Major Drilling Group International (MDI) Q1 2025 earnings summary

Executive summary

• Strategic investments in DGI Geoscience and KORE GeoSystems, including a $15 million stake, enhance technology, AI, and data-driven drilling services, branded as Drillside Geo Solutions.

• Q1 2025 revenue reached $190 million, up 13% sequentially but down 4.5% year-over-year, with strong performance in Australia and Chile offsetting North American softness.

• EBITDA was $34.3 million (18.0% margin), down from $40.3 million (20.2% margin) in Q1 2024; net earnings were $15.9 million ($0.19/share) versus $21.8 million ($0.26/share) last year.

• Balance sheet remains robust, with a net cash position of $76.9 million and no long-term debt, supporting ongoing fleet modernization and technology investments.

• Diversified, high-quality customer base, with 85% of revenue from senior and intermediate mining companies and 68% of revenue from gold and copper.

Financial highlights

• Q1 2025 revenue was $190 million, down 4.5% year-over-year but up 13% sequentially.

• EBITDA was $34.3 million, down from $40.3 million year-over-year.

• Net earnings were $15.9 million ($0.19 per share), compared to $21.8 million ($0.26 per share) in the prior year quarter.

• Adjusted gross margin (excluding depreciation) was 28.9%, compared to 30.1% a year ago.

• G&A costs rose by $2 million year-over-year due to wage adjustments and non-recurring professional fees.

Outlook and guidance

• Q2 2025 revenue run rate expected to decline slightly due to continued weakness in North America and junior mining activity.

• Optimism for calendar 2025 driven by record gold prices and rising copper demand linked to global energy transition and AI infrastructure.

• Long-term outlook remains positive, with expectations of increased exploration budgets from senior miners as commodity prices strengthen.

• Full-year capital expenditures expected to total $65 million.

• Operational leverage and diversified revenue sources expected to drive future EBITDA growth.