Capital Limited reported a sharp rise in half-year revenue and lifted its full-year 2026 outlook on Thursday, sending shares up 8.84% as investors reacted to the diversified mining services group’s operational momentum.
The company now expects full-year 2026 revenue of $430 million to $450 million, an increase from its prior guidance of $410 million to $440 million. Capital also maintained its full-year capital expenditure guidance at $55 million to $65 million, with spending weighted toward the second half of the year.
Half-year revenue climbed 37.9% half-on-half to record levels, while adjusted EBITDA margin reached a company record of 25%, sitting at the lower end of management’s long-term target range of 25% to 30%. Adjusted return on capital improved to about 19%, approaching the 20% target. Operating cash flow rose approximately 70% half-on-half, though net debt increased to $43.3 million as of June 30 from $31.8 million at year-end 2025.
Capital’s share price surged 8.84% to $117, extending gains from the prior close of $107.50. The stock has traded between $88.40 and $158 over the past 52 weeks. Valuation metrics remained conservative, with a P/E ratio of 4.61 and a P/B ratio of 0.8 times. The company’s financial health score was rated “GREAT” at 3.35 out of 5 by InvestingPro.
Revenue growth was broad-based across segments. Capital Drilling, which operates over 130 rigs across Africa and the Middle East, contributed roughly 60% of group revenue. The segment’s drilling fleet utilization stood at 71%, below the 75% target and well below its historical peak of 83%. Capital Mining, operating over 60 pieces of equipment, held contracts at the Sukari Gold Mine in Egypt and the Reko Diq development in Pakistan.
MSALABS, the group’s laboratory business, reported a 45% half-on-half revenue increase to $44.7 million, with adjusted EBITDA margin reaching 16.6%. The segment operates 33 laboratories across Africa, the Middle East, and North America, with new facilities set to open in Armenia, Ivory Coast, the U.K., and Pakistan in the fourth quarter.
Capital maintained its interim dividend at 1.3 cents per share, marking 12 consecutive years of payouts. The effective tax rate rose to roughly 45% in the first half due to higher withholding taxes in Tanzania and costs related to the wind-down of U.S. and Mali operations, though management expects the rate to normalize to the high 30s to low 40s in the second half.
The company’s investment portfolio, valued at $116 million as of June 30, generated a $7 million gain in the first half despite a 14% decline in its benchmark index over the same period. Over the past 7.5 years, the portfolio has delivered a 60% return.
Capital refinanced its $75 million revolving credit facility in March, splitting the facility equally between a four-year amortizing term loan and a three-year renewed RCF. As of June 30, $25 million of the RCF remained drawn. Management also highlighted new contracts with Ma’aden in Saudi Arabia, Montage Gold, Predictive Discovery Gold, and a five-year agreement with Tungsten West in the U.K.
