Master Drilling Group (MDI) H2 2025 earnings summary

Executive summary

• Record revenue of $292 million for 2025, up 7.8% 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 totaling nearly $1 billion, ensuring strong future visibility.

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

• Achieved zero 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%, down from 21.5% in 2024 due to once-off costs.

• Headline earnings per share rose to 18.4 US cents; profit before tax on a normalized basis up 14% year-over-year.

• Strong liquidity with a current ratio of 1.7; gearing increased to 9.1% 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.

• Partial reversal of impairment loss of $4.5 million and ERP implementation cost of $4.4 million in 2025.

Outlook and guidance

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

• Strong pipeline of nearly $1 billion, with significant awarded and high-probability projects extending through 2028 and beyond.

• 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.

• Strategic capital investment program underway to support future growth and technology adoption.