Major Drilling Announces First Quarter 2026 Results
NEWS RELEASE
Major Drilling Announces First Quarter 2026 Results
MONCTON, New Brunswick (September 8, 2025) – Major Drilling Group International Inc. (“Major Drilling” or
the “Company”) (TSX: MDI), the largest provider of specialized drilling services to the mining sector, today reported results
for the first quarter of fiscal 2026, ended July 31, 2025.
Quarterly Highlights:
•Revenue of $226.6 million, a 20.8% increase from the prior quarter, and a 19.3% increase relative to the same
period last year.
•Adjusted gross margin (1) of 25.2%, an increase from the 22.8% recorded in the prior quarter, but below the
28.9% achieved in the same period last year.
•EBITDA (1) of $32.1 million, a slight decrease when compared to the $34.3 million generated in the same period
last year.
•Capital expenditures totaled $14.4 million as the Company benefited from previous investments in the fleet,
while relocating rigs within certain regions to areas with growing demand.
“As expected, operations ramped up sharply in the first fiscal quarter of 2026, with revenue growing by 20.8% from the
prior quarter. We were particularly pleased with activity levels in Peru and Chile, which helped offset a slowdown in the
Australasian region caused by pauses at certain projects due to changes in drill programs,” said Denis Larocque, President
and CEO of Major Drilling.
“While project delays due to market uncertainty resulted in a slower start to the calendar year, activity levels ramped up
through April and May as expected, with a few additional projects also coming online in June and July. While these new
projects resulted in additional training, mobilization, and startup costs, the impact on margins in the current quarter was
lower when compared to fiscal Q4 2025,” Mr. Larocque continued.
“We continue to see increasing levels of demand for drilling services in the South & Central American region, in particular
Peru, which is expected to offset any weakness in the Australasian market. Our strong safety culture, along with our well-
maintained fleet, value-added drill side innovations, optimal levels of inventory, and experienced crews, all combine to
solidify our position as the industry leader, not just in these regions, but around the world,” continued Mr. Larocque.
“In fiscal Q1, the Company generated $32.1 million in EBITDA, a slight decrease when compared to the same period last
year. EBITDA in the quarter was impacted by lower gross margins, reflective of the current competitive pricing environment
in North America. The Company continues to benefit from Explomin’s stable, longer-term contracts with a higher proportion
of underground operations, although at the expected lower margin profile,” said Ian Ross, CFO of Major Drilling.
“The Company’s balance sheet remains strong with net debt (see "Non-IFRS measures") of $2.8 million, while working
capital grew by $13.1 million to $206.8 million, driven by an increase in receivables coinciding with the ramp-up in activity
levels," continued Mr. Ross. “During the quarter, we strategically relocated drill rigs within certain regions to areas
experiencing higher levels of demand which, when combined with previous investments in the fleet, resulted in lower than
expected capital expenditures of $14.4 million in the quarter. A total of 5 new drill rigs were added, while 4 older, less
efficient rigs were disposed of, bringing the total rig count to 709 at quarter-end,” concluded Mr. Ross.
“With rising gold and copper prices, current market conditions remain fluid with uncertainty around tariffs and other
geopolitical concerns. Looking ahead to the next quarter, the Company expects to see some continued top-line momentum
driven by additional project start-ups, with the potential for modest margin improvement. Looking out further, we remain
optimistic on the North American region, as the junior financing market has begun to show signs of life, while discussions
surrounding more streamlined permitting processes in both Canada & the U.S. could also lead to an increase in activity,”
concluded Mr. Larocque.
In millions of Canadian dollars (except earnings per share) Q1 2026 Q1 2025
Revenue $ 226.6 $ 190.0
Gross margin 18.6% 22.1%
Adjusted gross margin (1) 25.2% 28.9%
EBITDA (1) 32.1 34.3
As percentage of revenue 14.1% 18.0%
Net earnings 10.1 15.9
Earnings per share 0.12 0.19
(1) See “Non-IFRS Financial Measures”
First Quarter Ended July 31, 2025
Total revenue for the quarter was $226.6 million, up 19.3% from revenue of $190.0 million recorded in the same quarter
last year. Excluding Explomin, revenue for the quarter would have been $178.7 million, down 6.0% from the same quarter
last year. The unfavourable foreign exchange translation impact on revenue, when compared to the effective rates for the
same period last year, was approximately $1 million, while the impact on net earnings was minimal as expenditures in
foreign jurisdictions tend to be in the same currency as revenue.
Revenue for the quarter from Canada - U.S. drilling operations decreased by 3.6% to $84.1 million, compared to the same
quarter last year. Customer-related delays due to permitting and forest fires negatively impacted the region at the start of
the quarter, however activity levels began to improve at quarter-end.
South and Central American revenue increased by 92.4% to $95.8 million for the quarter, compared to the same quarter
last year. Within the region, Explomin contributed a total of $47.9 million in revenue as its revenue run-rate continues to
increase following the closing of the acquisition in November. Activity levels also grew in Chile, however this was somewhat
offset by challenging markets in Argentina and Mexico.
Australasian and African revenue decreased by 11.9% to $46.8 million, compared to the same period last year. Unexpected
modifications to certain drill programs caused the decrease in the quarter, however the region continues to see a high level
of demand for the Company's specialized services.
Gross margin percentage for the quarter was 18.6%, compared to 22.1% for the same period last year. Depreciation expense
totaling $14.9 million is included in direct costs for the current quarter, versus $12.9 million in the same quarter last year.
Adjusted gross margin, which excludes depreciation expense, was 25.2% for the quarter, compared to 28.9% for the same
period last year. The decrease in margins from the previous year is reflective of the competitive environment in North
America. The margin profile for Explomin, with long-term contracts and a higher proportion of underground drilling, results
in lower margins, as expected, however provides increased geographic diversification and revenue stability.
General and administrative costs were $21.4 million, an increase of $3.2 million compared to the same quarter last year.
This increase was driven by the addition of Explomin and annual inflationary wage adjustments.
Amortization of intangible assets was $1.5 million, an increase of $1.2 million over the same quarter last year due to the
addition of intangibles recognized as part of the Explomin acquisition.
Other expenses were $3.3 million, up from $3.0 million in the same quarter last year, due to costs associated with strategic
initiatives.
Foreign exchange loss was $1.5 million, compared to a loss of $0.8 million for the same quarter last year. While the
Company's reporting currency is the Canadian dollar, various jurisdictions have net monetary assets or liabilities exposed
to various other currencies.
The income tax provision for the quarter was an expense of $3.9 million, compared to $4.9 million for the same quarter last
year. The reduction was the result of reduced profitability.
Net earnings were $10.1 million or $0.12 per share ($0.12 per share diluted) for the quarter, compared to net earnings of
$15.9 million or $0.19 per share ($0.19 per share diluted) for the prior year quarter.
Non-IFRS Financial Measures
The Company’s financial data has been prepared in accordance with IFRS ® Accounting Standards, with the exception of
certain financial measures detailed below. The measures below have been used consistently by the Company’s management
team in assessing operational performance on both segmented and consolidated levels, and in assessing the Company’s
financial strength. The Company believes these non-IFRS financial measures are key, for both management and investors,
in evaluating performance at a consolidated level and are commonly reported and widely used by investors and lending
institutions as indicators of a company’s operating performance and ability to incur and service debt, and as a valuation
metric. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to
similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to
other financial measures determined in accordance with IFRS.
EBITDA - earnings before interest, taxes, depreciation, and amortization:
(in $000s CAD) Q1 2026 Q1 2025
Net earnings $ 10,071 $ 15,871
Finance (revenues) costs 632 (664)
Income tax provision 3,889 4,915
Depreciation and amortization 17,466 14,139
EBITDA $ 32,058 $ 34,261
Adjusted gross profit/margin - excludes depreciation expense:
(in $000s CAD) Q1 2026 Q1 2025
Total revenue $ 226,618 $ 190,042
Less: direct costs 184,461 148,062
Gross profit 42,157 41,980
Add: depreciation 14,911 12,860
Adjusted gross profit 57,068 54,840
Adjusted gross margin 25.2% 28.9%
Net cash (debt) – cash net of debt, excluding lease liabilities reported under IFRS 16 Leases:
(in $000s CAD) July 31, 2025 April 30, 2025
Cash and cash equivalents $ 47,078 $ 45,987
Contingent consideration (22,192) (22,210)
Long-term debt (27,658) (27,682)
Net cash (debt) $ (2,772) $ (3,905)
Forward-Looking Statements
This news release includes certain information that may constitute “forward-looking information” under applicable
Canadian securities legislation. All statements, other than statements of historical facts, included in this news release that
address future events, developments, or performance that the Company expects to occur (including management’s
expectations regarding the Company’s objectives, strategies, financial condition, results of operations, cash flows and
businesses) are forward-looking statements. Forward-looking statements are typically identified by future or conditional
verbs such as “outlook”, “believe”, “anticipate”, “estimate”, “project”, “expect”, “intend”, “plan”, and terms and expressions
of similar import. All forward-looking information in this news release is qualified by this cautionary note.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation,
the expectations and beliefs of management related to the factors set forth below. While these factors and assumptions are
considered reasonable by the Company as at the date of this document in light of management’s experience and perception
of current conditions and expected developments, these statements are inherently subject to significant business, economic
and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially
from those projected in the forward-looking statements and undue reliance should not be placed on such statements and
information.
Such forward-looking statements are subject to a number of risks and uncertainties that include, but are not limited to: the
level of activity in the mining industry and the demand for the Company’s services; competitive pressures; global and local
political and economic environments and conditions; measures affecting trade relations between countries, including the
imposition of tariffs and countermeasures, as well as the possible impacts on the Company's clients, operations and, more
generally, the economy; changes in jurisdictions in which the Company operates (including changes in regulation); the
integration of business acquisitions and the realization of the intended benefits of such acquisitions; the level of funding for
the Company’s clients (particularly for junior mining companies); exposure to currency movements (which can affect the
Company’s revenue in Canadian dollars); currency restrictions; efficient management of the Company’s growth; the
Company’s dependence on key customers; the impact of operational changes; safety of the Company’s workforce; risks and
uncertainties relating to climate change and natural disasters; the geographic distribution of the Company’s operations;
failure by counterparties to fulfill contractual obligations; disease outbreak; as well as other risk factors described under
“General Risks and Uncertainties” in the Company’s MD&A for the year ended April 30, 2025, available on the SEDAR+
website at www.sedarplus.ca. Should one or more risk, uncertainty, contingency, or other factor materialize or should any
factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-
looking information.
Forward-looking statements made in this document are made as of the date of this document and the Company disclaims
any intention and assumes no obligation to update any forward-looking statement, even if new information becomes
available, as a result of future events, or for any other reasons, except as required by applicable securities laws.
About Major Drilling
Major Drilling Group International Inc. is the world’s leading provider of specialized drilling services in the metals and
mining industry. The diverse needs of the Company’s global clientele are met through field operations and registered offices
that span across North America, South America, Australia, Asia, Africa, and Europe. Established in 1980, the Company has
grown to become a global brand in the mining space, known for tackling many of the world’s most challenging drilling
projects. Supported by a highly skilled workforce, Major Drilling is led by an experienced senior management team who
have steered the Company through various economic and mining cycles, supported by regional managers known for
delivering decades of superior project management.
Major Drilling is regarded as an industry expert at delivering a wide range of drilling services, including reverse circulation,
surface and underground coring, directional, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas,
underground percussive/longhole, and surface drill and blast, along with the ongoing development and evolution of its suite
of data and technology-driven innovation services.
Webcast/Conference Call
Major Drilling Group International Inc. will provide a simultaneous webcast and conference call to discuss its quarterly
results on Tuesday, September 9, 2025 at 8:00 am (EDT). To access the webcast, which includes a slide presentation, please
go to the investors/webcasts section of Major Drilling’s website at www.majordrilling.com and click on the link. Please note
that this is listen-only mode.
To participate in the conference call, please dial 416-340-2217, participant passcode 9449318# and ask for Major Drilling’s
First Quarter Results Conference Call. To ensure your participation, please call in approximately five minutes prior to the
scheduled start of the call.
For those unable to participate, a taped rebroadcast will be available approximately one hour after the completion of the
call until Tuesday, September 30, 2025. To access the rebroadcast, dial 905-694-9451 and enter the passcode 7582287#.
The webcast will also be archived for one year and can be accessed on the Major Drilling website at www.majordrilling.com.
For further information:
Ryan Hanley
Director, Corporate Development & Investor Relations
Tel: (506) 857-8636
Fax: (506) 857-9211
Major Drilling Group International Inc.
Interim Condensed Consolidated Statements of Operations
(in thousands of Canadian dollars, except per share information)
(unaudited)
Three months ended
July 31
2025 2024
TOTAL REVENUE $ 226,618 $ 190,042
DIRECT COSTS (note 8) 184,461 148,062
GROSS PROFIT 42,157 41,980
OPERATING EXPENSES
General and administrative (note 8) 21,368 18,238
Amortization of intangible assets 1,530 271
Other expenses 3,291 2,956
(Gain) loss on disposal of property, plant and equipment (120) (391)
Foreign exchange (gain) loss 1,496 784
Finance (revenues) costs 632 (664)
28,197 21,194
EARNINGS BEFORE INCOME TAX 13,960 20,786
INCOME TAX EXPENSE (RECOVERY) (note 9)
Current 6,597 5,503
Deferred (2,708) (588)
3,889 4,915
NET EARNINGS $ 10,071 $ 15,871
EARNINGS PER SHARE (note 10)
Basic $ 0.12 $ 0.19
Diluted $ 0.12 $ 0.19
Major Drilling Group International Inc.
Interim Condensed Consolidated Statements of Comprehensive Earnings
(in thousands of Canadian dollars)
(unaudited)
Three months ended
July 31
2025 2024
NET EARNINGS $ 10,071 $ 15,871
OTHER COMPREHENSIVE EARNINGS
Items that may be reclassified subsequently to profit or loss
Unrealized gain (loss) on foreign currency translations (537) 2,784
Unrealized gain (loss) on derivatives (net of tax) 106 (23)
COMPREHENSIVE EARNINGS $ 9,640 $ 18,632
Major Drilling Group International Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the three months ended July 31, 2025 and 2024
(in thousands of Canadian dollars)
(unaudited)
Retained Other Share-based Foreign currency
Share capital earnings reserves payments reserve translation reserve Total
BALANCE AS AT MAY 1, 2024 $ 262,679 $ 151,740 $ (18) $ 3,630 $ 75,801 $ 493,832
Exercise of stock options 397 - - (109) - 288
Share-based compensation - - - 42 - 42
263,076 151,740 (18) 3,563 75,801 494,162
Comprehensive earnings:
Net earnings - 15,871 - - - 15,871
Unrealized gain (loss) on foreign
currency translations - - - - 2,784 2,784
Unrealized gain (loss) on derivatives - - (23) - - (23)
Total comprehensive earnings - 15,871 (23) - 2,784 18,632
BALANCE AS AT JULY 31, 2024 $ 263,076 $167,611 $ (41) $ 3,563 $ 78,585 $ 512,794
BALANCE AS AT MAY 1, 2025 $ 263,108 $177,695 $ (293) $ 3,615 $ 77,973 $ 522,098
Exercise of stock options 345 - - (96) - 249
Share-based compensation - - - 11 - 11
Stock options expired/forfeited - 22 - (22) - -
263,453 177,717 (293) 3,508 77,973 522,358
Comprehensive earnings:
Net earnings - 10,071 - - - 10,071
Unrealized gain (loss) on foreign
currency translations - - - - (537) (537)
Unrealized gain (loss) on derivatives - - 106 - - 106
Total comprehensive earnings - 10,071 106 - (537) 9,640
BALANCE AS AT JULY 31, 2025 $ 263,453 $187,788 $ (187) $ 3,508 $ 77,436 $ 531,998