Capital Ltd H1 revenue up 38% on improved drilling contract productivity
Capital Ltd H1 revenue up 38% on improved drilling contract productivity
Overview
UK-based mining services firm's H1 revenue rose 38% yr/yr on higher drilling and lab activity
Operational net profit after tax for H1 surged from a year earlier
Company raised 2026 revenue guidance to $430-$450 mln, citing strong demand
Outlook
Capital raises 2026 group revenue guidance to $430-$450 mln from $410-$440 mln
Company maintains MSALABS 2026 revenue guidance at $85-$95 mln
Capex guidance for 2026 reiterated at $55-$65 mln, with spend weighted towards H2
Result Drivers
DRILLING CONTRACT PRODUCTIVITY - Co said improved productivity in drilling contracts supported revenue growth
MSALABS MOMENTUM - Increased laboratory utilisation and margin improvement at MSALABS contributed to results
CONTRACT WINS AND RESOURCE REALLOCATION - New long-term contracts and redeployment of equipment to higher-return markets supported performance
Company press release: ID:nRST4079Ra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| $219 mln |
|
H1 NPAT |
| $21.3 mln |
|
H1 Capex |
| $24.10 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the mining support services & equipment peer group is "buy."
Wall Street's median 12-month price target for Capital Ltd is GBp200.00, about 86% above its August 19 closing price of GBp107.50
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
Aug 17 - Prairie Operating's Q2 revenue beats estimates on improved drilling performance
Aug 17 - China's Sinopec Oilfield Service H1 revenue edges up
Aug 19 - Greater regulatory scrutiny no bar to mining mergers, bosses say
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)