Major Drilling Group International (MDI) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $706.7 million, the third highest in company history, despite a 4% year-over-year decline due to challenging commodity prices and limited financing for junior miners.

• Leading global provider of specialized drilling services for mining, operating in over 20 countries with a fleet of approximately 600 drills and 3,400 employees.

• Maintained industry-leading safety performance with a record low total recordable incident rate of 1.14.

• 82% of revenue sourced from senior and intermediate mining companies, ensuring stability and repeat business.

• Continued investment in equipment, innovation, and workforce to prepare for anticipated growth in drilling demand.

Financial highlights

• Fiscal year 2024 gross revenue reached $706.7M, EBITDA $120.5M, net earnings $53.1M, and EPS $0.64.

• Q4 2024 revenue was $168.0M, down from $185.0M in Q4 2023; net earnings were $9.9M versus $20.8M year-over-year.

• Q4 2024 adjusted gross margin was 26.9%, down from 30.8% in Q4 2023.

• EBITDA for fiscal 2024 was $120.5 million, down from $144.2 million in fiscal 2023; Q4 EBITDA was $25.3 million, down from $37.2 million.

• Ended the year with a net cash position of $87.4 million and no long-term debt.

Outlook and guidance

• Fiscal 2025 outlook remains positive, with drilling activity returning to prior-year levels and strong demand expected for copper and gold, which account for 65–75% of activity.

• Industry-wide exploration budgets remain below 2012 peak, suggesting a multi-year growth cycle ahead for specialized drilling services.

• Anticipates increased activity in regions like Chile, Brazil, and potentially Argentina, especially for copper.

• Demand for battery metals (nickel, zinc, lithium, silver) expected to grow with global electrification trends.

• Anticipates $65 million in capex for fiscal 2025, focusing on technology upgrades and fleet modernization.