From GlobeNewswire: 2024-12-05 17:00:00

Major Drilling Group International Inc. reported results for the second quarter of fiscal 2025, with revenue at $189.3 million and adjusted gross margin at 30.5%. Net earnings were $18.2 million, with net cash increasing to $100.4 million. The acquisition of Explomin, a specialty drilling contractor in Peru, was completed for US$63 million.

Despite challenging market conditions, Major Drilling maintained revenue levels in Q2 of fiscal 2025. The company’s adjusted gross margin was at 30.5%, showing a focus on profitability. EBITDA was $38.7 million, down from the same period last year. Net cash increased to $100.4 million, supporting potential growth opportunities.

With the recent acquisition of Explomin, Major Drilling has expanded its presence in South America, particularly in Peru, a key copper producer. The acquisition complements the company’s existing operations and offers growth opportunities in the region. The company remains optimistic about demand for drilling services in 2025.

The Canadian team at Major Drilling was awarded the Safe Day Every Day Gold Award for maintaining high safety standards. The company also announced the resignation of Mr. Robert Krcmarov from the Board of Directors, as he takes on a new role as CEO of Hecla Mining Company. Major Drilling continues to focus on specialized drilling services in challenging locations.

The Company’s financial data has been prepared in accordance with IFRS, with certain key financial measures used consistently by management and investors. EBITDA for Q2 2025 was $38.7 million, with adjusted gross margin at 30.5%. Net cash increased to $100.4 million at the end of the quarter.

The Company’s operations are segmented into Canada – U.S., South and Central America, and Australasia and Africa. Revenue for Q2 2025 was highest in Canada – U.S. at $85.4 million, with South and Central America at $49.1 million, and Australasia and Africa at $54.7 million. Earnings from operations for the three segments were $28.5 million.

Major Drilling completed the acquisition of Explomin Perforaciones, a drilling contractor in Peru, on November 5, 2024. The acquisition, valued at up to US$85 million, enhances the company’s presence in South America, particularly in the copper market. The purchase price included a cash payment of US$63 million and an earnout of up to US$22 million.



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