Master Drilling Group reported record interim revenue of $155.8 million for the first half of 2026, a 17% increase from $133.2 million in the same period a year earlier. The Johannesburg-listed company also announced its project pipeline surpassed $1 billion for the first time, reaching $1.062 billion as of June 30.
EBITDA totaled $33.6 million, yielding a margin of 21.6% before adjusting for approximately $4 million in ERP implementation costs. Adjusted margins are reported to approach 24%. Headline earnings per share rose 16.7% in dollar terms to 11.2 US cents. Return on capital employed (EBIT basis) improved to 15.3%, while return on equity reached 14%.
The group’s order book expanded to $401 million, up from $371 million at the start of the year, driven by $182 million in new orders. Revenue recognition of $155 million and a $6 million foreign exchange impact partially offset this growth. Cash balances declined to $32 million from $38.8 million, with capital expenditure totaling $4.3 million for the half, split between maintenance (56%) and expansion (44%).
Revenue growth was supported by contributions from industrial products ($5.7m), foreign exchange effects ($8.1m), new rock-boring technology ($3.8m), and fleet additions ($1.8m). Raise boring and support services accounted for 78% of total revenue, down from 84% in the prior period, while digitalization and smart mining rose to 13% from 11%.
Geographically, South Africa contributed 30% of revenue ($46.2m) with a 14% operating margin, while South America generated 28% of revenue ($44.3m) but saw margins compress to 5%. Africa (excluding South Africa) contributed 18% ($27.9m) at a 16% margin, and the rest of the world accounted for 17% ($26.2m) at a 17% margin. Central and North America represented 7% of revenue ($11.3m) and operated at breakeven.
Commodity exposure showed gold at 29% of revenue, up from 20%, with copper at 22%, silver/lead/zinc at 21%, and platinum group metals at 17%. New order awards were led by gold at 38%, followed by silver/lead/zinc at 20% and PGMs and copper at 14% each.
Operational metrics included a workforce of 3,341 employees, with safety performance improving as the lost time injury frequency rate declined to 0.95 per million hours worked from 1.55. Rig utilization fell to 64% overall, with large raise bore rigs at 70%, smaller rigs at 52%, and slim rigs at 38%. The company marked its 40th anniversary in 2026, having listed in 2012 with annual revenue of ZAR 800 million, now approaching a run-rate of ZAR 5 billion.
Shares traded at $1,600 following the presentation, up 7.17% from the prior close of $1,493, though down significantly from a 52-week high of $2,998.
