Major Drilling Announces Third Quarter 2026 Results

MONCTON, New Brunswick, Feb. 25, 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 third quarter of fiscal 2026, ended January 31, 2026.

Quarterly Highlights:

• Revenue of $184.6 million, up 14.9% from the $160.7 million recorded in the same quarter last year.

• Adjusted gross margin⁽¹⁾ of 14.3% as the Company incurred costs to aggressively prepare for increased activity levels through calendar 2026.

• Net loss of $10.8 million (or $0.13 per share), compared to a net loss of $9.1 million (or $0.11 per share) for the same period last year.

• The Company increased its net cash⁽¹⁾ position by over $25 million and ended the quarter with $39.6 million in net cash and total liquidity of $177.1 million.

• The Company’s outlook for calendar 2026 remains robust, particularly given record high commodity prices and the amount of equity raised by TSX and TSX-V listed companies.

“Our optimism heading into calendar 2026 continues to be driven by a combination of increased financing activity and growing exploration budgets. Based on the most recent TSX Market Intelligence Report, the total amount of equity capital raised in 2025 by mining companies listed on the TSX and TSX-V increased by over 53% to nearly $16 billion.  With the pace and size of these financings continuing to accelerate through the end of the year and into 2026, these funds are expected to increasingly be deployed over the coming quarters and years. Additionally, many of our senior mining customers have recently released sharply higher exploration budgets for calendar 2026, as they are now being rewarded for growing reserve bases and remain well supported by very strong precious and base metal prices,” said Denis Larocque, President and CEO of Major Drilling.

“In preparation for a much busier year, we leveraged our strong financial position to ensure that we are as prepared as possible for what we anticipate will be growing levels of demand throughout the calendar year. While the third fiscal quarter is traditionally the weakest of the year as customers pause operations for the holiday season, we completed several preparatory initiatives, including retaining and hiring additional crews through the holiday season as labour is expected to represent the largest challenge in the industry as activity levels increase. We also proactively ordered additional supplies in order to minimize the impact of any potential future supplier delays, as demand for these items increases, and completed additional maintenance on equipment, beyond what would typically be done in the quarter, to maximize the availability of rigs and support equipment,”  Mr. Larocque continued.

“The Company generated $184.6 million in revenue in the quarter, a 14.9% increase when compared to the same period in the prior year. The adjusted gross margin of 14.3% was below that of the prior year period as the Company took strategic steps to prepare for what is expected to be a much busier year, as well as due to increased start-up and mobilization costs as activity levels ramped up in January at a quicker pace than last year. Despite the seasonally slower quarter and additional preparation costs, the Company increased its net cash position by over $25 million to nearly $40 million at quarter end. We continue to invest in our industry leading fleet, spending $10.3 million on capital expenditures during the quarter, including the addition of 3 new drills and support equipment. We accelerated our fleet optimization and modernization efforts in preparation for a busier year, which resulted in the disposal of 13 older, less efficient drills, bringing the total fleet size to 697 rigs,” said Ian Ross, CFO of Major Drilling.

"Looking ahead to calendar 2026, we expect rigs to gradually be deployed into the field at incrementally higher prices, leading to phased increases in revenue. We continue to see opportunities throughout each of the various regions in which we operate, with stronger growth in exploration spending expected in Canada and the US, followed by gradual increases in other regions. While we have taken proactive measures with respect to the retention and hiring of additional crews, labour is expected to represent the largest ongoing headwind.  As a result, although margins are expected to expand as we progress through the year, the pace of margin improvement is anticipated to lag revenue growth.”

“Finally, I’m pleased to announce the appointment of Shannon McCrae to our Board of Directors, effective February 25, 2026. Ms. McCrae is a seasoned professional geologist and mining executive with more than 25 years of experience in the resource industry, having held senior executive positions at Barrick Gold and De Beers Canada. Her expertise spans from early-stage exploration activities, with a track record of driving economic discoveries, to mine sites in a number of leading mining jurisdictions. She also serves as a Board member of Gold Fields, Fuerte Metals, and previously served as a Director of Probe Gold, Boart Longyear and Vox Royalty. Ms. McCrae holds the P. Geo and ICD.D professional accreditations and earned a BSc (Geology) from Western University,” concluded Mr. Larocque.

⁽¹⁾  See “Non-IFRS Financial Measures”

Third Quarter Ended January 31, 2026

Total revenue for the quarter was $184.6 million, up 14.9% from revenue of $160.7 million recorded in the same quarter last year. The unfavourable foreign exchange translation impact on revenue, when compared to the effective rates for the same period last year, was approximately $1 million, while the impact on net earnings was minimal as expenditures in foreign jurisdictions tend to be in the same currency as revenue.

Revenue for the quarter from Canada - U.S. drilling operations increased by 56.7% to $67.4 million, compared to the same quarter last year. Despite the continued competitive pricing environment, programs and program extensions running longer into December, in addition to the strategic initiatives implemented earlier in the fiscal year, resulted in a sharp revenue increase in both countries.

South and Central American revenue increased by 4.2% to $78.5 million for the quarter, compared to the same quarter last year. The increase in revenue was primarily driven by growth in Peru, Colombia and Brazil, offset to some degree by reduced activity in Chile and Argentina and the termination of underperforming contracts to better position the region for improved profitability going forward.

Australasian and African revenue decreased by 8.7% to $38.7 million, compared to the same period last year. Activity levels continued to be impacted by a slowdown in drilling operations with the Company’s largest customer in Indonesia following a mine incident in the previous quarter, however activity levels are expected to continue to rebound to pre-incident levels by the end of fiscal 2026.

Gross margin percentage for the quarter was 6.6%, compared to 10.3% for the same period last year. Depreciation expense totaling $14.3 million is included in direct costs for the current quarter, versus $14.8 million in the same quarter last year. Adjusted gross margin, which excludes depreciation expense, was 14.3% for the quarter, compared to 19.5% for the same period last year. The decrease in margins was attributable to higher mobilization costs resulting from earlier start-ups when compared to the prior year period, as well as increased spending on labour retention through the holiday period, the hiring and training of additional crews, increased fleet maintenance, and the purchase of additional supplies, all as part of a decision to maximize the Company’s readiness for what is expected to be a much busier calendar year. Gross margins were also negatively impacted by the Company's decision to terminate underperforming contracts in South America in order to position this region for improved profitability going forward.

General and administrative costs were $21.6 million, flat compared to the same quarter last year. Annual wage adjustments were offset against reduced Explomin integration costs incurred in the same quarter last year, the first quarter after close.

Other expenses were $2.1 million, up from $1.4 million in the same quarter last year, due to share-based compensation expenses, mainly driven by adjustments relating to the increase in the price of the Company's shares during the quarter.

Foreign exchange gain was $1.0 million compared to a loss of $1.6 million in the prior year quarter as various local currencies gained against the USD during the quarter.

The income tax provision for the quarter was a recovery of $1.1 million, compared to a recovery of $0.8 million for the same quarter last year. The income tax provision was impacted by non-tax affected losses in certain regions.

Net loss was $10.8 million or $0.13 per share ($0.13 per share diluted) for the quarter, compared to net loss of $9.1 million or $0.11 per share ($0.11 per share diluted) for the prior year quarter.

Non-IFRS Financial Measures

The Company’s financial data has been prepared in accordance with IFRS^® Accounting Standards, with the exception of certain financial measures detailed below. The measures below have been used consistently by the Company’s management team in assessing operational performance on both segmented and consolidated levels, and in assessing the Company’s financial strength. The Company believes these non-IFRS financial measures are key, for both management and investors, in evaluating performance at a consolidated level and are commonly reported and widely used by investors and lending institutions as indicators of a company’s operating performance and ability to incur and service debt, and as a valuation metric. These measures do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS.

EBITDA - earnings before interest, taxes, depreciation, and amortization:

Adjusted gross profit/margin - excludes depreciation expense:

Net cash (debt) – cash net of debt, excluding lease liabilities reported under IFRS 16 Leases:

Forward-Looking Statements

This news release includes certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All statements, other than statements of historical facts, included in this news release that address future events, developments, or performance that the Company expects to occur (including management’s expectations regarding the Company’s objectives, strategies, financial condition, results of operations, cash flows and businesses) are forward-looking statements. Forward-looking statements are typically identified by future or conditional verbs such as “outlook”, “believe”, “anticipate”, “estimate”, “project”, “expect”, “intend”, “plan”, and terms and expressions of similar import. All forward-looking information in this news release is qualified by this cautionary note.

Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management related to the factors set forth below. While these factors and assumptions are considered reasonable by the Company as at the date of this document in light of management’s experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information.

Such forward-looking statements are subject to a number of risks and uncertainties that include, but are not limited to: competitive pressures; the level of activity in the mining industry and the demand for the Company’s services; the level of funding for the Company’s clients (particularly for junior mining companies); global and local political and economic environments and conditions; changes in jurisdictions in which the Company operates (including changes in regulation); the Company’s dependence on key customers; the geographic distribution of the Company’s operations; measures affecting trade relations between countries, including the imposition of tariffs and countermeasures, as well as the possible impacts on the Company's clients, operations and, more generally, the economy; exposure to currency movements (which can affect the Company’s revenue in Canadian dollars); currency restrictions; the integration of business acquisitions and the realization of the intended benefits of such acquisitions; efficient management of the Company’s growth; the impact of operational changes; safety of the Company’s workforce; failure by counterparties to fulfill contractual obligations; disease outbreak; risks and uncertainties relating to climate change and natural disasters; as well as other risk factors described under "General Risks and Uncertainties" in the Company's MD&A for the year ended April 30, 2025, available on the SEDAR+ website at www.sedarplus.ca. Should one or more risk, uncertainty, contingency, or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information.

Forward-looking statements made in this document are made as of the date of this document and the Company disclaims any intention and assumes no obligation to update any forward-looking statement, even if new information becomes available, as a result of future events, or for any other reasons, except as required by applicable securities laws.

About Major Drilling

Major Drilling Group International Inc. is the world’s leading provider of drilling services in the metals and mining industry. The diverse needs of the Company’s global clientele are met through field operations and registered offices that span across North America, South America, Australia, Asia, Africa, and Europe. Established in 1980, the Company has grown to become a global brand in the mining space, known for tackling many of the world’s most challenging drilling projects. Supported by a highly skilled workforce, Major Drilling is led by an experienced senior management team that has steered it through various economic and mining cycles, supported by regional managers known for delivering decades of superior project management.

Major Drilling is regarded as an industry expert at delivering a wide range of drilling services, including reverse circulation, surface and underground coring, directional, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive/longhole, and surface drill and blast, along with the ongoing development and evolution of its suite of data and technology-driven innovation services.

Webcast/Conference Call
Major Drilling Group International Inc. will provide a simultaneous webcast and conference call to discuss its quarterly results on Thursday, February 26, 2026 at 8:00 am (EST).

To access the live webcast, which includes a slide presentation, please go to the investors/webcasts & presentations section of the Major Drilling website and click on the link or click here: Webcast Link. Please note that this is listen-only mode.

To participate in the conference call, pre-register using this link. Registrants will receive confirmation with dial-in details.

For those unable to participate, a replay of the webcast will be archived for one year and can be accessed on the Major Drilling website at www.majordrilling.com/investors/webcasts/.

For further information:

Ryan Hanley
Director of Capital Markets
Tel: (506) 227-2426
[email protected]