Foraco revenue rises 21.4% to $86.214 million in third quarter
Key Facts
Foraco International reported unaudited revenue of $86.214 million in the third quarter ended September 30, 2026, up 21.4% from $71.018 million a year earlier. Revenue exceeded Investing.com’s forecast of $85.5 million, according to a report published by the site on October 28. But sales growth did not translate into higher profit: net profit was $4.434 million, compared with $5.467 million in the third quarter of 2025. The results combined business expansion with a quarterly decline in profitability as the company’s margins narrowed. Foraco’s ability to improve returns as its business grows will be a key priority going forward.
Earnings before interest, taxes, depreciation and amortization rose to $15.4 million, up 8.1% from $14.2 million a year earlier, but the margin fell to 17.8% from 20.0%. Gross profit also increased to $14.375 million from $13.997 million, while its margin declined to 16.7% from 19.7%. The company said profitability was affected by inflation not yet fully reflected in prices, below-target margins on some contracts and temporary equipment maintenance costs. It added that corrective measures were underway for the affected contracts. The figures show that higher revenue and production did not prevent margins from declining compared with the year-earlier period.
Revenue growth came mainly from mining, where sales rose 25% to $75.963 million, while water revenue increased just 1% to $10.251 million. Geographically, North American revenue climbed 39% to $35.598 million, and revenue in Europe, the Middle East and Africa rose 51% to $8.088 million. By contrast, Asia-Pacific revenue fell 10% to $21.359 million. Management attributed North American growth to higher drilling volumes in Canada and expanded activity in the United States. In Asia-Pacific, customer delays and the timing of equipment mobilization weighed on revenue as the company prepared to execute signed contracts.
In the first nine months of 2026, revenue reached $237.0 million, up 21.5% year over year, but net profit fell to $8.5 million from $12.5 million in the year-earlier period. In the third quarter alone, depreciation and amortization expenses rose to $6.5 million from $4.9 million, while financing costs increased to $2.4 million from $1.5 million. The company linked the decline in net profit to increases in both items, saying they were related to its investment program and rising financing requirements. Net debt, including lease liabilities under International Financial Reporting Standard 16, was about $78.1 million on September 30. Debt fell $7.6 million during the quarter from $85.7 million on June 30, but remained above the $71.1 million recorded on December 31, 2025.
In Investing.com’s forecasts, adjusted earnings per share came in at $0.0449, below the site’s estimate of $0.0567; earnings therefore missed expectations even as revenue beat its forecast. Chief Executive Tim Bremner said gold and copper accounted for more than 50% of the company’s activity, and that it had a strong contracted backlog and a large group of contracts under discussion across regions. He added that market fundamentals “remain supportive, particularly in gold and copper.” The company said its major investment program was largely complete and that its priority was to turn higher activity levels into better margins and stronger cash generation. In premarket trading on October 28, the stock fell 2.85% to $2.39, compared with a previous close of $2.46.