Geodrill Q2 Earnings Call Highlights

2 weeks ago 7

MarketBeat

Mon, August 10, 2026 astatine 12:04 PM CDT 5 min read

Key Points

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Record gross masked a crisp profitability decline: Q2 gross roseate 10% twelvemonth implicit twelvemonth to $55.1 million, but gross borderline fell to 16% from 24%, EBITDA borderline dropped to 14% from 28%, and Geodrill reported a astir $200,000 nett loss.
Chile remains a large operational drag: The institution is reviewing contracts individually due to the fact that little drilling productivity has wounded returns, with perchance unprofitable contracts being coiled down implicit the adjacent respective quarters.
Demand remains strong, but execution is the priority: Healthy exploration budgets, golden prices and multi-year drilling programs enactment the outlook, portion absorption aims to amended ratio and reset declaration pricing to bespeak higher operating costs.

Geodrill (TSE:GEO) reported grounds quarterly gross for the 2nd 4th of 2026, but profitability declined sharply arsenic labour costs, ostentation and operating challenges successful Chile weighed connected margins.

Revenue for the 4th ended June 30 roseate 10% from a twelvemonth earlier to $55.1 million, the highest quarterly fig successful the company's history. President and CEO Dave Harper said the show reflected an improved declaration book, higher instrumentality utilization and robust request for drilling services crossed the company's markets.

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"The 2nd 4th was a communicative of 2 outcomes," Harper said. "We delivered grounds gross and continued to spot beardown request crossed our markets. However, this did not construe into the levels of profitability that we expect from the business."

Margins Fall Despite Record Revenue

Gross nett totaled $8.8 million, producing a gross borderline of 16%, down from 24% successful the 2nd 4th of 2025. EBITDA was $7.9 million, oregon a 14% margin, compared with a 28% borderline successful the prior-year period.

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The institution posted a nett nonaccomplishment of astir $200,000, oregon efficaciously nil per share, compared with nett income of $5.4 cardinal successful the aforesaid 4th past year.

Management attributed the borderline compression to higher labour and operating expenses, ostentation successful consumables and different inputs, appreciation of the Ghanaian cedi, and operating losses successful Chile. Harper said Chile delivered the weakest gross maturation among the company's regions during the 4th and that startup challenges determination contributed to its antagonistic performance.

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