• Revenue: $187.5 million, up 11.6% from $168 million in the same period last year.

• Adjusted Gross Margin: 22.8%, down from 26.9% last year.

• G&A Costs: $20.9 million, an increase of $3.5 million from the previous year.

• Income Tax Provision: $700,000 expense, down from $2.4 million last year.

• EBITDA: $20.5 million, compared to $25.3 million last year.

• Net Earnings: $1 million or $0.01 per share, down from $9.9 million or $0.12 per share last year.

• Net Debt: $3.9 million at quarter end.

• Capital Expenditures: $18.6 million, adding seven new drill rigs and support equipment.

• Total Rig Count: 708 rigs at quarter end.

• Specialized Work Revenue: 60% of total revenue.

• Commodity Revenue Breakdown: Gold 41%, Copper 35%, Iron Ore 11%.

• Warning! GuruFocus has detected 4 Warning Sign with MJDLF.

Release Date: June 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Major Drilling Group International Inc (MJDLF) set a new safety record with a total recordable incident frequency rate of $0.74, showcasing their commitment to safety.

• The acquisition of Explomin expanded their presence in South and Central America, adding operations in Peru, Colombia, and the Dominican Republic.

• Revenue for the fourth quarter increased by 11.6% year-over-year, driven by strong performance in the South and Central American regions.

• The company is well-positioned with $123 million in available liquidity and plans to increase cash flow, supporting future growth.

• Major Drilling Group International Inc (MJDLF) plans to spend approximately $70 million on capital expenditures in fiscal 2026 to support elevated activity levels and modernize their fleet.

Negative Points

• The company experienced a decrease in gross margins from 26.9% to 22.8% due to increased startup, training, and mobilization costs.

• Net earnings for the quarter dropped significantly to $1 million from $9.9 million in the prior year period.

• The company faced delayed mobilization related to economic uncertainty around tariffs, impacting revenue and margins.

• Junior exploration budgets remained limited, contributing only 8% to the company's revenue in the fourth quarter.

• The company ended the quarter with $3.9 million in net debt due to typical fourth-quarter working capital requirements.

Q & A Highlights

Q: Can you provide more specifics on the activity levels in North America and other regions? A: Denis Larocque, President and CEO, explained that the increase in activity is primarily coming from North America, Chile, and Peru. In Chile and Peru, the activity is driven by copper, while in North America, both copper and gold-related programs are ramping up.