Foraco International (FAR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose to $66 million, up 8% year-over-year, with South America as the main growth driver and EBITDA flat at $10 million due to ramp-up costs and seasonal effects.

• Full year 2025 revenue was $258 million, down from $293 million in 2024, reflecting a market transition and asset redeployment, but Q4 marked an inflection point with strong demand and a record order book.

• Order book reached a record $404 million at year-end, with $228 million executable in 2026; 90% of the backlog is with tier one customers.

• Increased exposure to gold, now over 35% of the 2026 order book, and strengthened commercial activity in key regions.

• Management emphasized strict financial discipline, positive free cash flow, and a solid balance sheet with full compliance to financial covenants.

Financial highlights

• Q4 2025 revenue was $63 million, up from $61 million in Q4 2024; mining contributed 82% and water 18%.

• Q4 2025 EBITDA was $10.4 million (16.5% of revenue), stable year-over-year; net profit was $2.3 million, up 10% from Q4 2024.

• Full year EBITDA margin was 18%, down from 21% in 2024; EBIT was $27 million (10% of revenue) versus $43 million (15%) in 2024.

• Working capital requirement dropped to $0.6 million from $10 million year-over-year.

• Net debt at year-end was $71 million, up from $61 million in 2024.

Outlook and guidance

• Record order backlog of $404 million at year-end 2025, with $228 million to be executed in 2026.

• Strong demand expected to continue, driven by record gold prices and structural copper demand.

• Margins anticipated to improve as new contracts are tendered at higher rates to reflect increased costs.

• Ramp-up costs expected to persist through Q2 2026, then normalize as utilization stabilizes.

• Management expects enhanced revenue visibility and improved cash conversion for FY 2026, supported by completed major mobilizations and a solid operational base.