Estimates Updated; Activity Picking up, Just at a Slower than Expected Pace

Research evidence excerpt

Estimates Updated; Activity Picking up, Just at a Slower than Expected Pace

Metals & Minerals

Major Drilling Group International Inc.

TD SECURITIES INC. - CANADA COMPANY UPDATE

June 11, 2026

Price: C$17.59 (06/11/2026) Estimates Updated; Activity Picking up, Just

Price Target: C$22.00 (Prior C$21.00) at a Slower than Expected Pace

BUY (1)

ESG SCORE: 60/100

Steven Green, CFA^ THE TD COWEN INSIGHT

416 307 6304

We have updated our 2027 estimates and introduced 2028 forecasts. We have moderated our

steven.green@tdsecurities.com

near-term margin assumptions, however robust drilling demand, improving pricing, and rising

Faiq Qadri, P. Eng^ exploration budgets support higher long-term revenue expectations, and margins.

416 308 3741

faiq.qadri@tdsecurities.com Our TP increases to $22 (prev. $21); Maintain BUY.

Key Data

Impact: Neutral (and rolling forward target to FY2028)

Symbol TSX: MDI-T

12-Month Div (Est.): C$0.00 ■FY2027 EBITDA and gross margins estimates reduced slightly to $165mm and 26.4%

Beta: 1.28 respectively (previously $174mm and 27%). The revision reflects continued labor tightness,

12-Month Total with higher training and mobilization costs associated with ramping activity.

25.1%

Return: ❍While margins are expected to remain pressured in the near term, management expects

52-Week Range: C$18.40-C$8.60 pricing to catch up and outpace cost inflation through second half of FY27.

Market Cap: C$1.4B

Net Debt (MM): C$(20.6) ■Our initial 2028 revenue estimate of $1.07B represents an increase of 7.2% y/y, and a

Cash/Share: C$0.25 gross margin increase of 0.7%. We believe this is achievable on the back of strong metal

Dil. Shares Out (MM): 82.2 prices and improving pricing power, with higher exploration budgets further underpinning

Float Shares (mm): 81.8 demand.