Major Drilling Announces Record Quarterly Revenue for its Second Quarter 2026

Core Insights - Major Drilling Group International Inc. reported a record revenue of $244.1 million for Q2 fiscal 2026, marking a 29.0% increase compared to the same quarter last year, driven by strong demand from senior mining customers [3][12] - The company transitioned from a net debt position to a net cash position of over $14 million, with total available liquidity exceeding $149 million, positioning it well for future growth [5][24] - The outlook for the company remains positive as senior mining companies prepare their budgets for the upcoming calendar year, despite temporary challenges such as labor shortages and competitive pricing pressures [7][8] Financial Performance - Revenue for Q2 2026 was $244.1 million, up from $189.3 million in Q2 2025, with adjusted gross margin at 26.0%, down from 30.5% year-over-year [11][12] - EBITDA for the quarter was $37.7 million, slightly down from $38.7 million in the same period last year [8][22] - Net earnings were reported at $13.9 million or $0.17 per share, compared to $18.2 million or $0.22 per share in Q2 2025 [19][22] Regional Performance - Revenue from North America increased by 2.6% to $87.6 million, with a significant rebound in Canadian activity, while U.S. performance was softer due to reduced junior activity [13] - South and Central American revenue surged by 125.5% to $110.7 million, largely due to the contribution from Explomin, despite slowdowns in Argentina and Chile [14] - Australasian and African revenue decreased by 16.1% to $45.9 million, primarily impacted by operational issues with a major customer in Indonesia [15] Strategic Initiatives - The company announced a Normal Course Issuer Bid (NCIB) to repurchase up to 5% of its issued shares over a 12-month period starting October 21, 2025 [8] - Major Drilling is ramping up training efforts to address the shortage of experienced drill crews, which is expected to impact margins in the short term but aims to enhance operational capacity in the long run [8][10] - The company continues to focus on strategic market positioning to capture long-term opportunities, particularly in competitive pricing environments [4][8]