Foraco International SA

Good morning, ladies and gentlemen, and welcome to the FHIRACO fourth quarter 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Monday, March 2nd, 2026. I would now like to turn the conference over to Tim Bremner. Please go ahead.

Thanks, Joanna, and good morning, everyone. Thank you for joining us today to discuss Farraqua's results for the fourth quarter and full year ending December 31st, 2025. Joining me on the call is Fabian Silvestre, our Chief Financial Officer, who will walk you through the financial results and key drivers. Before we begin, please note that our comments today may include forward-looking statements, which are subject to risk and uncertainties. Now, turning to the highlights. Q4 2025 revenue was $66 million, excluding adverse foreign exchange, compared to $61 million in Q4 2024, an 8% increase. EBITDA was essentially flat year-over-year at $10 million and was impacted by the commencement of new contracts in the quarter and the usual seasonal effects, which impaired the performance by about $3 million. On a full-year basis, revenue was $258 million compared to $250 93 million in 2024, with EBITDA margin of 18% in 2025, compared to 21% in 2024. While full year results reflect the market transition we experienced across parts of 2025, Q4 was most certainly the inflection point. We saw significant growth in virtually all regions as market demand surged, and that demand is now clearly visible in our commercial pipeline. As a result, Morocco is reporting a record order book of $404 million as of December 31, 2025, of which $228 million is expected to be completed in 2026. I'd also like to point out that Tier 1 customers represent 90% of our order book. Importantly, With our current utilization rate, we have the capacity and flexibility to meet this demand while maintaining operational discipline. A key theme for 2025 was positioning the business for where the market was going and not where it has been. Over the year, Baraco significantly increased its exposure to gold while maintaining a disciplined approach during the market transition. Today, Road represents over 35% of our order book for 2026, and we have the capacity to put more rigs to work under increasingly favorable commercial terms. With that, I'll now turn the call over to Fabian for the financial review. Fabian?

Thank you, Tim, and good morning, everyone. First of all, and as a reminder, Foraco reports in full AFRS and in US dollars. Revenue for Q4-25 amounted to 63 million compared to 61 million for the same quarter last year. By reporting segment, mining represented 82% of revenue and water represented 18%. By geography, North America revenue amounted to 20 million in Q4-25, a 13% decrease, driven by the completion and deferral of certain Canadian contracts. Asia Pacific revenue decreased to 18 million due to the early seasonal break in drilling operation compared to last year. South America revenue increased 95%, reflecting strong momentum. Operations in all three countries are still not reaching targeted performance level, but continue to improve and are supported by growing customer demand. In EMEA, Revenue grew 15% to 6 million, supported by the continued ramp-up of contracts initiated during previous periods. In Q4-25, the geographical activity split was North America, 32%, Asia-Pacific, 28%, South America, 31%, EMEA, 9%. During the quarter, gross margin, including depreciation, was 10 million, or 16% of revenue, compared to 11 million, or 18% of revenue in Q4-24. This decrease was mainly driven by an increase in depreciation costs linked to the significant capex to execute long-term contracts awarded during the period. SG&A was stable at 5 million, and as a percentage of revenue, SG&A was 8%. As a result, EBIT was 5 million versus 6 million in Q4-24. EBITDA amounted to 10 million, the same as Q4-24. On a full-year basis, revenue amounted to 258 million compared to 293 million last year. The full-year gross profit was 18% compared to 21% last year. The full year EBIT was 27 million or 10% of revenue compared to 43 million or 15% of revenue in full year 24. As a percentage of revenue, EBITDA from the full year was 18% compared to 21% in 2024. As of December 31, 2025, working capital requirements were 0.6 million compared to 10 million in 2024. CAPEX amounted to $23 million in cash compared to $18 to $19 million last year. This CAPEX was mainly related to the construction of new proprietary rigs, the acquisition of new rigs, and ancillary equipment and loads to support new contracts. At December 31, 2025, our net debts, including lease obligation, was $71 million or $65 million at cost at December 31, 2024. I will now hand the call back to Tim for his closing remarks. Tim?