Half Year 2026 Master Drilling Group Ltd Earnings Call Transcript
Key Points
- Record revenue of $155.8 million, up 17% year-over-year, driven by strong growth across all regions.
- Order book reached a record $400 million, with a pipeline of over $1 billion, doubling from the previous year.
- Significant progress in technology, including autonomous raise boring rigs, the Shaft Boring System, and the Mobile Tunnel Borer, which is nearing performance targets.
- Improved safety performance with lost time injury frequency down to 0.95 from 1.55.
- Strong liquidity position with current ratio improving to 1.92 and return on capital at 15.3%.
- Lost the Chuquicamata contract with Codelco, impacting copper revenue and order book exposure.
- Utilization rates for raise boring fleet declined to 64%, below the 75% benchmark, due to machine mobilizations and client delays.
- EBITDA margin of 21.6% was below the 25% target, impacted by $4 million in one-off ERP costs and lower utilization.
- Working capital days increased to nearly 100 days, driven by higher receivables and contract amendments, leading to a $28 million cash outflow.
- Labor costs rose to 42% of revenue, above the 35% target, partly due to stronger local currencies.
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Good morning, and welcome to all our webcast viewers and listeners to the half-year result presentation. And indeed, what you're watching is the 40th anniversary of the company and really a remarkable achievement and a milestone in the history of the company.
And to this end, just to all our shareholders and all the investors, all our clients and all the employees, we supported the company, thanks for the 40 years of support. And we really hope that the 40 years ahead that we're going to be embarked on as you guys will be part of this journey. So thanks again from me and management for the past 40 years and looking forward to the next 40 years.
Just joining me today, as usual, is Roelof and Andre. Roelof will give us a high-level overview of the operations for the period under review. And Andre, as usual, he's got the bragging rights, and he will share with us the financials for the period under review.
A high level just touch on the business and maybe the market on a high level
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