#United States #Midland #Seismic Data #Dawson Geophysical #Geospace Technologies

Dawson Geophysical Reports Strong Financial Results for Second Quarter 2025

Dawson Geophysical Company, trading under NASDAQ: DWSN, has recently announced its financial outcomes for the second quarter concluded on June 30, 2025. This report has drawn attention from the financial community, largely due to the strategic moves made by the company in response to increasing market demands.

Management's Commentary

In a statement, Tony Clark, the President and CEO of Dawson, elaborated on the substantial rise in demand for integrated high-resolution seismic surveys, which prompted the company to invest heavily in acquiring new technology. This capital investment includes the purchase of lightweight, autonomous land wireless seismic data acquisition channels from Geospace Technologies, aiming to enhance operational efficiency and scalability.

According to Clark, these new channels—each weighing under a pound—are set to improve field deployment and retrieval, thus assisting Dawson in taking on larger and more intensive seismic surveys throughout North America. Moreover, this strategic acquisition is expected to bolster the company's competitive edge in both large and smaller scale 2D and 3D surveys.

“We believe that increasing our channel count will enable us to enhance our operational performance,” said Clark, noting that a dedicated channel crew deployed in early April is anticipated to remain significantly utilized for the rest of the year. This positive operational outlook is expected to be underpinned by a growing backlog of contracted jobs.

Financial Highlights

The financial performance of Dawson Geophysical for Q2 2025 showcased the burgeoning growth trajectory.

• - Fee revenues reached $8.7 million, reflecting a 5% increase from $8.3 million in Q2 2024.
• - Conversely, total revenues were impacted by a drop in reimbursable revenues, totaling $1.1 million compared to $4.2 million for the previous year. This decline mirrored the growth in fee revenues, however, gross margins improved significantly from 1% to 13% over the past year, showcasing operational efficiencies.
• - Notably, the company's revenue within the U.S. surged by over 200% when compared to the previous quarter, leading to expectations of continued growth well into Q3 2025.
• - Despite experiencing a net loss of $2.3 million, down from $3.5 million a year prior, the results underscore a proactive and strategic operational approach by the company.
• - On the EBITDA front, Dawson reported negative earnings of $1.2 million, albeit an improvement over the $2.3 million negative EBITDA in Q2 2024.

Year-to-Date Results

For the six months ending June 30, 2025, Dawson reported a net loss of $1.4 million, equating to 4 cents per share, compared to a positive income of $2.3 million in the prior year. The drop in performance underscores the challenging market conditions facing the industry. However, EBITDA for the year to date was reported at $1.2 million, a reduction from the $5.2 million recorded at the same time last year.

Future Developments

Dawson’s ambitious capital budget includes an Equipment Purchase Agreement signed on August 8, 2025, to funnel $24.2 million into acquiring additional equipment, with deliveries expected to roll out until January 2026. This equipment is projected to provide unparalleled opportunities for Dawson to solidify its market position.

With a cash position bolstered to $16.2 million as of June 30, including improved working capital, Dawson remains optimistic about its ability to navigate and thrive amidst ongoing operational challenges. Clark expressed confidence that with the new investments, Dawson will enhance its capabilities to meet demands for high-channel-count surveys requested by customers.

Dawson Geophysical continues to uphold its position as a premier provider of seismic data acquisition in North America, committed to both immediate and long-term operational excellence, showcasing resilience and adaptability in a fluctuating market.