The following is a summary of the Major Drilling Group International Inc. (MJDLF) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Q1 2025 revenue was $190 million, down 4.5% year-over-year but up 13% from the prior quarter.

• Gross margin percentage for the quarter was 28.9%, slightly down from 30.1% last year.

• Net earnings for the quarter were $15.9 million, or $0.19 per share, down from $21.8 million or $0.26 per share the previous year.

• EBITDA was $34.3 million, compared to $40.3 million in the prior year quarter.

Business Progress:

• Made a strategic investment in DGI Geoscience and KORE GeoSystems to enhance data acquisition and interpretation capabilities.

• Revenue growth was notably driven by strong performance in Australasian and Chilean operations, offsetting North American slowdowns.

• Continued focus on fleet modernization, with capital expenditures of $21.3 million this quarter to replace older rigs and enhance the fleet.

Opportunities:

• Expansion into specialized drilling services, leveraging partnerships with DGI Geoscience and KORE GeoSystems to offer unique and valuable drilling solutions (Drillside Geo Solutions).

• Anticipate increased demand for specialized drilling services due to stronger commodity prices and a need for complex drilling solutions in hard-to-reach new mineral deposits.

Risks:

• Decline in junior financing affecting North American operations and leading to expected revenue declines in the short term.

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