Mitchell Services (MSV) Q3 2026 TU earnings summary

Executive summary

• Q3 FY26 delivered strong financial performance, maintaining positive momentum from the first half and showing significant improvements over Q3 FY25 despite seasonal challenges.

• Business operations remained stable with no material disruptions, and demand for rigs and services continues to be robust, aided by improved weather and absence of client delays.

• April month-to-date performance is strong, with 70 days remaining in the financial year.

Financial highlights

• FY26 YTD EBITDA reached AUD 32.6 million and EBIT AUD 15.9 million, both significantly higher year-over-year and exceeding full FY2025 results.

• Q3 FY26 EBITDA was AUD 11.2 million, up 110% year-over-year, with revenue at AUD 48.5 million and EBITDA margin at 23.0%.

• Net debt at 31 March 2026 was AUD 0.9 million after an AUD 8.5 million dividend payment, maintaining a strong balance sheet.

• Q3 cash flow conversion was softer due to increased working capital tied to higher revenues, but operating cash flow improved to AUD 4.3 million.

• Insurance proceeds of AUD 1.5 million were included in Q3 results, reversing a prior impairment.

Outlook and guidance

• Demand for rigs remains strong, with expectations for increased rig deployment in Q4 as the pipeline remains healthy and significant upside potential exists with underutilized rig capacity.

• Larger miners are discussing increased drilling budgets, and equity raisings in the exploration sector are robust.

• CapEx for FY2026 is projected to be around AUD 20 million, mainly for maintenance and rig preparation, with FY2027 expected to return to normalized high-teen levels, subject to demand.

• The Loop decarbonisation business is progressing, with consulting work expanding, a second client project set to start in Q4, and new contracts expected to contribute.