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$(TM)$ 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(TM) 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(TM) system integrates McCoy's proprietary hydraulic smart 
             casing running tool (smartCRT(TM)), connected flush mount spider 
             (smartFMS(TM)), 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(TM) technology, delivering multiple hydraulic 
             smartCRT(TM) units to the Middle East and the US land market 
             throughout 2025. First introduced in Q4 2024, the hydraulic 
             smartCRT(TM) 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(TM) 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(TM) 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(TM), 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(TM), 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(TM) system tailored for 
             offshore and deep-water markets. This integrated deep-water system 
             differs from our smarTR(TM) 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(TM) 
             technology. McCoy's Virtual Thread-Rep(TM) 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(TM) 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(TM) and external grip smartCRT(TM), expanding the capabilities of our smartProduct portfolio. Importantly, our hydraulic smartCRT(TM) 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."

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November 07, 2025 07:00 ET (12:00 GMT)