Q2 2026 Major Drilling Group International Inc Earnings Call Transcript
Key Points
- Major Drilling Group International Inc (MJDLF) reported a record-setting quarter with a 29% increase in revenue to $244 million, marking the highest quarterly revenue in the company's 45-year history.
- The Canadian operations experienced a significant rebound with a 63% year-over-year increase in revenue, driven by strategic market positioning.
- The company increased its cash position by over $17.6 million, ending the quarter with $14.3 million in net cash, and total available liquidity grew to over $149 million.
- Specialized work accounted for 60% of total revenue, indicating strong demand for the company's specialized services.
- The company is well-positioned to capitalize on increased demand for drilling services, driven by higher gold and copper prices and the global focus on critical minerals.
- The overall adjusted gross margin percentage decreased to 26% from 30.5% in the same period last year, due to competitive pricing and ongoing training and maintenance programs.
- The Australasian and African regions were negatively impacted by a suspension of mine site activity in Indonesia, affecting the company's largest customer there.
- Net earnings decreased to $13.9 million or $0.17 per share, compared to $18.2 million or $0.22 per share in the prior year period.
- The company anticipates a seasonal slowdown in the third quarter due to holiday shutdowns, which may slightly impact margins.
- There is a shortage of experienced drill crews, which is expected to temporarily pressure labor costs and productivity, particularly in the busiest markets.
Good day, ladies and gentlemen, and welcome to the second quarter 2026 results conference call. (Operator Instructions) As a reminder, this call may be recorded.
I would now like to turn the call over to Ryan Hanley, Director of Capital Markets. You may begin.
Thank you, and good morning, everyone. As mentioned, we would like to welcome you to Major Drilling's conference call for the second quarter of fiscal 2026. With me on the call today are Denis Larocque, President and CEO; and Ian Ross, CFO. Our results were released last night can be found on our website at www.majordrilling.com. We also invite you to visit our website for further information.
Before we get started, we'd like to caution you that during this conference call, we will be making forward-looking statements about future events or the future financial performance of the company. These
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