Foraco International (FAR) Q2 2026 earnings summary

Executive summary

• Revenue grew 22.4% year-over-year to $84.5 million in Q2 2026, driven by strong demand in Canada, the U.S., and South America.

• Rig utilization rose to 51% from 35% in the prior year, reflecting higher activity and operating leverage.

• EBITDA rose 7.1% to $15 million, but EBITDA margin declined to 17.8% from 20.3% due to inflation and ramp-up costs.

• Backlog remains at record levels, providing strong revenue visibility into the second half of 2026 and beyond.

• Growth is diversified across commodities, customers, and geographies, with 82% of revenue from tier 1 customers.

Financial highlights

• Q2 2026 revenue: $84.5 million (+22.4% YoY); H1 2026 revenue: $151 million (+22% YoY).

• Q2 2026 EBITDA: $15 million (17.8% margin); H1 2026 EBITDA: $22.4 million (14.9% margin).

• Q2 2026 net profit: $4 million, down from $6 million in Q2 2025; H1 2026 net profit: $4.1 million.

• Gross margin declined to 15.5% from 20.5% year-over-year due to higher labor, consumables, and mobilization costs.

• Net debt increased to $85.7 million, with $22 million in undrawn committed credit lines.

Outlook and guidance

• Margin recovery is underway, with pricing adjustments expected to offset cost inflation in the second half.

• Utilization rates expected to improve as ramp-up continues in North America and Asia-Pacific, with some seasonality in Latin America.

• Market outlook remains supportive, with strong demand across all customer profiles and commodities.

• Free cash flow and debt levels expected to improve as working capital reverses and CapEx moderates in the second half.

• Sustained customer demand and a growing backlog are expected to support future margin enhancement.