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Foraco International Reports Decline in Q1 2025 Revenue Amid Strategic Adjustments

Story Highlights
  • Foraco International’s Q1 2025 revenue fell to US$55.0 million due to client delays and strategic exits.
  • Asia Pacific and Water division showed strong growth, despite overall revenue decline.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Foraco International Reports Decline in Q1 2025 Revenue Amid Strategic Adjustments

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Foraco International ( (TSE:FAR) ) has shared an update.

Foraco International reported a decline in revenue and profitability for Q1 2025, with revenue totaling US$55.0 million compared to US$77.1 million in Q1 2024. The decline was attributed to client-driven delays in contract awards, strategic exits from unstable regions, and unfavorable foreign exchange impacts. Despite these challenges, the Asia Pacific region and the Water division showed strong performance, with significant revenue increases. The company maintained financial discipline by reducing SG&A expenses and limiting capital expenditures, while continuing to adapt its cost structure to market conditions.

Spark’s Take on TSE:FAR Stock

According to Spark, TipRanks’ AI Analyst, TSE:FAR is a Neutral.

Foraco International’s stock has a moderate overall score. The company’s strong profitability metrics are offset by declining revenue and cash flow challenges. Technically, the stock shows bearish trends and weak momentum, tempering optimism. However, its attractive valuation with a low P/E ratio and solid dividend yield provides a cushion for potential investors.

To see Spark’s full report on TSE:FAR stock, click here.

More about Foraco International

Foraco International SA is a leading global provider of drilling services, specializing in the mining and water sectors. The company focuses on delivering high-quality drilling solutions and has a strong market presence in stable jurisdictions, servicing top-tier clients.

YTD Price Performance: -22.50%

Average Trading Volume: 79,627

Technical Sentiment Signal: Hold

Current Market Cap: C$183.6M

For a thorough assessment of FAR stock, go to TipRanks’ Stock Analysis page.

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