Dawson Geophysical Company (DWSN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $16.1M, down from $31.6M in Q1 2024, mainly due to lower U.S. crew utilization, while Canadian operations saw a 48% increase in fee revenue and strong profitability.

• Net income for Q1 2025 was $1.0M ($0.03 per share), compared to $5.8M–$6.0M ($0.19 per share) in Q1 2024, reflecting the revenue decline and lower U.S. activity.

• Adjusted EBITDA for Q1 2025 was $2.3M, down from $7.6M in Q1 2024.

• Backlog improved, with a large channel crew expected to be highly utilized through year-end.

• Canadian operations saw significant efficiency and margin gains from single node channel technology.

Financial highlights

• Q1 2025 operating revenues: $16.1M (Q1 2024: $31.6M); net income: $1.0M (Q1 2024: $5.8M–$6.0M).

• Adjusted EBITDA for Q1 2025: $2.3M, down from $7.6M in Q1 2024.

• Cash and cash equivalents at March 31, 2025: $2.7M; working capital: $6.7M, both improved sequentially.

• Operating cash flow for Q1 2025: $1.8M; capital expenditures: $0.9M.

• Special cash dividend of $0.32/share ($9.9M total) paid in May 2024.

Outlook and guidance

• U.S. revenue expected to increase in Q2 2025 due to strong backlog and high crew utilization.

• Continued investment in single node channel equipment anticipated to improve efficiency and margins.

• Board approved a $6M capital budget for 2025, focused on equipment aligned with seismic activity.

• Management believes cash on hand and working capital are sufficient to fund operating and investing needs.