Geodrill Q3 Earnings Call Highlights Geodrill logo MarketBeat Mon, November 9, 2026 at 4:12 PM EST 5 min read GEO.TO +9.09% GC=F +1.81% Key Points Interested in Geodrill Limited? Here are five stocks we like better.
Geodrill returned to profitability in Q3 2026, reporting record quarterly revenue of $55.1 million, up 41% year over year, and net income of $900,000 versus a $1.5 million loss a year earlier. Gross margin improved to 18% from 6%, while EBITDA doubled to $8.7 million.
The company secured about $25 million in new contracts and extensions, including a 50,000-meter program in Chile, providing visibility into Q4 2027 and beyond. New Chilean work is showing early signs of improvement after the company exited unprofitable jobs, though management said it is too soon to commit further capital there.
Strong drilling demand and high rig utilization helped sustain activity through West Africa's rainy season, with management citing a global rig shortage and stronger contract pricing. Geodrill's focus is converting activity into lasting improvements in margins, earnings and cash flow.
Geodrill (TSE:GEO) reported its second consecutive quarter of record revenue and returned to profitability in the third quarter of 2026, as strong drilling demand helped sustain activity through West Africa's rainy season.
Revenue rose 41% to $55.1 million from $39 million a year earlier, while net income was $900,000, or $0.02 per share. That compared with a net loss of $1.5 million, or $0.03 per share, in the third quarter of 2025, Chief Financial Officer Greg Borsk said on the company's earnings call.
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President and CEO Dave Harper attributed the performance to customer demand, high fleet utilization and operational discipline. He said gold prices were supporting exploration spending and that pricing on renewed contracts and newly awarded work was beginning to better reflect operating costs and the value of experienced contractors.
Gross profit increased to $10.2 million from $2.4 million a year earlier, and gross margin rose to 18% from 6%. Borsk said it was the fourth consecutive quarter of gross profit improvement, reflecting stronger operations, improved contract economics and efficiency efforts.
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EBITDA doubled to $8.7 million from $4.3 million, with the EBITDA margin expanding to 16% from 11%. For the first nine months of 2026, revenue reached a record $159 million, up 15% from the comparable period in 2025.
In response to a question from Beacon Securities analyst Donangelo Volpe about the sequential improvement in gross margin, Borsk pointed to revenue, improved margins and operational execution. He said Geodrill had never previously recorded more than $40 million in third-quarter revenue, a period when activity and margins typically decline.
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West Africa remained busy despite wet weather, and the company also saw activity in Egypt and Chile, Borsk said. Harper said customers were eager to continue drilling and described a global shortage of rigs as benefiting Geodrill.
Harper said Geodrill secured approximately $25 million in new contracts and extensions during the quarter, including a 50,000-meter drilling program with a new client in Chile and work in West Africa. He said the awards provided visibility into the fourth quarter, 2027 and beyond.
The company also reported early signs of improvement in South America, where operations had faced challenges. Borsk declined to quantify Chile's gross loss, saying Geodrill does not disclose figures specific to the country. He said Chile had weighed significantly on group profitability and gross margins in the first half of the year.
Geodrill has exited some significantly unprofitable jobs in Chile and replaced them with new work that has started well, Borsk said. He added that the company hopes Chile will move from being a drag on the group to making a positive contribution.
Asked whether Geodrill would deploy additional capital or expand its fleet in Chile, Harper said the company wanted to see a few positive quarters before making a decision. He characterized the early signs as encouraging but said it was too soon to commit.
Geodrill ended the quarter with approximately $119 million in shareholders' equity and secured an $8 million term loan that remained undrawn and available for future use, Borsk said. The company continued to invest in fleet upgrades and infrastructure.
Harper said he purchased 33,900 Geodrill shares on the open market during the quarter, in addition to exercising 420,000 shares in the first quarter. He put his total spending for the calendar year at CAD 905,000 and said the purchases reflected his belief that the company's future earnings potential was not fully reflected in its valuation.
Looking ahead, Harper said Geodrill's focus is on converting strong activity into sustainable improvements in margins, earnings and cash flow, while continuing to pursue operational efficiencies.
Geodrill has been successful in establishing a leading market position in Ghana and Cote d'Ivoire. The Company also operates in other African jurisdictions including Egypt and Senegal and is focusing its South America operations on Chile. With the large fleet of multi-purpose rigs, Geodrill provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. The Company's client mix is made up of senior mining, intermediate and junior exploration companies.
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