Foraco International SA

Good morning, ladies and gentlemen, and welcome to the FORACO third quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we'll conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, October 30th, 2025. I will now like to turn the conference over to Tim Rebner. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Farako International's Q3 2025 earnings call. I am Tim Bremner, CEO of Farako, and joining me today is Fabian Sevest, our CFO. Earlier today, we released our third quarter 2025 financial results via CNW Newswire prior to the opening of the TSX. If you do not yet receive a copy, you can find it at our website at www.farako.com. Following our comments, we will open the call for questions, which will be moderated by our operator. This quarter continued to show operational progress and disciplined cost management across our business. Morocco reported Q3 2025 revenue of $71 million or $72 million when excluding foreign exchange effects, compared to $79 million in the same period last year. EBITDA was $14 million, representing 20% of revenue, compared to 21% in Q3 2024. Earlier this week, we announced the award and renewal of three significant long term contracts in Chile and Canada, with a combined expected value of 150 million. These wins demonstrate for Aqua's ability to consistently deliver a diversified services offering and the strong value our customers recognize beyond simply price competitiveness. I'll now turn the call over to Fabian for a detailed review of the quarter's financial performance.

Fabian? Thank you, Tim, and good morning, everyone. First of all, and as a reminder, Foraco reports in full AFRS and in U.S. dollars. Revenue for Q3 2025 amounted to $71 million compared to $78 million for the same period last year. By reporting segment, Mining represented 86% and water represented 14%. In North America, revenue amounted to $26 million in Q3 2025, 29% decrease driven by the completion and deferral of certain Canadian contracts, while new programs in the United States are ramping up and showing encouraging performance. Revenue in Asia-Pacific remained stable at constant exchange rates at 24 million, reflecting a high and sustained level of activity after several quarters of growth driven by consistent customer demand. Revenue in South America increased 25%, reflecting momentum as operations in all three countries are progressively reaching their targeted performance levels, supported by growing customer demand. In EMEA, revenue grew 32% to 5.4 million, supported by the continued ramp-up of contracts initiated during previous periods. In Q3-25, the geographical activity split was North America, 36%, Asia-Pacific, 33%, South America, 23%, EMEA, 8%. During the quarter, gross margin, including depreciation, was 14 million, 20% of revenue, compared to 17 million, 22% of revenue in Q3-24. This decrease was mainly driven by the phasing and ramp-up of new contracts, which are typically associated with lower initial margins. SG&A decreased by 11% to $4.8 million compared to $5.4 million for the same period last year. As a percentage of revenue, SG&A was stable at 7%. As a result, EBIT was $9 million versus $12 million, including $3.24. EBITDA amounted to $14 million compared to $16 million, including $3.24. On a nine-month basis, Revenue amounted to 195 million compared to 233 million last year. The year-to-date 25 gross profit was 18% versus 22% last year. The year-to-date 25 EBIT was 22 million or 11% of revenue compared to 16% or 36 million in the same period last year. As a percentage of revenue, the EBITDA for the 9-month period was 18% compared to 21% for the same period last year. As at September 30, 2025, the working capital requirements was 7 million compared to 23 million for the same period last year. CAPEX amounted to 15 million in cash compared to 14 million last year. This capex is mainly related to the construction of new proprietary rigs, new rigs, and the acquisition of ancillary equipment and roads to support new contracts. At September 30, 2025, our net debt, including lease obligation, was $72 million, or $66 million at constant exchange rates, versus $61 million at December 31, 2024. I will now hand the call back to Tim for his closing remarks. Tim? Thank you, Fabian.