Foraco posts modest Q4 gains and record backlog as 2025 transition year sets stage for 2026 growth

An update from Foraco International ( (TSE:FAR) ) is now available.

Foraco International reported modest fourth-quarter 2025 growth with revenue rising 4% year-on-year to US$63.1 million and net profit up 10% to US$2.3 million, driven largely by strong activity in South America despite seasonal weakness in North America and Asia-Pacific. Profitability metrics such as gross margin and EBITDA margin eased slightly due to the ramp-up of new contracts, but rig utilization improved to 40%, signalling better asset deployment and underlying operational momentum.

For the full year 2025, revenue declined to US$258.2 million from US$293.5 million as the company underwent a transition focused on strengthening commercial activity, relocating assets and building out management and regional platforms, particularly in the Americas. The standout development was a record order backlog of US$404.4 million, up 83% year-on-year, with US$228.5 million slated for execution in 2026, underpinning strong revenue visibility, improved cash conversion prospects and a solid balance sheet supported by strict cost control and stable working capital.

Management highlighted that most major mobilizations tied to new long-term contracts are now complete, positioning Foraco for a progressive recovery in performance from 2026 onward. The company also emphasized disciplined capital expenditure and secured financing lines to support growth, suggesting enhanced resilience and a stronger competitive position in the global drilling services market going into the next fiscal year.

The most recent analyst rating on (TSE:FAR) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Foraco International stock, see the TSE:FAR Stock Forecast page.

Spark’s Take on TSE:FAR Stock

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

Foraco International’s overall stock score reflects a balanced view of its financial performance, technical analysis, and valuation. The company’s strong cash flow and return on equity are positive, but high leverage and declining margins pose risks. Technical indicators are favorable, suggesting bullish momentum. The valuation is reasonable, though the lack of a dividend yield may deter some investors. The earnings call provided mixed insights, with notable contract wins but also challenges in revenue and margin declines.

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

More about Foraco International

Foraco International SA, listed on the TSX, is a global provider of drilling services to the mining and water sectors. The company operates across regions including South America, North America, EMEA and Asia-Pacific, with a client base that has recently expanded particularly in gold and water-related projects, and is reinforcing its presence in Canada and developing its footprint in the United States.

Average Trading Volume: 195,569

Technical Sentiment Signal: Buy

Current Market Cap: C$335M

For an in-depth examination of FAR stock, go to TipRanks’ Overview page.