Major Drilling Announces Fourth Quarter and Fiscal Year 2025 Results as Activity Ramps Up

Fiscal 2025 Highlights - Major Drilling Group International Inc. reported total revenue of $727.6 million for fiscal year 2025, an increase of 3% from $706.7 million in the previous year [10][22] - The company achieved a Total Recordable Incident Frequency Rate (TRIFR) of 0.74, the lowest in its 45-year history, reflecting a strong safety culture [6][10] - Capital expenditures for the year totaled $72.5 million, including the acquisition of 7 new drill rigs, bringing the total rig count to 708 [7][10] Q4 2025 Summary - In Q4 2025, Major Drilling generated revenue of $187.5 million, up 12% from $168.0 million in the same quarter last year [10][14] - EBITDA for the quarter was $20.5 million, impacted by startup and mobilization costs [8][10] - Adjusted gross margins decreased to 22.8% from 26.9% in the prior year due to increased costs associated with project ramp-ups [10][18] Acquisition and Market Position - The acquisition of Explomin Perforaciones in November 2024 has strengthened Major Drilling's position in South America, contributing to a 78.5% increase in revenue from South and Central America to $88.0 million in Q4 2025 [10][16] - The company expects a 20% revenue growth in Q1 of fiscal 2026 compared to Q4 2025 levels, driven by increased exploration budgets from senior mining companies [9][10] Financial Performance - Net earnings for the year were $26.0 million, or $0.32 per share, down from $53.1 million, or $0.64 per share, in the previous year [31] - General and administrative costs increased to $78.8 million, primarily due to the addition of the Explomin group and annual wage adjustments [19][27] - The company reported a strong balance sheet with net debt of $3.9 million and total available liquidity of $123 million [8][10]