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DG

DAWSON GEOPHYSICAL CO (DWSN)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $15.637M, down 36% year over year; gross margin improved to 23% vs 22% in Q4 2023, and the quarter produced positive Adjusted EBITDA of $0.943M and a net loss of $0.802M ($0.03 per share) .
  • Sequentially, Dawson improved from heavy Q3 losses (negative Adjusted EBITDA of $4.301M) on stronger crew utilization and seasonal Canada operations resumption .
  • Management highlighted a strong 2025 setup: backlog for the six months ending September 30, 2025 exceeds 150% of revenues for the comparable 2024 period, and a 2025 capital budget of $6M supports potential investment in single-node channels to lift efficiency and margins .
  • No Wall Street consensus estimates were available from S&P Global for Q4 2024 (EPS and revenue), limiting beat/miss analysis; focus near term is on margin trajectory, backlog conversion, and execution of node-channel modernization (stock reaction catalyst: visible backlog and margin improvement path) [GetEstimates]*.
    *Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Margin and cost execution: gross margin improved to 23% in Q4 and 21% for FY 2024 (vs 22% and 16% respectively), with G&A down 25% YoY; “first positive annual adjusted EBITDA since 2020” at $2M .
  • Backlog strength and utilization: “current backlog for the six months ended September 30, 2025, is greater than 150% of the revenues for the comparable period in 2024” and two U.S. crews operated through Q4 while Canada resumed seasonally, driving improved profitability .
  • Technology progress: active field testing of new single node channels with “promising results,” Canadian pilot improving efficiency and margins; management sees competitive advantage on larger jobs due to high channel count and vibrator units .

What Went Wrong

  • Top-line pressure: Q4 revenue fell 36% YoY to $15.637M (reimbursable revenue down to $1.885M from $5.700M), and Adjusted EBITDA was lower than Q4 2023 ($0.943M vs $1.677M) .
  • Weak prior quarters: Q3 2024 revenue $14.421M with net loss of $5.617M and negative Adjusted EBITDA of $4.301M; Q2 2024 revenue $12.512M with net loss of $3.546M and negative Adjusted EBITDA of $2.251M .
  • Liquidity compression: year-end cash fell to $1.385M (from $10.772M at 12/31/2023), and stockholders’ equity decreased to $17.281M (from $31.434M), despite positive working capital of $4.6M .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Revenue ($USD)$24.258M $12.512M $14.421M $15.637M
Net (Loss) ($USD)$(2.106)M $(3.546)M $(5.617)M $(0.802)M
Basic EPS ($USD)$(0.07) $(0.12) $(0.18) $(0.03)
Adjusted EBITDA ($USD)$1.677M $(2.251)M $(4.301)M $0.943M
Gross Margin %22% ——23%

Segment breakdown (Q4 2024 vs Q4 2023):

MetricQ4 2024 USAQ4 2024 CanadaQ4 2024 ConsolidatedQ4 2023 USAQ4 2023 CanadaQ4 2023 Consolidated
Fee Revenue ($USD)$9.488M $4.264M $13.752M $16.278M $2.280M $18.558M
Reimbursable Revenue ($USD)$1.728M $0.157M $1.885M $5.686M $0.014M $5.700M
(Loss) from Operations ($USD)$(0.383)M $(0.451)M $(0.834)M $(0.977)M $(1.240)M $(2.217)M
Adjusted EBITDA ($USD)$1.168M $(0.225)M $0.943M $2.642M $(0.965)M $1.677M

KPIs and balance sheet/operational items:

KPIQ4 2024Prior Period
Backlog outlookBacklog for six months ending Sep 30, 2025 >150% of comparable 2024 revenues N/A
Crews operatingTwo U.S. crews throughout Q4; Canada seasonal ops resumed Q3: 1–2 U.S. crews; Canada resumed in Oct
Capital budget (2025)$6.0M approved Q3: Increased to $6.0M
Cash$1.385M at 12/31/2024 $6.980M at 9/30/2024 ; $10.772M at 12/31/2023
Working capital$4.6M positive at 12/31/2024 $4.4M positive at 9/30/2024
G&A$2.199M in Q4; FY down 25% YoY Q4 2023 G&A $2.757M
Annual Adjusted EBITDA$2.0M FY 2024 $(2.0)M FY 2023

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capital BudgetFY 2025$6.0M (increase approved in Q3 2024) $6.0M (approved; flexibility to purchase single node channels) Maintained
Backlog (qualitative)6 months ending Sep 30, 2025N/A>150% of comparable 2024 revenues Raised qualitative outlook
Revenue/MarginsFY/Q4 2024 and FY 2025N/ANo explicit numeric guidance provided N/A
Dividends2024Special cash dividend $0.32 per share paid May 6, 2024 None announced in Q4 materials N/A

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found despite targeted searches; analysis below reflects press releases and 8‑K disclosures [ListDocuments earnings-call-transcript: none].

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Technology initiatives (single node channels)Evaluating assets; modernization; no explicit node testing detail “Testing new single node channels… expect to invest… improve crew efficiency” Continued testing; Canadian pilot improved efficiency/margins; potential purchases in 2025 Positive execution momentum
Crew utilization/deploymentTwo U.S. crews at start; reduced to one in late May; plan to ramp later Q3 One operating; second large channel crew mid-Nov deployment; increased utilization expected Two U.S. crews operating throughout Q4; Canada seasonal ops resumed Improving utilization
Canada seasonalityOps halted in April; expected to resume in Q4 Resumed in October; expected to boost Q4–Q1 revenues/profitability Seasonal operations resumed; margins improved Seasonal tailwind realized
Cost structure & G&A disciplineHeadcount reductions; strategic bidding/marketing adjustments Ongoing; EBITDA still negative due to revenue mix Gross margin up; G&A down 25% YoY; positive quarterly Adjusted EBITDA Structural improvement
CCUS exposureCCUS monitoring a growing part of business CCUS still highlighted in About section About section only; no quantified update Stable narrative

Management Commentary

  • “I am proud of the progress the Dawson team made during 2024, generating $2 million of adjusted EBITDA, the Company's first positive annual adjusted EBITDA since 2020. We significantly adjusted our cost structure improving our gross margin from 16% in 2023 to 21% in 2024, and reduced our general and administrative expenses by 25% year-over-year.”
  • “We have a strong backlog of projects heading into 2025, with our current backlog for the six months ended September 30, 2025, is greater than 150% of the revenues for the comparable period in 2024.”
  • “We believe that we have significant competitive advantage for larger seismic jobs due to our high channel count and our quantity of vibrator energy source units.”
  • “We continue to test new single node channels… with promising results, with our pilot program in Canada significantly improving our teams' efficiency and margins.”

Q&A Highlights

  • No Q4 2024 earnings call transcript was available. We searched for an earnings-call-transcript for the March 28, 2025 reporting window but found none [ListDocuments earnings-call-transcript: none].

Estimates Context

  • S&P Global consensus for Q4 2024 EPS and revenue was unavailable (no estimates reported), preventing beat/miss determination [GetEstimates]*.
  • Actuals: revenue $15.637M and Adjusted EBITDA $0.943M reported by the company; EPS was $(0.03) .
    *Values retrieved from S&P Global.
MetricPeriodConsensus Mean# of EstimatesActual
Primary EPSQ4 2024N/A [GetEstimates]*N/A [GetEstimates]*$(0.03)
Revenue ($USD)Q4 2024N/A [GetEstimates]*N/A [GetEstimates]*$15.637M
EBITDA ($USD)Q4 2024N/A [GetEstimates]*N/A [GetEstimates]*$0.943M (Adjusted)
*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential improvement: Q4 swung to positive Adjusted EBITDA ($0.943M) vs Q3’s sizable losses, aided by stronger utilization and Canadian seasonality .
  • Margin trajectory: company-level gross margin and annual margins are moving higher (23% Q4; 21% FY), supported by structural G&A reductions; watch whether mix (fee vs reimbursables) sustains margin gains .
  • Backlog strength: >150% backlog indicator into 2H 2025 vs comparable 2024 revenues provides revenue visibility; conversion and pricing discipline are near-term catalysts .
  • Capital allocation: $6M 2025 capital budget prioritizes single-node channel investment to enhance efficiency/margins; execution of technology rollout is a medium-term thesis element .
  • Liquidity watch: cash declined to $1.385M at year-end; monitor operating cash flow and working capital as backlog converts, especially given prior special dividend and recent losses .
  • No consensus coverage: absence of S&P Global estimates limits headline beat/miss dynamics; stock likely trades on operational trends (backlog/margins/technology execution) rather than estimate surprises [GetEstimates]*.
  • Trading setup: near-term, focus on backlog disclosures and margin cadence as crews remain utilized; medium-term, assess benefits from node-channel modernization and CCUS demand developments .
    *Values retrieved from S&P Global.