UK's Capital Q3 revenue rises on mining, lab growth
UK's Capital Q3 revenue rises on mining, lab growth
Overview
UK mining services provider reported Q3 revenue up 23% yr/yr, driven by mining and lab growth
Drilling revenue declined slightly as equipment was redeployed to higher-return contracts
Company completed acquisition of Metres Down Under, expanding into Australian drilling market
Outlook
Capital raises 2026 group revenue guidance to $435-$455 mln, reflecting MDU consolidation
Company reiterates 2026 MSALABS revenue guidance at $85-$95 mln and capex at $55-$65 mln
Company expects robust exploration and development activity to support future contract awards
Result Drivers
EQUIPMENT REDEPLOYMENT - Co said drilling revenue fell as equipment was moved from NGM and Sadiola to higher-return contracts and new wins
MINING CONTRACTS - Mining revenue surged yr/yr, with operations at Reko Diq and Sukari performing in line with contracts and additional equipment commissioned
LAB EXPANSION - MSALABS revenue rose as new labs were commissioned and expansion work continued across North America
Company press release: ID:nRSO0991Za
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| $115.70 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 GBp180.00, about 47.5% above its October 14 closing price of GBp122.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
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(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.)