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 EBITDA1 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 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.”
“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 EBITDA1 of $2.0 million, or 14% of revenue, compared with $2.7 million, or 17% of revenue, in 2024;
Booked backlog2 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 ratio3 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 …
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