McCOY GLOBAL ANNOUNCES THIRD QUARTER 2026 RESULTS

EDMONTON, AB, Nov. 6, 2026 /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, 2026.

Third Quarter Highlights:

• Reported revenue of $13.4 million for the quarter, a decrease of 10% from the comparative period, primarily due to the continued geopolitical instability in the Middle East and the effective suspension of shipping through the Strait of Hormuz, which contributed to delays in contract awards and customer capital purchase decisions.
• Reported smartProduct revenue of $4.9 million, accounting for 37% of total revenue (three months ended September 30, 2025 – revenue of $4.0 million, accounting for 27% of total revenue). Subsequent to September 30, 2026, McCoy received approximately $7.6 million of smartProduct orders from customers in the Middle East, with deliveries expected from the fourth quarter of 2026 through the first half of 2027.
• Reported net loss of $1.0 million compared with net earnings of $0.6 million in the comparative period in 2025. Earnings in the current period were impacted by lower revenue and production throughput, which reduced the Corporation's ability to absorb fixed operating costs. Gross profit in the third quarter of 2026 was also impacted by continued smarTR™ product support and servicing of a higher volume of rental equipment returned during the second quarter of 2026. Comparability to the prior-year period was also affected by the reversal of short-term incentive accruals recognized in the third quarter of 2025.  
• Adjusted EBITDA¹ for the three months ended September 30, 2026, was $1.0 million or 7% of revenue (Q3 2025 – $2.0 million or 14% of revenue). The decrease primarily reflects lower revenue and reduced absorption of fixed operating costs, partially offset by lower operating expenses.
• Achieved several key commercial and product development milestones during the third quarter of 2026:
  • The Corporation successfully completed validation of its smart Tail Stabbing Arm (smartTSA™), an automated casing tailing and alignment solution designed to eliminate personnel exposure to red-zone activities during casing operations. Following validation, McCoy completed multiple smartTSA™ unit sales and has scheduled additional customer demonstrations to showcase the tool's safety, operational, and efficiency benefits. The smartTSA™, together with newly released accessories, complete the critical system elements required to eliminate red-zone exposure during casing running operations and provide an important foundation for broader adoption of the smarTR™ platform.
  • McCoy also advanced its automation roadmap through the successful completion of its first controlled rig event utilizing sequence automation technology. The trial delivered positive results and marks an important milestone toward achieving the technology readiness required for deployment in active operations. Additional validation and development remain necessary before broader commercial deployment, and the Corporation expects adoption to progress incrementally as customers gain operating experience with the technology.
  • Subsequent to September 30, 2026, the Corporation entered into a memorandum of understanding with Al Masaood Energy to assess potential cooperation in the United Arab Emirates aimed at supporting the deployment and broader adoption of smarTR™. The assessment includes opportunities to enhance local fulfillment capabilities and in-country customer support.

"The market environment remains challenging, but we are seeing encouraging signs from customers and continued progress in our technology roadmap," said Bing Deng, President & CEO. "The commercialization of smartTSA™, our first sequence automation rig event, and additional customer orders following quarter-end demonstrate tangible progress in executing our strategy. While the timing of customer spending remains difficult to predict, the industry's long-term need for safer, more efficient, and increasingly automated operations continues to support significant opportunities for McCoy." 

"While lower customer activity levels impacted our financial results this quarter, we remained focused on the areas within our control," said Elyse Colbert, Interim CFO. "We continued to carefully manage costs, working capital, and capital expenditures while maintaining the flexibility to support our strategic priorities, manage near-term shipment timing, and continue to invest selectively in technology commercialization and customer opportunities. Our focus remains on disciplined execution through the current market environment while ensuring we are well positioned to capitalize on future opportunities as customer activity improves."

Management Update:

Effective September 28, 2026, Elyse Colbert joined McCoy Global Inc. as Interim Chief Financial Officer during the planned maternity leave of Lindsay McGill, Vice President & Chief Financial Officer. Ms. Colbert will oversee the Corporation's finance function and financial reporting activities during Ms. McGill's leave of absence. McCoy looks forward to welcoming Ms. McGill back following the conclusion of her leave.

Third Quarter Financial Highlights:

• Total revenue of $13.4 million, compared with $14.8 million in Q3 2025;
• Net loss of $1.0 million, compared to net earnings of $0.6 million in Q3 2025;
• Adjusted EBITDA¹ of $1.0 million, or 7% of revenue, compared with $2.0 million, or 14% of revenue, in Q3 2025;
• Backlog² of $16.3 million at September 30, 2026, compared to $27.7 million in the third quarter of 2025. Subsequent to September 30, 2026, the Corporation received multiple orders from customers in the Middle East totaling approximately $7.6 million for its smartProducts. Deliveries are expected from the fourth quarter of 2026 through the first half of 2027;
• Book-to-bill ratio³ was 0.84 for the three months ended September 30, 2026, compared with 1.18 in the third quarter of 2025.

Financial Summary

Revenue for the three and nine months ended September 30, 2026 decreased 10% and 31%, respectively, compared to the same periods in 2025. The decrease was primarily attributable to continued geopolitical instability in the Middle East and the effective suspension of shipping through the Strait of Hormuz, which continued to contribute to delays in contract awards and customer capital purchase decisions. Despite the overall decline in revenue, smartProduct revenue increased 23% in the three months ended September 30, 2026 compared to the third quarter of 2025 and represented 37% of the Corporation's revenue in the quarter, compared to 27% in the comparative period in 2025. During the quarter, the Corporation commercialized its smart Tailing and Stabbing Arm (smartTSA™), an automated casing tailing and alignment solution, and completed initial sales to multiple customers in North America.

Gross profit as a percentage of revenue for the three and nine months ended September 30, 2026, was 17% and 16% (2025 – 22% and 32%), respectively, a decrease of five and sixteen percentage points from the comparative periods in 2025. The decrease primarily reflects lower revenue and production throughput, which reduced the Corporation's ability to absorb fixed operating costs, as well as higher provisions for excess and obsolete inventory. Gross profit was also impacted by costs associated with continued smarTR™ product support and the servicing of a higher volume of rental equipment returned during the second quarter of 2026. The servicing costs were incurred to prepare the equipment for redeployment, with certain assets placed under new rental contracts during the third quarter. Gross profit for the three months ended September 30, 2026 includes a $0.3 million provision for excess and obsolete inventory (three months ended September 30, 2025 – $0.3 million). Gross profit for the nine months ended September 30, 2026 includes a $1.2 million provision for excess and obsolete inventory (nine months ended September 30, 2025 – $0.6 million).

For the three and nine months ended September 30, 2026, general and administrative expenses (G&A) totaled $1.6 million and $4.7 million, respectively. G&A expenses for the three months ended September 30, 2026 increased 4% compared to the same period in 2025. The increase is primarily attributable to the reversal of short-term incentive accruals in the comparative period in 2025, partially offset by lower salaries and benefits expense following workforce reductions implemented in March 2026. For the nine months ended September 30, 2026, G&A expenses decreased 49% compared to the same period in 2025. The decrease is mainly driven by lower stock-based compensation expense, lower salaries and benefits expense, and the recovery of previously recognized bad debt expense. Lower stock-based compensation expense was primarily attributable to the remeasurement of cash-settled awards, including the impact of share price appreciation in the comparative period in 2025 and the vesting of a previous non-recurring issuance of director performance share units in December 2025. Salaries and benefits expense decreased primarily as a result of workforce reductions implemented in March 2026. For the nine months ended September 30, 2026, the Corporation recognized a $0.1 million recovery of previously recognized bad debt expense, compared to bad debt expense of $0.9 million in the comparative period in 2025. Share-based compensation was a $0.1 million recovery for the nine months ended September 30, 2026 (nine months ended September 30, 2025 – $2.3 million expense).

For the three and nine months ended September 30, 2026, Sales & Marketing expenses were $0.5 million and $1.9 million, respectively. For the three months ended September 30, 2026, Sales & Marketing expenses increased 3% compared to the same period in 2025 due to the reversal of short-term incentive accruals in the comparative period in 2025, partially offset by lower salaries and benefits expense following workforce reductions implemented in March 2026. For the nine months ended September 30, 2026, Sales & Marketing expenses decreased 8% compared to the same period in 2025. The decrease primarily reflected lower salaries and benefits expense as a result of lower short-term incentive costs and workforce reductions implemented in March 2026, partially offset by higher marketing expenditures in the current period.

With total product development and support expenditures of $1.8 million and $5.3 million during the three and nine months ended September 30, 2026, respectively, McCoy continued to advance its Technology Roadmap initiative through the design, development, and field validation of additional smartProduct enhancements and system capabilities. During the three months ended September 30, 2026, the Corporation commercialized its smart Tailing and Stabbing Arm (smartTSA™), an automated casing alignment solution designed to precisely guide tubulars during stabbing and make up operations, and continued field trials for additional smarTR™ accessories that represent the final system elements required to achieve targeted labour reductions. Alongside these hardware initiatives, McCoy continued to advance software enhancements across its integrated platform, focused on improving system efficiency, automation, performance optimization, and expanding analytics and reporting capabilities. Product development and support expenses increased for the three months ended September 30, 2026 compared to the corresponding period in 2025 due to the reversal of short-term incentive accruals in the comparative period as well as higher travel costs associated with product deployment activities, partially offset by lower salaries and benefits expense following workforce reductions implemented in March 2026. Product development and support expenses decreased for the nine months ended September 30, 2026 compared to the corresponding period in 2025, primarily due to a higher proportion of labour costs being capitalized as development expenditures and lower intellectual property-related costs. Capitalized development expenditures decreased compared to the prior year due to lower prototype costs in the current periods.

Net loss for the three months ended September 30, 2026, was $1.0 million or $0.04 per basic share, compared with net earnings of $0.6 million or $0.02 per basic share in the third quarter of 2025. Adjusted EBITDA¹ for the three months ended September 30, 2026, was $1.0 million compared with $2.0 million for the third quarter of 2025.

As at September 30, 2026, the Corporation had $3.7 million in net cash⁴.

Selected Quarterly Information

($000 except per share amounts and percentages)	Q3 2026	Q3 2025	% Change
Total revenue	13,376	14,828	(10 %)
Gross profit	2,265	3,307	(32 %)
as a percentage of revenue	17 %	22 %	(5 %)
Net (loss) earnings	(1,026)	554	(285 %)
as a percentage of revenue	(8 %)	4 %	(12 %)
per common share – basic	(0.04)	0.02	(300 %)
per common share – diluted	(0.04)	0.02	(300 %)
Adjusted EBITDA^1	959	2,029	(53 %)
as a percentage of revenue	7 %	14 %	(7 %)
per common share – basic	0.04	0.08	(50 %)
per common share – diluted	0.04	0.07	(43 %)
Total assets	82,924	92,637	(10 %)
Total liabilities	14,814	28,515	(48 %)
Total non-current liabilities	185	1,671	(89 %)

Summary of Quarterly Results

($000 except per share amounts)	Q3 2026	Q2 2026	Q1 2026	Q4 2025	Q3 2025	Q2 2025	Q1 2025	Q4 2024
Revenue	13,376	17,239	9,362	25,554	14,828	24,051	19,346	25,222
Net (loss) earnings	(1,026)	113	(3,159)	6,148	554	1,367	946	4,255
as a % of revenue	(8 %)	1 %	(34 %)	24 %	4 %	6 %	5 %	17 %
per share – basic	(0.04)	-	(0.12)	0.23	0.02	0.05	0.03	0.16
per share – diluted	(0.04)	-	(0.12)	0.22	0.02	0.05	0.03	0.15
EBITDA^1	240	1,163	(2,258)	8,176	1,630	2,978	2,276	5,598
as a % of revenue	2 %	7 %	(24 %)	32 %	11 %	12 %	12 %	22 %
Adjusted EBITDA^1	959	1,926	(1,269)	6,498	2,029	4,817	3,479	6,534
as a % of revenue	7 %	11 %	(14 %)	25 %	14 %	20 %	18 %	26 %

Outlook and Forward-Looking Information

McCoy continues to view the Middle East as one of its most significant long-term growth opportunities. Across select Middle Eastern geographies, multi‑year national oil company ("NOC") development programs, active tubular running services ("TRS") tender frameworks with limited qualified suppliers, and ongoing safety and automation mandates continue to support a durable pipeline of opportunities for the Corporation's smartProduct offerings. As the Corporation enters the final quarter of 2026, management's primary focus in the region is executing on existing customer commitments, converting backlog to revenue, and advancing customer qualification and tender activities that may support future growth. Several TRS contract awards remain under consideration which, in aggregate, represent a potential opportunity involving more than 100 rigs being allocated to TRS customers; however, the timing of awards remains uncertain and management expects any significant commercial benefits to be more relevant to 2027 and beyond than to the Corporation's results for 2026. Customers remain engaged in NOC negotiations, which management views as a positive indication of continued underlying demand and ongoing advancement of the tender process. The Corporation's smartCRT™ is one of only two non‑proprietary tools currently meeting the technical qualification requirements under one of the larger regional tender frameworks, positioning McCoy favourably should awards proceed. Looking ahead to 2027, the Corporation anticipates a further NOC TRS tender cycle in a separate geography, representing an additional potential cumulative opportunity in excess of 200 rigs. Accordingly, during the remainder of 2026 and into 2027, McCoy will continue to focus on methodical market development and technical qualification efforts with key customers, including the objective of having smarTR™ eligible under relevant tenders and supporting enhanced day‑rate potential when the Corporation's technology replaces conventional tools.

Geopolitical instability in the Middle East continues to create uncertainty in the timing of customer purchasing decisions, contract awards, product shipments, and revenue recognition. The conflict has persisted longer than initially anticipated and the Corporation expects logistics disruptions, project deferrals, and slower order activity to continue until shipping corridors, insurance availability, and customer purchasing behaviours normalize. The Corporation has reasonable visibility over a significant portion of expected fourth-quarter revenue based on its existing backlog and recently received orders. However, approximately 48% of backlog at September 30, 2026 is destined for the Middle East region, and continued logistics and security constraints may impact delivery timing and revenue recognition during the remainder of 2026 and into 2027. Despite these near-term challenges, management believes underlying customer demand remains intact and that deferred activity is being postponed rather than permanently eliminated. As regional operators seek to maintain and expand production capacity, management believes demand for technologies that improve operational efficiency, safety, and workforce productivity will remain an important industry priority. Subsequent to September 30, 2026, the Corporation entered into a memorandum of understanding with Al Masaood Energy to assess potential cooperation in the United Arab Emirates aimed at supporting the deployment and broader adoption of smarTR™. The assessment includes opportunities to enhance local fulfillment capabilities and in-country customer support.

In the North American land market, drilling activity remained stable through the third quarter of 2026 with operators maintaining a disciplined approach to capital spending. Looking into 2027, the Corporation expects industry demand for technologies that improve wellsite safety, reduce labour requirements, and increase operational efficiency to remain supported by ongoing labour constraints and continued operator focus on capital efficiency.

During the third quarter of 2026, McCoy commercialized its smart Tail Stabbing Arm (smartTSA™), completed initial sales, and continued validation activities associated with its broader automation roadmap. The Corporation continues to take a targeted and deliberate approach to commercialization of its smarTR™ system, 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 commercialization, customer validation activities, and adoption to progress during the fourth quarter of 2026 and throughout 2027 in a deliberate and iterative manner, with continuous refinements informed by field experience and customer feedback. Importantly, customer adoption is also driven by project economics, as the smarTR™ system replaces labor-intensive conventional equipment that is often fully depreciated. Accordingly, realized labor savings, efficiency gains, and safety improvements at the wellsite remain key factors in supporting customer investment decisions.

Outside the Middle East and North America, the Corporation is selectively pursuing opportunities in Latin America, North Africa, and Asia-Pacific, where demand is supported by ongoing drilling activity, infrastructure development, and increasing interest in automation and digital technologies.

The Corporation implemented workforce reductions and other cost reduction initiatives in March 2026 and continued to actively manage its cost structure in response to prevailing market conditions and activity levels. These actions reduced operating expenses in the third quarter of 2026 and were designed to preserve operational flexibility while maintaining investment in critical strategic priorities, including product development, controlled system deployment, customer support and global technical capabilities. For the remainder of 2026, capital expenditures are expected to be focused on:

• up to US$0.4 million of investment in the development of 'Technology Roadmap' offerings; and
• up to US$0.1 million of strategic investment in rental equipment, largely transferred from inventory, where meaningful returns are expected, and to a lesser extent, maintenance production equipment.

McCoy's longstanding international customer relationships and geographically diversified operations position the Corporation to pursue opportunities in markets where activity levels improve. While these opportunities may help mitigate prolonged regional disruption, management expects the timing of order activity and revenue conversion to remain dependent on customer capital spending decisions, logistics availability and broader market conditions. The Corporation continues to focus on working capital management and managing liquidity, ending the period with no debt and $3.7 million of net cash, providing balance sheet flexibility to navigate the current market environment while continuing to advance strategic priorities.

As the Corporation enters the final quarter of 2026, management remains focused on executing existing backlog, maintaining financial flexibility, advancing key technology commercialization initiatives, and positioning the business for growth in 2027 and beyond. While near‑term order timing, backlog conversion, and revenue recognition remain subject to uncertainty, management remains confident in the Corporation's long‑term strategy and technology roadmap. The Corporation believes the industry's continued focus on safety, workforce productivity, operational efficiency, and automation supports a favourable long-term demand environment for its smartProduct portfolio and smarTR™ system. Combined with anticipated international tender opportunities and ongoing technology commercialization initiatives, these trends position the Corporation to capitalize on anticipated tender opportunities, continued smartProduct adoption, and broader growth opportunities as market conditions stabilize.

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 112-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 a non-GAAP measure 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.

($000 except per share amounts and percentages)	Q3 2026	Q3 2025
Net (loss) earnings	(1,026)	554
Depreciation of property, plant and equipment	881	848
Amortization of intangible assets	535	466
Income tax recovery	(278)	(380)
Finance charges, net	128	142
EBITDA	240	1,630
Provisions for excess and obsolete inventory	343	266
Other losses, net	202	60
Share-based compensation	174	73
Adjusted EBITDA	959	2,029

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 or customer confirmation of McCoy sales order. Though customers may default on, or cancel such commitments, purchase commitments 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 on average. 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 Net cash is a non-GAAP measure defined as cash and cash equivalents, plus: restricted cash, less: borrowings.

⁵ smartProduct revenue is a non-GAAP measure and includes sales, rental and services revenues from those products and technologies developed under the Corporation's technology roadmap initiative. The metric includes revenues from flush mount spiders (FMS), casing running tools (CRTs), smartTONGs and related software and accessories. The Corporation believes smartProduct revenue is a key metric that can assist investors in assessing how McCoy Global has executed on its technology roadmap strategy.

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 News 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, 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 News 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 Inc.

For further information, please contact: Mr. Bing Deng, President & CEO, McCoy Global Inc., E-mail: [email protected], Website: www.mccoyglobal.com