Major Drilling Group International Inc.

Revenue was $277.3 million, up 22.4% from $226.6 million a year ago, and EBITDA was $37.2 million, up 15.9% from $32.1 million. Net earnings were $14.5 million, or $0.18 per share, versus $10.1 million, or $0.12 per share, in the prior-year quarter. Adjusted gross margin, excluding depreciation, was 24% versus 25.2% last year, while G&A was $23.8 million and other expenses were $6 million. The company ended the quarter with $15.7 million in net cash, total available liquidity of approximately $160 million, and 683 drill rigs after spending $13.5 million on capex, adding 5 rigs and disposing of 10 older rigs. For the next quarter, management expects rigs to continue being deployed gradually at incrementally higher prices, with margins continuing to improve but at a slower pace than revenue growth.

Denis Larocque said the company had a strong start to fiscal 2027, driven by new contract wins, added rigs, and broad-based regional growth. He emphasized that seniors continue to expand programs and juniors are becoming more active as financing improves, while specialized work remains in high demand. His tone was notably upbeat, highlighting the company’s global experience, expertise, and what he called the best balance sheet in the industry.

Ian Ross walked through the quarter’s financials, citing revenue of $277.3 million, EBITDA of $37.2 million, net earnings of $14.5 million, and EPS of $0.18. He noted adjusted gross margin of 24%, down from 25.2% a year ago but up from 22% in the prior quarter, with pressure from ramp-up costs, labor, consumables, and training investments partly offset by pricing improvements. He also highlighted $15.7 million in net cash, approximately $160 million of liquidity, and $13.5 million of capex tied to fleet optimization.

The only analyst question focused on the $573,000 gain on disposal of property and whether it reflected strong pricing for used rigs. Management said no: they do not sell rigs into the market as a business, and disposed rigs are typically cut up and retired at the end of life. They said the sales are occasional disposals of old gear to help fund new purchases, not a source of external competition.