Major Drilling Group International (MDI) Q4 2026 earnings summary

Executive summary

• Achieved record annual revenue of $889.1 million (CAD 889 million) in fiscal 2026, up 22% year-over-year, with Q4 revenue of $233.7 million, a 25% increase from the prior year period; all regions contributed to growth, especially Canada-U.S.

• Maintained a strong safety record with a TRIFR of 0.85 for the year.

• Operations span over 20 countries and six continents, with a fleet of 688 drills and approximately 6,000 employees.

• Maintains a low-risk profile through diversification by commodity, geography, and customer, with 87% of revenue from senior/intermediate mining companies.

• Strong balance sheet with $154.7 million in liquidity and a net cash position of $20.6 million as of Q4 2026.

Financial highlights

• EBITDA for Q4 was $28.0 million, a 37% increase year-over-year; full-year EBITDA was $102.9 million.

• Net earnings for Q4 were $8.2 million ($0.10 per share), up from $1.0 million ($0.01 per share) last year; full-year net earnings were $21.4 million ($0.26 per share), down from $26.0 million ($0.32 per share) in the prior year.

• Adjusted gross margin for Q4 was 22.0%, slightly down from 22.8% last year; full-year adjusted gross margin was 22.3%, down from 25.6% in the prior year.

• Ended the year with $62.6 million in cash and $27.4 million in long-term debt; net cash position improved to $20.6 million from net debt of $3.9 million a year earlier.

• Capital expenditures for fiscal 2026 were $61.0 million, below initial guidance, and are projected at $75 million for fiscal 2027.

Outlook and guidance

• Expects continued momentum in fiscal 2027, with rigs deployed at higher prices as senior and junior activity ramps up.

• Senior exploration budgets for 2026 have increased by approximately 35% year-over-year.

• Margin improvement is expected to lag revenue growth early in the year due to higher training and labor costs.

• Labor shortages remain the largest challenge, with increased training and hiring efforts underway, especially in Canada, U.S., Australia, and Chile.

• CapEx for fiscal 2027 projected at $75 million, with spending expected to be more evenly distributed throughout the year.