Major Drilling Announces Fourth Quarter and Fiscal Year 2025 Results as Activity Ramps Up
NEWS RELEASE
Major Drilling Announces Fourth Quarter and Fiscal Year 2025 Results
as Activity Ramps Up
MONCTON, New Brunswick (June 11, 2025) – Major Drilling Group International Inc. (“Major Drilling” or the
“Company”) (TSX: MDI), a leading provider of specialized drilling services to the mining sector, today reported results for
the fourth quarter and fiscal year 2025, ended April 30, 2025.
Fiscal 2025 Highlights
•Recorded revenue of $727.6 million compared to $706.7 million in the prior year period.
•EBITDA (1) of $101.3 million compared to $120.5 million in the prior year period.
•Completed the acquisition of Explomin, increasing the Company’s South American exposure, supplementing
increased activity levels in the region.
•Invested $72.5 million in capital expenditures in anticipation of elevated levels of activity in fiscal 2026.
•Achieved a Total Recordable Incident Frequency Rate (“TRIFR”) of 0.74 for fiscal 2025, the lowest in the
Company’s 45-year history.
Q4 2025 Summary
•Revenue of $187.5 million, up 12% from $168.0 million recorded in the same quarter last year.
•Adjusted gross margins (1) of 22.8% compared to 26.9% in the prior year as the Company incurred increased
startup and mobilization costs in preparation for a busy upcoming quarter.
•Activity levels increased in the final weeks of the quarter, driving strong momentum, which is expected to lead
to continued revenue growth.
“Fiscal 2025 marked a pivotal year for the Company, with the successful acquisition of Explomin Perforaciones ("Explomin")
in November 2024, bolstering the foundation for a strong path toward further growth heading into fiscal 2026. As we move
into the new year, there have been several positive indications with respect to exploration spending, most notably from the
larger exploration budgets outlined by several of our senior customers in conjunction with their year-end results,” said
Denis Larocque, President and CEO of Major Drilling.
“Market hesitation due to tariff-related economic uncertainty impacted performance during the quarter as several project
startups were delayed. These programs ramped up through March and accelerated into April, resulting in some training,
mobilization, and startup costs impacting our margins in fiscal Q4,” Mr. Larocque continued.
“While we prepare for a busier fiscal year, we remain proud of our top-tier safety record, as we achieved a TRIFR of 0.74 in
fiscal 2025, the lowest in Company history. Our strong safety culture, along with our well-maintained fleet of rigs, strong
levels of inventory, and experienced crews, all combine to solidify our position as an industry leader,” concluded Mr.
Larocque.
“With a sharp increase in activity expected over the coming months, we spent $18.6 million on capex during the quarter.
This included the addition of 7 new drill rigs, while we disposed of 4 older, less efficient rigs, bringing the total rig count to
708 at fiscal year-end. Our fourth quarter, and annual capex spend of $72.5 million, include the purchase of additional
ancillary support equipment as well as the latest technology, including our Drillside GeoSolutions products and hands-free
rod handlers in order to meet the rigorous standards of our senior customer base,” said Ian Ross, CFO of Major Drilling.
“In fiscal Q4, the Company generated $20.5 million in EBITDA, with startup and mobilization costs having a negative impact
on margins, as previously discussed. The Company’s balance sheet remains strong with net debt (see "Non-IFRS measures")
of $3.9 million and total available liquidity of $123 million,” concluded Mr. Ross.
“Looking ahead, given the sharp ramp-up in activity we experienced at the end of the fiscal year, we expect fiscal 2026 Q1
revenue to grow by approximately 20% relative to fiscal 2025 Q4 levels. With a year-over-year increase in exploration
budgets outlined by several senior mining companies, combined with a slower start to the exploration season, this points
to a promising outlook for the balance of the year. In contrast, junior miners continue to face challenges in securing funding,
which seems to be improving as the year progresses, albeit at a slow pace. The growing demand for our services puts us in
an optimal position for the upcoming year, as gold prices have reached record highs, while copper prices remain resilient,
further reinforcing a positive outlook for the sector," continued Mr. Larocque.
“Despite the pressing need to replenish mineral reserves for both gold and critical metals, exploration spending has not yet
caught up to levels required to address this issue. According to S&P Global Market Intelligence, global non-ferrous
exploration budgets reached $12.5 billion in 2024, which is only 60% of the $21.5 billion spent at the peak of the last cycle
in 2012 (non-inflation adjusted). The mining industry remains in the discovery phase and will need to undergo an intensive,
multi-year exploration and infill drilling period to develop new mines and address the projected supply gaps in various
commodities. Many of these new mineral deposits will be in challenging, hard-to-reach areas, necessitating complex drilling
solutions and increasing the demand for Major Drilling’s specialized services.”
“Our position as the leader in specialized drilling continues to be a factor in attracting business from senior companies, and
we are proud to maintain the industry's largest, most modern fleet. To strengthen our leadership position in the industry,
the Company expects to spend approximately $70 million in capital expenditures in fiscal 2026, including further
investments to equip our rigs with the latest technology,” concluded Mr. Larocque.
In millions of Canadian dollars (except
earnings per share) Q4 2025 Q4 2024 YTD 2025 YTD 2024
Revenue $ 187.5 $ 168.0 $ 727.6 $ 706.7
Gross margin 14.8% 19.3% 17.9% 21.6%
Adjusted gross margin (1) 22.8% 26.9% 25.6% 28.4%
EBITDA (1) 20.5 25.3 101.3 120.5
As percentage of revenue 10.9% 15.0% 13.9% 17.1%
Net earnings 1.0 9.9 26.0 53.1
Earnings per share 0.01 0.12 0.32 0.64
(1) See “Non-IFRS Financial Measures”
Fourth Quarter Ended April 30, 2025
Total revenue for the quarter was $187.5 million, up 11.6% from revenue of $168.0 million recorded in the same quarter
last year. Excluding Explomin, revenue for the quarter would have been $149.9 million, down 11% from the same quarter
last year. The favourable foreign exchange translation impact on revenue for the quarter, when compared to the effective
rates for the same period last year, was approximately $5 million, with minimal impact on net earnings 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 21.1% to $58.8 million, compared to the same
period last year due to a slow start to the quarter as many projects were delayed entering the new calendar year. As well,
the junior market remained negatively impacted by a lack of access to capital.
South and Central American revenue increased by 78.5% to $88.0 million for the quarter, compared to the same quarter
last year. The Explomin acquisition was the main driver of growth in the region, however, the Chilean market also
contributed positively to the quarter, which helped offset reduced activity in Argentina.
Australasian and African revenue decreased by 7.7% to $40.8 million, compared to the same period last year. Project delays
at the start of the calendar year negatively impacted revenue in the quarter.
Gross margin percentage for the quarter was 14.8%, compared to 19.3% for the same period last year. Depreciation
expense, totaling $15.0 million, is included in direct costs for the current quarter, versus $12.8 million in the same quarter
last year. Adjusted gross margin, which excludes depreciation expense, was 22.8% for the quarter, compared to 26.9% for
the same period last year. The decrease in margins relates to startup costs for projects that were delayed, as well as ramp-
up costs for multiple projects in April.
General and administrative costs were $20.9 million, an increase of $3.5 million compared to the same quarter last year.
The increase was driven by the addition of the Explomin group of companies and annual inflationary wage adjustments.
Amortization of the intangible assets was $2.0 million, an increase of $1.7 million compared to the same quarter last year,
due to the addition of intangibles recognized as part of the Explomin acquisition.
Other expenses were $2.2 million, down from $3.0 million in the prior year quarter, due to lower incentive compensation
expenses given the decreased profitability as compared to the prior year quarter.
The income tax provision for the quarter was an expense of $0.7 million, compared to an expense of $2.4 million for the
prior year period. The decrease in the income tax provision was related to the overall reduction in profitability.
Net earnings were $1.0 million or $0.01 per share ($0.01 per share diluted) for the quarter, compared to net earnings of
$9.9 million or $0.12 per share ($0.12 per share diluted) for the prior year quarter.
Fiscal Year Ended April 30, 2025
Total revenue for the year was $727.6 million, up 3% from revenue of $706.7 million recorded in the previous year.
Excluding Explomin, revenue for the year would have been $657.0 million, down 7% from the previous year. The favourable
foreign exchange translation impact, when comparing to the effective rates for the previous year, was approximately $10
million on revenue, with minimal impact on net earnings as expenditures in foreign jurisdictions tend to be in the same
currency as revenue.
Revenue for the year from Canada - U.S. decreased by 20% to $274.4 million, compared to the previous year. The lack of
junior financing continues to impact this region year-over-year, and project delays resulted in a slow start to calendar 2025.
South and Central American revenue increased by 40% to $262.3 million for the year, compared to the previous year. While
some countries in the region are experiencing slowdowns and project delays, growth was generated by the additional
revenue from the Explomin acquisition, and continued growth in Chile, driven by copper exploration.
Australasian and African revenue increased by 9% to $190.9 million, compared to the previous year, as demand for
specialized services in Australia and Mongolia continues to drive growth in this region.
Gross margin percentage for the year was 17.9%, compared to 21.6% for the previous year. Depreciation expense totaling
$56.0 million is included in direct costs for the current year, versus $47.8 million in the prior year. Adjusted gross margin
(see "Non-IFRS financial measures"), which excludes depreciation expense, was 25.6% for the year, compared to 28.4% for
the prior year. While the Company remains disciplined on pricing, margins were reduced year-over-year as the competitive
environment in Canada - U.S. remains, and the Company retained labour throughout project delays.
General and administrative costs were $78.8 million, an increase of $11.0 million, compared to the previous year. The
increase from the prior year was driven by the addition of the Explomin group of companies and annual wage adjustments
implemented at the start of the fiscal year.
Amortization of the intangible assets was $3.7 million, an increase of $2.6 million compared to the previous year, due to the
addition of intangibles recognized as part of the Explomin acquisition.
Other expenses were $9.0 million, down from $10.3 million in the prior year, due primarily to lower incentive compensation
expenses throughout the Company, given the decreased profitability.
Foreign exchange loss was $1.9 million, compared to $5.5 million for the prior year. While the Company's reporting currency
is the Canadian dollar, various jurisdictions have net monetary assets or liabilities exposed to other currencies. Throughout
fiscal 2025, various currencies lost strength against the Canadian dollar, while in the prior fiscal year the loss was mainly
driven by Argentina as they experienced a significant devaluation of the Peso as part of economic reforms implemented by
the Argentinian government.
The income tax provision for the year was an expense of $11.3 million, compared to an expense of $17.9 million for the prior
year. The decrease was driven by an overall decrease in profitability compared to the prior year.
Net earnings were $26.0 million or $0.32 per share ($0.32 per share diluted) for the year, compared to $53.1 million or
$0.64 per share ($0.64 per share diluted) for the prior year.
Non-IFRS Financial Measures
The Company’s financial data has been prepared in accordance with IFRS, 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.
Adjusted gross profit/margin - excludes depreciation expense:
(in $000s CAD) Q4 2025 Q4 2024 YTD 2025 YTD 2024
Total revenue $ 187,546 $ 168,035 $ 727,579 $ 706,694
Less: direct costs 159,799 135,567 597,036 553,970
Gross profit 27,747 32,468 130,543 152,724
Add: depreciation 14,961 12,772 56,008 47,814
Adjusted gross profit 42,708 45,240 186,551 200,538
Adjusted gross margin 22.8% 26.9% 25.6% 28.4%
EBITDA - earnings before interest, taxes, depreciation, and amortization:
(in $000s CAD) Q4 2025 Q4 2024 YTD 2025 YTD 2024
Net earnings $ 1,020 $ 9,930 $ 25,955 $ 53,085
Finance (revenues) costs 717 (888) 484 (2,204)
Income tax provision 741 2,394 11,345 17,928
Depreciation and amortization 18,039 13,852 63,519 51,718
EBITDA $ 20,517 $ 25,288 $ 101,303 $ 120,527
Net cash (debt) – cash net of debt, excluding lease liabilities reported under IFRS 16 Leases:
(in $000s CAD) April 30, 2025 April 30, 2024
Cash and cash equivalents $ 45,987 $ 96,218
Contingent consideration (22,210) (8,863)
Long-term debt (27,682) -
Net cash (debt) $ (3,905) $ 87,355
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; 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); changes in jurisdictions in which the Company
operates (including changes in regulation); currency restrictions; the Company’s dependence on key customers; efficient
management of the Company’s growth; 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 Information
Major Drilling Group International Inc. will provide a simultaneous webcast and conference call to discuss its quarterly
results on Thursday, June 12, 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 5509648# and ask for Major Drilling’s
Fourth 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 Sunday, July 6, 2025. To access the rebroadcast, dial 905-694-9451 and enter the passcode 3742746#. 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.
Condensed Consolidated Statements of Operations
(in thousands of Canadian dollars, except per share information)
(unaudited)
Three months ended Twelve months ended
April 30 April 30
2025 2024 2025 2024
TOTAL REVENUE $ 187,546 $ 168,035 $ 727,579 $ 706,694
DIRECT COSTS 159,799 135,567 597,036 553,970
GROSS PROFIT 27,747 32,468 130,543 152,724
OPERATING EXPENSES
General and administrative 20,882 17,379 78,803 67,846
Amortization of intangible assets 1,962 263 3,676 1,054
Other expenses 2,180 2,950 9,039 10,324
(Gain) loss on disposal of property, plant and equipment 214 (232) (673) (843)
Foreign exchange (gain) loss 31 672 1,914 5,534
Finance (revenues) costs 717 (888) 484 (2,204)
25,986 20,144 93,243 81,711
EARNINGS BEFORE INCOME TAX 1,761 12,324 37,300 71,013
INCOME TAX EXPENSE (RECOVERY)
Current 773 1,890 13,204 14,381
Deferred (32) 504 (1,859) 3,547
741 2,394 11,345 17,928
NET EARNINGS $ 1,020 $ 9,930 $ 25,955 $ 53,085
EARNINGS PER SHARE
Basic $ 0.01 $ 0.12 $ 0.32 $ 0.64
Diluted $ 0.01 $ 0.12 $ 0.32 $ 0.64
Major Drilling Group International Inc.
Condensed Consolidated Statements of Comprehensive Earnings
(in thousands of Canadian dollars)
(unaudited)
Three months ended Twelve months ended
April 30 April 30
2025 2024 2025 2024
NET EARNINGS $ 1,020 $ 9,930 $ 25,955 $ 53,085
OTHER COMPREHENSIVE EARNINGS
Items that may be reclassified subsequently to profit or loss
Unrealized gain (loss) on foreign currency translations (17,088) 6,626 2,172 (1,102)
Unrealized gain (loss) on derivatives (net of tax) 215 457 (275) 19
COMPREHENSIVE EARNINGS (LOSS) $ (15,853) $ 17,013 $ 27,852 52,002