DWSN · Dawson Geophysical Company

Dawson Geophysical's Q1 2026 results demonstrate a dramatic turnaround, with revenue surging 128% year-over-year to $36.7 million, primarily from $32.5 million in fee revenue (up 113%). This growth stemmed from full utilization of newly acquired single node channels across US and Canada operations, plus three additional legacy crews deployed. Gross margin expanded to 40% from 28%, reflecting operational leverage from high crew utilization, including one large channel crew and three smaller ones in the US, with seasonal Canadian work extending into Q2. Net income reached $7.7 million ($0.25/share), versus $1.0 million ($0.03/share) last year, supported by operating income of $8.1 million. Adjusted EBITDA jumped 364% to $10.9 million, underscoring profitability momentum. CEO Tony Clark highlighted equipment efficiency gains and positioning to capitalize on market opportunities in traditional seismic and emerging areas like geothermal, CCUS monitoring, and rare minerals. Balance sheet strengthened with cash at $1.4 million (down from $4.9 million year-end due to capex), working capital turning positive to $0.4 million from a $5 million deficit, and no debt drawn against a $4.5 million borrowing base. The $3 million 2026 capex budget covers maintenance post-final single node payment. No formal guidance issued, but management anticipates further efficiencies. Forward-looking risks include oil/gas price volatility, customer spending, and geopolitical factors.