Master Drilling Group (MDI) H2 2025 earnings summary

Executive summary

• Achieved 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.

• Maintained a robust order book and pipeline totaling just under $1 billion, supporting future growth visibility.

• Strategic focus on technology, automation, and international expansion, especially in AI, robotics, and autonomous drilling.

• Achieved zero fatalities for the eighth consecutive year, though Lost Time Injury Frequency Rate (LTIFR) increased to 1.55 from 0.81.

• Advanced commercialization of new technologies and digitalization initiatives.

Financial highlights

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

• Headline earnings per share rose to 18.4 US cents; normalized profit before tax up 14% year-over-year to $44 million.

• Return on capital improved to 14.5%; return on equity at 10%.

• Gearing increased to 9.1%, with $40 million in cash and $20 million in undrawn facilities.

• Cash conversion ratio at 0.76, impacted by higher working capital days (81 vs. 65 prior year), mainly due to increased South American receivables.

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 for 2026 expected to be moderate, with $6 million already committed; focus remains on disciplined spending and leveraging existing equipment.

• Continued emphasis on technology commercialization, joint ventures, and end-to-end service offerings.

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