• FY25 represented a transitional year with significant investment into new projects
• Successful entry into new markets including PNG and decarbonisation solutions
• Strong balance sheet with gross debt reduced by 46% since June 2024

Mitchell Services Ltd (ASX: MSV) reported its FY25 results, which reflected a transitional year for the company. FY25 EBITDA of $25.7m was down from $40.4m in FY24, primarily due to lower utilisation coupled with significant investment into newly won replacement projects. The company successfully entered new markets, including securing a multi-rig, multi-year contract in PNG with a global gold mining major and launching a joint venture, Loop Decarbonisation Solutions, to provide innovative decarbonisation drilling services. Despite the challenging year, Mitchell Services maintained a strong balance sheet, with gross debt reduced by 46% since June 2024 to $9.7m, the lowest level since June 2015. The company enters FY26 with a significant portion of revenue contracted and expects significant leverage within the business upon the normalisation of utilisation and revenue.

The overall strategy of the company is to optimise the long-term growth of the business and returns to shareholders by maintaining and improving the profitability of the existing business, identifying new service opportunities for Tier 1 clients, and pursuing additional growth opportunities offshore. With a strong balance sheet, the company retains its optionality and expects shareholder returns to recommence upon normalisation of business performance, most likely via the recently renewed share buyback program.