Major Drilling Announces Record Quarterly Revenue for its Second Quarter 2026

Executive Summary

• Major Drilling reported record quarterly revenue of $244.1 M, a 29% increase YoY and the highest in company history.
• Adjusted gross margin fell to 26.0% (down from 30.5% YoY), while EBITDA slipped slightly to $37.7 M.
• Cash position improved by $17.6 M, moving to a net cash balance of $14.3 M and total liquidity of $149.4 M; the board also announced a Normal Course Issuer Bid (NCIB) to repurchase up to 5% of shares over 12 months.

Key Details

• Revenue: $244.1 M (Q2 FY2026) vs. $189.3 M (Q2 FY2025); +29.0%.
• Adjusted Gross Margin: 26.0% vs. 30.5% YoY; decline driven by competitive pricing in North America, an Indonesian customer incident, and lower‑margin Explomin operations.
• EBITDA: $37.7 M vs. $38.7 M YoY (−2.6%).
• Net Earnings: $13.9 M ($0.17 EPS) vs. $18.2 M ($0.22 EPS) YoY.
• Cash & Liquidity: Net cash increased to $14.3 M; total available liquidity $149.4 M (up $17.6 M).
• Capital Expenditures: $11.8 M, including addition of 2 new rigs and disposal of 4 older rigs; fleet now totals 707 rigs.
• Geographic Performance:
• Canada‑U.S.: Revenue $87.6 M (+2.6% YoY).
• South & Central America: Revenue $110.7 M (+125.5% YoY), boosted by Explomin contribution ($61.3 M).
• Australasia & Africa: Revenue $45.9 M (‑16.1% YoY) due to Indonesian customer shutdown.
• Operating Expenses: General & administrative costs rose to $21.7 M (+$3.6 M YoY) mainly from Explomin integration; other expenses increased to $4.9 M.
• Share Repurchase Program (NCIB): Authorization to buy up to 5% of outstanding shares over the next 12 months, commencing 2025‑10‑21.
• Outlook: Management expects a typical Q3 slowdown due to holiday season but anticipates margin recovery in FY2026 as pricing improves and training/maintenance activities conclude. Long‑term growth supported by strong gold and copper price environments, increased junior financing activity, and rising demand for critical minerals.

Notable Quotes

• “Revenue reached $244.1 million, a new quarterly record… driven by continued demand from senior mining customers.” – Denis Larocque, President & CEO
• “We remain very well positioned to support our fleet of over 700 drill rigs with net cash of over $14 M and total liquidity above $149 M.” – Ian Ross, CFO

Materiality Assessment

Material – Positive – The release contains a record revenue figure, significant cash‑position improvement, and a share‑repurchase program, all of which are material to investors.