Master Drilling Group Ltd. reported record interim revenue of $155.8 million for the first half of 2026, a 17% increase from $133.2 million in the prior-year period. The Johannesburg-based company, marking its 40th anniversary, also exceeded $1 billion in total project pipeline value for the first time, reaching $1.062 billion.
EBITDA rose to $33.6 million, with a reported margin of 21.6%, narrowing toward the company’s 25% target after adjusting for $4 million in ERP implementation costs. Headline earnings per share increased 16.7% year-over-year to 11.2 U.S. cents. Return on capital employed (EBIT basis) improved to 15.3%, while return on equity reached 14%.
Revenue growth was supported by contributions from industrial products ($5.7 million), foreign exchange effects ($8.1 million), new rock-boring technology ($3.8 million), and improved fleet utilization ($3.2 million). Compounded annual revenue growth since 2022 stands at 8.4%, with EBITDA expanding at a 7.6% annualized rate.
Geographic revenue distribution showed South Africa contributing 30% ($46.2 million) with a 14% operating margin, while South America accounted for 28% ($44.3 million) with margins compressed to 5%. Central and North America operated at breakeven, down from a 16% margin previously. Commodity exposure in current revenue was led by gold (29%), copper (22%), and silver/lead/zinc (21%), with new orders skewed toward gold (38%) and silver/lead/zinc (20%).
The company’s order book expanded to $401 million, driven by $182 million in new orders, partially offset by $155 million in revenue recognition. Rig utilization declined across categories, with total raise bore rig utilization falling to 64% from 70%. Cash declined to $32 million, while capital expenditure totaled $4.1 million in the half, with second-half spending planned at approximately $6 million.
CEO Daniël Pretorius noted industry shifts ahead, stating that operational models and mine design would need to adapt to evolving mining practices.
