Capital (CAPD) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 37.6% year-over-year to $219.0 million, driven by improved drilling productivity, MSALABS momentum, and strong mining services execution.

• Adjusted EBITDA increased 70.4% to $54.7 million, with margin expanding to 25.0% from 20.2% in H1 2025.

• MSALABS delivered record H1 revenue of $44.7 million, up 44.7%, with adjusted EBITDA margin improving to 16.6%.

• Investment portfolio generated a $7 million gain in H1 2026, valued at $116.5 million.

• New long-term drilling and mining contracts commenced, including with Montage Gold, PDI Gold, Maaden, and others.

Financial highlights

• Adjusted EBITDA margin reached 25.0%, within the target range of 25–30%, despite wind-down costs in Mali and the U.S.

• Net debt at $43.3 million, with net debt/adjusted EBITDA at 0.4x.

• Interim dividend maintained at 1.3 cents per share.

• Operational NPAT margin improved to 7.1% from 1.3%.

• Operating cash flow up nearly 70% half-on-half, though working capital swung negative as mobilization payments unwound.

Outlook and guidance

• Revenue guidance raised to $430–$450 million for FY2026; MSALABS guidance held at $85–$95 million.

• CapEx guidance reiterated at $55–$65 million, with H2 weighted spend expected.

• Expectation of continued strong demand and improving returns, supported by robust market conditions and pipeline.