Canada's Major Drilling Group Q2 revenue hits record, beats estimates

Major Drilling International

10/12/2025 22:12

Overview

Canada drilling services provider's fiscal Q2 revenue grew 29%, beating analyst expectations

Company increased cash position by over C$17.6 mln, ending with C$14.3 mln net cash

Outlook

Major Drilling expects a slowdown in activity during the holiday season

Company anticipates increased activity levels in calendar 2026

Result Drivers

RECORD REVENUE - Driven by increased demand from senior mining customers, particularly in North and South America, achieving the highest quarterly revenue in company history

INDONESIA INCIDENT - Australasian and African revenue and margins were impacted by an operational incident in Indonesia, leading to a temporary suspension of mine site activity

EXPLOMIN IMPACT - Explomin acquisition contributed significantly to South and Central American revenue growth, but had a lower margin profile impacting overall margins

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$244.10 mln
C$238.40 mln (3 Analysts)
Q2 EPS
C$0.17
Q2 Net Income
C$13.90 mln
Q2 Adjusted Gross Margin
26.00%
Q2 EBITDA
C$37.70 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$16.00, about 18.7% above its December 9 closing price of C$13.48

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX4J6hn6

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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.)