McCOY GLOBAL ANNOUNCES SECOND QUARTER 2025 RESULTS AND DECLARATION OF QUARTERLY DIVIDEND

Executive Summary

• McCoy Global Inc. reported its financial results for the second quarter ended June 30, 2025, alongside the declaration of a quarterly cash dividend.
• Total revenue increased 21% to $24.1 million, driven by a 117% surge in smartProduct revenue, which now accounts for 58% of total sales.
• Net earnings decreased 56% to $1.4 million due to significant non-cash stock-based compensation expenses related to director performance share units, despite strong operational performance and a $24.6 million backlog.

Key Details

• Revenue: $24.1 million for Q2 2025, an increase of 21% from $19.9 million in Q2 2024.
• SmartProduct Revenue: $13.9 million, representing 58% of total revenue (up from 32% in Q2 2024), an increase of $7.5 million or 117%.
• Net Earnings: $1.4 million ($0.05 per basic share), down from $3.1 million ($0.12 per basic share) in Q2 2024.
• Adjusted EBITDA: $4.8 million (20% of revenue), compared to $4.7 million (24% of revenue) in Q2 2024.
• Backlog: $24.6 million at June 30, 2025, compared to $22.3 million in Q2 2024.
• Book-to-Bill Ratio: 0.93 for Q2 2025, compared to 0.83 in Q2 2024.
• Dividend Declaration: Board declared a quarterly cash dividend of $0.025 per common share, payable on October 15, 2025, to shareholders of record as of September 30, 2025.
• Expense Drivers: Net earnings decline attributed to $1.4 million in stock-based compensation expense (mark-to-market impact on cash-settled awards) and $0.5 million in bad debt provisions.
• Balance Sheet: $6.6 million in net cash and $12.1 million available under undrawn credit facilities as of June 30, 2025.
• Operational Updates:
  • Concluded in-field trials for smarTR™ system; secured $11.0 million in contract awards for hardware and SaaS revenue.
  • Delivered multiple hydraulic smartCRT™s to the Middle East and secured additional US land market orders.
  • Delivered a deep-water offshore integrated casing running system to Latin America, marking the first offshore commercial SaaS purchase commitment for Virtual Thread-Rep™ technology.
• Outlook: Q3 2025 expected to reflect tempered sequential revenue and earnings growth due to timing of National Oil Company (NOC) contract announcements and weakness in the North American land market.

Notable Quotes

• "Our second quarter performance highlights the growing momentum behind McCoy's smartProduct portfolio and the advancements of our Technology Roadmap... The commercialization of our smarTR™ system... has allowed us to validate its performance in real-world environments, optimize the offering, and gather valuable customer feedback," said Jim Rakievich, President & CEO.
• "While Q3 may reflect tempered sequential revenue and earnings growth due to timing of NOC contract announcements and continued weakness in the North American land market, our $24.6 million backlog and growing smartProduct adoption provide a solid foundation for the remainder of 2025," said Lindsay McGill, Vice President & CFO.