McCoy Global (MCB) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $14.8 million, down 6% year-over-year due to $3.4 million in deferred shipments from logistics and payment delays.

• Net earnings rose to $0.6 million, a 7% increase from Q3 2024, despite lower revenue, aided by lower effective income taxes and reduced incentive accruals.

• Adjusted EBITDA was $2.0 million (14% margin), down from $2.7 million (17% margin) in Q3 2024, mainly due to shipment deferrals.

• Declared a quarterly dividend of $0.025 per share, payable January 15, 2026.

• Achieved key milestones in commercializing new smartProduct technologies, including smarTR™, smartCRT™, and smartFMS™.

Financial highlights

• Q3 2025 revenue: $14.8 million (Q3 2024: $15.8 million); net earnings: $0.6 million (Q3 2024: $0.5 million).

• Adjusted EBITDA: $2.0 million (14% of revenue), down from $2.7 million (17%) in Q3 2024.

• Gross profit margin for Q3 2025 was 22%, down from 34% in Q3 2024.

• Booked backlog at quarter-end was $27.7 million, with a book-to-bill ratio of 1.17 (Q3 2024: 1.53).

• Cash and cash equivalents stood at $3.5 million as of September 30, 2025.

Outlook and guidance

• Global energy markets remain challenged by macroeconomic and geopolitical factors, leading to deferred investments and subdued activity.

• Medium-term fundamentals in oil and gas remain constructive, especially in MENA; several TRS contract awards expected in 2026.

• North American drilling activity is subdued, but smartProduct technologies are supporting regional revenue.

• Adoption of new technologies like smarTR™ is expected to be gradual and iterative.

• Continued focus on cost management, strategic investments, and expanding rental solutions to navigate market uncertainty.