Master Drilling Group (MDI) H2 2025 earnings summary

Executive summary

• Record revenue of $292 million for 2025, up 8% year-over-year, driven by new machine deployments and strong performance in South America and Africa.

• Order book ended at $371 million, with a robust pipeline just under $1 billion, ensuring strong future visibility.

• Strategic focus on technology, automation, and international expansion, especially in digitalization, smart mining, and mechanical cutting.

• No fatalities for the eighth consecutive year, though Lost Time Injury Frequency Rate (LTIFR) increased to 1.55 from 0.81.

• Workforce grew to 3,300, with increased investment in training and high local employment rates.

Financial highlights

• EBITDA reached $57 million, with a margin of 19.6%, below the 25% target due to once-off costs.

• Headline earnings per share rose 5% in USD terms; profit before tax on a normalized basis up 14% year-over-year.

• Strong liquidity with a current ratio of 1.7; gearing increased to 9-10% but remains well below the 30% limit.

• Cash conversion ratio at 0.76, impacted by weaker working capital performance and increased receivables, especially in South America.

• $20 million capital spend, with two-thirds for expansion and one-third for maintenance.

Outlook and guidance

• 2026 pipeline already includes $250 million in confirmed work, with additional projects pending adjudication.

• CapEx discipline remains a priority, with no exceptional capital spend forecasted unless pipeline requirements change.

• Focus on joint ventures and collaborations for mega projects to provide end-to-end services.