Major Drilling is strongly positioned as the mining industry enters a sustained exploration upcycle, supported by multi-year commodity supply deficits and mine depletions. The company operates in a consolidating, high-barrier industry where its 700+ rig fleet, technical expertise, and long-standing relationships with senior miners give it a durable competitive edge.
Meanwhile, the company reports that activity levels continued to increase in the latest quarter and are expected to keep improving.
MAJOR DRILLING (Toronto symbol MDI; majordrilling.com), is a large contract driller serving the mining industry.
In November 2024, Major Drilling acquired Explomin Perforaciones, a specialty drilling contractor based in Lima, Peru. The purchase price was $63 million U.S., with an additional $22 million U.S. available over the subsequent three years based on future performance.
Explomin offers a wide array of specialized services including deep hole, directional, and high-altitude drilling, supplemented by a stable base of underground drilling operations. Major Drilling acquired its fleet of 92 drills
Explomin has a strong brand and reputation in South America, with over 90% of revenue derived from senior mining firms. The company has annual revenue of about $95 million U.S.
The acquisition seems like a good fit for Major Drilling. It provides the company with increased exposure to the copper market.
Note—Explomin is one of the largest South American drilling contractors, with most of its operations in Peru, while it also serves markets in Colombia, the Dominican Republic and Spain.
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Major Drilling’s strong revenue growth spurred by higher activity levels
In the quarter ended October 31, 2025, the company’s revenue rose 28.9%, to a record $244.1 million from $189.3 million a year earlier. Excluding the acquisition of Explomin, which was completed at the beginning of the quarter, revenue totalled $182.8 million, representing a decrease of 3.0%.
More specifically, revenue in the Canada-U.S. region rose 2.6% to $87.6 million. Despite continued pricing pressures, Canadian activity rebounded during the quarter with a 63% year-over-year increase. This was tempered by softer performance in the U.S., where reduced junior activity led to a slowdown.
South and Central American revenue increased 125.5% to $110.7 million for the quarter. Within the region, Explomin contributed a total of $61.3 million in revenue. Slowdowns in Argentina and Chile, with challenging economic conditions and customer delays, were more than offset by growth in the Guiana Shield and Brazil.
Asian and African operations reported revenue of $45.9 million, which was down 16.1% from the same period last year. Activity levels are down in the region as drilling operations with the company’s largest customer in Indonesia were impacted by a mine incident resulting in the temporary shutdown of all activity for the majority of the quarter.
Major Drilling earned $13.9 million, or $0.17 a share, in the quarter, down 23.2% from $18.2 million, or $0.22. The fall came from added costs for the Explomin acquisition, as well as competitive pricing in North America and a temporary shutdown of operations by a significant customer in Indonesia.
The company’s balance sheet remains strong, with cash of $64.7 million. It also has long-term debt of just $28.0 million.
Major Drilling’s share price continues to climb as its outlook keeps improving. The company reports that activity levels continued to increase in the latest quarter and are expected to keep improving.
Recommendation in Power Growth Investor: Major Drilling is a buy for aggressive investors.
