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Geodrill
(TSX:GEO)
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Rating:50Neutral
Price Target:
C$2.50
▼(-11.03% Downside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by weakened financial quality (net losses, sharply lower margins, and negative free cash flow) despite strong revenue growth and a low-leverage balance sheet. Technicals add downside pressure as the price is below key moving averages with a negative MACD. The earnings call provides some support via strong demand and EBITDA-positive operations, but the margin deterioration and Chile execution risk keep the outlook mixed.
Positive Factors
Strong revenue growth and demand
Record revenue and multi-year customer commitments indicate durable demand for drilling services. Strong gold and copper exploration fundamentals could support fleet utilization and provide a foundation for sustained growth over the next several quarters.
Negative Factors
Material margin compression
The sharp decline in gross and EBITDA margins shows that higher costs and execution issues are absorbing the benefit of revenue growth. If pricing and productivity do not improve, weaker margins could limit cash generation and long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and demand
Record revenue and multi-year customer commitments indicate durable demand for drilling services. Strong gold and copper exploration fundamentals could support fleet utilization and provide a foundation for sustained growth over the next several quarters.
Read all positive factors
Geodrill (GEO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$127.34M
Dividend Yield2.25%
Average Volume (3M)13.40K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth12.59%
EPS Growth-194.85%
CountryCA
Employees52
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-0.27
Shares Outstanding47,513,120
10 Day Avg. Volume11,846
30 Day Avg. Volume13,402
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)0.06
Revenue Forecast (FY)C$192.67M
Geodrill Business Overview & Revenue Model
Company Description
Geodrill Limited, along with its subsidiaries, delivers specialized mineral exploration drilling services to mining enterprises operating in West Africa, Zambia, and Peru. The company offers a broad spectrum of drilling solutions, encompassing rev...
How the Company Makes Money
Geodrill makes money primarily by providing contract drilling services to mineral exploration and mining customers. Revenue is generated through drilling contracts where the company is paid for delivering meters drilled and/or time and equipment u...
Geodrill Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: strong top-line performance and robust market demand (record revenue, healthy fleet utilization, multi-year customer commitments) but material deterioration in profitability driven by inflationary pressures, currency effects and operational issues (notably in Chile). Management emphasizes execution and converting current demand into improved margins, while taking steps to address underperforming Chilean contracts and retaining cash to support operations.Positive Updates
Record Quarterly Revenue
Revenue of $55.1M in Q2 2026 — the highest quarterly revenue in Geodrill's history — representing a 10% increase versus Q2 2025.
Negative Updates
Significant Margin Compression
Gross margin fell to 16% from 24% year-over-year (down 8 percentage points). EBITDA margin fell to 14% from 28% YoY (down 14 percentage points), reflecting meaningful margin deterioration.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue
Revenue of $55.1M in Q2 2026 — the highest quarterly revenue in Geodrill's history — representing a 10% increase versus Q2 2025.
Read all positive updates
Company Guidance
The company’s guidance emphasized execution to convert record activity into profitability: with Q2 revenue of $55.1M (+10% y/y) and a modern fleet of 104 rigs, management said it will focus on improving Chile performance, driving productivity gains and cost control to lift gross profit ($8.8M in Q2; gross margin 16% vs 24% LY) and EBITDA ($7.9M; EBITDA margin 14% vs 28% LY) after a Q2 net loss of ~ $0.2M (vs. $5.4M net income in Q2 2025). Management reiterated a constructive market backdrop (healthy exploration budgets, strong gold and copper fundamentals, multi‑rig/multi‑year commitments), will prioritize maintaining cash on the balance sheet (shareholders’ equity ~ $118M) over buybacks/dividends for now, and will pursue client‑by‑client streamlining in Chile while continuing Cote d’Ivoire repayments (scheduled $8.4M; ~ $4.5M repaid through June, monthly payments reduced from ~ $900k to $450k).Geodrill Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
74
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 187.89M | 188.15M | 143.05M | 130.54M | 138.63M | 115.21M |
| Gross Profit | 22.98M | 33.19M | 34.68M | 30.59M | 40.58M | 30.10M |
| EBITDA | 21.94M | 31.22M | 31.16M | 20.56M | 38.35M | 29.45M |
| Net Income | -12.86M | -1.55M | 9.26M | 3.90M | 18.92M | 14.14M |
Balance Sheet | ||||||
| Total Assets | 183.35M | 176.28M | 161.49M | 148.61M | 141.23M | 116.56M |
| Cash, Cash Equivalents and Short-Term Investments | 10.82M | 18.93M | 19.52M | 15.81M | 15.11M | 13.53M |
| Total Debt | 12.78M | 10.26M | 3.45M | 978.29K | 5.82M | 7.61M |
| Total Liabilities | 65.78M | 59.08M | 41.97M | 38.65M | 34.17M | 29.03M |
| Stockholders Equity | 118.44M | 117.90M | 119.88M | 110.12M | 107.07M | 87.55M |
Cash Flow | ||||||
| Free Cash Flow | -7.18M | -1.82M | 372.49K | -4.28M | 8.40M | 150.12K |
| Operating Cash Flow | 8.71M | 16.40M | 21.05M | 11.00M | 25.29M | 14.78M |
| Investing Cash Flow | -19.94M | -18.22M | -20.68M | -15.28M | -16.88M | -14.63M |
| Financing Cash Flow | -8.95M | -2.83M | -2.35M | 5.39M | -2.85M | 2.83M |
Geodrill Technical Analysis
Negative
2.81
Price Trends
2.63
Positive
2.77
Negative
3.18
Negative
Market Momentum
0.03
Positive
49.78
Neutral
4.95
Positive
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 2.81 is above the 20-day moving average (MA) of 2.70, above the 50-day MA of 2.63, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 4.95 is Positive, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | C$128.12M | 14.47 | 20.67% | ― | 176.97% | 1835.90% | |
55 Neutral | C$278.88M | 16.33 | 12.49% | 1.90% | 7.69% | -34.65% | |
50 Neutral | C$127.34M | -7.16 | -10.61% | 2.25% | 12.59% | -194.85% | |
48 Neutral | C$48.48M | 78.62 | 0.85% | ― | 3.14% | -90.42% | |
48 Neutral | C$258.15M | 59.86 | 7.81% | ― | 108.81% | ― |
* Basic Materials Sector Average
TSE:GEO
Geodrill
2.69
-0.71
-20.88%
TSE:FAR
Foraco International
2.86
0.83
40.89%
TSE:GMX
Globex Mining Enterprises
2.19
0.71
47.97%
TSE:OGD
Orbit Garant Drill
1.25
-0.50
-28.57%
TSE:AGX
Silver X Mining
0.86
0.37
74.49%
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.