Canada's Major Drilling Q4 revenue beats estimates on North America drilling activity increase

Major Drilling International

10/06/2026 22:15

Overview
Canada drilling services firm's Q4 revenue rose 25% yr/yr, beating analyst expectations
Adjusted EPS for Q4 rose yr/yr
Company says growth driven by higher exploration budgets and increased junior financings

Outlook
Company expects rigs to be deployed at higher prices as exploration budgets expand
Company expects approximately C$75 mln in capital expenditures for Fiscal 2027

Result Drivers
NORTH AMERICA ACTIVITY - Revenue growth in Canada and the U.S. driven by increased senior exploration budgets and more junior financings, per CEO Denis Larocque
LATIN AMERICA RECOVERY - South and Central America revenue rose, with volatility in Chile offset by stronger results in Argentina, Brazil, and Explomin operations after ending underperforming contracts
COST PRESSURES OFFSET - Adjusted gross margin remained broadly in line as higher labour and consumable costs were offset by operating leverage and improved pricing

Company press release: ID:nGNX3Jq6pp

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$233.70 mln
C$228.93 mln (3 Analysts)
Q4 EPS
 
C$0.10
 
Q4 Net Income
 
C$8.20 mln
 
Q4 Adjusted Gross Margin
 
22.00%
 
Q4 EBITDA
 
C$28 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$21.00, about 25.4% above its June 9 closing price of C$16.74
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

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.)