McCoy Global (MCB) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 28% year-over-year to $25.2 million, with smartProducts driving growth and accounting for 48% of total revenue.

• Net earnings for Q4 increased 59% to $4.3 million; annual net earnings up 36% to $8.9 million, the highest since 2014.

• Adjusted EBITDA for Q4 was $6.5 million (26% margin), up from $4.0 million (20%) in Q4 2023; annual adjusted EBITDA reached $16.2 million (21% margin).

• Quarterly dividend increased to $0.025 per share, reflecting strong cash flow and financial position.

• Significant contract wins in the Middle East and Latin America, and continued progress on the Technology Roadmap, including in-field trials and new product launches.

Financial highlights

• Q4 gross profit margin improved to 41% from 33% year-over-year; annual gross margin rose to 36% from 33%.

• Booked backlog at year-end was $23.5 million, up 4% from Q4 2023.

• Book-to-bill ratio for Q4 was 0.67, down from 0.91 in Q4 2023, with order intake expected to support H1 2025.

• Net cash position at year-end was $17.1 million, with $7.9 million in undrawn credit facilities.

Outlook and guidance

• Trade tariffs between the US and Canada are not expected to materially impact financial performance due to mitigation strategies and currency effects.

• International oil & gas market fundamentals remain stable, with growth opportunities in MENA and unconventional drilling.

• North American land market remains subdued for legacy products, but advanced technologies continue to drive regional growth.

• 2025 expected to be pivotal for adoption of integrated smarTRTM technology, with revenues and earnings likely weighted toward H2 2025.