Mitchell Services (MSV) investor relations material

Executive summary

• H1 FY2026 saw a significant turnaround to a net cash position, driven by strong profit, improved weather, and minimal client-initiated delays or scope decreases.

• Projects that incurred ramp-up costs in FY25 are now operating at business-as-usual levels, contributing to profitability.

• Operations in the first half were stable, with contracts running smoothly and minimal disruptions.

• The business executed well, with asset impairment from a fire expected to reverse in H2 as insurance claims are processed.

• The company is well positioned to capitalize on increased demand, with a diversified revenue base and strong balance sheet.

Financial highlights

• 1H26 revenue was $102.4m, up 3.1% year-over-year; 1H26 EBITDA was $21.4m, up 69.3%.

• Quarterly EBITDA margin was 19.7%, up from 12.0% year-over-year, reflecting strong operational performance.

• Net cash position of $7.2m at 31 December 2025, with $15m in cash and $8m in gross debt, mainly equipment finance.

• Operating cash flow for the quarter was $11.0m, up 129% year-over-year; cash flow remained robust despite significant tax payments.

• CapEx for 1H26 was $7.8m, expected to reach $17.5–18m for the full year, primarily maintenance CapEx.

Outlook and guidance

• Higher mineral prices, especially copper and gold, are driving increased inquiry levels and positive demand indicators.

• Expectation for a solid second half, with potential for increased rig utilization as demand grows.

• EBITDA margins are sustainable if external disruptions are avoided, though H2 is typically softer due to wet season impacts.

• Board to discuss capital management and strategy in February, with updates expected in late February.

• Loop decarbonization business gaining momentum, with new contracts and potential for further rig investment post-30 June.