McCoy Global (MCB) Q3 2024 earnings summary

Executive summary

• Order intake reached $24.1 million in Q3 2024, up 57% year-over-year and 35% sequentially, driven by major contract wins for enhanced hydraulic CRT tools and deep-water integrated casing systems.

• Revenue was $15.8 million, down 6% from Q3 2023, mainly due to timing of contract awards and customer shipments.

• Net earnings declined 73% year-over-year to $0.5 million, impacted by lower revenue, production throughput, and higher stock-based compensation.

• Declared a quarterly dividend of $0.02 per share, payable January 15, 2025.

Financial highlights

• Adjusted EBITDA was $2.7 million (17% of revenue), down from $3.9 million (23% of revenue) in Q3 2023.

• Gross profit margin was 34%, a decrease of 3 percentage points year-over-year.

• Booked backlog at quarter-end was $30.1 million, up from $24.7 million a year ago.

• Book-to-bill ratio was 1.53, compared to 0.91 in Q3 2023.

• Cash and cash equivalents totaled $10.5 million at September 30, 2024.

Outlook and guidance

• Backlog of $30.1 million is expected to support strong revenue and earnings in Q4 2024.

• 2025 anticipated as a pivotal year for adoption of integrated smarTR system in North America, with further revenue growth expected in 2026 and beyond.

• Future revenues expected to be driven more by technology adoption and market expansion than cyclical drilling activity.