Major Drilling Group International (MDI) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue reached $727.6 million, up 3% year-over-year, with Q4 revenue at $187.5 million, up 12% from the same quarter last year.

• Achieved a new safety record with a TRIFR of 0.74, the lowest in company history, reflecting a strong safety culture.

• Completed the acquisition of Explomin, expanding operations in Peru, Colombia, and the Dominican Republic, and driving significant regional growth.

• Advanced drill site geo-solutions and technology partnerships, including DGI, KORE GeoSystems, and Drillside GeoSolutions, and deployed proprietary Rock5 and hands-free rod handling systems.

• EBITDA for fiscal 2025 was $101.3 million, down from $120.5 million the prior year; Q4 EBITDA was $20.5 million.

Financial highlights

• Q4 revenue was $187.5 million, up 11.6% year-over-year, driven by South and Central America, partially offset by Canada and the U.S.

• Adjusted gross margin for Q4 was 22.8% (down from 26.9% last year); for the year, 25.6% (down from 28.4%).

• EBITDA for the quarter was $20.5 million, down from $25.3 million year-over-year; net earnings were $1 million ($0.01/share) versus $9.9 million ($0.12/share) last year.

• G&A costs rose to $78.8 million for the year, up $11.0 million, mainly from the Explomin acquisition and wage adjustments.

• Ended the quarter with $3.9 million in net debt and total available liquidity of $123 million.

Outlook and guidance

• Q1 fiscal 2026 revenue expected to grow by approximately 20% sequentially from Q4 2025, with margin improvement anticipated.

• Expects strong fiscal 2026, supported by increased exploration budgets from senior mining companies and robust commodity prices.

• Fiscal 2026 CapEx projected at approximately $70 million, focused on technology upgrades and fleet modernization.

• Junior miners still face capital-raising challenges, but recent financing activity may boost demand.

• Gold prices at record highs and resilient copper prices reinforce sector optimism.