Major Drilling Group International (MDI) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $189.3 million, stable sequentially but down 8.6% year-over-year, with Australasian and Chilean strength offsetting North American weakness.

• Net earnings were $18.2 million ($0.22/share), compared to $23.7 million ($0.29/share) in Q2 2024.

• Completed the acquisition of Explomin, expanding South American presence and adding 92 rigs, with $95 million revenue and $16 million EBITDA in the last 12 months.

• Canadian team recognized for safety, achieving over 1.1 million hours without a lost-time injury and winning the Safe Day Every Day Gold Award.

• Diversified, high-quality customer base, with 88% of revenue from senior and intermediate mining companies.

Financial highlights

• Q2 2025 revenue was $189.3 million, down from $207.0 million in Q2 2024.

• Adjusted gross margin was 30.5%, slightly down from 31% year-over-year.

• EBITDA was $38.7 million, down from $43.6 million year-over-year.

• Net cash position increased by $23.5 million to $100.4 million at quarter-end.

• Capital expenditures were $20.1 million, including five new drill rigs and support equipment.

Outlook and guidance

• Q3 2025 expected to be seasonally slower, with earlier holiday pauses in North America, partially offset by strength in Australia and Chile.

• Long-term optimism driven by higher gold prices, increased M&A, and financing activity rebound.

• Copper demand projected to rise 70% by 2050, with significant supply investment required.

• Demand from senior mining customers for 2025 expected to remain robust; optimism for junior activity as financing improves.

• Industry upcycle mirrors early 2000s, with current exploration activity at 60% of previous peak.