Master Drilling Group (MDI) investor relations material

Executive summary

• Revenue increased 4.9% year-over-year to $133.2 million, reaching a record high despite global market uncertainty and a 10% drop in utilization.

• Profit after tax surged 399% to $18.1 million, driven by a $4.6–$4.7 million impairment reversal on a major project.

• Strong operational turnaround and margin improvements in South America and Mexico, with new joint ventures and increased machine deployment.

• Continued focus on technology, automation, and digitalization, with strategic investments and successful field trials underpinning the 2030 vision.

• Safety performance mixed: LTIFR at 1.38, with over 4.3 million fatality-free shifts since 2018, but higher than 2024.

Financial highlights

• EBITDA margin at 21–21.1%, with EBITDA of $28.1 million; headline EPS up 6.7% to 9.6 cents, basic EPS up 485% to 11.7 cents.

• Net asset value per share at 148 US cents ($1.50), up 9.6%; shares trade at a 40% discount to NAV.

• Return on capital at 17.5%, return on equity improved to 16.3% (annualized).

• Cash generated from operations was $11–22 million; capital spend $13.8–14 million, mostly on maintenance and technology upgrades.

• Gearing ratio at 10.5%, up from 6.3% in 2024; working capital days at 71–71.2.

Outlook and guidance

• Order book at $305–305.6 million (up 10% YoY), pipeline at $515–515.3 million; $133 million of work confirmed for H2 2025.

• Utilization expected to improve slightly in H2, with revenue per operating rig to remain high.

• Guidance for H2 capital spend just over $3 million, with sufficient cash for future growth.

• Focus on disruptive technology, operational excellence, and further geographic and business diversification.

• Long-term contracts and diversified footprint provide stability and risk mitigation.