Major Drilling Group International (MDI) Q3 2025 earnings summary

Executive summary

• Revenue rose 21% year-over-year to $160.7 million in Q3 2025, driven by the Explomin acquisition, expanding into three new markets and enhancing access to senior customer contracts.

• Achieved the lowest total recordable injury frequency rate in company history and received industry safety awards.

• 94% of revenue sourced from senior and intermediate mining companies, including top industry names.

• Well positioned for a multi-year upcycle driven by rising gold and copper prices, with 75% of revenue from these commodities.

• Ended the quarter with $11.4 million in net cash after the largest acquisition in company history.

Financial highlights

• Q3 2025 revenue was $160.7 million, up 21% year-over-year, primarily due to Explomin; excluding Explomin, revenue was $127.9 million (down 3.7%).

• Adjusted gross margin was 19.5%, down from 23.4% year-over-year.

• EBITDA was $7.8 million, down from $11.4 million in the prior year.

• Net loss of $9.1 million ($0.11 per share), compared to a net loss of $2.3 million ($0.03 per share) last year.

• Ended Q3 with $63.0 million in cash and $11.4 million net cash position after $12.6 million in capital expenditures.

Outlook and guidance

• Anticipates a ramp-up in activity to match prior year levels by late March/April, with strong activity expected for the remainder of 2025.

• Senior gold and copper customers have increased exploration budgets for 2025, and junior financings have improved recently.

• Exploration spending remains below the 2012 peak, but industry trends and customer discussions indicate robust demand ahead.

• Retention of experienced crews is a strategic focus, expected to impact margins early in Q4.

• Company maintains operational leverage and a healthy balance sheet to capitalize on growth opportunities.