Earnings
Major Drilling Announces Fourth Quarter Results and Record Annual Revenue
Debt-free contract driller riding the precious metals exploration boom with record revenue and net cash, but margin recovery remains the prove-it catalyst.
Executive Summary
- Major Drilling reported Q4 2026 results and full-year Fiscal 2026 results on June 10, 2026.
- Q4 revenue was $233.7 million, up 25% year-over-year, with net earnings of $8.2 million ($0.10/share) versus a loss of $1.0 million in the prior year quarter.
- Full-year revenue reached a company record of $889.1 million, a 22% increase over the prior year.
- Fiscal 2026 EBITDA was $102.9 million, and net earnings were $21.4 million ($0.26/share).
- The company ended the fiscal year with a net cash position of $20.6 million after spending $61.0 million on capital expenditures.
- The adjusted gross margin for the quarter was 22.0% and 22.3% for the full year, broadly in line with the prior year.
- Fiscal 2027 capital expenditure guidance is set at approximately $75 million.
- Management cited robust senior exploration budgets and increased junior financing as key demand drivers and expects continued pricing strength into FY2027.
Material Impact
- The release confirms a robust full-year recovery from the seasonal Q3 loss, with record revenue and a swing to significant Q4 profitability. This should positively re-anchor investor expectations that the company's operational leverage is working in a strong demand environment.
- The move to a net cash position of $20.6 million after heavy capex is a material positive for the balance sheet, reducing risk and providing strategic optionality. This is a genuinely new milestone not yet priced into the stock based on the pre-release price action, which was in a consolidation pattern.
- The miss on FY2026 capex guidance and the "pushed out" $75M target for FY2027 is a minor blemish. It signals that growth investment is ongoing, which is positive, but the failure to execute on the planned spend rate shows some operational friction.
- Overall, the report is a beat against the run-rate expectations set by the seasonally weak Q3. The market was seeking confirmation that the Q2 margin decline was not a new structural trend. The Q4 results provide that confirmation, showing sequential margin improvement and strong cash flow generation.
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Company Overview
- Major Drilling is the world’s second-largest specialized mineral drilling services company, headquartered in Moncton, New Brunswick, Canada.
- The company provides a complete suite of drilling services, primarily to major, intermediate, and junior mining companies engaged in mineral exploration and mining globally.
- Its primary asset is its large, advanced fleet of 688 drill rigs and related support equipment. The company operates across three reportable segments: Canada-U.S., South & Central America, and Australasia & Africa.
- Major Drilling generates revenue entirely from contract drilling services; it has no direct commodity price exposure but is a high-beta play on global exploration and mining capital expenditures.
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Mar 23, 2026 · 12:14