-- Foraco International SA (FAR.TO) reported a decrease in net profit in the first quarter even as revenue rose and beat analysts' expectations.
For the three months ended March 31, 2026, the company reported net profit of US$0.9 million or US$0.65 earnings per diluted share compared with $1.02 million or $1.54 EPS, a year earlier.
Revenue increased to US$66.3 million compared with $55.0 million, a year-ago, beating a consensus estimate compiled by FactSet of US$64.6 million. It noted growth across "nearly all regions, particularly in Canada, the United States and South America."
"As expected, the combination of the ramp-up phase of new contracts and the restart of existing projects temporarily impacted margins, particularly in South America," said Foraco Chief Executive Tim Bremner. "Macroeconomic tailwinds remain strong with near record commodity prices for gold and copper, free cash generation for producers and capital formation for developers and explorers."
The rig utilization rate in Q1 was 40% compared with 30% in the prior-year period, the company said.
"We believe that all key industry indicators such as record backlog, improving utilization rates, and additional rigs scheduled for mobilization in the coming months, are present to reach improved operating performance," Bremner added.
Shares of the company closed down 0.7% to C$2.99 on Wednesday on the Toronto Stock Exchange.