Capital (LSE:CAPD) raised its 2026 revenue guidance to $430-450 million, up from $410-440 million, after a first-half performance driven by stronger drilling productivity and laboratory momentum.
The London-listed mining services group, which provides drilling, mining and laboratory services to gold and mineral producers, reported revenue of $219.0 million for the six months to 30 June, up 37.6% on the $159.2 million recorded in the same period last year. Adjusted EBITDA rose 70.4% to $54.7 million, lifting the margin to 25.0% from 20.2%, while operational net profit after tax jumped to $15.5 million from $2.1 million.
"Capital delivered a strong first half performance, with revenue increasing 37.6% year-on-year to $219.0 million, and Adjusted EBITDA increasing 70.4% to $54.7 million", said Jamie Boyton, Executive Chair.
Net debt fell 21.8% to $43.3 million, though adjusted cash from operations dropped 24.3% to $41.4 million on unfavourable working capital, some of which is expected to normalise in the second half.
The company secured a new long-term drilling contract with Saudi miner Maaden and continues to support Barrick's Reko Diq project, despite Barrick flagging slower capital spending there, but exited drilling at Sadiola and Nevada Gold Mines, redeploying equipment to higher-return contracts.
MSALABS laboratory utilisation rose to 54% from 45%, with its Adjusted EBITDA margin climbing to 16.6% from 4.8%; MSALABS revenue guidance was reiterated at $85-95 million.
Capital declared an interim dividend of 1.3 cents per share, payable on 5 October.
News Intelligence what this means for the company
Capital lifted 2026 revenue guidance to $430–450 million after first-half revenue jumped 37.6% to $219 million and Adjusted EBITDA surged 70.4% to $54.7 million, with margin expansion to 25.0% from 20.2%. The gains reflect stronger drilling productivity and MSALABS laboratory momentum, where utilisation climbed to 54% from 45% and margin nearly quadrupled to 16.6%, though operating cash flow fell 24.3% due to working capital timing expected to reverse in H2.
- Barrick's flagged slowdown at Reko Diq is expected to persist until mid-2027, a monitoring point for Capital's contract exposure there, though the company continues to support the project.
- Capital exited lower-return drilling at Sadiola and Nevada Gold Mines, redeploying equipment to higher-return contracts including a new long-term agreement with Saudi miner Maaden, signalling active portfolio optimisation.
The 70% EBITDA jump and margin expansion to 25% demonstrate operational leverage and pricing power in a tightening services market, while MSALABS' 54% utilisation and 16.6% margin show the laboratory division is scaling toward profitability. Net debt fell 21.8% to $43.3 million despite the cash flow dip, and the interim dividend signals confidence, though the working capital reversal and Barrick's mid-2027 spending risk warrant H2 monitoring.
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