Brief: Major Drilling Q1 EPS CAD 0.12

Major Drilling International

08/09/2025 22:36

Overview

Major Drilling Group International fiscal Q1 revenue up 19.3% yr/yr

The specialised drilling services provider's Q1 adjusted gross margin falls to 25.2% from 28.9% year ago

EBITDA for fiscal Q1 decreases to C$32.1 mln from C$34.3 mln last year

South & Central American revenue up 92.4%, offsetting Australasian slowdown

Outlook

Company expects continued revenue growth from new project start-ups

Major Drilling anticipates modest margin improvement next quarter

Company optimistic about North American market recovery

Company cites geopolitical concerns impacting future performance

Result Drivers

SOUTH AMERICAN GROWTH - Revenue in South and Central America surged 92.4%, driven by increased activity in Peru and Chile

AUSTRALASIAN SLOWDOWN - Revenue in the Australasian region decreased due to project delays and changes in drill programs

COMPETITIVE PRICING - Lower gross margins attributed to competitive pricing pressures in North America

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$226.60 mln
C$226.80 mln (2 Analysts)
Q1 EPS
C$0.12
Q1 Net Income
C$10.10 mln
Q1 Adjusted Gross Margin
25.2%
Q1 EBITDA
C$32.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 Major Drilling Group International Inc is C$13.00, about 21% above its September 5 closing price of C$10.27

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNXc7XRk0

(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.)