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DAWSON GEOPHYSICAL CO (DWSN)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $16.08M, down 49% YoY and up modestly QoQ; gross margin contracted to 28% and EPS was $0.03, with Adjusted EBITDA of $2.34M .
  • Canada operations delivered strong profitability (net income $5.54M; Adjusted EBITDA $5.74M) driven by single-node channel deployment and efficient operations, while US operations were loss-making in the quarter .
  • Management expects US revenue to increase in Q2 2025 and one large channel crew to be highly utilized through year-end; the 2025 capital budget remains $6M to support node purchases and modernization .
  • Stock reaction catalysts: improving backlog and utilization, Canada profitability, and potential margin uplift from single-node channels; however, US utilization and reduced reimbursables create near-term execution risk .

What Went Well and What Went Wrong

What Went Well

  • Canada unit economics: “our seasonal operations in Canada … generated net income of $5.5 million and Adjusted EBITDA of $5.7 million” in Q1, with efficiency gains from single-node channels .
  • Backlog and utilization outlook: “expect to have one large channel crew highly utilized from the beginning of April through the end of the year” .
  • Liquidity improvement: cash increased to $2.67M and working capital to $6.7M versus $1.38M and $4.6M at year-end 2024 .

What Went Wrong

  • Sharp revenue decline and margin compression: revenue fell 49% YoY to $16.08M and gross margin fell to 28% from 36% .
  • US operations loss: US segment posted an operating loss of $(4.52)M and negative Adjusted EBITDA of $(3.40)M in Q1 .
  • Reimbursable revenue decreased materially: reimbursables were $0.82M vs. $4.85M in Q1 2024, reducing reported revenue and pass-through cost coverage .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$14.42 $15.64 $16.08
Gross Margin %n/a23% 28%
Net Income ($USD Millions)$(5.62) $(0.80) $0.99
Diluted EPS ($USD)$(0.18) $(0.03) $0.03
Adjusted EBITDA ($USD Millions)$(4.30) $0.94 $2.34
YoY and QoQ ComparisonQ1 2024Q4 2024Q1 2025
Revenue ($USD Millions)$31.58 $15.64 $16.08
Reimbursable Revenue ($USD Millions)$4.85 $1.89 $0.82
Diluted EPS ($USD)$0.19 $(0.03) $0.03
Adjusted EBITDA ($USD Millions)$7.57 $0.94 $2.34

Segment Breakdown – Q1 2025

MetricUSACanadaConsolidated
Fee Revenue ($USD Millions)$2.73 $12.53 $15.26
Reimbursable Revenue ($USD Millions)$0.57 $0.25 $0.82
Operating Expenses ($USD Millions)$5.19 $6.59 $11.78
G&A ($USD Millions)$1.56 $0.44 $1.99
Depreciation & Amortization ($USD Millions)$1.08 $0.19 $1.27
Income from Operations ($USD Millions)$(4.52) $5.56 $1.03
Net (Loss) Income ($USD Millions)$(4.55) $5.54 $0.99
Adjusted EBITDA ($USD Millions)$(3.40) $5.74 $2.34

KPIs and Balance Sheet

KPIQ4 2024Q1 2025
Cash & Equivalents ($USD Millions)$1.38 $2.67
Working Capital ($USD Millions)$4.60 $6.70
Capital Budget (FY 2025) ($USD Millions)$6.00 $6.00
Backlog Commentary“backlog for six months ended Sep 30, 2025, greater than 150% of revenues for the comparable period in 2024” “one large channel crew highly utilized Apr–Dec; expect US revenue increase in Q2”

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capital BudgetFY 2025$6M approved for single-node channel investment flexibility $6M approved; unchanged Maintained
US Revenue OutlookQ2 2025Strong backlog into Q2 2025 Expect US revenue to increase in Q2 Raised/Clarified
Crew UtilizationApr–Dec 2025Two US crews operating in Q4 2024 and into Q1 2025; second large channel crew scheduled mid-Nov 2024 One large channel crew expected to be highly utilized through year-end Clarified
DividendN/ANot discussed Not discussed N/A

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in our document set; themes below synthesize management disclosures across the last three earnings releases.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Single-node channels (technology)Testing underway; plan to invest in increasing channel count Testing ramped; considering purchases; positive results Continued testing; plan to reinvest profits in new nodes to improve top/bottom line Positive adoption momentum
Backlog/UtilizationOne crew operating; second large crew scheduled mid-Nov; Canada seasonal ops to drive 1Q25 Strong backlog into Q2 2025 One large channel crew highly utilized Apr–Dec; expect US revenue to increase in Q2 Utilization improving
Regional trends (Canada)Canada seasonal ops to drive increased revenue/profitability through Q1 2025 Canada resumed; contributed to improved margins in Q4 Canada fee revenue +48% YoY; net income $5.5M; Adj. EBITDA $5.7M Strong
CCUSIntegral to business; several base surveys acquired CCUS part of business CCUS monitoring continues to grow; plan to acquire more base surveys Expanding focus
Capital allocationCapital budget increased to $6M 2025 capital budget $6M; reduced G&A YoY 2025 capital budget $6M maintained; profits earmarked for node channels Consistent, targeted
LiquidityCash $7.0M; WC $4.4M (9M24) Cash $1.4M; WC $4.6M (YE24) Cash $2.7M; WC $6.7M (Q1) Improving sequentially

Management Commentary

  • “We continue to improve our backlog for the remainder of the year, and expect to have one large channel crew highly utilized from the beginning of April through the end of the year.”
  • “Our pilot program in Canada significantly improving our teams’ efficiency and margins… As our backlog improves, we plan to reinvest our profits in new single node channels, which we expect will improve our top line and bottom line results.”
  • “The Company's Board of Directors approved a capital budget of $6 million for 2025, allowing us the flexibility to purchase new single node channels.”
  • From Q4 2024: “current backlog for the six months ended September 30, 2025, is greater than 150% of the revenues for the comparable period in 2024.”

Q&A Highlights

  • No Q1 2025 earnings call transcript was identified; therefore, no analyst Q&A themes or guidance clarifications are available from a call. We relied on the 8-K and press release for qualitative and quantitative disclosures .

Estimates Context

  • S&P Global consensus for Q1 2025 was not available for EPS or revenue (no estimates returned); comparisons are anchored to reported actuals. Values retrieved from S&P Global.*
    | Metric | Q1 2025 Actual | Q1 2025 Consensus | # of Estimates | |--------|-----------------|-------------------|----------------| | Revenue ($USD) | $16.08M | n/a* | n/a* | | Primary EPS ($USD) | $0.03 | n/a* | n/a* |

Key Takeaways for Investors

  • Canada strength and single-node deployment produced robust profitability, providing a blueprint for margin improvement as US utilization normalizes .
  • Sequential liquidity improvement (cash, working capital) and a steady $6M capital budget support equipment modernization without stressing the balance sheet .
  • Management’s expectation for US revenue growth in Q2 and sustained crew utilization through year-end is a near-term catalyst if execution aligns with backlog .
  • Mix shift away from reimbursables (down sharply YoY) amplifies reliance on fee revenue and operational efficiency to drive gross margin and EBITDA .
  • US segment losses highlight execution risk; the path to consolidated margin expansion likely depends on replicating Canada’s efficiency gains and scaling single-node channels .
  • CCUS monitoring remains a growing end market for Dawson and could diversify revenue streams over time .
  • Without visible Street estimates, price discovery may be driven by operational updates (crew deployments, backlog conversion) and margin trajectory rather than beat/miss headlines .

Footnote: *Consensus values unavailable; Values retrieved from S&P Global.