MCCOY GLOBAL ANNOUNCES FOURTH QUARTER AND YEAR END 2025 RESULTS AND IN RESPONSE TO IMPACTS OF THE RECENT MIDDLE EAST CONFLICT PAUSES QUARTERLY DIVIDEND
Executive Summary
- McCoy Global reported Q4 2025 revenue of $25.6 M (up 1%) and full‑year 2025 revenue of $83.8 M (up 8%), driven by strong smartProduct sales.
- Net earnings rose to $6.1 M in Q4 (44% YoY) and $9.0 M for the year (2% YoY); Adjusted EBITDA was $6.5 M (Q4) and $16.8 M (FY).
- In response to Middle‑East logistics disruptions, the company paused its quarterly dividend and implemented ~$1.9 M of annualized cost reductions while maintaining investment in technology road‑map initiatives.
Key Details
- Revenue Highlights
- Q4 2025 total revenue: $25.6 M (↑1% YoY).
- FY 2025 total revenue: $83.8 M (↑8% YoY).
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SmartProduct revenue: $14.1 M in Q4 (55% of total, ↑16% YoY); $43.6 M for the year (52% of total).
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Profitability
- Net earnings Q4 2025: $6.1 M (↑44% YoY).
- Net earnings FY 2025: $9.0 M (↑2% YoY).
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Adjusted EBITDA Q4 2025: $6.5 M (25% of revenue); FY 2025: $16.8 M (20% of revenue).
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Backlog & Order Metrics
- Booked backlog at Dec‑31‑2025: $25.8 M (↑10% YoY).
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Book‑to‑bill ratio Q4 2025: 0.94 (vs. 0.67 in Q4 2024).
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Operational Milestones
- Commercialized smarTR™ system; secured $11.0 M of U.S. field‑trial contracts and recognized first SaaS‑like subscription revenue.
- Delivered multiple smartCRT™ units to Middle East and U.S.; received technical approval from a major NOC.
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Completed delivery of 500T smartFMS™ and deep‑water offshore integrated casing system; secured $3.7 M purchase commitment for hydraulic power tong systems.
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Cost Management
- FY 2025 cost reductions: ~$1.9 M annualized via workforce reductions, tighter discretionary spending, and deferral of non‑essential capex.
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Capital expenditures projected for 2026: up to $3.2 M (primarily deferred to H2).
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Liquidity
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Net cash as of Dec‑31‑2025: $3.0 M; undrawn credit facilities available: $5.4 M.
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Dividend Action
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Quarterly dividend paused in Q1 2026 due to Middle‑East conflict and associated shipping disruptions.
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Outlook & Risks
- Ongoing Middle‑East logistics may delay shipments, defer revenue recognition, and pressure cash flow.
- Anticipated NOC tender cycles for 2026–2027 could represent >100 rigs (2026) and >200 rigs (2027).
- North American land drilling activity expected to remain rangebound in 2026; smartProduct adoption hinges on demonstrated efficiency gains.
Notable Quotes
- “Throughout 2025, we continued to demonstrate meaningful progress against our Technology Roadmap… The rapid growth of smartProduct revenue… underscores the compelling value our technologies bring…” – Jim Rakievich, President & CEO
- “We have taken decisive action to optimize our cost structure… and paused our quarterly dividend… to preserve financial flexibility.” – Lindsay McGill, Vice President & CFO