Major Drilling Announces Record Quarterly Revenue for its Second Quarter 2026
NEWS RELEASE
Major Drilling Announces Record Quarterly Revenue for its Second
Quarter 2026
MONCTON, New Brunswick (December 10, 2025) – Major Drilling Group International Inc. (“Major Drilling”
or the “Company”) (TSX: MDI), the largest provider of drilling services to the mining sector, today reported results for the
second quarter of fiscal 2026, ended October 31, 2025.
Quarterly Highlights:
• Revenue of $244.1 million, representing the highest quarterly revenue in Company history, and a 29.0%
increase when compared to the same period last year.
• Adjusted gross margin(1) of 26.0%, an increase from the 25.2% recorded in the prior quarter, but below the
30.5% achieved in the same period last year.
• EBITDA(1) of $37.7 million, a slight decrease compared to the $38.7 million generated in the same period last
year.
• The Company increased its cash position by over $17.6 million, ending the quarter with $14.3 million in net
cash(1) and total available liquidity of $149.4 million.
• Announced a Normal Course Issuer Bid (“NCIB”) whereby the Company may purchase up to 5% of its issued
and outstanding shares over a 12-month period beginning October 21, 2025.
“Activity levels continued to increase through the second quarter of fiscal 2026 with revenue reaching $244.1 million, a
new quarterly record in the Company’s 45-year history, driven by continued demand from senior mining customers,” said
Denis Larocque, President and CEO of Major Drilling.
“In North and South America, Major Drilling achieved revenue growth in both Canada and Peru, driven by strategic market
positioning. This progress was realized despite highly competitive pricing environments, underscoring the strength of our
approach. We believe these decisions position us to capture long-term opportunities and reinforce our foundation for
sustainable growth.”
“Our Australasian and African revenue and margins were impacted by the Company's largest customer in Indonesia
experiencing an operational incident which resulted in the suspension of all mine site activity for the majority of the
quarter. Activity at the mine is gradually resuming and drilling operations are expected to return to full capacity in our
fourth fiscal quarter,” continued Mr. Larocque.
“Overall, the Company delivered strong financial results, increasing its cash position by over $17.6 million and moving
from a net debt to a net cash position at quarter-end,” said Ian Ross, CFO of Major Drilling. “With net cash of over $14
million and total available liquidity of over $149 million, Major Drilling remains very well positioned to support its fleet of
over 700 drill rigs along with optimized levels of inventory. While adjusted gross margins in the quarter
were impacted by the competitive pricing environment in North America, the Indonesian mine incident, as noted above,
and the lower margin profile for Explomin, the Company also continues to ramp up its training efforts in anticipation of a
busier calendar 2026, which also had a slight impact on margins. Capital expenditures in the quarter totaled $11.8 million,
which includes the addition of 2 new rigs while 4 older, less efficient drills were disposed of, bringing the total fleet count
to 707,” concluded Mr. Ross.
“Looking ahead to the third quarter of fiscal 2026, typically the weakest quarter of the fiscal year, we expect the usual
pause in activity through the holiday period. Ongoing training and maintenance work in anticipation of increasing activity
levels in calendar 2026 are also expected to have an impact on margins,” commented Mr. Larocque.
“Looking further out to calendar 2026, numerous indicators continue to influence the Company’s positive outlook as
senior mining companies move through their budgeting season. Some of these data points include:
• Gold prices remaining above the $4,000 level, representing over a $1,400/oz increase when compared to the
same period last year;
• Copper prices have more than doubled over the last two years, recently reaching an all-time high, at a time when
the world is accelerating its efforts toward decarbonization and electrification, requiring enormous amounts of
copper, which, when coupled with recent supply disruptions, is expected to exacerbate the projected supply
deficit;
• Recent increase in the number and size of junior financings;
• Demand for critical minerals continuing to increase;
• Lack of exploration by both seniors and juniors throughout the recent 8-year industry downturn, which has led to
depleted reserve and resource bases; and
• Many new mineral deposits are being discovered in areas that are increasingly difficult to access, requiring more
specialized drilling.
With these fundamentals firmly in place, the outlook for the Company through our fiscal fourth quarter and
beyond remains encouraging as we await the release of budgets from senior mining companies for the upcoming calendar
year,” stated Mr. Larocque.
“While the shortage of experienced drill crews is expected to put temporary pressure on labour costs and productivity,
particularly in our busiest markets, we expect wider industry demand for drilling services to drive pricing improvements
and expedite margin recovery over the longer term. It is crucial that we continue to aggressively and successfully invest in
the recruitment and training of new drillers to ensure that Major Drilling remains both the operator and employer of
choice in our industry,” concluded Mr. Larocque.
In millions of Canadian dollars (except
earnings per share) Q2 2026 Q2 2025 YTD 2026 YTD 2025
Revenue $ 244.1 $ 189.3 $ 470.8 $ 379.3
Gross margin 19.9% 23.4% 19.3% 22.7%
Adjusted gross margin (1) 26.0% 30.5% 25.6% 29.7%
EBITDA (1) 37.7 38.7 69.7 73.0
As percentage of revenue 15.4% 20.4% 14.8% 19.2%
Net earnings 13.9 18.2 24.0 34.0
Earnings per share 0.17 0.22 0.29 0.42
(1) See “Non-IFRS Financial Measures”
Second Quarter Ended October 31, 2025
Total revenue for the quarter was $244.1 million, up 29.0% from revenue of $189.3 million recorded in the same quarter
last year. Excluding Explomin, revenue for the quarter would have been $182.8 million, down 3% from the same quarter
last year. The favourable foreign exchange translation impact on revenue, when compared to the effective rates for the
same period last year, was approximately $2.7 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 increased by 2.6% to $87.6 million, compared to the same
quarter last year. Despite continued pricing pressures, Canadian activity rebounded during the quarter with a 63% year-
over-year increase, supported by strategic market positioning to expand market share and strengthen our platform for
sustainable growth. This was tempered by softer performance in the U.S., where reduced junior activity led to a
slowdown.
South and Central American revenue increased by 125.5% to $110.7 million for the quarter, compared to the same
quarter last year. Within the region, Explomin contributed a total of $61.3 million in revenue as its revenue run-rate
continues to increase following the closing of the acquisition in November of 2024. Slowdowns in Argentina and Chile,
with challenging economic conditions and customer delays, were more than offset by growth in the Guiana Shield and
Brazil.
Australasian and African revenue decreased by 16.1% to $45.9 million, compared to the same period last year. Activity
levels are down in the region as drilling operations with the Company's largest customer in Indonesia were impacted by a
mine incident resulting in the temporary shutdown of all activity for the majority of the quarter.
Gross margin percentage for the quarter was 19.9%, compared to 23.4% for the same period last year. Depreciation
expense totaling $14.8 million is included in direct costs for the current quarter, versus $13.4 million in the same quarter
last year. Adjusted gross margin, which excludes depreciation expense, was 26.0% for the quarter, compared to 30.5% for
the same period last year. The reduction in margins was driven by competitive pricing environments in North America, a
temporary shutdown of operations by a significant customer in Indonesia, as well as the lower margin profile for
Explomin.
General and administrative costs were $21.7 million, an increase of $3.6 million compared to the same quarter last year.
This increase was driven by the addition of the Explomin operations.
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 in the prior year.
Other expenses were $4.9 million, up from $2.5 million in the same quarter last year, due to costs associated with strategic
initiatives and $2.2 million in share-based compensation expenses, mainly driven by adjustments relating to the recent
increase in the price of the Company's shares.
Finance costs were $0.6 million, an increase of $1.1 million over the same quarter last year due to the increase in long-
term debt to finance the Explomin acquisition in the previous year.
The income tax provision for the quarter was an expense of $5.7 million, compared to $6.5 million for the same quarter
last year. The reduction was the result of reduced profitability.
Net earnings were $13.9 million or $0.17 per share ($0.17 per share diluted) for the quarter, compared to net earnings of
$18.2 million or $0.22 per share ($0.22 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) Q2 2026 Q2 2025 YTD 2026 YTD 2025
Net earnings $ 13,948 $ 18,165 $ 24,019 $ 34,036
Finance (revenues) costs 648 (491) 1,280 (1,155)
Income tax provision 5,666 6,537 9,555 11,452
Depreciation and amortization 17,388 14,483 34,854 28,622
EBITDA $ 37,650 $ 38,694 $ 69,708 $ 72,955
Adjusted gross profit/margin - excludes depreciation expense:
(in $000s CAD) Q2 2026 Q2 2025 YTD 2026 YTD 2025
Total revenue $ 244,138 $ 189,260 $ 470,756 $ 379,302
Less: direct costs 195,477 144,985 379,938 293,047
Gross profit 48,661 44,275 90,818 86,255
Add: depreciation 14,830 13,433 29,741 26,293
Adjusted gross profit 63,491 57,708 120,559 112,548
Adjusted gross margin 26.0% 30.5% 25.6% 29.7%
Net cash (debt) – cash net of debt, excluding lease liabilities reported under IFRS 16 Leases:
(in $000s CAD) October 31, 2025 April 30, 2025
Cash and cash equivalents $ 64,688 $ 45,987
Contingent consideration (22,442) (22,210)
Long-term debt (27,970) (27,682)
Net cash (debt) $ 14,276 $ (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; global and local political and
economic environments and conditions; competitive pressures; 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; changes in jurisdictions in which the Company operates (including changes in regulation);
the geographic distribution of the Company’s operations; 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; 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 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 that
has steered it 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 Thursday, December 11, 2025 at 8:00 am (EST).
To access the live webcast, which includes a slide presentation, please go to the investors/webcasts & presentations
section of the Major Drilling website and click on the link or click here: Webcast Link. Please note that this is listen-only
mode.
To participate in the conference call, pre-register using this link. Registrants will receive confirmation with dial-in details.
For those unable to participate, a replay of the webcast will be archived for one year and can be accessed on the Major
Drilling website at www.majordrilling.com/investors/webcasts/.
For further information:
Ryan Hanley
Director of Capital Markets
Tel: (506) 227-2426
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 Six months ended
October 31 October 31
2025 2024 2025 2024
TOTAL REVENUE $ 244,138 $ 189,260 $ 470,756 $ 379,302
DIRECT COSTS (note 8) 195,477 144,985 379,938 293,047
GROSS PROFIT 48,661 44,275 90,818 86,255
OPERATING EXPENSES
General and administrative (note 8) 21,704 18,104 43,072 36,342
Amortization of intangible assets 1,525 272 3,055 543
Other expenses 4,933 2,479 8,224 5,435
(Gain) loss on disposal of property, plant and equipment 705 (279) 585 (670)
Foreign exchange (gain) loss (468) (512) 1,028 272
Finance (revenues) costs 648 (491) 1,280 (1,155)
29,047 19,573 57,244 40,767
EARNINGS BEFORE INCOME TAX 19,614 24,702 33,574 45,488
INCOME TAX EXPENSE (RECOVERY) (note 9)
Current 7,571 7,138 14,168 12,641
Deferred (1,905) (601) (4,613) (1,189)
5,666 6,537 9,555 11,452
NET EARNINGS $ 13,948 $ 18,165 $ 24,019 $ 34,036
EARNINGS PER SHARE (note 10)
Basic $ 0.17 $ 0.22 $ 0.29 $ 0.42
Diluted $ 0.17 $ 0.22 $ 0.29 $ 0.42
Major Drilling Group International Inc.
Interim Condensed Consolidated Statements of Comprehensive Earnings
(in thousands of Canadian dollars)
(unaudited)
Three months ended Six months ended
October 31 October 31
2025 2024 2025 2024
NET EARNINGS $ 13,948 $ 18,165 $ 24,019 $ 34,036
OTHER COMPREHENSIVE EARNINGS
Items that may be reclassified subsequently to profit or loss
Unrealized gain (loss) on foreign currency translations 9,188 2,666 8,651 5,450
Unrealized gain (loss) on derivatives (net of tax) 2,182 (515) 2,288 (538)
COMPREHENSIVE EARNINGS $ 25,318 $ 20,316 $ 34,958 $ 38,948
Major Drilling Group International Inc.
Interim Condensed Consolidated Statements of Changes in Equity
For the six months ended October 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 412 - - (109) - 303
Share-based compensation - - - 61 - 61
263,091 151,740 (18) 3,582 75,801 494,196
Comprehensive earnings:
Net earnings - 34,036 - - - 34,036
Unrealized gain (loss) on foreign
currency translations - - - - 5,450 5,450
Unrealized gain (loss) on derivatives - - (538) - - (538)
Total comprehensive earnings - 34,036 (538) - 5,450 38,948
BALANCE AS AT OCTOBER 31, 2024 $ 263,091 $ 185,776 $ (556) $ 3,582 $ 81,251 $ 533,144
BALANCE AS AT MAY 1, 2025 $ 263,108 $ 177,695 $ (293) $ 3,615 $ 77,973 $ 522,098
Exercise of stock options 2,115 118 - (1,294) - 939
Share-based compensation - - - 11 - 11
Stock options expired/forfeited - 22 - (22) - -
265,223 177,835 (293) 2,310 77,973 523,048
Comprehensive earnings:
Net earnings - 24,019 - - - 24,019
Unrealized gain (loss) on foreign
currency translations - - - - 8,651 8,651
Unrealized gain (loss) on derivatives - - 2,288 - - 2,288
Total comprehensive earnings - 24,019 2,288 - 8,651 34,958
BALANCE AS AT OCTOBER 31, 2025 $ 265,223 $ 201,854 $ 1,995 $ 2,310 $ 86,624 $ 558,006