Major Drilling Group International Reports Record Q1 Earnings Amid Strong Demand
Major Drilling Group International (TSE:MDI) reported a record first quarter for fiscal 2027, with revenue rising 22% year over year to CAD 277.3 million and net earnings increasing nearly 44% to CAD 14.5 million. The growth was driven by increased drilling activity across all operating regions and the deployment of additional rigs in response to strong customer demand. The Canada-U.S. region led with a more than 31% revenue increase, attributed to new contract wins and expanded exploration programs from senior mining companies as well as growing contributions from junior miners due to improved financing conditions. Despite sequential improvement in adjusted gross margin to 24%, costs related to training, labor, consumables, and ramping up contracts limited overall profitability. The company added five rigs during the quarter while retiring ten older units, ending with a total of 683 active rigs. Management expects continued deployment at higher prices as exploration spending increases but noted that experienced driller availability remains a key constraint in the industry.
Topics: adjusted_gross_margin net_income_increase revenue_growth rig_deployment