• Quarterly EBITDA of $9.6m, up 71% vs FY25Q2
• Quarterly EBT of $4.1m, up exponentially vs FY25Q2
• 1H26 EBT of $10.2m, up exponentially vs 1H25

Mitchell Services Ltd has provided a quarterly investor update for Q2 FY26, reporting a material improvement in operating conditions and financial performance compared to the prior year. The company's quarterly EBITDA increased by 71% to $9.6m, while quarterly EBT grew exponentially to $4.1m, up from a loss in FY25Q2. Operating cash flow also increased by 129% to $11.0m. For the first half of FY26, EBT grew exponentially to $10.2m, up from a loss in 1H25. The improved performance was driven by better weather conditions, the absence of client-initiated delays and scope decreases, and projects that mobilized and incurred ramp-up costs in FY25 now operating on a business-as-usual basis. The company reported a non-cash impairment of $1.4m related to a drill rig destroyed by a bushfire, but this is fully recoverable through insurance. Mitchell Services' diversified revenue base, strong balance sheet, and proven operating capability position it well to capitalize on any increase in demand for its services. The company has achieved a net cash position of $7.2m at 31 December 2025, a 186% improvement in six months, providing flexibility for capital management or growth opportunities.

With a range of minerals at higher prices including copper and gold, the company continues to see increases in inquiry levels and other positive indicators for increased demand. However, demand for drill rigs within the coal sector, particularly in Queensland, remains subdued.