“Signs of life” in the North American junior financing market have Major Drilling International CEO Denis Larocque optimistic the company can sustain top-line momentum exhibited in its FY2026 first quarter, when it increased revenue by 19.3% year-on-year with the help of 2024 Peru acquisition, Explomin.
The Toronto-listed mineral drilling contractor missed earnings targets with a 6% yoy fall to C$32.1 million due to “inflationary pressure on wages and a highly competitive North American market,”, according to Canadian investment firm, Red Cloud Securities.
“Without the acquisition of Explomin and its 92 rigs revenue would have fallen 6% yoy to $178.7 million,” Red Cloud said.
Major reported revenue of $226.6 million for the three months ending July 31, 2025, 20.8% higher than the previous quarter, with higher overall drill fleet utilisation of 50%.
“Looking ahead we expect South America to continue to drive growth and see an improvement in North America due to higher drilling activity in the summer months and an active junior financing market,” Red Cloud said.
Major’s Larocque said strong Q1 activity levels in Peru and Chile helped offset a slowdown in the Australasian region caused by “pauses at certain projects due to changes in drill programs”.
“We continue to see increasing levels of demand for drilling services in the South and Central American region, in particular Peru, which is expected to offset any weakness in the Australasian market,” he said.
“With rising gold and copper prices current market conditions remain fluid with uncertainty around tariffs and other geopolitical concerns.
“Looking ahead to the next quarter the company expects to see some continued top-line momentum driven by additional project start-ups, with the potential for modest margin improvement. Looking out further, we remain optimistic on the North American region, as the junior financing market has begun to show signs of life, while discussions surrounding more streamlined permitting processes in both Canada and the US could also lead to an increase in activity.”
Major’s total rig count was 709 at the end of July.
The company has a current market value of about C$800 million.
