Earnings release
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McCOY GLOBAL ANNOUNCES THIRD QUARTER 2025 RESULTS AND DECLARATION OF QUARTERLY DIVIDEND EDMONTON, AB , Nov. 7, 2025 /CNW/ - McCoy Global Inc. ("McCoy," "McCoy Global" or "the Corporation") (TSX: MCB) today announced its operational and financial results for the three months ended September 30, 2025. The Corporation also announced that its Board of Directors has declared a quarterly cash dividend of $0.025 per common share payable on January 15, 2026, to shareholders of record as of close of business on December 31, 2025. The dividend per common share is a regular dividend and is an "eligible" dividend for purposes of the Income Tax Act ( Canada ) and any similar provincial/territorial legislation. Third Quarter Highlights : Reported revenue of $14.8 million for the quarter, a decrease of 6% from the comparative period, primarily due to the deferral of $3.4 million in customer shipments into October, resulting from logistics scheduling and customer payment delays. Reported smartProduct revenue of $4.0 million , accounting for 27% of total revenue (three months ended September 30 , 2024 – 39%). As anticipated, smartProduct revenues were also impacted by variability in the timing of capital equipment orders and deliveries for the quarter, however, for the nine months ending September 30, 2025 , smartProduct revenue totaled $30.3 million , representing 52% of total revenue, compared to 33% in the same period of 2024—an increase of $13.1 million or 76%. Reported net earnings of $0.6 million , on revenues of $14.8 million , an increase of 7% from the comparative period (Q3 2024 – $0.5 million on revenues of $15.8 million ). Earnings for the third quarter were impacted by the $3.4 million reduction in throughput resulting from shipments deferred to October and timing of order intake, which limited the Corporation's ability to absorb increased production overheads and technical service support costs. This was more than offset by lower effective income taxes driven by recently enacted US tax legislation and reductions to the Corporation's incentive plan accruals. Adjusted EBITDA 1 for the three months ended September 30, 2025 , was $2.0 million or 14% of revenue (Q3 2024 – $2.7 million or 17% of revenue), with the period-over-period EBITDA margin compression largely due to the $3.4 million deferral of customer shipments. Since January 1, 2025 , achieved several key commercial and product development milestones: McCoy successfully concluded in-field trials and commercialized its innovative smarTR™ system for land and shelf applications in the second quarter of 2025, which led to $11.0 million of contract awards from our US field trial partners for system hardware. In addition to the equipment award, the contract includes utilization-based software-as-a-service (SaaS) revenue enabled by our integrated software platform for remote control, automation, and data-driven operational intelligence. With several systems delivered to date, McCoy is taking a targeted approach to commercialization—working closely with key partners to ensure the system exceeds operational expectations. With several additional systems scheduled for delivery in Q4 2025, this transformative technology that consolidates
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multiple tools, personnel, and processes into a single integrated solution, smarTR™ represents a significant shift in how tubular running services are executed. Given the complexity and impact of this innovation, McCoy anticipates a measured adoption curve, with ongoing iterations and refinements expected as part of the deployment process. The smarTR™ system integrates McCoy's proprietary hydraulic smart casing running tool (smartCRT™), connected flush mount spider (smartFMS™), and related tubular running accessories into a first-to-market solution that significantly enhances safety and efficiency, with the potential to significantly reduce TRS labor costs. McCoy continued to advance the commercialization of its smartCRT™ technology, delivering multiple hydraulic smartCRT™ units to the Middle East and the US land market throughout 2025. First introduced in Q4 2024, the hydraulic smartCRT™ has successfully executed numerous operations, demonstrating exceptional reliability and efficiency in demanding field conditions. This patented solution offers a hydraulic alternative to conventional mechanical casing running tools and is designed to integrate seamlessly into McCoy's smarTR™ system. By mitigating risks inherent in traditional CRT technologies and providing actionable performance insights, it represents a significant step forward in operational safety and optimization. Following extensive rig trials, the smartCRT™ received technical approval from a major NOC in a key market, marking a critical milestone in its commercialization and positioning it for inclusion in upcoming tenders. During the third quarter, McCoy also successfully commercialized and delivered its first external grip smartCRT™, designed for expanded casing applications—broadening the scope of McCoy's smartProduct portfolio beyond the capabilities of previous tools. McCoy successfully commercialized and delivered its 500T smartFMS™, a versatile solution that supports both drilling and casing operations while offering the enhanced load capacity required for many international well profiles. McCoy delivered a deep-water offshore integrated casing running system destined for Latin America , with commissioning scheduled for Q4 2025. Delivering this technology completes the first step on a roadmap to a comprehensive smarTR ™ system tailored for offshore and deep-water markets. This integrated deep-water system differs from our smarTR ™ solution designed for land and shelf casing operations that is centered around CRT technology, as deep-water casing installation requires hydraulic power tongs to meet technical specifications for the well profile. The Latin America contract award also marked the first offshore commercial SaaS purchase commitment for McCoy's Virtual Thread- Rep ™ technology. McCoy's Virtual Thread-Rep ™ technology enables customers to remotely monitor and control premium connection make-up. It also facilitates the autonomous evaluation and confirmation of premium connection make-up on location. Following quarter-end, McCoy received a $3.7 million purchase commitment for integrated hydraulic power tong systems intended for deep-water offshore operations in the Eastern Hemisphere, with delivery scheduled for Q1 2026. Declared a quarterly cash dividend of $0.025 per common share payable on January 15, 2026 , to shareholders of record as of close of business on December 31, 2025 . "In the third quarter, we made meaningful progress advancing our Technology Roadmap. We continued the targeted commercialization of our smarTR™ system, delivering initial systems and working closely with field partners to validate performance in live operations. This deliberate approach ensures the system meets operational expectations and supports long-term adoption," said Jim Rakievich , President & CEO. "We also commercialized our 500T smartFMS™ and external grip smartCRT™, expanding the capabilities of our smartProduct portfolio. Importantly, our hydraulic smartCRT™ has received technical approval from a major National Oil Company (NOC), strengthening our position for upcoming tender opportunities. Contract awards under this tender are expected to be announced in Q1 2026, with mobilization anticipated by Q3. While final timelines are at the discretion of the NOC, strategic working capital investments have been made to ensure we are fully prepared to meet delivery demands throughout 2026."
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"Our third quarter results highlight the inherent variability of capital equipment markets, where timing of shipments and customer investment decisions can shift between periods, particularly under the current market backdrop. While revenue was impacted by deferred deliveries and order timing, we delivered earnings and generated cash flow from operations in the quarter. Looking ahead, we see meaningful opportunities tied to upcoming NOC tenders and remain confident in our ability to convert active quoting into confirmed orders." said Lindsay McGill , Vice President & CFO. "We have, and continue to, proactively manage costs and capital expenditures; however, our priority remains investing in strategic initiatives that support long-term growth. We're focused on maintaining financial flexibility while ensuring we don't compromise our ability to capitalize on future opportunities due to short-term variability." Third Quarter Financial Highlights: Total revenue of $14.8 million , compared with $15.8 million in Q3 2024; Net earnings of $0.6 million , compared to $0.5 million in Q3 2024; Adjusted EBITDA 1 of $2.0 million , or 14% of revenue, compared with $2.7 million , or 17% of revenue, in 2024; Booked backlog 2 of $27.7 million at September 30, 2025 , compared to $30.1 million in the third quarter of 2024. Subsequent to the quarter ended September 30, 2025 , McCoy received a $3.7 million purchase commitment for integrated hydraulic power tong systems intended for deep- water offshore operations in the Eastern Hemisphere, with delivery scheduled for Q1 2026; Book-to-bill ratio 3 was 1.17 for the three months ended September 30, 2025 , compared with 1.53 in the third quarter of 2024. Financial Summary Revenue of $14.8 million for the three months ended September 30, 2025 , decreased 6% from the comparative period. The decline was primarily attributable to $3.4 million in customer orders were initially scheduled for shipment in September, however due to logistics scheduling and delays in receipt of customer payment, the shipments and corresponding revenue was deferred into October. As anticipated, smartProduct revenues were impacted by variability in the timing of capital equipment orders and deliveries contributing to fluctuations in revenue between reporting periods. For the three months ended September 30, 2025 , smartProduct revenue totaled $4.0 million and accounted for 27% of total revenue (three months ended September 30, 2024 – 39%). For the nine months ended September 30, 2025 , revenue increased by 11% to $58.2 million , driven by continued momentum in the adoption of McCoy's smartProducts. This growth was supported by the successful commercialization of the smarTR™ technology platform and the delivery of multiple systems to a leading US tubular running services (TRS) provider. For the nine-month period, smartProduct revenue totaled $30.3 million , representing 52% of total revenue, compared to 33% in the same period of 2024—an increase of $13.1 million or 76%. Gross profit, as a percentage of revenue, for the three and nine months September 30, 2025 , was 22% and 32% respectively, a decrease of twelve and three percentage points from comparative periods in 2024. Gross profit was impacted by reduction in throughput during the third quarter resulting from deferred shipments and timing of order intake, which limited the Corporation's ability to absorb increased production overheads and technical service support costs. For the three and nine months ended September 30, 2025 , general and administrative expenses (G&A) were $1.6 million and $9.1 million , respectively, a decrease of forty percentage points and an increase of forty-three percentage points, respectively. The fluctuations in G&A between reporting periods have been related to stock-based compensation expense, reflecting the mark-to-market
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impact of the Corporation's share price appreciation on cash-settled awards. For the three months ended September 30, 2025 , total share-based compensation expense was $0.1 million , compared to $0.7 million in the comparative period, while total share-based compensation expense for the nine months ended September 30, 2025 , was $2.4 million (2024 – $0.7 million ). To a lesser extent, G&A was also impacted by increased investment in corporate functions including information technology, human resources and administrative support, offset by lower accrued employee short-term incentives. For the three and nine months ended September 30, 2025 , sales and marketing expenses were $0.5 million and $2.1 million , respectively. Sales and Marketing expenses reflect increased investment in the Corporation's technical salesforce during the second half of 2024 and the first half of 2025, as well as enhanced marketing efforts to support the accelerated adoption of the Corporation's smartProducts portfolio. These increases were largely offset by lower accrued short- term incentive expense. As a percentage of revenue, Sales & Marketing decreased three percentage points and were unchanged, respectively, compared to the comparative periods. With total product development and support expenditures of $2.2 million and $5.7 million during the three and nine months ended September 30, 2025 , respectively, the Corporation further advanced its 'Digital Technology Roadmap' initiative through continued focus on accelerating customer adoption of new technologies as well as the design and development of additional 'smart' product enhancements, including the recently commercialized 500T smartFMS ™ and external grip smartCRT ™ . For the remainder of 2025, the Corporation has committed up to US$0.5 million of capital toward the development of additional product offerings. For the three months ended September 30, 2025 , product development and support expenses decreased from the comparative period due to lower employee short-term incentive accruals. For the nine months ended September 30, 2025 , product development and support expenses increased from the comparative period. This was primarily due to investment in engineering and technical personnel, increased travel related to new product deployment and customer support activities, and higher intellectual property expenditures, partially offset by lower employee short-term incentive accruals. Net earnings for the three months ended September 30, 2025 , were $0.6 million or $0.02 per basic share, compared with net earnings of $0.5 million or $0.02 per basic share in the third quarter of 2024. Adjusted EBITDA 1 for the three months ended September 30, 2025 , was $2.0 million compared with $2.7 million for the third quarter of 2024. As at September 30, 2025 , the Corporation had $3.5 million in cash and cash equivalents. Selected Quarterly Information ($000 except per share amounts and percentages) Q3 2025 Q3 2024 % Change Total revenue 14,828 15,842 (6 %) Gross profit 3,307 5,349 (38 %) as a percentage of revenue 22 % 34 % (12 %) Net earnings 554 516 7 % as a percentage of revenue 4 % 3 % 1 % per common share – basic 0.02 0.02 - % per common share – diluted 0.02 0.02 - % Adjusted EBITDA 1 2,029 2,668 (24 %) as a percentage of revenue 14 % 17 % (3 %) per common share – basic 0.08 0.10 (20 %) per common share – diluted 0.07 0.10 (30 %) Total assets 92,637 81,154 14 % Total liabilities 28,515 22,690 26 % Total non-current liabilities 1,671 2,434 (31 %) Summary of Quarterly Results ($000 except per share amounts) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Revenue 14,828 24,051 19,346 25,222 15,842 19,910 16,542 19,699 16,878 Net earnings 554 1,367 946 4,255 516 3,125 975 2,674 1,900
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as a % of revenue 4 % 6 % 5 % 17 % 3 % 16 % 6 % 14 % 11 % per share – basic 0.02 0.05 0.03 0.16 0.02 0.12 0.04 0.10 0.07 per share – diluted 0.02 0.05 0.03 0.15 0.02 0.11 0.04 0.10 0.07 EBITDA 1 1,630 2,978 2,296 5,598 1,826 4,638 2,191 3,001 3,641 as a % of revenue 11 % 12 % 12 % 22 % 12 % 23 % 13 % 15 % 22 % Adjusted EBITDA 1 2,029 4,817 3,479 6,534 2,668 4,728 2,273 3,987 3,856 as a % of revenue 14 % 20 % 18 % 26 % 17 % 24 % 14 % 20 % 23 % Outlook and Forward-Looking Information Throughout the third quarter of 2025, global energy markets continued to face headwinds stemming from a complex mix of macroeconomic and geopolitical developments leading to a notable decline in market conditions across several global regions. While the lifting of OPEC+ production quotas and geopolitical disruptions were key drivers of instability in the second quarter, their lingering effects— combined with ongoing macroeconomic uncertainty—have continued to influence customer sentiment. These factors have contributed to increased customer prudence, particularly in capital equipment procurement, resulting in deferred investment decisions, subdued activity levels across key regions, and a shift in focus toward cash flow preservation and operational efficiency. While drilling activity remained subdued and certain National Oil Company (NOC) contract tenders continued to face delays, medium-term fundamentals for the oil and gas sector are expected to remain constructive, particularly across the Middle East and North Africa (MENA) region. Recent TRS contract tenders awarded in one of our largest markets have been favourable for McCoy, with several tools scheduled for delivery in Q4 2025; however, customer capital constraints have introduced market headwinds and have led to increased demand for rental tools and alternative financing arrangements. Over the next twelve months, several additional TRS contract awards are anticipated across key Eastern Hemisphere markets, representing a cumulative opportunity of over 100 rigs—all requiring casing running tools. Encouragingly, McCoy's smartCRT™ received technical approval from a major NOC in a key market for the upcoming tender, marking a significant milestone in the product's commercialization and driving increased quoting activity. While the timing of these contract awards remains at the discretion of the NOC, rig allocations for our TRS customers under this tender are expected to be announced in Q1 2026, with mobilization anticipated by Q3. With its strategic working capital investments, McCoy is well positioned to convert active smartProduct quotes into confirmed orders, supported by its differentiated technologies, expanded product capabilities, and strong local technical expertise. In the North American land market, drilling activity continued to trend downward through the third quarter, with rig counts declining further from Q2 levels and reaching some of the lowest points observed since early 2021. Despite these headwinds, revenue from this region has been supported by McCoy's smartProduct technologies, particularly the smarTR™ system. While initial deliveries of smarTR™ systems have begun, the Corporation is taking a targeted and deliberate approach to commercialization, working closely with select partners to ensure the system exceeds performance expectations in the field. As a transformative solution that streamlines multiple tools, roles, and workflows into a unified system, smarTR™ marks a fundamental evolution in how tubular running services are delivered. Due to the complexity and operational impact of this innovation, McCoy expects adoption to follow a deliberate and iterative path, with continuous refinements informed by field experience and customer feedback. Although the current market environment may temper the pace of adoption and near-term revenue growth, McCoy remains confident in its Technology Roadmap initiative. Leading E&P companies have reinforced their commitment to safety through "clear the floor" initiatives, creating a meaningful opportunity for innovative solutions, like McCoy's smarTR ™ , that align with these evolving standards. As commercialization progresses, future revenue streams are expected to become increasingly driven by technology adoption rather than the cyclicality of drilling activity. McCoy's smartProduct portfolio continues to deliver meaningful improvements in safety, operational efficiency, and cost reduction, positioning the Corporation to deliver enhanced value to customers even in challenged market conditions. As operators seek to differentiate and drive performance at lower cost, McCoy's
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smart solutions are increasingly aligned with their strategic priorities. While macroeconomic conditions may slow market penetration in the near term, we are seeing encouraging signs that support long-term adoption across key markets. Uncertainty may persist into late 2025 and early 2026 as customers align capital commitments with TRS award timelines. Quarterly performance may continue to reflect variability, which is typical of capital equipment markets where purchasing decisions and shipment schedules often shift between periods. To navigate this environment, we have, and continue, to proactively manage costs and defer select capital expenditures, while continuing to invest in strategic initiatives. These include ongoing product development, deployment and support activities, scaling our global technical support capabilities to enhance customer experience with particular focus on McCoy's smartProduct lines, and expanding our rental fleet in regions where customer capital constraints are creating opportunities for high- return rental solutions or accelerated adoption of smartProduct technologies. Supported by a proven track record of operational efficiency and cash flow generation, McCoy is well positioned to navigate current market dynamics and capitalize on emerging opportunities. For 2025 and beyond, we continue to focus on our key strategic initiatives to deliver value to all our stakeholders: Accelerating market adoption of new and recently developed 'smart' portfolio products; and Focusing on capital allocation priorities. We believe this strategy, together with our committed and agile team, McCoy's global brand recognition, application expertise, strong balance sheet, and global footprint will further advance McCoy's competitive position and generate strong returns on invested capital. About McCoy Global Inc. McCoy Global is transforming well construction using automation and machine learning to maximize wellbore integrity and collect precise connection data critical to the global energy industry. The Corporation has offices in Canada , the United States of America , and the United Arab Emirates and operates internationally in more than 50 countries through a combination of direct sales and key distributors. Throughout McCoy's 100-year history, it has proudly called Edmonton, Alberta, Canada its corporate headquarters. The Corporation's shares are listed on the Toronto Stock Exchange and trade under the symbol "MCB". 1 EBITDA is calculated under IFRS and is reported as an additional subtotal in the Corporation's consolidated statements of cash flows. EBITDA is defined as net earnings (loss), before depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); and finance charges, net. Adjusted EBITDA is a non-GAAP measure defined as net earnings (loss), before: depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); finance charges, net; provisions for excess and obsolete inventory; other (gains) losses, net; restructuring charges; share-based compensation; and impairment losses. The Corporation reports on EBITDA and adjusted EBITDA because they are key measures used by management to evaluate performance. The Corporation believes adjusted EBITDA assists investors in assessing McCoy Global's current operating performance on a consistent basis without regard to non-cash, unusual (i.e. infrequent and not considered part of ongoing operations), or non-recurring items that can vary significantly depending on accounting methods or non-operating factors. Adjusted EBITDA is not considered an alternative to net earnings (loss) in measuring McCoy Global's performance. Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable to similar measures used by other issuers. For comparative purposes, in previous financial disclosures 'adjusted EBITDA' was defined as "net
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earnings (loss) before finance charges, net, income tax expense (recovery), depreciation, amortization, impairment losses, restructuring charges, non-cash changes in fair value related to derivative financial instruments and share-based compensation." ($000 except per share amounts and percentages) Q3 2025 Q3 2024 Net earnings 554 516 Depreciation of property, plant and equipment 848 561 Amortization of intangible assets 466 472 Income tax (recovery) expense (380) 239 Finance charges, net 142 38 EBITDA 1,630 1,826 Provisions for excess and obsolete inventory 266 97 Other losses, net 60 90 Share-based compensation 73 655 Adjusted EBITDA 2,029 2,668 2 McCoy Global defines backlog as orders that have a high certainty of being delivered and is measured on the basis of a firm customer commitment, such as the receipt of a purchase order. Customers may default on or cancel such commitments but may be secured by a deposit and/or require reimbursement by the customer upon default or cancellation. Backlog reflects likely future revenues; however, cancellations or reductions may occur and there can be no assurance that backlog amounts will ultimately be realized as revenue, or that the Corporation will earn a profit on backlog once fulfilled. Expected delivery dates for orders recorded in backlog historically spanned from one to six months. Under current market conditions, many customers have shifted their purchasing towards just-in-time buying. 3 The book-to-bill ratio is a measure of the amount of net sales orders received to revenues recognized and billed in a set period of time. The ratio is an indicator of customer demand and sales order processing times. The book-to-bill ratio is not a GAAP measure and therefore the definition and calculation of the ratio will vary among other issuers reporting the book-to-bill ratio. McCoy Global calculates the book-to-bill ratio as net sales orders taken in the reporting period divided by the revenues reported for the same reporting period. 4 New product and technology offerings as products or technologies introduced to our portfolio in the past 36 months. 5 Net cash is a non-GAAP measure defined as cash and cash equivalents, plus: restricted cash, less: borrowings. Forward-Looking Information This News Release contains forward looking statements and forward-looking information (collectively referred to herein as "forward looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward looking information is often, but not always, identified by the use of words such as "could", "should", "can", "anticipate", "expect", "objective", "ongoing", "believe", "will", "may", "projected", "plan", "sustain", "continues", "strategy", "potential", "projects", "grow", "take advantage", "estimate", "well positioned" or similar words suggesting future outcomes. This New Release contains forward looking statements respecting the business opportunities for the Corporation that are based on the views of management of the Corporation and current and anticipated market conditions; and the perceived benefits of the growth strategy and operating strategy of the Corporation are based upon the financial and operating attributes of the Corporation as at the date hereof, as well as the anticipated operating and financial results. Forward-looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms,
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which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward-looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in the forward looking statements, including inability to meet current and future obligations; inability to complete or effectively integrate strategic acquisitions; inability to implement the Corporation's business strategy effectively; access to capital markets; fluctuations in oil and gas prices; fluctuations in capital expenditures of the Corporation's target market; competition for, among other things, labour, capital, materials and customers; interest and currency exchange rates; technological developments; global political and economic conditions; global natural disasters or disease; and inability to attract and retain key personnel. Readers are cautioned that the foregoing list is not exhaustive. The reader is further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These judgments and estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. The information contained in this News Release identifies additional factors that could affect the operating results and performance of the Corporation. We urge you to carefully consider those factors. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this News Release are made as of the date of this New Release and the Corporation does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. Website: www.mccoyglobal.com SOURCE McCoy Global View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2025/07/c1381.html %SEDAR: 00008232E For further information: For further information, please contact: Mr. Jim Rakievich, President & CEO, McCoy Global Inc., E-mail: info@mccoyglobal.com CO: McCoy Global CNW 07:00e 07-NOV-25