Dawson Geophysical Company (DWSN) Q4 2024 earnings summary

Executive summary

• Achieved first positive annual adjusted EBITDA since 2020, reaching $2 million for 2024, compared to a $2 million loss in 2023.

• Net loss narrowed to $4.1 million ($0.13/share) for 2024 from $12.1 million ($0.45/share) in 2023.

• Gross margin improved to 21% in 2024 from 16% in 2023, driven by cost structure adjustments and reduced G&A expenses.

• Revenue declined 23% year-over-year to $74.2 million, with reimbursable revenue also decreasing.

• Strong project backlog for 2025, with six-month backlog exceeding 150% of prior year comparable period revenues.

Financial highlights

• Q4 2024 revenue was $15.6 million, down 36% year-over-year; gross margin rose to 23% from 22%.

• Q4 net loss was $0.8 million ($0.03/share); Q4 adjusted EBITDA was $0.9 million, down from $1.7 million in Q4 2023.

• Full-year 2024 adjusted EBITDA was $2 million, compared to a $2 million loss in 2023.

• Cash at year-end was $1.4 million, with positive working capital of $4.6 million.

Outlook and guidance

• Management expects continued improvement in operating results and cash flows in 2025.

• Board approved a $6 million capital budget for 2025, allowing for investment in new single node channels as needed.

• Backlog for the first half of 2025 is robust, supporting expectations for higher activity.