GEODRILL ANNOUNCES THIRD QUARTER 2025 FINANCIAL RESULTS

Executive Summary

• Geodrill reported Q3‑2025 revenue of US$39.0 M, a 14% increase year‑over‑year, but posted a net loss of $(1.5) M versus a profit in the prior year.
• EBITDA fell to US$4.3 M (11% of revenue) from US$7.6 M YoY, reflecting higher operating costs despite strong demand.
• The company expanded its South‑American rig fleet to 19 rigs and highlighted continued growth opportunities in West Africa, Egypt, and a robust bidding pipeline.

Key Details

• Financial Performance (Q3‑2025 vs Q3‑2024)
• Revenue: $38.967 M vs $34.091 M (+14%)
• Gross profit: $2.360 M vs $8.351 M (margin down to 6% from 24%)
• EBITDA: $4.255 M vs $7.630 M (margin 11% vs 22%)

• Net loss: $(1.507) M vs profit of $2.611 M; EPS –$0.03 vs +$0.06

• Year‑to‑Date (9 months ended Sep 30, 2025)

• Revenue: $138.069 M vs $109.935 M YoY
• Gross profit margin: 20% vs 26% prior year

• EBITDA: $31.765 M (23% margin) vs $24.956 M same period last year

• Operating Highlights

• South‑American rig count increased to 19 rigs, supporting new multi‑phase contracts launched in Q3‑2025.
• West Africa demand remains strong post‑wet season.
• Surface drilling programs in Egypt set to restart in Q4‑2025.
• Multi‑year, multi‑rig contracts continue to provide a revenue base for the next 3–5 years.

• Achieved 7.8 million man‑hours LTI‑free (lost‑time injury free).

• Non‑Operating Items Impacting Results

• Lifetime credit recovery: $0.1 M
• Foreign exchange gain: $0.8 M

• Gain on equity investments: $1.8 M

• Liquidity

• Net cash at quarter‑end: $11.1 M (excluding lease liabilities).

• Outlook & Guidance

• Continued strong demand for drilling services despite tariff pressures.
• High gold and copper prices expected to sustain activity levels.
• Active bidding pipeline indicates ongoing growth opportunities.

Notable Quotes

“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.” – Dave Harper, President & CEO

“Over the first nine months, we have delivered solid performance, maintained financial discipline, and continued to position Geodrill for long‑term value creation.” – Greg Borsk, CFO

The release includes a conference call scheduled for 10:00 a.m. ET on November 13, 2025 (Dial‑in details provided). No further administrative items are present.