Major Drilling Group International Inc
TSX:MDI
Major Drilling Group International Inc
Major Drilling Group International, Inc. engages in the provision of water and mineral exploration drilling services. The company is headquartered in Moncton, New Brunswick and currently employs 3,825 full-time employees. The firm operates through three geographical segments: Canada - U.S.; South and Central America, and Asia and Africa. The firm is primarily engaged in the mining industry. The firm provides a range of drilling services, including surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive/ longhole drilling, surface drill and blast, and a variety of mine services. The firm has two categories of customers: junior exploration companies and a diversified portfolio of senior/intermediate companies, for which the Company provides greenfield exploration drilling and/or drilling at operating mines. The firm also has an investment in a fleet of digitized mobile underground drills that allow less dependence on client resources as well as increased ability for automation and versatility.
Major Drilling Group International, Inc. engages in the provision of water and mineral exploration drilling services. The company is headquartered in Moncton, New Brunswick and currently employs 3,825 full-time employees. The firm operates through three geographical segments: Canada - U.S.; South and Central America, and Asia and Africa. The firm is primarily engaged in the mining industry. The firm provides a range of drilling services, including surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive/ longhole drilling, surface drill and blast, and a variety of mine services. The firm has two categories of customers: junior exploration companies and a diversified portfolio of senior/intermediate companies, for which the Company provides greenfield exploration drilling and/or drilling at operating mines. The firm also has an investment in a fleet of digitized mobile underground drills that allow less dependence on client resources as well as increased ability for automation and versatility.
Record Revenue: Major Drilling reported record quarterly revenue of $244 million, up 29% year-over-year, marking the highest in its 45-year history.
Strong Canadian Performance: Canadian operations saw revenue jump 63% year-over-year, outpacing industry peers due to strategic market positioning and pricing.
Margins Down: Adjusted gross margin fell to 26% from 30.5% last year, impacted by competitive pricing, training and maintenance, and the margin profile of the Explomin acquisition.
Profit Decline: Net earnings dropped to $13.9 million ($0.17 per share), down from $18.2 million ($0.22 per share) the previous year.
Cautious Q3 Outlook: Management expects the usual seasonal slowdown and some margin impact in the third quarter due to ongoing preparations for a busy 2026.
Positive Demand Signals: Strong gold and copper prices, increased junior mining financings, and global focus on critical minerals are fueling optimism for increased drilling demand in 2026.
Balance Sheet Strength: The company ended the quarter with $14.3 million in net cash and total available liquidity over $149 million, supporting readiness for growth and potential share buybacks.
