Canada · Delayed Price · Currency is CAD Major Drilling Group International Earnings Call Transcripts
Fiscal Year 2026
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Record annual revenue and strong Q4 growth were driven by robust activity in North America and solid demand for specialized drilling. Labor shortages and rising costs are expected to impact margins early in fiscal 2027, but continued momentum and higher CapEx are anticipated.
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Revenue grew 14.9% year-over-year, driven by strong activity in North America, but margins declined due to higher preparation costs and contract terminations. The outlook is optimistic with ramping activity, improved pricing, and ongoing labor and supply chain challenges.
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Record Q2 revenue rose 29% year-over-year to CAD 244 million, led by strong Canadian and Peruvian growth, despite margin pressure from competitive pricing and training costs. Outlook remains positive for 2026, driven by high gold and copper prices and increased junior financings.
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Revenue grew 21% over the last three months, led by strong performance in Peru and Chile, while North America and Australasia faced temporary challenges. Margins declined due to competition and ramp-up costs, but liquidity and fleet utilization improved. Outlook remains positive, supported by high gold and copper prices.
Fiscal Year 2025
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Q4 revenue rose 11.6% year-over-year to $187.5M, driven by South and Central America, but margins fell due to startup costs. A 20% sequential revenue increase is expected in Q1 2026, with strong demand from seniors and ongoing fleet modernization.
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Revenue rose 21% year-over-year to $160.7 million, driven by the Explomin acquisition, while margins declined due to lower junior activity and higher costs. Senior customer demand and exploration budgets are rising, supporting a positive outlook for 2025.
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Q2 revenue held steady sequentially but declined 8.6% year-over-year, with strong results in Chile and Australia offsetting North American weakness. The Explomin acquisition boosts South American presence and revenue stability, while long-term outlook remains positive due to robust gold and copper demand.
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Revenue rose 13% sequentially but fell 4.5% year-over-year, with strong growth in Australia and Chile offsetting North American weakness. Specialized drilling and technology investments are driving future growth, while junior mining activity remains subdued.
Fiscal Year 2024
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Fiscal 2024 saw the third highest revenue in company history despite market headwinds, with strong cash reserves and continued investment in fleet and technology. Specialized drilling and senior/intermediate clients drove most revenue, while the outlook is positive amid rising copper and gold demand.