Overview

* McCoy Global ( MCCRF ) Q2 revenue rises 21% yr/yr, driven by smarTR technology commercialization

* Net earnings for Q2 fall 56% due to higher stock-based compensation expenses

* Adjusted EBITDA for Q2 increases slightly, reflecting stable operational performance

Outlook

* Company expects tempered Q3 revenue and earnings growth due to market conditions

* McCoy anticipates medium-term stability in MENA oil & gas markets

* Company sees additional TRS contract awards in Eastern Hemisphere markets

* McCoy focuses on strategic initiatives to drive long-term value creation

Result Drivers

* SMARTPRODUCT REVENUE - SmartProduct revenue rose 117%, now accounting for 58% of total revenue, driven by smarTR technology commercialization

* STOCK-BASED COMPENSATION - Net earnings impacted by higher stock-based compensation expenses due to share price appreciation

* BAD DEBTS - Adjusted EBITDA margins affected by provisions for bad debts, contrasting with previous period recovery

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$24.05

Revenue mln

Q2 Net C$1.37

Income mln

Q2 C$4.82

Adjusted mln

EBITDA

Q2 C$2.98

EBITDA mln

Q2 Gross C$8.70

Profit mln

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the oil related services and equipment peer group is "buy"

* Wall Street's median 12-month price target for McCoy Global Inc ( MCCRF ) is C$6.00, about 39.7% above its August 7 closing price of C$3.62

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)