Dawson Geophysical reports higher second-quarter revenue, six-month profit

Dawson Geophysical said on Aug. 13 that second-quarter revenue rose to $17.9 million from $9.9 million a year earlier, as the Midland, Texas-based seismic contractor reported improved margins and a smaller quarterly loss.

The company also said its six-month results moved into profit, even as it continued to spend on equipment and field technology and discussed possible transactions involving assets tied to its controlling stockholder.

What happened

For the quarter ended June 30, 2026, Dawson reported revenue of $17.9 million, including $3.9 million of reimbursable revenue. In the same period of 2025, reimbursable revenue was $1.1 million, the company said.

Gross margin was 19% in the second quarter, compared with 13% a year earlier. Dawson reported a net loss of $3.4 million, or $0.11 per common share, and Adjusted EBITDA of $0.6 million, versus negative Adjusted EBITDA of $1.2 million in the prior-year quarter.

For the first six months of 2026, Dawson said it posted net income of $4.2 million, or $0.14 per share, compared with a net loss of $1.4 million, or $0.04 per share, in the same period of 2025. Adjusted EBITDA for the six months was $11.5 million, up from $1.2 million a year earlier.

What the company said

Dawson said it completed two large channel crew jobs during the quarter, operated two smaller channel crews in the United States, and started a high-density channel count job deploying 70,000 single node channels.

The company said it invested heavily in that single-node technology about a year earlier. It said the spending was intended to create a competitive advantage in high-channel-count seismic data acquisition services.

Chief Executive Officer Tony Clark said Dawson has improved revenues, margins, profitability and cash flow since the investment. He also said the company is investing in compute power to speed data delivery from the field to customers.

Dawson said its seasonal Canadian operations stopped in April and are expected to resume in the fourth quarter of 2026. The company said it is seeing increased bid activity in Canada for larger channel-count jobs in the fourth quarter and into 2027.

The board approved a 2026 capital budget of $3 million, including a final $0.9 million payment on the single-node purchase made in January 2026. As of June 30, Dawson said it had $5.8 million in cash, a working capital deficit of $2.9 million, and no outstanding balance on its credit facility, which had a borrowing base of $4.1 million.

The company said it believes cash on hand, operating cash flows and its revolving credit facility are enough to fund cash needs and debt obligations.

What officials said

Dawson said Wilks Brothers, LLC and affiliates controlled about 80% of its common stock as of June 30. The company said it has been discussing possible transactions with Wilks and affiliates involving assets owned by Wilks and/or its affiliates, including asset contributions, asset sales, a business combination or similar transactions.

The company said it spent about $1.7 million in the second quarter and $2.4 million in the first half of 2026 on those discussions. Dawson said there is no guarantee of a definitive agreement. It also said a special committee of independent directors has been formed and has retained independent legal and financial advisers to evaluate, negotiate and make recommendations on any potential deal.

What happens next

Dawson said its Canadian operations are expected to restart in the fourth quarter. The company also said bid activity in Canada is building for larger channel-count work in the fourth quarter and into 2027.

Any transaction with Wilks or its affiliates would still need further review and would depend on whether the parties reach a definitive agreement.

Sources

• PR Newswire: Dawson Geophysical reports second-quarter 2026 results

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.