Major Drilling Announces Third Quarter 2026 Results

Executive Summary

• Major Drilling reported Q3 2026 revenue of C$184.6 M, up 14.9% YoY, while posting a net loss of C$10.8 M ($0.13 per share).
• Net cash increased by >C$25 M to C$39.6 M; total liquidity stands at C$177.1 M.
• The company added 3 new drills, disposed of 13 older rigs (fleet now 697 rigs), and invested C$10.3 M in capital expenditures.

Key Details

• Revenue: C$184.6 M (↑14.9% vs. C$160.7 M Q3‑2025).
• Adjusted Gross Margin: 14.3% (down from 19.5% YoY) – reflects higher mobilization and labor‑retention costs.
• Net Loss: C$10.8 M or $0.13 per share (vs. loss of C$9.1 M or $0.11 per share in Q3‑2025).
• Cash Position: Net cash rose >C$25 M to C$39.6 M; total liquidity C$177.1 M.
• Capital Expenditure: C$10.3 M, including 3 new drills and support equipment.
• Fleet Optimization: Disposed of 13 older, less‑efficient rigs; fleet size now 697 rigs.
• Geographic Revenue Mix:
• Canada–U.S.: $67.4 M (↑56.7% YoY)
• South & Central America: $78.5 M (↑4.2% YoY)
• Australasia & Africa: $38.7 M (↓8.7% YoY)
• Operating Costs: General & administrative expenses C$21.6 M, flat YoY; other expenses rose to C$2.1 M due to higher share‑based compensation.
• EBITDA: C$5.1 M for the quarter (down from C$7.8 M YoY).
• Outlook: Management expects a “robust” 2026 calendar year, citing record high commodity prices and strong equity‑raising activity in the mining sector. Anticipates phased revenue growth as rigs are deployed at higher rates.
• Board Appointment: Shannon McCrae appointed to Board of Directors effective Feb 25 2026 (geology & mining executive).

Notable Quotes

“Our optimism heading into calendar 2026 continues to be driven by a combination of increased financing activity and growing exploration budgets.” – Denis Larocque, President & CEO
“We leveraged our strong financial position … retained and hired additional crews … ordered additional supplies to maximize rig availability for a busier year.” – Denis Larocque

Materiality: Material – Neutral (the release contains material quarterly financial information that could influence investor decisions, though the net loss remains negative.)