Major Drilling Group International (MDI) Q1 2026 earnings summary

Executive summary

• Revenue reached $226.6 million, up 20.8% sequentially and 19.3% year-over-year, driven by strong activity in Peru and Chile, offsetting Australasian project delays and North American challenges.

• Net earnings declined to $10.1 million ($0.12/share) from $15.9 million ($0.19/share) year-over-year.

• Adjusted gross margin was 25.2%, down from 28.9% year-over-year, reflecting competitive pricing and Explomin’s lower-margin profile.

• EBITDA was $32.1 million, compared to $34.3 million in the prior year period.

• Strategic acquisition of Explomin Perforaciones expanded South American presence, adding 92 rigs and contributing to revenue growth and diversification.

Financial highlights

• Quarterly revenue reached $226.6 million, up 19.3% year-over-year; excluding Explomin, revenue would have been $178.7 million, down 6.0%.

• Adjusted gross margin was 25.2% (down from 28.9% last year); reported gross margin was 18.6% (down from 22.1%).

• EBITDA was $32.1 million, down from $34.3 million year-over-year.

• Net earnings were $10.1 million ($0.12/share), down from $15.9 million ($0.19/share) year-over-year.

• Working capital increased by $13.1 million to $206.8 million, driven by higher receivables.

Outlook and guidance

• Continued top-line momentum expected in the next quarter, especially in South America, with Peru’s revenue run rate growing post-Explomin acquisition.

• Optimism for North America as junior financing and permitting discussions improve.

• Senior exploration budgets increased by 21% year-over-year, supporting future demand.

• High gold and copper prices anticipated to support further exploration budget growth.

• No significant incremental CAPEX expected due to prior investments and strong fleet condition.