Master Drilling Group (MDI) H1 2026 earnings summary

Executive summary

• Revenue reached a record interim high of USD 155.8 million, up 17% year-over-year, driven by strategic capital investment, operational improvements, and technology adoption.

• Headline earnings per share increased 16.7% to 11.2 US cents, while profit after tax declined 3.9% to USD 17.4 million due to project delays and equipment constraints.

• Focus on safety, with LTIFR improving to 0.50 in H1 2026 from 0.83 in 2025, and workforce rising to 3,341 with 97% local employment.

• Continued innovation in automation, digitalisation, and advanced drilling technologies, including AI-powered safety and communication systems.

• No interim dividend declared for H1 2026; a special dividend of 40.0 ZAR cents per share for FY2025 was paid in August 2026.

Financial highlights

• EBITDA reached USD 33.6 million (21.6% margin), with adjusted margin near 24% excluding USD 4 million ERP rollout costs.

• Return on equity at 14% and return on capital employed at 15.3%, both improved from prior year.

• Net working capital days at 97.5, with a $28 million outflow in H1 and current ratio of 1.92.

• Gearing ratio increased to 14.9% (2025: 9.1%) due to higher capital investment and borrowings.

• Cash at period end was USD 38.8 million, up from USD 32.0 million at the start.

Outlook and guidance

• Strong order book at over USD 400 million and pipeline exceeding USD 1 billion, both record highs, supporting activity into 2027.

• Expectation of continued revenue growth in H2 2026, with normalization of payables and improved working capital management.

• Strategic focus on digitalisation, automation, and expansion into new markets and commodities.

• Management prioritizes safe execution, improved fleet utilization, margin protection, and selective growth.

• External risks include geopolitical volatility, supply chain disruption, and cost inflation.