Dawson Geophysical Q4 Earnings Call Highlights

Key Points

• Q4 fee revenues rose 67% to $22.9 million and Dawson returned to quarterly profitability with net income of $0.6 million (EPS $0.02) and Adjusted EBITDA of $3.3 million; full-year 2025 fee revenues increased 16% to $61.9 million while adjusted EBITDA jumped 139% to $4.7 million and the net loss narrowed to $1.9 million.
• Dawson invested $24.2 million in new single-node channels (about 1 lb versus legacy ~10 lb) to boost operational efficiency and reduce field footprint, funded in part by $14 million of operating cash; year-end cash was $4.9 million with an unused $5 million revolver and a $3 million capex budget for 2026.
• Higher crew utilization (four U.S. crews and two in Canada in Q4, expanding in Canada into Q1 2026) drove improved margins, and the company is diversifying beyond oil & gas into carbon capture, geothermal and critical minerals, fueling increased bid activity.

Dawson Geophysical NASDAQ: DWSN reported higher fourth-quarter revenue and a return to quarterly profitability as increased crew utilization in the U.S. and Canada helped lift margins, while the company continued to invest in new single-node seismic equipment aimed at improving operational efficiency.

Fourth-quarter results improve on higher activity

For the fourth quarter ended Dec. 31, 2025, Dawson reported fee revenues of $22.9 million, up 67% from $13.8 million in the prior-year quarter, according to prepared remarks delivered on the company’s earnings call.

The company posted net income of $0.6 million, or $0.02 per share, compared with a net loss of $0.8 million, or $0.03 per share, a year earlier. Adjusted EBITDA for the quarter was $3.3 million versus $0.9 million in the fourth quarter of 2024.

Full-year revenue rises; loss narrows

For the year ended December 2025, Dawson reported fee revenues of $61.9 million, an increase of 16% from $53.5 million in 2024.

The company’s net loss for 2025 was $1.9 million, or $0.06 per share, compared with a net loss of $4.7 million, or $0.13 per share, in 2024. Adjusted EBITDA rose to $4.7 million from $2.0 million, a 139% increase year over year.

Equipment investment focuses on single-node channels

President and CEO Tony Clark said the company generated $14 million in cash from operations during 2025 and reinvested a portion of that into new single-node channels “to increase our capacity and strengthen our foundation for profitability in our future.”

Clark said Dawson purchased $24.2 million of new equipment, “primarily new single node channels,” with first delivery in August 2025. Due to customer demand, the company accelerated the delivery timeline through the fourth quarter and received the final delivery in January 2026.

Clark highlighted the potential operational benefits of the newer equipment, noting the single-node channels weigh “approximately one pound compared to our legacy equipment, which weighs approximately 10 lbs.” He said Dawson believes the lighter weight equipment will improve efficiency.

Discussing the evolution of the company’s service and technology in response to an analyst question, Clark pointed to the shift to single nodes as a major change, describing benefits that include mobilization and demobilization efficiency, a reduced field footprint, fewer personnel and equipment needs, and a lower health, safety and environmental exposure. He also referenced moving “from a 10 Hz phone to a 5 Hz phone” as part of the technology shift.

Liquidity and 2026 capital budget

Chief Financial Officer Ian Shaw said Dawson increased its cash balance to $4.9 million at year-end 2025 from $1.4 million at the end of 2024, supported by $14 million in operating cash flow during 2025.

Shaw also noted that in October 2025 the company entered into a revolving credit facility with a maximum lender commitment of $5 million. As of Dec. 31, 2025, Dawson had a borrowing base of $4.9 million and “no balance outstanding on our revolver.”

The board approved a $3 million capital budget for 2026, which included a final $0.9 million payment related to the single-node channel purchase that was made in January 2026, Shaw said.

Operations: high utilization and broader customer mix

Clark said activity levels increased during the fourth quarter, with four crews operating in the lower 48 states and two crews operating in Canada. He said Dawson ran “one large channel crew and three smaller channel crews” in the U.S. during the quarter and into the first quarter of 2026.

“High crew utilization in the fourth quarter results in healthy margins and profitability,” Clark said, adding that the company was seeing “an increase in utilization revenue in the first quarter of 2026.”

In Canada, Dawson resumed operations in the fourth quarter of 2025 with two crews and entered the first quarter of 2026 with “three large channel count crews.” Clark said the company anticipated Canadian operations would have “a successful first quarter.”

Clark also said Dawson expanded its customer base beyond traditional oil and gas work, including “more unconventional exploration such as carbon capture, geothermal, and critical rare earth minerals, as well as other uses of seismic acquisition capabilities.” He said the company was seeing increased bid activity in those areas as well as in oil and gas exploration.

Addressing a question about whether conflict in the Middle East was influencing demand, Clark said Dawson had seen “an uptick for the last three quarters of increase in bid opportunities and utilization,” but added the company was “not sure that there's been a major uptick because of the war or the conflict.” He said exploration budgets were set the prior year with projects identified, and that if the conflict were resolved soon, he anticipated activity would remain consistent.

About Dawson Geophysical NASDAQ: DWSN

Dawson Geophysical Company provides land-based seismic data acquisition services to the oil and gas industry. Through its subsidiaries, the company specializes in the design, deployment and operation of seismic crews that collect high-fidelity subsurface data. Its services support exploration and development programs by delivering two-dimensional (2D), three-dimensional (3D) and time-lapse (4D) seismic surveys that enable clients to make informed drilling and reservoir management decisions.

The company's fleet includes vibratory and impulsive seismic sources, high-capacity source trucks, geophone sensor arrays and digital recording systems.

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