DAWSON GEOPHYSICAL REPORTS FOURTH QUARTER AND YEAR END 2024 RESULTS

Rhea-AI Summary

Dawson Geophysical (NASDAQ: DWSN) reported its Q4 and fiscal year 2024 results, marking significant progress with its first positive annual adjusted EBITDA of $2 million since 2020. The company improved its gross margin from 16% in 2023 to 21% in 2024 and reduced G&A expenses by 25% year-over-year.

Q4 2024 revenues were $15.6 million, down 36% from $24.3 million in Q4 2023, with a net loss of $0.8 million ($0.03 per share). For full-year 2024, revenues decreased 23% to $74.2 million, with a net loss of $4.1 million ($0.13 per share), improved from a $12.1 million loss in 2023.

The company reports a strong backlog for H1 2025, exceeding 150% of comparable 2024 revenues. The Board approved a $6 million capital budget for 2025, with cash standing at $1.4 million and positive working capital of $4.6 million. Dawson is testing new single node channels with promising results, particularly in their Canadian operations.

Positive

• First positive annual adjusted EBITDA ($2M) since 2020
• Gross margin improved from 16% to 21% YoY
• 25% reduction in G&A expenses
• Backlog for H1 2025 exceeds 150% of comparable 2024 period
• Net loss improved from $12.1M in 2023 to $4.1M in 2024

Negative

• Q4 2024 revenue decreased 36% YoY to $15.6M
• Full-year 2024 revenue down 23% to $74.2M
• Net loss of $4.1M for 2024
• Low cash position of $1.4M at year-end

Insights

Financial Analyst

Dawson Geophysical's Q4 and full-year 2024 results present a mixed financial picture with noteworthy operational improvements despite revenue challenges. The company generated its first positive annual adjusted EBITDA ($2 million) since 2020, a significant turnaround from 2023's $2 million EBITDA loss. This improvement came despite annual revenue declining 23% to $74.2 million, with Q4 revenue dropping more dramatically by 36% to $15.6 million.

The company's efficiency initiatives are yielding results, with gross margins expanding from 16% to 21% year-over-year, and G&A expenses reduced by 25%. The annual net loss narrowed considerably from $12.1 million to $4.1 million ($0.13 per share), demonstrating substantial progress toward profitability.

Liquidity remains a potential concern with only $1.4 million in cash against a newly approved $6 million capital budget for 2025. However, the $4.6 million positive working capital provides some flexibility. The company's backlog strength (>150% of comparable 2024 period) suggests improved utilization ahead, but the gap between current cash and planned capital expenditures indicates potential need for additional financing or strong operational cash flow.

While Dawson has made significant strides in operational efficiency and cost management, the substantial revenue decline requires monitoring, as sustained profitability will ultimately require revenue stabilization or growth alongside the improved margins.

Energy Services Specialist

Dawson's operational adjustments demonstrate a strategic pivot toward efficiency in the seismic services sector. The company's focus on testing and potentially investing in new single node channel technology represents an important technological adaptation that's already showing positive results in their Canadian pilot program.

The company's claim of competitive advantage for larger seismic jobs due to high channel count and vibrator energy source units positions them well in a specific market segment. This specialization strategy appears to be working, as evidenced by the substantially improved backlog despite the revenue contraction.

The 23% annual revenue decline requires context - while partially attributable to lower reimbursable revenue (which decreased from $35.4 million to $20.7 million), the core revenue also declined. However, maintaining high crew utilization through Q4 (traditionally a challenging period) helped drive the margin improvements.

The potential investment in single node channels aligns with industry trends toward more efficient data acquisition techniques. If the company follows through on this capital investment while maintaining its improved cost structure, it could emerge stronger as seismic demand recovers. The >150% backlog increase for the next six months suggests market conditions may be improving for Dawson's services, but execution will be critical given their tight cash position. The company appears to be transitioning from survival mode toward cautious reinvestment in capabilities.

MIDLAND, Texas, March 28, 2025 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its fourth quarter and fiscal year ended December 31, 2024.

Management Comment

Tony Clark, Dawson's President and CEO, commented, "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 margin¹ from 16% in 2023 to 21% in 2024, and reduced our general and administrative expenses by 25% year-over-year. We took our first steps to returning this company to profitability in 2024, 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 from multiple vendors in the field with promising results, with our pilot program in Canada significantly improving our teams' efficiency and margins. As we continue to build out our backlog we may invest in new single node channels.

We believe that we laid the foundation for future success in 2024, and we expect to build on that foundation in 2025, which will result in continued improvement in our operating results and cash flows."

Fourth Quarter and Year-End Results

For the fourth quarter ended December 31, 2024, the Company reported revenues of $15.6 million, a decrease of 36% compared to $24.3 million for the comparable quarter ended December 31, 2023. Revenue included reimbursable revenue of $1.9 million and $5.7 million for the quarters ended December 31, 2024, and December 31, 2023, respectively. Gross margin¹ for the quarter ended December 31, 2024, was 23% compared to 22% for the comparable quarter ended December 31, 2023.

We generated a net loss of $0.8 million or $0.03 per common share. The Company generated positive EBITDA of $0.9 million in the quarter ended December 31, 2024, compared to Adjusted EBITDA of $1.7 million in the quarter ended December 31, 2023.

For the year ended December 31, 2024, the Company reported revenues of $74.2 million, a decrease of 23% compared to $96.8 million for the year ended December 31, 2023. Revenue included reimbursable revenue of $20.7 million and $35.4 million for the years ended December 31, 2024, and December 31, 2023, respectively. Gross margin¹ for the year ended December 31, 2024, was 21% compared to 16% for the comparable year ended December 31, 2023.

For the year ended December 31, 2024, we generated a net loss of $4.1 million or $0.13 per common share, compared to a net loss of $12.1 million or $0.45 per common share in the prior year. The Company generated Adjusted EBITDA of $2 million in the year ended December 31, 2024, compared to an Adjusted EBITDA loss of $2 million in the year ended December 31, 2023.

The Company had two crews operating throughout the fourth quarter in the United States and into the first quarter and resumed our seasonal operations in Canada. High crew utilization in the fourth quarter resulted in improved margins and profitability.

We ramped up our testing of new single node channels in our West Texas and Canadian operations in the fourth quarter. We have a strong backlog into the second quarter of 2025. We continue to evaluate the purchase of new single node channels, with the testing of this equipment resulting in positive results.

1Defined as fee revenues less fee operating expenses, divided by fee revenues

Capital Budget and Liquidity

The Company's Board of Directors approved a capital budget of $6 million for 2025 allowing us the flexibility to purchase new single node channels if warranted by the expected level of seismic activity in the market.

Cash at December 31, 2024 was $1.4 million and we had positive working capital of $4.6 million.

About Dawson

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. Dawson acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators, as well as providers of multi-client data libraries.

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's Adjusted EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax expense or benefit, (iii) depreciation, depletion and amortization and (iv) other unusual or non-recurring charges, such as severance expenses. The Company uses Adjusted EBITDA as a supplemental financial measure to assess:

• the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;
• its operating performance over time in relation to other companies that own similar assets and that the Company believes calculate Adjusted EBITDA in a similar manner; and
• the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess the Company's performance. However, the term Adjusted EBITDA is not defined under generally accepted accounting principles ("GAAP"), and Adjusted EBITDA is not a measure of operating income or operating performance presented in accordance with GAAP. When assessing the Company's operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's Adjusted EBITDA may not be comparable to Adjusted EBITDA or similarly titled measures utilized by other companies since other companies may not calculate Adjusted EBITDA in the same manner as the Company. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. A reconciliation of the Company's Adjusted EBITDA to its net loss is presented in the table following the text of this press release.

Forward-Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These risks include, but are not limited to, the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares, which could result in the delisting of the Company's shares from Nasdaq and the Company no longer being required to make filings with the U.S. Securities and Exchange Commission (the "SEC"); the impact of general economic, industry, market or political conditions; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices; changes in economic conditions; the severity and duration of the COVID-19 pandemic, related economic repercussions and the resulting impact on demand for oil and gas; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+ to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; operational challenges relating to the COVID-19 pandemic and efforts to mitigate the spread of the virus, including logistical challenges, protecting the health and well-being of our employees and remote work arrangements; industry competition; external factors affecting the Company's crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; the availability of capital resources; disruptions in the global economy, including export controls and financial and economic sanctions imposed on certain industry sectors and parties as a result of the developments in Ukraine and related activities, and whether or not a future transaction or other action occurs that causes the Company to be delisted from Nasdaq and no longer be required to make filings with the SEC. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Annual Report on Form 10-K that was filed with the SEC on March 22, 2024. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

DAWSON GEOPHYSICAL COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited and amounts in thousands, except share and per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2024			2023			2024			2023
	(unaudited)
Operating revenues
Fee revenue	$	13,752		$	18,558		$	53,479		$	61,447
Reimbursable revenue		1,885			5,700			20,675			35,399
		15,637			24,258			74,154			96,846
Operating costs:
Fee operating expenses		10,634			14,395			42,346			51,508
Reimbursable operating expenses		1,885			5,450			20,675			35,149
Operating expenses		12,519			19,845			63,021			86,657
General and administrative		2,199			2,757			9,460			12,559
Severance expense		400			2,208			486			2,208
Depreciation and amortization		1,353			1,665			5,736			8,492
		16,471			26,475			78,703			109,916
Loss from operations		(834)			(2,217)			(4,549)			(13,070)
Other income (expense):
Interest income		18			140			308			576
Interest expense		(39)			(50)			(159)			(103)
Other income (expense), net		24			21			288			354
Loss before income tax		(831)			(2,106)			(4,112)			(12,243)
Income tax benefit (expense)		29			—			(7)			96
Net loss		(802)			(2,106)			(4,119)			(12,147)
Other comprehensive (loss) income:
Net unrealized (loss) income on foreign exchange rate translation		(330)			136			(571)			161
Comprehensive loss	$	(1,132)		$	(1,970)		$	(4,690)		$	(11,986)
Basic loss per share of common stock	$	(0.03)		$	(0.07)		$	(0.13)		$	(0.45)
Diluted loss per share of common stock	$	(0.03)		$	(0.07)		$	(0.13)		$	(0.45)
Weighted average equivalent common shares outstanding		30,983,437			30,812,329			30,879,855			26,752,055
Weighted average equivalent common shares outstanding - assuming dilution		30,983,437			30,812,329			30,879,855			26,752,055

 

DAWSON GEOPHYSICAL COMPANY CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share data)
		December 31,			December 31,
		2024			2023
Assets
Current assets:
Cash and cash equivalents		$	1,385		$	10,772
Restricted cash			—			5,000
Short-term investments			—			265
Accounts receivable, net of allowance for credit losses of $250
at December 31, 2024 and 2023			9,970			12,735
Prepaid expenses and other current assets			3,186			8,654
Total current assets			14,541			37,426
Property and equipment			238,064			241,955
Less accumulated depreciation			(225,085)			(225,447)
Property and equipment, net			12,979			16,508
Operating lease right-of-use assets			3,002			3,208
Intangibles, net			348			377
Total assets		$	30,870		$	57,519
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	3,381		$	3,883
Accrued liabilities:
Payroll costs and other taxes			2,014			3,415
Other			830			709
Deferred revenue			1,570			11,829
Current maturities of notes payable and finance leases			1,010			1,380
Current maturities of operating lease liabilities			1,125			1,202
Total current liabilities			9,930			22,418
Long-term liabilities:
Notes payable and finance leases, net of current maturities			1,512			1,289
Operating lease liabilities, net of current maturities			2,131			2,363
Deferred tax liabilities, net			16			15
Total long-term liabilities			3,659			3,667
Commitments and contingencies			—			—
Stockholders' equity:
Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding			—			—
Common stock-par value $0.01 per share; 35,000,000 shares authorized,
30,983,437 and 30,812,329 shares issued and outstanding at December 31, 2024
and 2023, respectively			310			308
Additional paid-in capital			157,073			156,678
Accumulated deficit			(137,619)			(123,640)
Accumulated other comprehensive loss, net			(2,483)			(1,912)
Total stockholders' equity			17,281			31,434
Total liabilities and stockholders' equity		$	30,870		$	57,519

 

Reconciliation of Adjusted EBITDA to Net (Loss) Income (amounts in thousands)
	Three Months Ended December 31,
	2024 US			2024 CA			2024 Consol.			2023 US			2023 CA			2023 Consol.
Net loss	$	(355)		$	(447)		$	(802)		$	(915)		$	(1,191)		$	(2,106)
Depreciation and amortization		1,141			212			1,353			1,393			272			1,665
Interest income, net		11			10			21			(44)			(46)			(90)
Income tax (benefit)		(29)			—			(29)			—			—			—
EBITDA		768			(225)			543			434			(965)			(531)
Severance expense		400			—			400			2,208			—			2,208
Adjusted EBITDA	$	1,168		$	(225)		$	943		$	2,642		$	(965)		$	1,677
	Year Ended December 31,
	2024 US			2024 CA			2024 Consol.			2023 US			2023 CA			2023 Consol.
Net (loss) income	$	(4,907)		$	788		$	(4,119)		$	(9,729)		$	(2,418)		$	(12,147)
Depreciation and amortization		4,752			984			5,736			6,566			1,926			8,492
Interest income, net		(146)			(3)			(149)			(258)			(215)			(473)
Income tax expense (benefit)		7			—			7			(96)			—			(96)
EBITDA		(294)			1,769			1,475			(3,517)			(707)			(4,224)
Severance expense		486			—			486			2,208			—			2,208
Adjusted EBITDA	$	192		$	1,769		$	1,961		$	(1,309)		$	(707)		$	(2,016)

 

Reconciliation of Adjusted EBITDA to Net Cash (Used in) Provided By Operating Activities (amounts in thousands)
	Three Months Ended December 31,
	2024 US			2024 CA			2024 Consol.			2023 US			2023 CA			2023 Consol.
Net cash (used in) provided by operating activities	$	(2,788)		$	(2,637)		$	(5,425)		$	902		$	(2,550)		$	(1,648)
Changes in working capital and other items		3,954			2,469			6,423			(250)			1,634			1,384
Non-cash adjustments to net loss		(398)			(57)			(455)			(218)			(49)			(267)
EBITDA		768			(225)			543			434			(965)			(531)
Severance expense		400			—			400			2,208			—			2,208
Adjusted EBITDA	$	1,168		$	(225)		$	943		$	2,642		$	(965)		$	1,677
	Year Ended December 31,
	2024 US			2024 CA			2024 Consol.			2023 US			2023 CA			2023 Consol.
Net cash (used in) provided by operating activities	$	(2,821)		$	955		$	(1,866)		$	(237)		$	1,051		$	814
Changes in working capital and other items		3,928			1,023			4,951			(2,298)			(1,578)			(3,876)
Non-cash adjustments to net (loss) income		(1,401)			(209)			(1,610)			(982)			(180)			(1,162)
EBITDA		(294)			1,769			1,475			(3,517)			(707)			(4,224)
Severance expense		486			—			486			2,208			—			2,208
Adjusted EBITDA	$	192		$	1,769		$	1,961		$	(1,309)		$	(707)		$	(2,016)

 

Statements of Operations by operating segment for the three and twelve months ended December 31, 2024, and 2023.
	Three Months Ended December 31, 2024									Year Ended December 31, 2024
	USA Operations			Canada Operations			Consolidated			USA Operations			Canada Operations			Consolidated
Operating revenues
Fee revenue	$	9,488		$	4,264		$	13,752		$	40,748		$	12,731		$	53,479
Reimbursable revenue		1,728			157			1,885			20,481			194			20,675
		11,216			4,421			15,637			61,229			12,925			74,154
Operating costs:
Fee operating expenses		6,604			4,030			10,634			32,797			9,549			42,346
Reimbursable operating expenses		1,728			157			1,885			20,481			194			20,675
Operating expenses		8,332			4,187			12,519			53,278			9,743			63,021
General and administrative		1,726			473			2,199			8,056			1,404			9,460
Severance expense		400			—			400			486			—			486
Depreciation and amortization		1,141			212			1,353			4,752			984			5,736
		11,599			4,872			16,471			66,572			12,131			78,703
(Loss) income from operations		(383)			(451)			(834)			(5,343)			794			(4,549)
Other income (expense):
Interest income		14			4			18			260			48			308
Interest expense		(25)			(14)			(39)			(114)			(45)			(159)
Other income (expense), net		10			14			24			297			(9)			288
(Loss) income before income tax		(384)			(447)			(831)			(4,900)			788			(4,112)
Income tax benefit (expense)		29			—			29			(7)			—			(7)
Net (loss) income	$	(355)		$	(447)		$	(802)		$	(4,907)		$	788		$	(4,119)
Adjusted EBITDA	$	1,168		$	(225)		$	943		$	192		$	1,769		$	1,961
	Three Months Ended December 31, 2023									Year Ended December 31, 2023
	USA Operations			Canada Operations			Consolidated			USA Operations			Canada Operations			Consolidated
Operating revenues
Fee revenue	$	16,278		$	2,280		$	18,558		$	49,045		$	12,402		$	61,447
Reimbursable revenue		5,686			14			5,700			34,778			621			35,399
		21,964			2,294			24,258			83,823			13,023			96,846
Operating costs:
Fee operating expenses		11,508			2,887			14,395			39,898			11,610			51,508
Reimbursable operating expenses		5,436			14			5,450			34,528			621			35,149
Operating expenses		16,944			2,901			19,845			74,426			12,231			86,657
General and administrative		2,396			361			2,757			11,001			1,558			12,559
Severance expense		2,208			—			2,208			2,208			—			2,208
Depreciation and amortization		1,393			272			1,665			6,566			1,926			8,492
		22,941			3,534			26,475			94,201			15,715			109,916
Loss from operations		(977)			(1,240)			(2,217)			(10,378)			(2,692)			(13,070)
Other income (expense):
Interest income		83			57			140			333			243			576
Interest expense		(39)			(11)			(50)			(75)			(28)			(103)
Other income (expense), net		18			3			21			295			59			354
Loss before income tax		(915)			(1,191)			(2,106)			(9,825)			(2,418)			(12,243)
Income tax benefit		—			—			—			96			—			96
Net loss	$	(915)		$	(1,191)		$	(2,106)		$	(9,729)		$	(2,418)		$	(12,147)
Adjusted EBITDA	$	2,642		$	(965)		$	1,677		$	(1,309)		$	(707)		$	(2,016)

 

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SOURCE Dawson Geophysical Company

FAQ

What was Dawson Geophysical's (DWSN) revenue performance in Q4 2024?

DWSN reported Q4 2024 revenues of $15.6M, a 36% decrease from $24.3M in Q4 2023.

How much did DWSN improve its gross margin in 2024?

DWSN improved its gross margin from 16% in 2023 to 21% in 2024, showing a 5% increase.

What is DWSN's approved capital budget for 2025?

The Board approved a $6M capital budget for 2025, primarily for potential single node channel purchases.

How strong is DWSN's project backlog for 2025?

DWSN's backlog for H1 2025 exceeds 150% of revenues from the comparable period in 2024.

What was DWSN's cash position at the end of 2024?

DWSN had $1.4M in cash and $4.6M in positive working capital as of December 31, 2024.