Geodrill (TSE:GEO)
TSX:GEO
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Geodrill
(TSX:GEO)
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Rating:57Neutral
Price Target:
C$3.00
▼(-23.47% Downside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by strong balance-sheet resilience, but is held back by the 2025 earnings setback and volatile/free cash flow weakness. Technicals are also soft with the stock below major moving averages, while valuation is constrained by negative earnings. Offsetting these factors, the latest earnings call points to improving 2026 conditions (utilization, pricing, and margin recovery), though currency and tax-related risks remain.
Positive Factors
Balance sheet strength and financial flexibility
Geodrill’s low leverage and substantial equity provide durable financial flexibility. Net cash (ex‑ROU) and shareholders’ equity support capital allocation, allow funding planned 5–10 rig additions from operating cash, and reduce refinancing risk, sustaining strategic growth options over 2–6 months.
Negative Factors
Margin compression and profitability setback
A ~6pp gross margin decline and a swing to a net loss indicate structural cost and mix pressures. Persistent inflation, ramp‑up costs and pricing mix can keep margins under pressure, making sustainable profitability dependent on pricing recovery and operational efficiency over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength and financial flexibility
Geodrill’s low leverage and substantial equity provide durable financial flexibility. Net cash (ex‑ROU) and shareholders’ equity support capital allocation, allow funding planned 5–10 rig additions from operating cash, and reduce refinancing risk, sustaining strategic growth options over 2–6 months.
Read all positive factors
Geodrill (GEO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$142.30M
Dividend YieldN/A
Average Volume (3M)55.48K
Price to Earnings (P/E)―
Beta (1Y)1.30
Revenue Growth25.76%
EPS Growth15.68%
CountryCA
Employees52
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.33
Shares Outstanding47,119,870
10 Day Avg. Volume79,693
30 Day Avg. Volume55,477
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)1.21
Price to Sales (P/S)0.76
P/FCF Ratio-77.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.26
Revenue Forecast (FY)C$182.90M
Geodrill Business Overview & Revenue Model
Company Description
Geodrill Limited, together with its subsidiaries, provides mineral exploration drilling services to mining companies in West Africa, Zambia, and Peru. It offers reverse circulation, core, air-core, deep directional, reverse circulation grade contr...
How the Company Makes Money
Geodrill makes money primarily by providing contract drilling services to mineral exploration and mining companies. Revenue is earned under drilling contracts where clients pay for drilling completed, typically based on measurable operating units ...
Geodrill Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presents a mixed but generally constructive outlook: strong top-line performance (record revenue +29%), fleet growth to 100 rigs and full utilization in Chile underscore robust demand and strategic execution. However, profitability was materially impacted by margin compression (gross margin down from 24% to 18%), a net loss of $1.9M, significant currency headwinds (Ghana cedi ~+43%) and an $8.4M tax-related settlement in Cote d’Ivoire. Management emphasizes disciplined capital allocation, a healthy balance sheet, secured multiyear contracts, and expectations that margins will recover as South America ramps and pricing improves.Positive Updates
Record Annual Revenue Growth
Revenue reached a record $185.0M in fiscal 2025, up from $143.0M in 2024, representing a 29% year-over-year increase.
Negative Updates
Gross Profit and Margin Compression
Gross profit declined to $33.4M (18% of revenue) in 2025 from $34.7M (24% of revenue) in 2024 — a margin compression of ~6 percentage points driven by cost pressures and mix shifts.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue Growth
Revenue reached a record $185.0M in fiscal 2025, up from $143.0M in 2024, representing a 29% year-over-year increase.
Read all positive updates
Company Guidance
Management's guidance for 2026 is constructive: activity levels are healthy, utilization is high and customers are “leaning in,” with pricing expected to improve and margins to recover as South America “settles into full stride”; operationally they finished FY2025 with record revenue of $185.0M (up 29% YoY from $143.0M), gross profit $33.4M (18% margin) and EBITDA $35.1M (19% margin) despite a net loss of $1.9M, and they reiterated a strong balance sheet (net cash $7.8M excluding ROU liabilities; shareholders’ equity $117M) to fund growth — management expects fleet growth of roughly 5–10 rigs in 2026 (ended FY2025 at 100 rigs; South America/Chile now 18 rigs, up from 8 a year ago and currently ~100% utilized), will fund CapEx from operating cash flow (2025 operating cash flow ~$24M vs ~$18M invested in rigs), will service an $8.4M Cote d’Ivoire tax settlement via ~ $900k/month installments (to be revisited after 3–4 payments), and noted other 2025 items such as a ~43% Ghana cedi appreciation, a $450k lifetime credit recovery, a $1.2M FX gain, and a $3.3M gain on equity investments; they also signaled continued contract wins, rigs mobilizing, tenders advancing and ongoing share repurchases (91,700 shares bought in-year and ~58,800 subsequently).Geodrill Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
82
Very Positive
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 188.15M | 143.05M | 130.54M | 138.63M | 115.21M |
| Gross Profit | 33.19M | 34.68M | 30.59M | 40.58M | 30.10M |
| EBITDA | 31.22M | 31.16M | 20.56M | 38.35M | 29.45M |
| Net Income | -1.55M | 9.26M | 3.90M | 18.92M | 14.14M |
Balance Sheet | |||||
| Total Assets | 176.28M | 161.49M | 148.61M | 141.23M | 116.56M |
| Cash, Cash Equivalents and Short-Term Investments | 18.93M | 19.52M | 15.81M | 15.11M | 13.53M |
| Total Debt | 10.26M | 3.45M | 978.29K | 5.82M | 7.61M |
| Total Liabilities | 59.08M | 41.97M | 38.65M | 34.17M | 29.03M |
| Stockholders Equity | 117.90M | 119.88M | 110.12M | 107.07M | 87.55M |
Cash Flow | |||||
| Free Cash Flow | -1.82M | 372.49K | -4.28M | 8.40M | 150.12K |
| Operating Cash Flow | 16.40M | 21.05M | 11.00M | 25.29M | 14.78M |
| Investing Cash Flow | -18.22M | -20.68M | -15.28M | -16.88M | -14.63M |
| Financing Cash Flow | -2.83M | -2.35M | 5.39M | -2.85M | 2.83M |
Geodrill Technical Analysis
Negative
3.92
Price Trends
3.42
Negative
3.65
Negative
3.58
Negative
Market Momentum
-0.14
Negative
39.90
Neutral
29.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GEO, the sentiment is Negative. The current price of 3.92 is above the 20-day moving average (MA) of 3.14, above the 50-day MA of 3.42, and above the 200-day MA of 3.58, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GEO.
Geodrill Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$68.68M | 10.45 | 6.47% | ― | 1.04% | 107.55% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | C$273.90M | 10.86 | 16.77% | ― | -17.73% | -36.29% | |
61 Neutral | C$139.35M | 4.70 | 15.34% | ― | -73.34% | 16.21% | |
57 Neutral | C$142.30M | -91.55 | -1.34% | ― | 25.76% | 15.68% | |
52 Neutral | C$65.87M | -7.47 | -35.75% | ― | ― | 31.55% | |
50 Neutral | C$208.84M | -59.63 | -5.80% | ― | 8.28% | 87.46% |
* Basic Materials Sector Average
TSE:GEO
Geodrill
3.02
0.45
17.51%
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Geodrill Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Geodrill Delivers Record 2025 Revenue but Books Loss Amid Tax Hit and Margin Pressure
Negative
Mar 2, 2026
Geodrill reported record 2025 revenue of $184.9 million, up 29% year over year, driven by robust drilling activity in West Africa and expanding operations in other regions, but swung to a net loss of $1.9 million after an $8.4 million additional t...
Business Operations and StrategyFinancial Disclosures
Geodrill Sets March 2 Date to Release 2025 Year-End Results and Host Investor Call
Positive
Feb 2, 2026
Geodrill Limited has announced it will publish its financial results for the fourth quarter and full year ended December 31, 2025, before markets open on March 2, 2026, followed by a management-hosted conference call and webcast to discuss the per...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Geodrill Strikes Tax Settlement With Côte d’Ivoire to Safeguard Operations
Negative
Jan 15, 2026
Geodrill Limited has entered into a memorandum of understanding with Côte d’Ivoire’s tax authorities to resolve a previously disclosed tax recovery dispute that had prompted measures aimed at restricting the company’s operat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.