Dawson Geophysical Reports 49% Revenue Decline in Q1 2025

Dawson Geophysical Company reported its financial results for the first quarter of 2025, revealing a significant decline in revenue and profitability compared to the same period in 2024. The company generated total revenues of $16.1 million, a decrease of 49% from $31.6 million in the first quarter of 2024. This decline was primarily driven by an 85% drop in U.S. fee revenues, which fell to $2.7 million from $18.3 million, attributed to reduced crew utilization. In contrast, Canadian fee revenues increased by 48% to $12.5 million, reflecting improved crew efficiency and utilization of single node channels.

The company's net income for the quarter was $992,000, a sharp decline from $5.8 million in the prior year. This resulted in basic and diluted earnings per share of $0.03, down from $0.19 in the same quarter of 2024. Total operating costs also decreased significantly, falling 63% to $15.0 million, primarily due to lower crew production and utilization. General and administrative expenses saw a slight reduction to $2.0 million from $2.2 million, as the company focused on cost-cutting measures.

Dawson Geophysical's operational metrics indicate a mixed performance across its segments. The U.S. operations reported a loss from operations of $4.5 million, while Canadian operations generated a profit of $5.5 million. The company operated one large channel crew in the U.S. and two smaller crews later in the quarter, with expectations of increased utilization moving forward. The company is also planning to invest in new equipment to enhance operational efficiency and improve revenue margins.

In terms of financial position, Dawson Geophysical reported total assets of $33.3 million as of March 31, 2025, up from $30.9 million at the end of 2024. Cash and cash equivalents increased to $2.7 million from $1.4 million, contributing to a positive working capital balance of $6.7 million. The company has no outstanding letters of credit and has reduced its short-term notes payable for insurance premiums to $1.5 million.

Looking ahead, Dawson Geophysical anticipates a revenue increase in the U.S. due to a strong backlog and improved operational efficiency. The company remains focused on negotiating favorable contract terms and enhancing crew productivity to mitigate the impact of fluctuating demand for its services. Management believes that the current financial position and cash flows from operations are adequate to support ongoing operations and capital expenditures.