.84 per share, for a total transaction of C$48,280.00. Following the transaction, the director directly owned 450,001 shares of the company’s stock, valued at approximately C$1,278,002.84. This represents a 3.93% increase in their ownership of the stock. 35.74% of the stock is owned by corporate insiders.

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.