Geodrill loses $1.5-million (U.S.) in Q3 2025

Executive Summary

• Geodrill Ltd. reported its financial results for the third quarter and nine-month period ended September 30, 2025, showing a decline in profitability compared to the same period in 2024.
• Revenue increased by 14% to $39.0 million, but gross profit dropped significantly from $8.4 million to $2.4 million, resulting in a net loss of $1.5 million (3 cents per share) compared to a net profit of $2.6 million (6 cents per share) in Q3 2024.
• The company highlighted strategic expansion in South America, increasing its rig count to 19, and noted strong demand in West Africa and restarting surface drill programs in Egypt.

Key Details

• Revenue: $39.0 million for Q3 2025, a 14% increase compared to Q3 2024.
• Gross Profit: $2.4 million for Q3 2025, down from $8.4 million in Q3 2024.
• EBITDA: $4.3 million (11% of revenue) for Q3 2025, down from $7.6 million (22% of revenue) in Q3 2024.
• Net Income/Loss: Net loss of $(1.5) million, or $(0.03) per share, for Q3 2025, compared to a net profit of $2.6 million, or $0.06 per share, in Q3 2024.
• Non-Recurring Items: EBITDA and net loss were favorably impacted by:
  • $100,000 expected lifetime credit recovery.
  • $800,000 foreign exchange gain.
  • $1.8 million gain on equity investments.
• Cash Position: Ended the quarter with net cash of $11.1 million (excluding lease liabilities).
• Operational Updates:
  • South American rig count increased to 19 rigs to support major multiphase contracts commencing in Q3 2025.
  • West Africa showed strong post-wet season demand.
  • Surface drill programs in Egypt are scheduled to restart in Q4 2025.
  • Multiyear, multirig contracts remain active, providing a foundation for revenue growth over the next three to five years.
  • Achieved 7.8 million man-hours LTI free.
• Outlook: Management cited strong demand for drilling services, resilience despite tariff pressures, and high gold and copper prices fueling activity. A highly active bidding pipeline signals sustained industry interest.

Notable Quotes

• Greg Borsk, Chief Financial Officer: "While the third quarter presented operational challenges, our year-to-date results reflect the underlying strength and resilience of our business model. Over the first nine months, we have delivered solid performance, maintained financial discipline and continued to position Geodrill for long-term value creation."
• Dave Harper, President and Chief Executive Officer: "This quarter underscores the complex realities of strategic expansion. We have successfully doubled our rig count in South America, a move that reflects our commitment to long-term growth despite short-term cost absorption. Our focus remains on building a resilient, geographically diversified platform capable of delivering consistent performance across seasonal and regional cycles."