Exchange: OTC | Sector: Energy | Industry: Oil Gas Exploration Production
Q3 2025
Published: Jan 14, 2025
Earnings Highlights
Revenue of $0.08M down 6.2% year-over-year
EPS of $0.00 decreased by 6.3% from previous year
Gross margin of -97.8%
Net income of -156.46K
"We are facing unprecedented challenges in the exploration segment. The current market dynamics are squeezing our margins, and we are focused on operational efficiency to navigate through these tough times." - CEO, Norris Industries
In the third quarter of 2025, Norris Industries Inc (NRIS) reported a revenue of $81,744, down approximately 6.16% year-over-year and reflecting a modest improvement of 6.15% quarter-over-quarter. Despite this slight recovery in revenues, the company remains under financial stress, concluding the quarter with a net loss of $156,461, primarily driven by high operating and interest expenses. The gross profit margin decreased significantly, recording a negative gross profit of $79,941 due to cost pressures and suboptimal pricing dynamics in the oil and gas market. Management remains hopeful for future improvements but acknowledges the need for strategic changes to enhance operational efficiency.
**Net Income**: -$156,461
- **Net Income Margin**: -1.914
**Operating Income**: -$106,792
- **Operating Income Margin**: -1.306
**Earnings per Share**: -$0.0017
Financial Highlights
### Financial Overview
- Revenue: $81,744
- YoY Change: -6.16%
- QoQ Change: +6.15%
- Gross Profit: -$79,941
- Gross Profit Margin: -0.978
- Net Income: -$156,461
- Net Income Margin: -1.914
- Operating Income: -$106,792
- Operating Income Margin: -1.306
- Earnings per Share: -$0.0017
The significant operating loss, primarily attributed to high fixed costs and substantial interest expenses totaling $49,669, underscores the challenging profitability landscape for NRIS. Management forecasts heightened spending in the upcoming quarter to mitigate these costs but highlights pressures from a volatile market.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
81.74K
-6.16%
6.15%
Gross Profit
-79.94K
-1.02%
-53.69%
Operating Income
-106.79K
3.87%
-28.09%
Net Income
-156.46K
-9.41%
-32.76%
EPS
0.00
-6.25%
-30.77%
Key Financial Ratios
currentRatio
0.92
grossProfitMargin
-97.8%
operatingProfitMargin
-130.6%
netProfitMargin
-191.4%
returnOnAssets
-36.9%
returnOnEquity
3.92%
debtEquityRatio
-0.8
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0.82
priceEarningsRatio
-5.2
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Key Management Insights Market Challenges and Strategy:
- "We are facing unprecedented challenges in the exploration segment. The current market dynamics are squeezing our margins, and we are focused on operational efficiency to navigate through these tough times." – CEO, Norris Industries
Future Initiatives:
- "Looking ahead, we are actively pursuing strategic partnerships and potential joint ventures to enhance our resource capabilities and secure more favorable pricing structures within the commodity sectors." – CFO, Norris Industries
These statements reflect the management’s recognition of the operational adjustments needed to improve financial health amidst an unstable industry backdrop.
We are facing unprecedented challenges in the exploration segment. The current market dynamics are squeezing our margins, and we are focused on operational efficiency to navigate through these tough times.
— CEO, Norris Industries
Looking ahead, we are actively pursuing strategic partnerships and potential joint ventures to enhance our resource capabilities and secure more favorable pricing structures within the commodity sectors.
— CFO, Norris Industries
Forward Guidance
Management has indicated a cautious outlook for Q4 2025, anticipating a potential stabilization of revenues but acknowledging the continued risk posed by fluctuating oil prices and ongoing operational cost challenges. They aim to reduce cash outflows through cost management initiatives and an adjustment in capital expenditure strategies. Investors should monitor cash flow trends closely as these will be critical in assessing the company's ability to sustain operations and service its debt obligations.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
NRIS Focus
-97.79%
-1.31%
3.92%
-5.20%
CEI
29.90%
-5.36%
-1.19%
-20.60%
INDO
21.40%
-92.10%
-3.48%
-18.37%
HUSA
-1.07%
-3.37%
-1.47%
-20.72%
MXC
42.00%
23.60%
2.60%
12.30%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the financial challenges outlined in this report, potential investors should exercise caution. While potential exists for Norris Industries to adapt through strategic partnerships and operational improvements, the current financial instability, characterized by continued net losses and a heavy debt load, presents heightened investment risk. Careful monitoring of market trends and management's ability to implement their strategic plan will be crucial in determining the future viability of an investment in Norris Industries.
Key Investment Factors
Growth Potential
Norris Industries has opportunities for growth through strategic partnerships and operational efficiency improvements, especially in resource management and reducing operating costs.
Profitability Risk
The key risks include significant debt levels, exposure to volatile oil prices, operational inefficiencies, and ongoing market pressures that could further impact profitability.
Financial Position
Norris Industries is currently facing a weak financial position with negative stockholders' equity of -$3,988,315 and long-term debt of $3,200,000, indicating challenges in ensuring liquidity over the near-term.
SWOT Analysis
Strengths
Established presence in Texas oil and gas sector.
Diverse drilling locations in the Ellenberger formation.
Weaknesses
Persistent operating losses and negative profit margins.
High debt burden relative to equity.
Poor liquidity indicators with a current ratio below 1.
Opportunities
Potential joint ventures to enhance operational capacity.
Market recovery could improve pricing and cost structures.
Threats
Volatile oil prices impacting revenue stability.
Increasing operational costs and regulatory pressures.