Major Drilling Group International (MDI) Q3 2026 earnings summary

Executive summary

• Revenue rose to $244.1 million in FQ2 2026, up 29% year-over-year, driven by strong demand, commodity price tailwinds, and strategic preparations for higher activity in 2026.

• Net earnings were $13.9 million in FQ2 2026, down from $18.2 million year-over-year, while Q3 2026 saw a net loss of $10.8 million ($0.13/share), reflecting higher labor, mobilization, and maintenance costs.

• The company maintains robust liquidity, with net cash positions of $39.6 million and $14.3 million reported, and total liquidity reaching $177.1 million.

• Strategic acquisition of Explomin Perforaciones in Peru added 92 rigs, expanding South American operations and enhancing diversification.

• Aggressive maintenance, inventory buildup, and labor retention were prioritized to ensure readiness for increased demand.

Financial highlights

• Revenue rose 14.9% year-over-year to $184.6 million in Q3 2026, with Canada and the U.S. driving growth, partially offset by declines in Australasia and Africa.

• Adjusted gross margin was 14.3% in Q3 2026, down from 19.5% last year, and 26.0% in FQ2 2026, down from 30.5% in FQ2 2025.

• EBITDA was $5.1 million in Q3 2026 (down from $7.8 million), and $37.7 million in FQ2 2026 (slightly lower than $38.7 million prior year).

• Net cash position increased by over $25 million to $39.6 million; total liquidity reached $177.1 million.

• CapEx was $10.3 million in Q3 2026 and $11.8 million in FQ2 2026, both below prior year levels, with ongoing fleet modernization and 13 older rigs disposed.

Outlook and guidance

• Expectation of continued ramp-up in activity and revenue growth through Q4 and into fiscal 2027, with additional rigs deployed at higher pricing.

• Margins anticipated to improve gradually as pricing offsets labor cost pressures, but improvement will lag revenue growth.

• CapEx for fiscal 2026 will be below CAD 70 million guidance; fiscal 2027 CapEx guidance to be provided next quarter.

• Record gold and copper prices are expected to drive increased exploration budgets and drilling demand.

• Exploration spending remains below prior peaks, indicating further upside potential as budgets catch up to commodity prices.