Major Drilling Group International (MDI) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of CAD 244.1 million for Q2 2026, up 29% year-over-year, led by strong Canadian and Peruvian growth and strategic market positioning.

• Maintains low-risk exposure through diversification by commodity, geography, and customer base, with 92% of revenue from senior/intermediate mining companies.

• Net earnings were CAD 13.9 million (CAD 0.17/share), down from CAD 18.2 million (CAD 0.22/share) last year, reflecting margin pressures and a temporary operational shutdown in Indonesia.

• Ended the quarter with CAD 14.3 million net cash and over CAD 149 million in available liquidity, after increasing the cash position by CAD 17.6 million.

• Announced a Normal Course Issuer Bid to repurchase up to 5% of shares over 12 months, aiming to capitalize on share price weakness.

Financial highlights

• Q2 2026 revenue was CAD 244.1 million, up 7.8% sequentially and 29% year-over-year.

• Adjusted gross margin (excluding depreciation) was 26.0%, down from 30.5% a year ago due to competitive pricing and training costs.

• EBITDA was CAD 37.7 million, slightly down from CAD 38.7 million last year; net earnings were CAD 13.9 million (CAD 0.17/share) vs. CAD 18.2 million (CAD 0.22/share) last year.

• Capital expenditures totaled CAD 11.8 million, with two new rigs added and four older rigs disposed; total rig count at 707.

• Cash position increased by CAD 17.6 million, ending with CAD 14.3 million net cash and over CAD 149 million in available liquidity.

Outlook and guidance

• Q3 is expected to be seasonally weak due to holiday shutdowns and ongoing training/maintenance, with margins slightly impacted.

• Positive outlook for 2026, supported by high gold and copper prices, increased junior financings, and rising demand for critical minerals.

• Labor shortages may temporarily pressure costs, but industry demand is expected to drive pricing and margin recovery.

• Exploration budgets remain below prior peaks, indicating further upside potential.

• Increased free cash flow and depleted reserves among producers expected to drive demand for drilling.