{"success":true,"data":{"pressRelease":{"id":"134480","rtpr_id":"nGNX15Wy5L","ticker":"MDI","exchange":"TSX","all_tickers":["MDI"],"title":"Major Drilling Announces Record Quarterly Revenue for Its First Quarter 2027","author":"Globe Newswire","published_at":"2026-09-02T21:00:00.616Z","article_body":"MONCTON, New Brunswick, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Major Drilling\nGroup International Inc. (“Major Drilling” or the “Company”) (TSX:\nMDI), the largest provider of drilling services to the mining sector, today\nreported results for the first quarter of Fiscal 2027, ended July 31, 2026. \n\nQuarterly Highlights:\n* Record quarterly revenue of $277.3 million, representing an 18.7% increase\nfrom the prior quarter and a 22.4% increase when compared to the same period\nlast year.\n* Adjusted gross margin((1)) of 24.0%, an increase from the 22.0% recorded in\nthe prior quarter, though below the 25.2% recorded for the same period last\nyear.\n* Generated EBITDA((1)) of $37.2 million, a 15.9% increase when compared to\nthe $32.1 million recorded for the same period last year.\n* Net earnings of $14.5 million (or $0.18 per share), a 43.6% increase when\ncompared to net earnings of $10.1 million (or $0.12 per share) recorded for\nthe same period last year.\n“The Company started the fiscal year on a strong note, with each region\ncontributing double-digit revenue growth when compared to the prior year\nperiod. This was primarily driven by the deployment of additional rigs into\nthe field throughout the quarter, combined with a gradually improving pricing\nenvironment. As a result, revenue increased by 22.4% year-over-year to $277.3\nmillion, setting a new quarterly record in the Company’s 46-year history,”\nsaid Denis Larocque, President and CEO of Major Drilling.\n\n“Activity in Canada and the US continued to accelerate following prior\nexploration budget increases by senior mining customers. Growth was driven by\nboth the award of new contracts and the addition of rigs to existing projects\nas customers expanded their drilling programs. Juniors are increasingly\ndeploying capital following the significant increase in financing activity\nearlier in the calendar year. Activity levels in the South and Central\nAmerican region continued to increase, driven primarily by incremental growth\nin Peru, while Mexico, Argentina, and Brazil also saw increases in activity\nlevels. The Australasia and Africa segment also saw meaningful growth, driven\nprimarily by Australia, where senior mining companies continued to increase\ntheir exploration efforts through expanded drill programs,” Mr. Larocque\ncontinued.\n\n“The adjusted gross margin of 24.0% in the quarter marked further\nimprovement from the 22.0% realized in the prior quarter, reflecting ongoing\npricing improvements, muted by ramp-up costs associated with new contracts,\nhigher labour and consumable costs, and investments in workforce training and\ndevelopment. While these factors remain a near-term headwind, we expect\nmargins to continue improving as ramp-up costs subside and pricing initiatives\ntake hold,” noted Mr. Larocque.\n\n“Given strong revenue growth, the Company generated EBITDA of $37.2 million\nin the first quarter of Fiscal 2027, a 15.9% increase from the $32.1 million\ngenerated in the prior year period. Net cash((1)) was $15.7 million, down from\nthe end of the prior quarter as higher rig utilization resulted in a temporary\nincrease in working capital requirements. Reflecting our ongoing commitment to\nmaintaining a high-quality global fleet of rigs, we incurred $13.5 million in\ncapital expenditures during the quarter, with the addition of 5 new drills and\nsupport equipment, while 10 older, less efficient drills were retired,\nbringing the total rig count to 683 at quarter-end,” said Ian Ross, CFO of\nMajor Drilling.\n\n“Turning to the outlook, we expect rigs to continue to be gradually deployed\ninto the field at incrementally higher prices as seniors continue to drive\nincreasing activity levels as a result of larger exploration budgets, while\njuniors continue to move through more robust exploration programs following\nthe substantial increase in financing activity earlier in the calendar year.\nWhile demand grows, the industry continues to navigate through a challenging\nlabour market. We expect to improve pricing on new contracts and renewals to\noffset cost increases and improve margins as the fiscal year progresses,”\ncontinued Mr. Larocque.\n\n“The Company continues to take proactive measures with respect to the hiring\nand retention of drill crews as labour remains our most significant challenge.\nAs the availability of experienced drillers tightens, we have increased the\nnumber of trainee drillers, which has temporarily impacted productivity and is\nexpected to continue doing so as they gain experience. In the key areas where\nthe labour shortage is most problematic, particularly with respect to Canada\nand the U.S., we have scaled up our efforts at our training centers. The goals\nfor these centers are to improve the retention rate of new hires, while also\naccelerating their learning curve and reducing overall training time without\ncompromising safety,” concluded Mr. Larocque.\n\n In millions of Canadian dollars (except earnings per share) Q1 2027 Q1 2026 \n Revenue $ 277.3 $ 226.6 \n Gross margin 18.6 % 18.6 % \n Adjusted gross margin 24.0 % 25.2 % \n EBITDA 37.2 32.1 \n As percentage of revenue 13.4 % 14.1 % \n Net earnings 14.5 10.1 \n Earnings per share 0.18 0.12 \n\n((1)    )See “Non-IFRS Financial Measures”\n\nFirst Quarter Ended July 31, 2026\n\nRevenue for the first quarter of Fiscal 2027 reached $277.3 million, up 22.4%\nfrom revenue of $226.6 million recorded in the same quarter last year. The\nfavourable foreign exchange translation impact on revenue, when compared to\nthe effective rates for the same period last year, was approximately $8\nmillion, while the impact on net earnings was minimal as expenditures in\nforeign jurisdictions tend to be in the same currency as revenue.\n\nRevenue for the quarter from Canada - U.S. drilling operations increased by\n31.6% to $110.7 million, compared to the same quarter last year. Growth was\nled by new contract starts and continued price increases, while labour\navailability remained a constraint across the region.\n\nSouth and Central American revenue increased by 18.4% to $113.4 million for\nthe quarter, compared to the same quarter last year. Peru continued to be the\nlargest contributor to the region's growth, supported by new project activity,\nwhile Mexico and Brazil also grew with new project starts.\n\nAustralasian and African revenue increased by 13.7% to $53.2 million, compared\nto the same quarter last year. Growth in the region was driven by increased\ndemand from seniors in Australia.\n\nGross margin percentage for the quarter as well as for the same quarter last\nyear, was 18.6%. Depreciation expense totaling $15.2 million is included in\ndirect costs for the current quarter, versus $14.9 million in the same quarter\nlast year. Adjusted gross margin, which excludes depreciation expense, was\n24.0% for the quarter, compared to 25.2% for the same quarter last year. The\nyear-over-year decline in adjusted gross margin was primarily attributable to\nongoing wage adjustments and training costs associated with the tight North\nAmerican labour market, along with ramp-up costs across various operations and\nweather-related disruptions in Chile. These factors were partially offset by\ngradual pricing improvements, particularly within North America.\n\nGeneral and administrative costs were $23.8 million, an increase of $2.4\nmillion compared to the same quarter last year, driven by annual inflationary\nwage adjustments and additional costs to address rapid growth in our busiest\nregions.\n\nOther expenses were $6.0 million, up from $3.3 million in the same quarter\nlast year, due primarily to increased incentive compensation costs resulting\nfrom improved profitability and higher stock-based compensation costs tied to\nthe Company's share price performance.\n\nForeign exchange loss was $1.2 million, compared to a loss of $1.5 million for\nthe same quarter last year. While the Company's reporting currency is the\nCanadian dollar, various jurisdictions have net monetary assets or liabilities\nexposed to various other currencies.\n\nThe income tax provision for the quarter was an expense of $4.6 million,\ncompared to $3.9 million for the same quarter last year. The increase is a\nresult of increased profitability, while the lower effective rate is due to\nutilization of previously unrecognized losses.\n\nNet earnings were $14.5 million or $0.18 per share ($0.18 per share diluted)\nfor the quarter, compared to net earnings of $10.1 million or $0.12 per share\n($0.12 per share diluted) for the prior year quarter.\n\nNon-IFRS Financial Measures\n\nThe Company’s financial data has been prepared in accordance with IFRS(®),\nwith the exception of certain financial measures detailed below. The measures\nbelow have been used consistently by the Company’s management team in\nassessing operational performance on both segmented and consolidated levels,\nand in assessing the Company’s financial strength. The Company believes\nthese non-IFRS financial measures are key, for both management and investors,\nin evaluating performance at a consolidated level and are commonly reported\nand widely used by investors and lending institutions as indicators of a\ncompany’s operating performance and ability to incur and service debt, and\nas a valuation metric. These measures do not have a standardized meaning\nprescribed by IFRS and therefore may not be comparable to similarly titled\nmeasures presented by other publicly traded companies and should not be\nconstrued as an alternative to other financial measures determined in\naccordance with IFRS.\n\nEBITDA - earnings before interest, taxes, depreciation, and amortization:\n\n (in $000s CAD) Q1 2027 Q1 2026 \n \n Net earnings $ 14,483 $ 10,071 \n Finance (revenues) costs 436 632 \n Income tax provision 4,649 3,889 \n Depreciation and amortization 17,595 17,466 \n EBITDA $ 37,163 $ 32,058 \n\nAdjusted gross profit/margin - excludes depreciation expense:\n\n (in $000s CAD) Q1 2027 Q1 2026 \n \n Total revenue $ 277,346 $ 226,618 \n Less: direct costs 225,897 184,461 \n Gross profit 51,449 42,157 \n Add: depreciation 15,238 14,911 \n Adjusted gross profit 66,687 57,068 \n Adjusted gross margin 24.0 % 25.2 % \n\nNet cash (debt) – cash net of debt, excluding lease liabilities reported\nunder IFRS 16 Leases:\n\n (in $000s CAD) July 31, 2026 April 30, 2026 \n \n Cash and cash equivalents $ 59,339 $ 62,631 \n Contingent consideration (15,557 ) (14,695 ) \n Long-term debt (28,036 ) (27,352 ) \n Net cash (debt) $ 15,746 $ 20,584 \n\nForward-Looking Statements\n\nThis news release includes certain information that may constitute\n“forward-looking information” under applicable Canadian securities\nlegislation. All statements, other than statements of historical facts,\nincluded in this news release that address future events, developments, or\nperformance that the Company expects to occur (including management’s\nexpectations regarding the Company’s objectives, strategies, financial\ncondition, results of operations, cash flows and businesses) are\nforward-looking statements. Forward-looking statements are typically\nidentified by future or conditional verbs such as “outlook”,\n“believe”, “anticipate”, “estimate”, “project”, “expect”,\n“intend”, “plan”, and terms and expressions of similar import. All\nforward-looking information in this news release is qualified by this\ncautionary note.\n\nForward-looking information is necessarily based upon various estimates and\nassumptions including, without limitation, the expectations and beliefs of\nmanagement related to the factors set forth below. While these factors and\nassumptions are considered reasonable by the Company as at the date of this\ndocument in light of management’s experience and perception of current\nconditions and expected developments, these statements are inherently subject\nto significant business, economic and competitive uncertainties and\ncontingencies. Known and unknown factors could cause actual results to differ\nmaterially from those projected in the forward-looking statements and undue\nreliance should not be placed on such statements and information.\n\nSuch forward-looking statements are subject to a number of risks and\nuncertainties that include, but are not limited to: the level of activity in\nthe mining industry and the demand for the Company's services; global and\nlocal political and economic environments and conditions; competitive\npressures; exposure to currency movements (which can affect the Company's\nrevenue in Canadian dollars); currency restrictions; measures affecting trade\nrelations between countries, including the imposition of tariffs and\ncountermeasures, as well as the possible impacts on the Company's clients,\noperations and, more generally, the economy; skilled labour\navailability/retention for drill crews; the level of funding for the Company's\nclients (particularly for junior mining companies); the integration of\nbusiness acquisitions and the realization of the intended benefits of such\nacquisitions; changes in jurisdictions in which the Company operates\n(including changes in regulation); efficient management of the Company's\ngrowth; the Company's dependence on key customers; the impact of operational\nchanges; safety of the Company's workforce; risks and uncertainties relating\nto climate change and natural disasters; the geographic distribution of the\nCompany's operations; failure by counterparties to fulfill contractual\nobligations; disease outbreak; as well as other risk factors described under\n“General Risks and Uncertainties” in the Company’s MD&A for the year\nended April 30, 2026, available on the SEDAR+ website at www.sedarplus.ca.\nShould one or more risk, uncertainty, contingency, or other factor materialize\nor should any factor or assumption prove incorrect, actual results could vary\nmaterially from those expressed or implied in the forward-looking information.\n\nForward-looking statements made in this document are made as of the date of\nthis document and the Company disclaims any intention and assumes no\nobligation to update any forward-looking statement, even if new information\nbecomes available, as a result of future events, or for any other reasons,\nexcept as required by applicable securities laws.\n\nAbout Major Drilling\n\nMajor Drilling Group International Inc. is the world’s largest provider of\ndrilling services in the metals and mining industry. The diverse needs of the\nCompany’s global clientele are met through field operations and registered\noffices that span across North America, South America, Australia, Asia,\nAfrica, and Europe. Established in 1980, the Company has grown to become a\nglobal brand in the mining space, known for tackling many of the world’s\nmost challenging drilling projects. Supported by a highly skilled workforce,\nMajor Drilling is led by an experienced senior management team that has\nsteered it through various economic and mining cycles, supported by regional\nmanagers known for delivering decades of superior project management.\n\nMajor Drilling is regarded as an industry expert at delivering a wide range of\ndrilling services, including reverse circulation, surface and underground\ncoring, directional, sonic, geotechnical, environmental, water-well, coal-bed\nmethane, shallow gas, underground percussive/longhole, and surface drill and\nblast, along with the ongoing development and evolution of its suite of data\nand technology-driven innovation services.\n\nWebcast/Conference Call/Annual General Meeting Information\n\nMajor Drilling Group International Inc. will provide a simultaneous webcast\nand conference call to discuss its quarterly results on Thursday, September 3,\n2026 at 8:00 am (ET).\n\nTo access the live webcast, which includes a slide presentation, please visit\nthe Investors/Webcasts & Presentations section of the Major Drilling website\nand click on the link or click here: Webcast Link\n(https://www.globenewswire.com/Tracker?data=2nDFbvshdAQ6v7UhAVRlAJ9nVukRjnxqdgAGb63dxmNp1gEt5NH_Q-LNZJyBWpL9CSBbSkE59_S8JJQIMOvYovkWzcBsMg6L7qsQ11N-RwTLlauw67hXozbfVuQT-jXn).\nPlease note that this is listen-only mode.\n\nTo participate in the conference call, please pre-register using this Link\n(https://www.globenewswire.com/Tracker?data=gVDiPByMwwluxlnckKYjVdugmfv_a4eoGUQyn0BmRavs3JjhVTAVBIudB4k4BnrKk6UGAcTymmz5EfDfF8fPBk6d-Zq6npKlmc2n1fQR1wf4SL-YtSH0mcSuy_jkzzDe8MPb2yyjnQd77lFDJNrU5BxuWp-r-eePAFUMLoYjBkQ=). Registrants\nwill receive an email confirmation with dial-in details.\n\nFor those unable to participate, a replay of the webcast will be archived for\none year and can be accessed on the Major Drilling website at\nwww.majordrilling.com/investors/webcasts/.\n\nMajor Drilling Group International Inc.’s Annual General Meeting will be\nheld on Thursday, September 3, 2026 at 3:30pm EDT in person at McCarthy\nTétrault, 66 Wellington St. West, 53rd Floor, Clarkson Room, Toronto ON M5K\n1E6, and virtually at www.virtualshareholdermeeting.com/MDI2026.  \n\nFor further information:\n\nRyan Hanley\nDirector of Capital Markets\nTel: (506) 227-2426\nir@majordrilling.com\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Operations \n (in thousands of Canadian dollars, except per share information) \n (unaudited) \n \n Three months ended \n July 31 \n \n 2026 2025 \n \n TOTAL REVENUE $ 277,346 $ 226,618 \n \n DIRECT COSTS (note 7) 225,897 184,461 \n \n GROSS PROFIT 51,449 42,157 \n \n \n OPERATING EXPENSES \n General and administrative (note 7) 23,794 21,368 \n Amortization of intangible assets 1,400 1,530 \n Other expenses (revenues) 6,020 3,291 \n (Gain) loss on disposal of property, plant and equipment (573 ) (120 ) \n Foreign exchange (gain) loss 1,240 1,496 \n Finance (revenues) costs 436 632 \n 32,317 28,197 \n \n EARNINGS BEFORE INCOME TAX 19,132 13,960 \n \n INCOME TAX EXPENSE (RECOVERY) (note 8) \n Current 6,438 6,597 \n Deferred (1,789 ) (2,708 ) \n 4,649 3,889 \n \n NET EARNINGS $ 14,483 $ 10,071 \n \n \n EARNINGS PER SHARE (note 9) \n Basic $ 0.18 $ 0.12 \n Diluted $ 0.18 $ 0.12 \n \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Comprehensive Earnings \n (in thousands of Canadian dollars) \n (unaudited) \n \n Three months ended \n July 31 \n \n \n 2026 2025 \n \n NET EARNINGS $ 14,483 $ 10,071 \n \n OTHER COMPREHENSIVE EARNINGS \n \n Items that may be reclassified subsequently to profit or loss \n Unrealized gain (loss) on foreign currency translations 11,669 (537 ) \n Unrealized gain (loss) on derivatives (net of tax) (934 ) 106 \n \n COMPREHENSIVE EARNINGS $ 25,218 $ 9,640 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Changes in Equity \n For the three months ended July 31, 2026 and 2025 \n (in thousands of Canadian dollars) \n (unaudited) \n \n Retained Other Share-based Foreign currency \n Share capital earnings reserves payments reserve translation reserve Total \n \n BALANCE AS AT MAY 1, 2025 $ 263,108 $ 177,695 $ (293 ) $ 3,615 $ 77,973 $ 522,098 \n \n Exercise of stock options 345 - - (96 ) - 249 \n Share-based compensation - - - 11 - 11 \n Stock options expired/forfeited - 22 - (22 ) - - \n 263,453 177,717 (293 ) 3,508 77,973 522,358 \n Comprehensive earnings: \n Net earnings - 10,071 - - - 10,071 \n Unrealized gain (loss) on foreign \n currency translations - - - - (537 ) (537 ) \n Unrealized gain (loss) on derivatives - - 106 - - 106 \n Total comprehensive earnings - 10,071 106 - (537 ) 9,640 \n \n BALANCE AS AT JULY 31, 2025 $ 263,453 $ 187,788 $ (187 ) $ 3,508 $ 77,436 $ 531,998 \n \n \n BALANCE AS AT MAY 1, 2026 $ 266,789 $ 199,217 $ 2,071 $ 1,839 $ 86,098 $ 556,014 \n \n Exercise of stock options - - - - - - \n Share-based compensation - - - - - - \n Stock options expired/forfeited - - - - - - \n 266,789 199,217 2,071 1,839 86,098 556,014 \n Comprehensive earnings: \n Net earnings - 14,483 - - - 14,483 \n Unrealized gain (loss) on foreign \n currency translations - - - - 11,669 11,669 \n Unrealized gain (loss) on derivatives - - (934 ) - - (934 ) \n Total comprehensive earnings - 14,483 (934 ) - 11,669 25,218 \n \n BALANCE AS AT JULY 31, 2026 $ 266,789 $ 213,700 $ 1,137 $ 1,839 $ 97,767 $ 581,232 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Cash Flows \n (in thousands of Canadian dollars) \n (unaudited) \n \n Three months ended \n July 31 \n \n 2026 2025 \n \n OPERATING ACTIVITIES \n Earnings before income tax $ 19,132 $ 13,960 \n Operating items not involving cash \n Depreciation (note 7) 16,195 15,936 \n Amortization of intangible assets 1,400 1,530 \n (Gain) loss on disposal of property, plant and equipment (573 ) (120 ) \n Share-based compensation - 11 \n Finance (revenues) costs recognized in earnings before income tax 436 632 \n 36,590 31,949 \n Changes in non-cash operating working capital items (20,436 ) (13,118 ) \n Finance revenues received (costs paid) (436 ) (632 ) \n Income taxes paid (3,965 ) (3,266 ) \n Cash flow from (used in) operating activities 11,753 14,933 \n \n FINANCING ACTIVITIES \n Repayment of lease liabilities (413 ) (384 ) \n Issuance of common shares due to exercise of stock options - 249 \n Change in long-term debt 684 (24 ) \n Cash flow from (used in) financing activities 271 (159 ) \n \n INVESTING ACTIVITIES \n Change in investments (3,500 ) - \n Acquisition of property, plant and equipment (note 6) (13,462 ) (14,380 ) \n Proceeds from disposal of property, plant and equipment 1,127 193 \n Cash flow from (used in) investing activities (15,835 ) (14,187 ) \n \n Effect of exchange rate changes 519 504 \n \n INCREASE (DECREASE) IN CASH (3,292 ) 1,091 \n \n CASH, BEGINNING OF THE PERIOD 62,631 45,987 \n \n CASH, END OF THE PERIOD $ 59,339 $ 47,078 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Balance Sheets \n As at July 31, 2026 and April 30, 2026 \n (in thousands of Canadian dollars) \n (unaudited) \n \n July 31, 2026 April 30, 2026 \n \n ASSETS \n \n CURRENT ASSETS \n Cash and cash equivalents $ 59,339 $ 62,631 \n Trade and other receivables (note 11) 207,121 179,484 \n Income tax receivable 7,982 9,016 \n Inventories 117,132 111,239 \n Prepaid expenses 15,676 9,982 \n 407,250 372,352 \n \n PROPERTY, PLANT AND EQUIPMENT (note 6) 283,305 281,467 \n \n RIGHT-OF-USE ASSETS 10,950 7,491 \n \n INVESTMENTS 17,255 14,105 \n \n DEFERRED INCOME TAX ASSETS 5,696 4,540 \n \n GOODWILL 70,507 67,979 \n \n INTANGIBLE ASSETS 17,336 18,062 \n \n $ 812,299 $ 765,996 \n \n LIABILITIES \n \n CURRENT LIABILITIES \n Trade and other payables $ 156,971 $ 142,131 \n Income tax payable 4,485 3,115 \n Current portion of lease liabilities 2,278 1,616 \n Current portion of contingent consideration 6,425 6,561 \n 170,159 153,423 \n \n LEASE LIABILITIES 9,214 6,177 \n \n CONTINGENT CONSIDERATION 9,132 8,134 \n \n LONG-TERM DEBT 28,036 27,352 \n \n DEFERRED INCOME TAX LIABILITIES 14,526 14,896 \n 231,067 209,982 \n \n SHAREHOLDERS' EQUITY \n Share capital 266,789 266,789 \n Retained earnings 213,700 199,217 \n Other reserves 1,137 2,071 \n Share-based payments reserve 1,839 1,839 \n Foreign currency translation reserve 97,767 86,098 \n 581,232 556,014 \n \n $ 812,299 $ 765,996 \n\n\n\nMAJOR DRILLING GROUP INTERNATIONAL INC.\nNOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE THREE MONTHS ENDED JULY 31, 2026 AND 2025 (UNAUDITED)\n(in thousands of Canadian dollars, except per share information)\n\n1. NATURE OF ACTIVITIES\n\nMajor Drilling Group International Inc. (the “Company”) is incorporated\nunder the Canada Business Corporations Act and has its head office at 111 St.\nGeorge Street, Moncton, NB, Canada. The Company’s common shares are listed\non the Toronto Stock Exchange (“TSX”). The principal source of revenue\nconsists of contract drilling for companies primarily involved in mining and\nmineral exploration. The Company has operations in North America, South\nAmerica, Australia, Asia, and Africa.\n\n2. BASIS OF PRESENTATION\n\nStatement of compliance\nThese Interim Condensed Consolidated Financial Statements have been prepared\nin accordance with IAS 34 Interim Financial Reporting (“IAS 34”) as issued\nby the International Accounting Standards Board (“IASB”) and using the\naccounting policies as outlined in the Company’s annual Consolidated\nFinancial Statements for the year ended April 30, 2026.\n\nOn September 2, 2026, the Board of Directors authorized the financial\nstatements for issue.\n\nBasis of consolidation\nThese Interim Condensed Consolidated Financial Statements incorporate the\nfinancial statements of the Company and entities controlled by the Company.\nControl is achieved when the Company is exposed or has rights to variable\nreturns from its involvement with the investee and has the ability to affect\nthose returns through its power over the investee.\n\nThe results of subsidiaries acquired or disposed of during the period are\nincluded in the Consolidated Statements of Operations from the effective date\nof acquisition or up to the effective date of disposal, as appropriate.\n\nIntercompany transactions, balances, income and expenses are eliminated on\nconsolidation, where appropriate.\n\nBasis of preparation\nThese Interim Condensed Consolidated Financial Statements have been prepared\nbased on the historical cost basis, except for certain financial instruments\nthat are measured at fair value, using the same accounting policies and\nmethods of computation, as presented in the Company’s annual Consolidated\nFinancial Statements for the year ended April 30, 2026.\n\n3. APPLICATION OF NEW AND REVISED IFRS(®) ACCOUNTING STANDARDS\n\nThe Company has not applied the following IASB standard that has been issued,\nbut is not yet effective:\n* IFRS 18 (as issued in 2024) - Presentation and Disclosure of Financial\nStatements - effective for periods beginning on or after January 1, 2027, with\nearlier application permitted. The standard replaces IAS 1, Presentation of\nFinancial Statements, and includes requirements for the presentation and\ndisclosure of information in financial statements, such as the presentation of\nsubtotals within the statement of operations and the disclosure of\nmanagement-defined performance measures within the financial statements.\nThe Company has performed a detailed preliminary assessment of the application\nof IFRS 18 to its financial statements, including a preliminary classification\nof each statement of operations line item. IFRS 18 will not affect the\nrecognition and measurement of items in the financial statements.\n\nThe assessment remains in progress and continues to be reviewed with the\nCompany's external auditor. The Company has implemented changes to its\nprocesses during the current period to capture information at the level of\ndetail required under IFRS 18 for retrospective application. The Company will\nprovide updated disclosure in subsequent periods as the assessment is\nfinalized.\n\n4. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGMENTS\n\nThe preparation of financial statements, in conformity with IFRS Accounting\nStandards, requires management to make judgments, estimates and assumptions\nthat are not readily apparent from other sources, which affect the application\nof accounting policies and the reported amounts of assets, liabilities, income\nand expenses. Actual results may differ from these estimates.\n\nThe estimates and underlying assumptions are reviewed on an ongoing basis.\nRevisions to accounting estimates are recognized in the period in which the\nestimate is revised, if the revision affects only that period, or in the\nperiod of the revision and future periods, if the revision affects both\ncurrent and future periods. Significant areas requiring the use of management\nestimates relate to the useful lives of property, plant and equipment and\nintangible assets for depreciation and amortization purposes, inventory\nvaluation, determination of income and other taxes, recoverability of deferred\nincome tax assets, assumptions used in compilation of share-based payments,\nprovisions, contingent considerations, impairment testing of goodwill, and\nimpairment testing of intangible and long-lived assets.\n\nThe Company applied judgment in determining the functional currency of the\nCompany and its subsidiaries, the determination of cash-generating units\n(“CGUs”), the degree of componentization of property, plant and equipment,\nthe recognition of provisions, and the determination of the probability that\ndeferred income tax assets will be realized from future taxable earnings.\n\n5. SEASONALITY OF OPERATIONS\n\nThe third quarter (November to January) is normally the Company’s weakest\nquarter due to the slowdown of mining and exploration activities, often for\nextended periods over the holiday season.\n\n6. PROPERTY, PLANT AND EQUIPMENT\n\nCapital expenditures for the three months ended July 31, 2026 were $13,462\n(2025 - $14,380). The Company did not obtain direct financing for the three\nmonths ended July 31, 2026 or 2025.\n\n7. EXPENSES BY NATURE\n\nDirect costs by nature were as follows:\n\n Q1 2027 Q1 2026 \n \n Depreciation $ 15,238 $ 14,911 \n Employee salaries and benefit expenses 98,202 82,881 \n Repairs and maintenance, materials, and consumables 109,063 85,275 \n Other 3,394 1,394 \n $ 225,897 $ 184,461 \n\nGeneral and administrative expenses by nature were as follows:\n\n Q1 2027 Q1 2026 \n \n Depreciation $ 957 $ 1,025 \n Employee salaries and benefit expenses 13,030 11,577 \n Other general and administrative expenses 9,807 8,766 \n $ 23,794 $ 21,368 \n\n8. INCOME TAXES\n\nThe income tax provision for the periods can be reconciled to accounting\nearnings before income tax as follows:\n\n Q1 2027 Q1 2026 \n \n Earnings before income tax $ 19,132 $ 13,960 \n \n Statutory Canadian corporate income tax rate 27 % 27 % \n \n Expected income tax provision based on statutory rate 5,166 3,769 \n Non-recognition of tax benefits related to losses 168 705 \n Utilization of previously unrecognized losses (2,051 ) (42 ) \n Other foreign taxes paid 378 467 \n Rate variances in foreign jurisdictions 405 (81 ) \n Permanent differences and other 583 (929 ) \n Income tax provision recognized in net earnings $ 4,649 $ 3,889 \n \n\nThe Company periodically assesses its liabilities and contingencies for all\ntax years open to audit based upon the latest information available. For those\nmatters where it is probable that an adjustment will be made, the Company\nrecords its best estimate of these tax liabilities, including related interest\ncharges. Inherent uncertainties exist in estimates of tax contingencies due to\nchanges in tax laws. While management believes they have adequately provided\nfor the probable outcome of these matters, future results may include\nfavourable or unfavourable adjustments to these estimated tax liabilities in\nthe period the assessments are made, or resolved, or when the statutes of\nlimitations lapse.\n\n9. EARNINGS PER SHARE\n\nAll of the Company’s earnings are attributable to common shares, therefore,\nnet earnings are used in determining earnings per share.\n\n Q1 2027 Q1 2026 \n \n Net earnings $ 14,483 $ 10,071 \n \n Weighted average number of shares: \n Basic (000s) 82,236 81,865 \n Diluted (000s) 82,284 82,018 \n \n Earnings per share \n Basic $ 0.18 $ 0.12 \n Diluted $ 0.18 $ 0.12 \n\nAs at July 31, 2026, all stock options were in-the-money. The calculation of\ndiluted earnings per share for the period ended July 31, 2025 excludes the\neffect of 200,000 options as they were not in-the-money.\n\nThe total number of shares outstanding on July 31, 2026 was 82,236,286 (2025 -\n81,887,836).\n\n10. SEGMENTED INFORMATION\n\nThe Company’s operations are divided into the following three geographic\nsegments, corresponding to its management structure: Canada - U.S.; South and\nCentral America; and Australasia and Africa. The services provided in each of\nthe reportable segments are essentially the same. The accounting policies of\nthe segments are the same as those described in the Company’s annual\nConsolidated Financial Statements for the year ended April 30, 2026.\nManagement evaluates performance based on earnings from operations in these\nthree geographic segments before finance costs, general corporate expenses and\nincome taxes. Data relating to each of the Company’s reportable segments is\npresented as follows:\n\n Q1 2027 Q1 2026 \n Revenue \n Canada - U.S.* $ 110,716 $ 84,070 \n South and Central America 113,434 95,763 \n Australasia and Africa 53,196 46,785 \n $ 277,346 $ 226,618 \n\n*Canada - U.S. includes revenue of $52,511 (2025 - $39,169) for Canadian\noperations.\n\n Q1 2027 Q1 2026 \n \n Earnings (loss) from operations \n Canada - U.S. $ 12,400 $ 6,160 \n South and Central America 6,836 6,241 \n Australasia and Africa 9,508 9,995 \n 28,744 22,396 \n \n Finance (revenues) costs 436 632 \n General and corporate expenses** 9,176 7,804 \n Income tax 4,649 3,889 \n 14,261 12,325 \n \n Net earnings $ 14,483 $ 10,071 \n\n**General and corporate expenses include expenses for corporate offices and\nstock-based compensation.\n\nAmounts presented in comparative periods for certain items have been allocated\nconsistent with current year presentation. This allocation had no impact on\nconsolidated net earnings.\n\n Q1 2027 Q1 2026 \n Capital expenditures \n Canada - U.S. $ 5,297 $ 1,285 \n South and Central America 4,865 10,674 \n Australasia and Africa 2,874 2,332 \n Unallocated and corporate assets 426 89 \n Total capital expenditures $ 13,462 $ 14,380 \n\n\n\n Q1 2027 Q1 2026 \n Depreciation and amortization \n Canada - U.S. $ 6,148 $ 6,554 \n South and Central America 7,084 6,225 \n Australasia and Africa 4,219 4,455 \n Unallocated and corporate assets 144 232 \n Total depreciation and amortization $ 17,595 $ 17,466 \n\n\n\n July 31, 2026 April 30, 2026 \n Identifiable assets \n Canada - U.S.* $ 251,249 $ 244,736 \n South and Central America 374,878 349,319 \n Australasia and Africa 250,823 233,442 \n Unallocated and corporate liabilities (64,651 ) (61,501 ) \n Total identifiable assets $ 812,299 $ 765,996 \n\n*Canada - U.S. includes property, plant and equipment as at July 31, 2026 of\n$53,300 (April 30, 2026 - $54,278) for Canadian operations.\n\n11. FINANCIAL INSTRUMENTS\n\nFair value\nThe carrying values of cash, trade and other receivables, demand credit\nfacilities and trade and other payables approximate their fair value due to\nthe relatively short period to maturity of the instruments. The carrying value\nof contingent consideration and long-term debt approximates their fair value\nas the interest applicable is reflective of fair market rates.\n\nFinancial assets and liabilities measured at fair value are classified and\ndisclosed in one of the following categories:\n* Level 1 - quoted prices (unadjusted) in active markets for identical assets\nor liabilities;\n* Level 2 - inputs other than quoted prices included in level 1 that are\nobservable for the assets or liabilities, either directly (i.e., as prices) or\nindirectly (i.e., derived from prices); and\n* Level 3 - inputs for the assets or liabilities that are not based on\nobservable market data (unobservable inputs).\nThe Company enters into certain derivative financial instruments to manage its\nexposure to market risks, comprised of share-price forward contracts with a\ncombined notional amount of $7,563, maturing at varying dates through June\n2028.\n\nThe fair value hierarchy requires the use of observable market inputs whenever\nsuch inputs exist. A financial instrument is classified to the lowest level of\nthe hierarchy for which a significant input has been considered in measuring\nfair value.\n\nThe Company’s derivatives, with fair values as follows, are classified as\nlevel 2 financial instruments and recorded in trade and other receivables\n(payables) in the Interim Condensed Consolidated Balance Sheets. There were no\ntransfers of amounts between level 1, level 2 and level 3 financial\ninstruments for the three months ended July 31, 2026.\n\n July 31, 2026 April 30, 2026 \n \n Share-price forward contracts $ 2,257 $ 4,930 \n\nCredit risk\nAs at July 31, 2026, 95.2% (April 30, 2026 - 96.6%) of the Company’s trade\nreceivables were aged as current and 0.6% (April 30, 2026 - 0.7%) of the trade\nreceivables were impaired.\n\nThe movements in the allowance for impairment of trade receivables during the\nperiods were as follows:\n\n July 31, 2026 April 30, 2026 \n \n Opening balance $ 1,211 $ 2,179 \n Increase in impairment allowance 59 342 \n Recovery of amounts previously impaired - (893 ) \n Write-off charged against allowance - (431 ) \n Foreign exchange translation differences 7 14 \n Ending balance $ 1,277 $ 1,211 \n\nForeign currency risk \nAs at July 31, 2026, the most significant carrying amounts of net monetary\nassets and/or liabilities (which may include intercompany balances with other\nsubsidiaries) that: (i) are denominated in currencies other than the\nfunctional currency of the respective Company subsidiary; and (ii) cause\nforeign exchange rate exposure, including the impact on earnings before income\ntaxes (“EBIT”), if the corresponding rate changes by 10%, are as follows\n(in $000s CAD):\n\n Rate IDR/USD MNT/USD USD/AUD USD/ZAR PEN/USD USD/CLP USD/CAD Other \n variance \n Net exposure on monetary assets (liabilities) 10,053 7,540 6,030 (6,152 ) (6,975 ) (8,982 ) (17,030 ) (3,228 ) \n EBIT impact +/-10% 1,117 838 670 684 775 998 1,892 359 \n\nLiquidity risk\nThe following table details contractual maturities for the Company’s\nfinancial liabilities:\n\n 1 year 2-3 years 4-5 years Thereafter Total \n \n Trade and other payables $ 156,971 $ - $ - $ - $ 156,971 \n Lease liabilities (interest included) 2,900 5,318 3,009 2,103 13,330 \n Contingent consideration (undiscounted) 7,008 11,563 - - 18,571 \n Long-term debt (interest included) 1,604 28,437 - - 30,041 \n $ 168,483 $ 45,318 $ 3,009 $ 2,103 $ 218,913 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/e2f0ecb0-1524-4caf-83b3-e013194e30e3)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX15Wy5L","title":"Major Drilling Announces Record Quarterly Revenue for Its First Quarter 2027","author":"Globe Newswire","ticker":"MDI","created":"2026-09-02T21:00:00.616Z","tickers":["MDI"],"exchange":"TSX","article_body":"MONCTON, New Brunswick, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Major Drilling\nGroup International Inc. (“Major Drilling” or the “Company”) (TSX:\nMDI), the largest provider of drilling services to the mining sector, today\nreported results for the first quarter of Fiscal 2027, ended July 31, 2026. \n\nQuarterly Highlights:\n* Record quarterly revenue of $277.3 million, representing an 18.7% increase\nfrom the prior quarter and a 22.4% increase when compared to the same period\nlast year.\n* Adjusted gross margin((1)) of 24.0%, an increase from the 22.0% recorded in\nthe prior quarter, though below the 25.2% recorded for the same period last\nyear.\n* Generated EBITDA((1)) of $37.2 million, a 15.9% increase when compared to\nthe $32.1 million recorded for the same period last year.\n* Net earnings of $14.5 million (or $0.18 per share), a 43.6% increase when\ncompared to net earnings of $10.1 million (or $0.12 per share) recorded for\nthe same period last year.\n“The Company started the fiscal year on a strong note, with each region\ncontributing double-digit revenue growth when compared to the prior year\nperiod. This was primarily driven by the deployment of additional rigs into\nthe field throughout the quarter, combined with a gradually improving pricing\nenvironment. As a result, revenue increased by 22.4% year-over-year to $277.3\nmillion, setting a new quarterly record in the Company’s 46-year history,”\nsaid Denis Larocque, President and CEO of Major Drilling.\n\n“Activity in Canada and the US continued to accelerate following prior\nexploration budget increases by senior mining customers. Growth was driven by\nboth the award of new contracts and the addition of rigs to existing projects\nas customers expanded their drilling programs. Juniors are increasingly\ndeploying capital following the significant increase in financing activity\nearlier in the calendar year. Activity levels in the South and Central\nAmerican region continued to increase, driven primarily by incremental growth\nin Peru, while Mexico, Argentina, and Brazil also saw increases in activity\nlevels. The Australasia and Africa segment also saw meaningful growth, driven\nprimarily by Australia, where senior mining companies continued to increase\ntheir exploration efforts through expanded drill programs,” Mr. Larocque\ncontinued.\n\n“The adjusted gross margin of 24.0% in the quarter marked further\nimprovement from the 22.0% realized in the prior quarter, reflecting ongoing\npricing improvements, muted by ramp-up costs associated with new contracts,\nhigher labour and consumable costs, and investments in workforce training and\ndevelopment. While these factors remain a near-term headwind, we expect\nmargins to continue improving as ramp-up costs subside and pricing initiatives\ntake hold,” noted Mr. Larocque.\n\n“Given strong revenue growth, the Company generated EBITDA of $37.2 million\nin the first quarter of Fiscal 2027, a 15.9% increase from the $32.1 million\ngenerated in the prior year period. Net cash((1)) was $15.7 million, down from\nthe end of the prior quarter as higher rig utilization resulted in a temporary\nincrease in working capital requirements. Reflecting our ongoing commitment to\nmaintaining a high-quality global fleet of rigs, we incurred $13.5 million in\ncapital expenditures during the quarter, with the addition of 5 new drills and\nsupport equipment, while 10 older, less efficient drills were retired,\nbringing the total rig count to 683 at quarter-end,” said Ian Ross, CFO of\nMajor Drilling.\n\n“Turning to the outlook, we expect rigs to continue to be gradually deployed\ninto the field at incrementally higher prices as seniors continue to drive\nincreasing activity levels as a result of larger exploration budgets, while\njuniors continue to move through more robust exploration programs following\nthe substantial increase in financing activity earlier in the calendar year.\nWhile demand grows, the industry continues to navigate through a challenging\nlabour market. We expect to improve pricing on new contracts and renewals to\noffset cost increases and improve margins as the fiscal year progresses,”\ncontinued Mr. Larocque.\n\n“The Company continues to take proactive measures with respect to the hiring\nand retention of drill crews as labour remains our most significant challenge.\nAs the availability of experienced drillers tightens, we have increased the\nnumber of trainee drillers, which has temporarily impacted productivity and is\nexpected to continue doing so as they gain experience. In the key areas where\nthe labour shortage is most problematic, particularly with respect to Canada\nand the U.S., we have scaled up our efforts at our training centers. The goals\nfor these centers are to improve the retention rate of new hires, while also\naccelerating their learning curve and reducing overall training time without\ncompromising safety,” concluded Mr. Larocque.\n\n In millions of Canadian dollars (except earnings per share) Q1 2027 Q1 2026 \n Revenue $ 277.3 $ 226.6 \n Gross margin 18.6 % 18.6 % \n Adjusted gross margin 24.0 % 25.2 % \n EBITDA 37.2 32.1 \n As percentage of revenue 13.4 % 14.1 % \n Net earnings 14.5 10.1 \n Earnings per share 0.18 0.12 \n\n((1)    )See “Non-IFRS Financial Measures”\n\nFirst Quarter Ended July 31, 2026\n\nRevenue for the first quarter of Fiscal 2027 reached $277.3 million, up 22.4%\nfrom revenue of $226.6 million recorded in the same quarter last year. The\nfavourable foreign exchange translation impact on revenue, when compared to\nthe effective rates for the same period last year, was approximately $8\nmillion, while the impact on net earnings was minimal as expenditures in\nforeign jurisdictions tend to be in the same currency as revenue.\n\nRevenue for the quarter from Canada - U.S. drilling operations increased by\n31.6% to $110.7 million, compared to the same quarter last year. Growth was\nled by new contract starts and continued price increases, while labour\navailability remained a constraint across the region.\n\nSouth and Central American revenue increased by 18.4% to $113.4 million for\nthe quarter, compared to the same quarter last year. Peru continued to be the\nlargest contributor to the region's growth, supported by new project activity,\nwhile Mexico and Brazil also grew with new project starts.\n\nAustralasian and African revenue increased by 13.7% to $53.2 million, compared\nto the same quarter last year. Growth in the region was driven by increased\ndemand from seniors in Australia.\n\nGross margin percentage for the quarter as well as for the same quarter last\nyear, was 18.6%. Depreciation expense totaling $15.2 million is included in\ndirect costs for the current quarter, versus $14.9 million in the same quarter\nlast year. Adjusted gross margin, which excludes depreciation expense, was\n24.0% for the quarter, compared to 25.2% for the same quarter last year. The\nyear-over-year decline in adjusted gross margin was primarily attributable to\nongoing wage adjustments and training costs associated with the tight North\nAmerican labour market, along with ramp-up costs across various operations and\nweather-related disruptions in Chile. These factors were partially offset by\ngradual pricing improvements, particularly within North America.\n\nGeneral and administrative costs were $23.8 million, an increase of $2.4\nmillion compared to the same quarter last year, driven by annual inflationary\nwage adjustments and additional costs to address rapid growth in our busiest\nregions.\n\nOther expenses were $6.0 million, up from $3.3 million in the same quarter\nlast year, due primarily to increased incentive compensation costs resulting\nfrom improved profitability and higher stock-based compensation costs tied to\nthe Company's share price performance.\n\nForeign exchange loss was $1.2 million, compared to a loss of $1.5 million for\nthe same quarter last year. While the Company's reporting currency is the\nCanadian dollar, various jurisdictions have net monetary assets or liabilities\nexposed to various other currencies.\n\nThe income tax provision for the quarter was an expense of $4.6 million,\ncompared to $3.9 million for the same quarter last year. The increase is a\nresult of increased profitability, while the lower effective rate is due to\nutilization of previously unrecognized losses.\n\nNet earnings were $14.5 million or $0.18 per share ($0.18 per share diluted)\nfor the quarter, compared to net earnings of $10.1 million or $0.12 per share\n($0.12 per share diluted) for the prior year quarter.\n\nNon-IFRS Financial Measures\n\nThe Company’s financial data has been prepared in accordance with IFRS(®),\nwith the exception of certain financial measures detailed below. The measures\nbelow have been used consistently by the Company’s management team in\nassessing operational performance on both segmented and consolidated levels,\nand in assessing the Company’s financial strength. The Company believes\nthese non-IFRS financial measures are key, for both management and investors,\nin evaluating performance at a consolidated level and are commonly reported\nand widely used by investors and lending institutions as indicators of a\ncompany’s operating performance and ability to incur and service debt, and\nas a valuation metric. These measures do not have a standardized meaning\nprescribed by IFRS and therefore may not be comparable to similarly titled\nmeasures presented by other publicly traded companies and should not be\nconstrued as an alternative to other financial measures determined in\naccordance with IFRS.\n\nEBITDA - earnings before interest, taxes, depreciation, and amortization:\n\n (in $000s CAD) Q1 2027 Q1 2026 \n \n Net earnings $ 14,483 $ 10,071 \n Finance (revenues) costs 436 632 \n Income tax provision 4,649 3,889 \n Depreciation and amortization 17,595 17,466 \n EBITDA $ 37,163 $ 32,058 \n\nAdjusted gross profit/margin - excludes depreciation expense:\n\n (in $000s CAD) Q1 2027 Q1 2026 \n \n Total revenue $ 277,346 $ 226,618 \n Less: direct costs 225,897 184,461 \n Gross profit 51,449 42,157 \n Add: depreciation 15,238 14,911 \n Adjusted gross profit 66,687 57,068 \n Adjusted gross margin 24.0 % 25.2 % \n\nNet cash (debt) – cash net of debt, excluding lease liabilities reported\nunder IFRS 16 Leases:\n\n (in $000s CAD) July 31, 2026 April 30, 2026 \n \n Cash and cash equivalents $ 59,339 $ 62,631 \n Contingent consideration (15,557 ) (14,695 ) \n Long-term debt (28,036 ) (27,352 ) \n Net cash (debt) $ 15,746 $ 20,584 \n\nForward-Looking Statements\n\nThis news release includes certain information that may constitute\n“forward-looking information” under applicable Canadian securities\nlegislation. All statements, other than statements of historical facts,\nincluded in this news release that address future events, developments, or\nperformance that the Company expects to occur (including management’s\nexpectations regarding the Company’s objectives, strategies, financial\ncondition, results of operations, cash flows and businesses) are\nforward-looking statements. Forward-looking statements are typically\nidentified by future or conditional verbs such as “outlook”,\n“believe”, “anticipate”, “estimate”, “project”, “expect”,\n“intend”, “plan”, and terms and expressions of similar import. All\nforward-looking information in this news release is qualified by this\ncautionary note.\n\nForward-looking information is necessarily based upon various estimates and\nassumptions including, without limitation, the expectations and beliefs of\nmanagement related to the factors set forth below. While these factors and\nassumptions are considered reasonable by the Company as at the date of this\ndocument in light of management’s experience and perception of current\nconditions and expected developments, these statements are inherently subject\nto significant business, economic and competitive uncertainties and\ncontingencies. Known and unknown factors could cause actual results to differ\nmaterially from those projected in the forward-looking statements and undue\nreliance should not be placed on such statements and information.\n\nSuch forward-looking statements are subject to a number of risks and\nuncertainties that include, but are not limited to: the level of activity in\nthe mining industry and the demand for the Company's services; global and\nlocal political and economic environments and conditions; competitive\npressures; exposure to currency movements (which can affect the Company's\nrevenue in Canadian dollars); currency restrictions; measures affecting trade\nrelations between countries, including the imposition of tariffs and\ncountermeasures, as well as the possible impacts on the Company's clients,\noperations and, more generally, the economy; skilled labour\navailability/retention for drill crews; the level of funding for the Company's\nclients (particularly for junior mining companies); the integration of\nbusiness acquisitions and the realization of the intended benefits of such\nacquisitions; changes in jurisdictions in which the Company operates\n(including changes in regulation); efficient management of the Company's\ngrowth; the Company's dependence on key customers; the impact of operational\nchanges; safety of the Company's workforce; risks and uncertainties relating\nto climate change and natural disasters; the geographic distribution of the\nCompany's operations; failure by counterparties to fulfill contractual\nobligations; disease outbreak; as well as other risk factors described under\n“General Risks and Uncertainties” in the Company’s MD&A for the year\nended April 30, 2026, available on the SEDAR+ website at www.sedarplus.ca.\nShould one or more risk, uncertainty, contingency, or other factor materialize\nor should any factor or assumption prove incorrect, actual results could vary\nmaterially from those expressed or implied in the forward-looking information.\n\nForward-looking statements made in this document are made as of the date of\nthis document and the Company disclaims any intention and assumes no\nobligation to update any forward-looking statement, even if new information\nbecomes available, as a result of future events, or for any other reasons,\nexcept as required by applicable securities laws.\n\nAbout Major Drilling\n\nMajor Drilling Group International Inc. is the world’s largest provider of\ndrilling services in the metals and mining industry. The diverse needs of the\nCompany’s global clientele are met through field operations and registered\noffices that span across North America, South America, Australia, Asia,\nAfrica, and Europe. Established in 1980, the Company has grown to become a\nglobal brand in the mining space, known for tackling many of the world’s\nmost challenging drilling projects. Supported by a highly skilled workforce,\nMajor Drilling is led by an experienced senior management team that has\nsteered it through various economic and mining cycles, supported by regional\nmanagers known for delivering decades of superior project management.\n\nMajor Drilling is regarded as an industry expert at delivering a wide range of\ndrilling services, including reverse circulation, surface and underground\ncoring, directional, sonic, geotechnical, environmental, water-well, coal-bed\nmethane, shallow gas, underground percussive/longhole, and surface drill and\nblast, along with the ongoing development and evolution of its suite of data\nand technology-driven innovation services.\n\nWebcast/Conference Call/Annual General Meeting Information\n\nMajor Drilling Group International Inc. will provide a simultaneous webcast\nand conference call to discuss its quarterly results on Thursday, September 3,\n2026 at 8:00 am (ET).\n\nTo access the live webcast, which includes a slide presentation, please visit\nthe Investors/Webcasts & Presentations section of the Major Drilling website\nand click on the link or click here: Webcast Link\n(https://www.globenewswire.com/Tracker?data=2nDFbvshdAQ6v7UhAVRlAJ9nVukRjnxqdgAGb63dxmNp1gEt5NH_Q-LNZJyBWpL9CSBbSkE59_S8JJQIMOvYovkWzcBsMg6L7qsQ11N-RwTLlauw67hXozbfVuQT-jXn).\nPlease note that this is listen-only mode.\n\nTo participate in the conference call, please pre-register using this Link\n(https://www.globenewswire.com/Tracker?data=gVDiPByMwwluxlnckKYjVdugmfv_a4eoGUQyn0BmRavs3JjhVTAVBIudB4k4BnrKk6UGAcTymmz5EfDfF8fPBk6d-Zq6npKlmc2n1fQR1wf4SL-YtSH0mcSuy_jkzzDe8MPb2yyjnQd77lFDJNrU5BxuWp-r-eePAFUMLoYjBkQ=). Registrants\nwill receive an email confirmation with dial-in details.\n\nFor those unable to participate, a replay of the webcast will be archived for\none year and can be accessed on the Major Drilling website at\nwww.majordrilling.com/investors/webcasts/.\n\nMajor Drilling Group International Inc.’s Annual General Meeting will be\nheld on Thursday, September 3, 2026 at 3:30pm EDT in person at McCarthy\nTétrault, 66 Wellington St. West, 53rd Floor, Clarkson Room, Toronto ON M5K\n1E6, and virtually at www.virtualshareholdermeeting.com/MDI2026.  \n\nFor further information:\n\nRyan Hanley\nDirector of Capital Markets\nTel: (506) 227-2426\nir@majordrilling.com\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Operations \n (in thousands of Canadian dollars, except per share information) \n (unaudited) \n \n Three months ended \n July 31 \n \n 2026 2025 \n \n TOTAL REVENUE $ 277,346 $ 226,618 \n \n DIRECT COSTS (note 7) 225,897 184,461 \n \n GROSS PROFIT 51,449 42,157 \n \n \n OPERATING EXPENSES \n General and administrative (note 7) 23,794 21,368 \n Amortization of intangible assets 1,400 1,530 \n Other expenses (revenues) 6,020 3,291 \n (Gain) loss on disposal of property, plant and equipment (573 ) (120 ) \n Foreign exchange (gain) loss 1,240 1,496 \n Finance (revenues) costs 436 632 \n 32,317 28,197 \n \n EARNINGS BEFORE INCOME TAX 19,132 13,960 \n \n INCOME TAX EXPENSE (RECOVERY) (note 8) \n Current 6,438 6,597 \n Deferred (1,789 ) (2,708 ) \n 4,649 3,889 \n \n NET EARNINGS $ 14,483 $ 10,071 \n \n \n EARNINGS PER SHARE (note 9) \n Basic $ 0.18 $ 0.12 \n Diluted $ 0.18 $ 0.12 \n \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Comprehensive Earnings \n (in thousands of Canadian dollars) \n (unaudited) \n \n Three months ended \n July 31 \n \n \n 2026 2025 \n \n NET EARNINGS $ 14,483 $ 10,071 \n \n OTHER COMPREHENSIVE EARNINGS \n \n Items that may be reclassified subsequently to profit or loss \n Unrealized gain (loss) on foreign currency translations 11,669 (537 ) \n Unrealized gain (loss) on derivatives (net of tax) (934 ) 106 \n \n COMPREHENSIVE EARNINGS $ 25,218 $ 9,640 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Changes in Equity \n For the three months ended July 31, 2026 and 2025 \n (in thousands of Canadian dollars) \n (unaudited) \n \n Retained Other Share-based Foreign currency \n Share capital earnings reserves payments reserve translation reserve Total \n \n BALANCE AS AT MAY 1, 2025 $ 263,108 $ 177,695 $ (293 ) $ 3,615 $ 77,973 $ 522,098 \n \n Exercise of stock options 345 - - (96 ) - 249 \n Share-based compensation - - - 11 - 11 \n Stock options expired/forfeited - 22 - (22 ) - - \n 263,453 177,717 (293 ) 3,508 77,973 522,358 \n Comprehensive earnings: \n Net earnings - 10,071 - - - 10,071 \n Unrealized gain (loss) on foreign \n currency translations - - - - (537 ) (537 ) \n Unrealized gain (loss) on derivatives - - 106 - - 106 \n Total comprehensive earnings - 10,071 106 - (537 ) 9,640 \n \n BALANCE AS AT JULY 31, 2025 $ 263,453 $ 187,788 $ (187 ) $ 3,508 $ 77,436 $ 531,998 \n \n \n BALANCE AS AT MAY 1, 2026 $ 266,789 $ 199,217 $ 2,071 $ 1,839 $ 86,098 $ 556,014 \n \n Exercise of stock options - - - - - - \n Share-based compensation - - - - - - \n Stock options expired/forfeited - - - - - - \n 266,789 199,217 2,071 1,839 86,098 556,014 \n Comprehensive earnings: \n Net earnings - 14,483 - - - 14,483 \n Unrealized gain (loss) on foreign \n currency translations - - - - 11,669 11,669 \n Unrealized gain (loss) on derivatives - - (934 ) - - (934 ) \n Total comprehensive earnings - 14,483 (934 ) - 11,669 25,218 \n \n BALANCE AS AT JULY 31, 2026 $ 266,789 $ 213,700 $ 1,137 $ 1,839 $ 97,767 $ 581,232 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Statements of Cash Flows \n (in thousands of Canadian dollars) \n (unaudited) \n \n Three months ended \n July 31 \n \n 2026 2025 \n \n OPERATING ACTIVITIES \n Earnings before income tax $ 19,132 $ 13,960 \n Operating items not involving cash \n Depreciation (note 7) 16,195 15,936 \n Amortization of intangible assets 1,400 1,530 \n (Gain) loss on disposal of property, plant and equipment (573 ) (120 ) \n Share-based compensation - 11 \n Finance (revenues) costs recognized in earnings before income tax 436 632 \n 36,590 31,949 \n Changes in non-cash operating working capital items (20,436 ) (13,118 ) \n Finance revenues received (costs paid) (436 ) (632 ) \n Income taxes paid (3,965 ) (3,266 ) \n Cash flow from (used in) operating activities 11,753 14,933 \n \n FINANCING ACTIVITIES \n Repayment of lease liabilities (413 ) (384 ) \n Issuance of common shares due to exercise of stock options - 249 \n Change in long-term debt 684 (24 ) \n Cash flow from (used in) financing activities 271 (159 ) \n \n INVESTING ACTIVITIES \n Change in investments (3,500 ) - \n Acquisition of property, plant and equipment (note 6) (13,462 ) (14,380 ) \n Proceeds from disposal of property, plant and equipment 1,127 193 \n Cash flow from (used in) investing activities (15,835 ) (14,187 ) \n \n Effect of exchange rate changes 519 504 \n \n INCREASE (DECREASE) IN CASH (3,292 ) 1,091 \n \n CASH, BEGINNING OF THE PERIOD 62,631 45,987 \n \n CASH, END OF THE PERIOD $ 59,339 $ 47,078 \n\n\n\n Major Drilling Group International Inc. \n Interim Condensed Consolidated Balance Sheets \n As at July 31, 2026 and April 30, 2026 \n (in thousands of Canadian dollars) \n (unaudited) \n \n July 31, 2026 April 30, 2026 \n \n ASSETS \n \n CURRENT ASSETS \n Cash and cash equivalents $ 59,339 $ 62,631 \n Trade and other receivables (note 11) 207,121 179,484 \n Income tax receivable 7,982 9,016 \n Inventories 117,132 111,239 \n Prepaid expenses 15,676 9,982 \n 407,250 372,352 \n \n PROPERTY, PLANT AND EQUIPMENT (note 6) 283,305 281,467 \n \n RIGHT-OF-USE ASSETS 10,950 7,491 \n \n INVESTMENTS 17,255 14,105 \n \n DEFERRED INCOME TAX ASSETS 5,696 4,540 \n \n GOODWILL 70,507 67,979 \n \n INTANGIBLE ASSETS 17,336 18,062 \n \n $ 812,299 $ 765,996 \n \n LIABILITIES \n \n CURRENT LIABILITIES \n Trade and other payables $ 156,971 $ 142,131 \n Income tax payable 4,485 3,115 \n Current portion of lease liabilities 2,278 1,616 \n Current portion of contingent consideration 6,425 6,561 \n 170,159 153,423 \n \n LEASE LIABILITIES 9,214 6,177 \n \n CONTINGENT CONSIDERATION 9,132 8,134 \n \n LONG-TERM DEBT 28,036 27,352 \n \n DEFERRED INCOME TAX LIABILITIES 14,526 14,896 \n 231,067 209,982 \n \n SHAREHOLDERS' EQUITY \n Share capital 266,789 266,789 \n Retained earnings 213,700 199,217 \n Other reserves 1,137 2,071 \n Share-based payments reserve 1,839 1,839 \n Foreign currency translation reserve 97,767 86,098 \n 581,232 556,014 \n \n $ 812,299 $ 765,996 \n\n\n\nMAJOR DRILLING GROUP INTERNATIONAL INC.\nNOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\nFOR THE THREE MONTHS ENDED JULY 31, 2026 AND 2025 (UNAUDITED)\n(in thousands of Canadian dollars, except per share information)\n\n1. NATURE OF ACTIVITIES\n\nMajor Drilling Group International Inc. (the “Company”) is incorporated\nunder the Canada Business Corporations Act and has its head office at 111 St.\nGeorge Street, Moncton, NB, Canada. The Company’s common shares are listed\non the Toronto Stock Exchange (“TSX”). The principal source of revenue\nconsists of contract drilling for companies primarily involved in mining and\nmineral exploration. The Company has operations in North America, South\nAmerica, Australia, Asia, and Africa.\n\n2. BASIS OF PRESENTATION\n\nStatement of compliance\nThese Interim Condensed Consolidated Financial Statements have been prepared\nin accordance with IAS 34 Interim Financial Reporting (“IAS 34”) as issued\nby the International Accounting Standards Board (“IASB”) and using the\naccounting policies as outlined in the Company’s annual Consolidated\nFinancial Statements for the year ended April 30, 2026.\n\nOn September 2, 2026, the Board of Directors authorized the financial\nstatements for issue.\n\nBasis of consolidation\nThese Interim Condensed Consolidated Financial Statements incorporate the\nfinancial statements of the Company and entities controlled by the Company.\nControl is achieved when the Company is exposed or has rights to variable\nreturns from its involvement with the investee and has the ability to affect\nthose returns through its power over the investee.\n\nThe results of subsidiaries acquired or disposed of during the period are\nincluded in the Consolidated Statements of Operations from the effective date\nof acquisition or up to the effective date of disposal, as appropriate.\n\nIntercompany transactions, balances, income and expenses are eliminated on\nconsolidation, where appropriate.\n\nBasis of preparation\nThese Interim Condensed Consolidated Financial Statements have been prepared\nbased on the historical cost basis, except for certain financial instruments\nthat are measured at fair value, using the same accounting policies and\nmethods of computation, as presented in the Company’s annual Consolidated\nFinancial Statements for the year ended April 30, 2026.\n\n3. APPLICATION OF NEW AND REVISED IFRS(®) ACCOUNTING STANDARDS\n\nThe Company has not applied the following IASB standard that has been issued,\nbut is not yet effective:\n* IFRS 18 (as issued in 2024) - Presentation and Disclosure of Financial\nStatements - effective for periods beginning on or after January 1, 2027, with\nearlier application permitted. The standard replaces IAS 1, Presentation of\nFinancial Statements, and includes requirements for the presentation and\ndisclosure of information in financial statements, such as the presentation of\nsubtotals within the statement of operations and the disclosure of\nmanagement-defined performance measures within the financial statements.\nThe Company has performed a detailed preliminary assessment of the application\nof IFRS 18 to its financial statements, including a preliminary classification\nof each statement of operations line item. IFRS 18 will not affect the\nrecognition and measurement of items in the financial statements.\n\nThe assessment remains in progress and continues to be reviewed with the\nCompany's external auditor. The Company has implemented changes to its\nprocesses during the current period to capture information at the level of\ndetail required under IFRS 18 for retrospective application. The Company will\nprovide updated disclosure in subsequent periods as the assessment is\nfinalized.\n\n4. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGMENTS\n\nThe preparation of financial statements, in conformity with IFRS Accounting\nStandards, requires management to make judgments, estimates and assumptions\nthat are not readily apparent from other sources, which affect the application\nof accounting policies and the reported amounts of assets, liabilities, income\nand expenses. Actual results may differ from these estimates.\n\nThe estimates and underlying assumptions are reviewed on an ongoing basis.\nRevisions to accounting estimates are recognized in the period in which the\nestimate is revised, if the revision affects only that period, or in the\nperiod of the revision and future periods, if the revision affects both\ncurrent and future periods. Significant areas requiring the use of management\nestimates relate to the useful lives of property, plant and equipment and\nintangible assets for depreciation and amortization purposes, inventory\nvaluation, determination of income and other taxes, recoverability of deferred\nincome tax assets, assumptions used in compilation of share-based payments,\nprovisions, contingent considerations, impairment testing of goodwill, and\nimpairment testing of intangible and long-lived assets.\n\nThe Company applied judgment in determining the functional currency of the\nCompany and its subsidiaries, the determination of cash-generating units\n(“CGUs”), the degree of componentization of property, plant and equipment,\nthe recognition of provisions, and the determination of the probability that\ndeferred income tax assets will be realized from future taxable earnings.\n\n5. SEASONALITY OF OPERATIONS\n\nThe third quarter (November to January) is normally the Company’s weakest\nquarter due to the slowdown of mining and exploration activities, often for\nextended periods over the holiday season.\n\n6. PROPERTY, PLANT AND EQUIPMENT\n\nCapital expenditures for the three months ended July 31, 2026 were $13,462\n(2025 - $14,380). The Company did not obtain direct financing for the three\nmonths ended July 31, 2026 or 2025.\n\n7. EXPENSES BY NATURE\n\nDirect costs by nature were as follows:\n\n Q1 2027 Q1 2026 \n \n Depreciation $ 15,238 $ 14,911 \n Employee salaries and benefit expenses 98,202 82,881 \n Repairs and maintenance, materials, and consumables 109,063 85,275 \n Other 3,394 1,394 \n $ 225,897 $ 184,461 \n\nGeneral and administrative expenses by nature were as follows:\n\n Q1 2027 Q1 2026 \n \n Depreciation $ 957 $ 1,025 \n Employee salaries and benefit expenses 13,030 11,577 \n Other general and administrative expenses 9,807 8,766 \n $ 23,794 $ 21,368 \n\n8. INCOME TAXES\n\nThe income tax provision for the periods can be reconciled to accounting\nearnings before income tax as follows:\n\n Q1 2027 Q1 2026 \n \n Earnings before income tax $ 19,132 $ 13,960 \n \n Statutory Canadian corporate income tax rate 27 % 27 % \n \n Expected income tax provision based on statutory rate 5,166 3,769 \n Non-recognition of tax benefits related to losses 168 705 \n Utilization of previously unrecognized losses (2,051 ) (42 ) \n Other foreign taxes paid 378 467 \n Rate variances in foreign jurisdictions 405 (81 ) \n Permanent differences and other 583 (929 ) \n Income tax provision recognized in net earnings $ 4,649 $ 3,889 \n \n\nThe Company periodically assesses its liabilities and contingencies for all\ntax years open to audit based upon the latest information available. For those\nmatters where it is probable that an adjustment will be made, the Company\nrecords its best estimate of these tax liabilities, including related interest\ncharges. Inherent uncertainties exist in estimates of tax contingencies due to\nchanges in tax laws. While management believes they have adequately provided\nfor the probable outcome of these matters, future results may include\nfavourable or unfavourable adjustments to these estimated tax liabilities in\nthe period the assessments are made, or resolved, or when the statutes of\nlimitations lapse.\n\n9. EARNINGS PER SHARE\n\nAll of the Company’s earnings are attributable to common shares, therefore,\nnet earnings are used in determining earnings per share.\n\n Q1 2027 Q1 2026 \n \n Net earnings $ 14,483 $ 10,071 \n \n Weighted average number of shares: \n Basic (000s) 82,236 81,865 \n Diluted (000s) 82,284 82,018 \n \n Earnings per share \n Basic $ 0.18 $ 0.12 \n Diluted $ 0.18 $ 0.12 \n\nAs at July 31, 2026, all stock options were in-the-money. The calculation of\ndiluted earnings per share for the period ended July 31, 2025 excludes the\neffect of 200,000 options as they were not in-the-money.\n\nThe total number of shares outstanding on July 31, 2026 was 82,236,286 (2025 -\n81,887,836).\n\n10. SEGMENTED INFORMATION\n\nThe Company’s operations are divided into the following three geographic\nsegments, corresponding to its management structure: Canada - U.S.; South and\nCentral America; and Australasia and Africa. The services provided in each of\nthe reportable segments are essentially the same. The accounting policies of\nthe segments are the same as those described in the Company’s annual\nConsolidated Financial Statements for the year ended April 30, 2026.\nManagement evaluates performance based on earnings from operations in these\nthree geographic segments before finance costs, general corporate expenses and\nincome taxes. Data relating to each of the Company’s reportable segments is\npresented as follows:\n\n Q1 2027 Q1 2026 \n Revenue \n Canada - U.S.* $ 110,716 $ 84,070 \n South and Central America 113,434 95,763 \n Australasia and Africa 53,196 46,785 \n $ 277,346 $ 226,618 \n\n*Canada - U.S. includes revenue of $52,511 (2025 - $39,169) for Canadian\noperations.\n\n Q1 2027 Q1 2026 \n \n Earnings (loss) from operations \n Canada - U.S. $ 12,400 $ 6,160 \n South and Central America 6,836 6,241 \n Australasia and Africa 9,508 9,995 \n 28,744 22,396 \n \n Finance (revenues) costs 436 632 \n General and corporate expenses** 9,176 7,804 \n Income tax 4,649 3,889 \n 14,261 12,325 \n \n Net earnings $ 14,483 $ 10,071 \n\n**General and corporate expenses include expenses for corporate offices and\nstock-based compensation.\n\nAmounts presented in comparative periods for certain items have been allocated\nconsistent with current year presentation. This allocation had no impact on\nconsolidated net earnings.\n\n Q1 2027 Q1 2026 \n Capital expenditures \n Canada - U.S. $ 5,297 $ 1,285 \n South and Central America 4,865 10,674 \n Australasia and Africa 2,874 2,332 \n Unallocated and corporate assets 426 89 \n Total capital expenditures $ 13,462 $ 14,380 \n\n\n\n Q1 2027 Q1 2026 \n Depreciation and amortization \n Canada - U.S. $ 6,148 $ 6,554 \n South and Central America 7,084 6,225 \n Australasia and Africa 4,219 4,455 \n Unallocated and corporate assets 144 232 \n Total depreciation and amortization $ 17,595 $ 17,466 \n\n\n\n July 31, 2026 April 30, 2026 \n Identifiable assets \n Canada - U.S.* $ 251,249 $ 244,736 \n South and Central America 374,878 349,319 \n Australasia and Africa 250,823 233,442 \n Unallocated and corporate liabilities (64,651 ) (61,501 ) \n Total identifiable assets $ 812,299 $ 765,996 \n\n*Canada - U.S. includes property, plant and equipment as at July 31, 2026 of\n$53,300 (April 30, 2026 - $54,278) for Canadian operations.\n\n11. FINANCIAL INSTRUMENTS\n\nFair value\nThe carrying values of cash, trade and other receivables, demand credit\nfacilities and trade and other payables approximate their fair value due to\nthe relatively short period to maturity of the instruments. The carrying value\nof contingent consideration and long-term debt approximates their fair value\nas the interest applicable is reflective of fair market rates.\n\nFinancial assets and liabilities measured at fair value are classified and\ndisclosed in one of the following categories:\n* Level 1 - quoted prices (unadjusted) in active markets for identical assets\nor liabilities;\n* Level 2 - inputs other than quoted prices included in level 1 that are\nobservable for the assets or liabilities, either directly (i.e., as prices) or\nindirectly (i.e., derived from prices); and\n* Level 3 - inputs for the assets or liabilities that are not based on\nobservable market data (unobservable inputs).\nThe Company enters into certain derivative financial instruments to manage its\nexposure to market risks, comprised of share-price forward contracts with a\ncombined notional amount of $7,563, maturing at varying dates through June\n2028.\n\nThe fair value hierarchy requires the use of observable market inputs whenever\nsuch inputs exist. A financial instrument is classified to the lowest level of\nthe hierarchy for which a significant input has been considered in measuring\nfair value.\n\nThe Company’s derivatives, with fair values as follows, are classified as\nlevel 2 financial instruments and recorded in trade and other receivables\n(payables) in the Interim Condensed Consolidated Balance Sheets. There were no\ntransfers of amounts between level 1, level 2 and level 3 financial\ninstruments for the three months ended July 31, 2026.\n\n July 31, 2026 April 30, 2026 \n \n Share-price forward contracts $ 2,257 $ 4,930 \n\nCredit risk\nAs at July 31, 2026, 95.2% (April 30, 2026 - 96.6%) of the Company’s trade\nreceivables were aged as current and 0.6% (April 30, 2026 - 0.7%) of the trade\nreceivables were impaired.\n\nThe movements in the allowance for impairment of trade receivables during the\nperiods were as follows:\n\n July 31, 2026 April 30, 2026 \n \n Opening balance $ 1,211 $ 2,179 \n Increase in impairment allowance 59 342 \n Recovery of amounts previously impaired - (893 ) \n Write-off charged against allowance - (431 ) \n Foreign exchange translation differences 7 14 \n Ending balance $ 1,277 $ 1,211 \n\nForeign currency risk \nAs at July 31, 2026, the most significant carrying amounts of net monetary\nassets and/or liabilities (which may include intercompany balances with other\nsubsidiaries) that: (i) are denominated in currencies other than the\nfunctional currency of the respective Company subsidiary; and (ii) cause\nforeign exchange rate exposure, including the impact on earnings before income\ntaxes (“EBIT”), if the corresponding rate changes by 10%, are as follows\n(in $000s CAD):\n\n Rate IDR/USD MNT/USD USD/AUD USD/ZAR PEN/USD USD/CLP USD/CAD Other \n variance \n Net exposure on monetary assets (liabilities) 10,053 7,540 6,030 (6,152 ) (6,975 ) (8,982 ) (17,030 ) (3,228 ) \n EBIT impact +/-10% 1,117 838 670 684 775 998 1,892 359 \n\nLiquidity risk\nThe following table details contractual maturities for the Company’s\nfinancial liabilities:\n\n 1 year 2-3 years 4-5 years Thereafter Total \n \n Trade and other payables $ 156,971 $ - $ - $ - $ 156,971 \n Lease liabilities (interest included) 2,900 5,318 3,009 2,103 13,330 \n Contingent consideration (undiscounted) 7,008 11,563 - - 18,571 \n Long-term debt (interest included) 1,604 28,437 - - 30,041 \n $ 168,483 $ 45,318 $ 3,009 $ 2,103 $ 218,913 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/e2f0ecb0-1524-4caf-83b3-e013194e30e3)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-02T21:00:00.684059964Z","server_sent_at_ms":1788382800684},"received_at":"2026-09-02T21:00:00.903Z","source_url":"https://www.globenewswire.com/news-release/2026/09/02/3355545/0/en/major-drilling-announces-record-quarterly-revenue-for-its-first-quarter-2027.html"},"analysis":{"id":"123370","press_release_id":"134480","analysis_json":{"industry":{"label":"Commercial Services & Supplies","sector":"Industrials"},"redFlags":["Adjusted gross margin declined year-over-year (24.0% vs 25.2%) on wage adjustments, training costs, ramp-up costs and Chile weather disruptions","Net cash fell to $15.7M from $20.6M last quarter as higher rig utilization drove a temporary working-capital build","Labour shortage for experienced drill crews flagged as the most significant ongoing challenge, with trainee ramp-up temporarily weighing on productivity"],"eventType":"earnings","narrative":"Major Drilling posted record quarterly revenue of $277.3 million (CAD) for fiscal Q1 2027, up 22.4% year-over-year and 18.7% sequentially — the strongest quarter in the company's 46-year history.\n\nNet earnings jumped 43.6% to $14.5 million, or $0.18 per share, and EBITDA rose 15.9% to $37.2 million. Adjusted gross margin improved to 24.0% from 22.0% last quarter but stayed below the prior year's 25.2% on wage inflation, training costs and new-contract ramp-up costs.\n\nAll three geographic segments grew double digits, led by Canada-US revenue up 31.6%. Management expects further pricing gains to lift margins through the fiscal year, though the tight labour market for drill crews remains the key constraint.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record quarter with 22% revenue growth and a 44% earnings jump as rig deployments and pricing gains confirm the mining exploration upcycle."},"keyFigures":{"eps":0.18,"revenue":277300000,"guidance":"Qualitative outlook: rigs to be deployed at incrementally higher prices on stronger senior and junior exploration budgets; margins expected to improve as ramp-up costs subside and pricing initiatives take hold","revenueYoy":"22.4%","customDimensions":{"cash":59339000,"capex":13462000,"ebitda":37163000,"net_cash":15746000,"rig_count":683,"ebitda_yoy":"15.9%","revenue_qoq":"18.7%","net_earnings":14483000,"long_term_debt":28036000,"net_earnings_yoy":"43.6%","ifrs_gross_margin":"18.6%","prior_year_revenue":226618000,"reporting_currency":"CAD","adjusted_gross_margin":"24.0%","fx_translation_impact":"$8 million","segment_revenue_canada_us":110716000,"segment_revenue_australasia_africa":53196000,"segment_revenue_south_central_america":113434000}},"quotedText":"The Company started the fiscal year on a strong note, with each region\ncontributing double-digit revenue growth when compared to the prior year\nperiod.","namedEntities":{"people":[{"name":"Denis Larocque","role":"President and CEO"},{"name":"Ian Ross","role":"CFO"},{"name":"Ryan Hanley","role":"Director of Capital Markets"}],"products":[],"companies":[{"name":"Major Drilling Group International Inc.","ticker":"MDI","relationship":"filer/issuer"}],"dollarAmounts":[{"amount":"$277.3 million","context":"record Q1 FY2027 quarterly revenue (CAD)"},{"amount":"$226.6 million","context":"prior-year quarter revenue (CAD)"},{"amount":"$37.2 million","context":"Q1 FY2027 EBITDA (CAD)"},{"amount":"$32.1 million","context":"prior-year quarter EBITDA (CAD)"},{"amount":"$14.5 million","context":"Q1 FY2027 net earnings (CAD)"},{"amount":"$10.1 million","context":"prior-year quarter net earnings (CAD)"},{"amount":"$13.5 million","context":"Q1 capital expenditures (CAD)"},{"amount":"$15.7 million","context":"net cash at quarter-end (CAD)"},{"amount":"$8 million","context":"favourable foreign exchange translation impact on revenue (CAD)"}]},"materialImpact":{"score":4,"reasoning":"Record quarterly revenue of $277.3M (up 22.4% YoY and 18.7% QoQ) with net earnings up 43.6% to $14.5M and EBITDA up 15.9%; all three regions posted double-digit growth. No consensus comparison is stated, so the >10%-surprise bar for a 5 is not met, but this is a clearly material quarter for a mid-cap mining services issuer."},"tickerRelevance":{"others":[],"primary":"MDI"},"globalImportance":38,"audienceRelevance":24,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"mid-cap TSX-listed foreign issuer","eventGravity":"record quarterly revenue, +22.4% YoY revenue, +43.6% net earnings","sectorWeight":"mining services / exploration spending cycle","issuerAuthored":true,"householdBrandBoost":null,"marketCapAdjustment":"roughly $1B market cap; not an index heavyweight","retailFavoriteBoost":"moderate — mining/exploration cycle has retail follow-through"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":4,"narrative":"Major Drilling posted record quarterly revenue of $277.3 million (CAD) for fiscal Q1 2027, up 22.4% year-over-year and 18.7% sequentially — the strongest quarter in the company's 46-year history.\n\nNet earnings jumped 43.6% to $14.5 million, or $0.18 per share, and EBITDA rose 15.9% to $37.2 million. Adjusted gross margin improved to 24.0% from 22.0% last quarter but stayed below the prior year's 25.2% on wage inflation, training costs and new-contract ramp-up costs.\n\nAll three geographic segments grew double digits, led by Canada-US revenue up 31.6%. Management expects further pricing gains to lift margins through the fiscal year, though the tight labour market for drill crews remains the key constraint.","key_figures":{"eps":0.18,"revenue":277300000,"guidance":"Qualitative outlook: rigs to be deployed at incrementally higher prices on stronger senior and junior exploration budgets; margins expected to improve as ramp-up costs subside and pricing initiatives take hold","revenueYoy":"22.4%","customDimensions":{"cash":59339000,"capex":13462000,"ebitda":37163000,"net_cash":15746000,"rig_count":683,"ebitda_yoy":"15.9%","revenue_qoq":"18.7%","net_earnings":14483000,"long_term_debt":28036000,"net_earnings_yoy":"43.6%","ifrs_gross_margin":"18.6%","prior_year_revenue":226618000,"reporting_currency":"CAD","adjusted_gross_margin":"24.0%","fx_translation_impact":"$8 million","segment_revenue_canada_us":110716000,"segment_revenue_australasia_africa":53196000,"segment_revenue_south_central_america":113434000}},"named_entities":{"people":[{"name":"Denis Larocque","role":"President and CEO"},{"name":"Ian Ross","role":"CFO"},{"name":"Ryan Hanley","role":"Director of Capital Markets"}],"products":[],"companies":[{"name":"Major Drilling Group International Inc.","ticker":"MDI","relationship":"filer/issuer"}],"dollarAmounts":[{"amount":"$277.3 million","context":"record Q1 FY2027 quarterly revenue (CAD)"},{"amount":"$226.6 million","context":"prior-year quarter revenue (CAD)"},{"amount":"$37.2 million","context":"Q1 FY2027 EBITDA (CAD)"},{"amount":"$32.1 million","context":"prior-year quarter EBITDA (CAD)"},{"amount":"$14.5 million","context":"Q1 FY2027 net earnings (CAD)"},{"amount":"$10.1 million","context":"prior-year quarter net earnings (CAD)"},{"amount":"$13.5 million","context":"Q1 capital expenditures (CAD)"},{"amount":"$15.7 million","context":"net cash at quarter-end (CAD)"},{"amount":"$8 million","context":"favourable foreign exchange translation impact on revenue (CAD)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-02T21:12:55.292Z","global_importance":38,"audience_relevance":24,"importance_components":{"tickerTier":"mid-cap TSX-listed foreign issuer","eventGravity":"record quarterly revenue, +22.4% YoY revenue, +43.6% net earnings","sectorWeight":"mining services / exploration spending cycle","issuerAuthored":true,"householdBrandBoost":null,"marketCapAdjustment":"roughly $1B market cap; not an index heavyweight","retailFavoriteBoost":"moderate — mining/exploration cycle has retail follow-through"}},"durationMs":231784,"modelName":"glm-4.7"}}