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MONCTON, New Brunswick, Sept. 02, 2026 (GLOBE NEWSWIRE) — Major Drilling Group International Inc. (“Major Drilling” or the “Company”) (TSX: MDI), the largest provider of drilling services to the mining sector, today reported results for the first quarter of Fiscal 2027, ended July 31, 2026.
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Quarterly Highlights:
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- Record quarterly revenue of $277.3 million, representing an 18.7% increase from the prior quarter and a 22.4% increase when compared to the same period last year.
- Adjusted gross margin(1) of 24.0%, an increase from the 22.0% recorded in the prior quarter, though below the 25.2% recorded for the same period last year.
- Generated EBITDA(1) of $37.2 million, a 15.9% increase when compared to the $32.1 million recorded for the same period last year.
- Net earnings of $14.5 million (or $0.18 per share), a 43.6% increase when compared to net earnings of $10.1 million (or $0.12 per share) recorded for the same period last year.
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“The Company started the fiscal year on a strong note, with each region contributing double-digit revenue growth when compared to the prior year period. This was primarily driven by the deployment of additional rigs into the field throughout the quarter, combined with a gradually improving pricing environment. As a result, revenue increased by 22.4% year-over-year to $277.3 million, setting a new quarterly record in the Company’s 46-year history,” said Denis Larocque, President and CEO of Major Drilling.
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“Activity in Canada and the US continued to accelerate following prior exploration budget increases by senior mining customers. Growth was driven by both the award of new contracts and the addition of rigs to existing projects as customers expanded their drilling programs. Juniors are increasingly deploying capital following the significant increase in financing activity earlier in the calendar year. Activity levels in the South and Central American region continued to increase, driven primarily by incremental growth in Peru, while Mexico, Argentina, and Brazil also saw increases in activity levels. The Australasia and Africa segment also saw meaningful growth, driven primarily by Australia, where senior mining companies continued to increase their exploration efforts through expanded drill programs,” Mr. Larocque continued.
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“The adjusted gross margin of 24.0% in the quarter marked further improvement from the 22.0% realized in the prior quarter, reflecting ongoing pricing improvements, muted by ramp-up costs associated with new contracts, higher labour and consumable costs, and investments in workforce training and development. While these factors remain a near-term headwind, we expect margins to continue improving as ramp-up costs subside and pricing initiatives take hold,” noted Mr. Larocque.
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“Given strong revenue growth, the Company generated EBITDA of $37.2 million in the first quarter of Fiscal 2027, a 15.9% increase from the $32.1 million generated in the prior year period. Net cash(1) was $15.7 million, down from the end of the prior quarter as higher rig utilization resulted in a temporary increase in working capital requirements. Reflecting our ongoing commitment to maintaining a high-quality global fleet of rigs, we incurred $13.5 million in capital expenditures during the quarter, with the addition of 5 new drills and support equipment, while 10 older, less efficient drills were retired, bringing the total rig count to 683 at quarter-end,” said Ian Ross, CFO of Major Drilling.