Is McCoy Global a buy right now?

Beacon Securities analyst Russell Stanley says expectations for McCoy Global’s (McCoy Global Stock Quote, Chart, News, Analysts, Financials TSX:MCB) third quarter are “modest,” but a rising mix of higher-margin smartProducts and potential contract catalysts keep the stock attractive heading into Friday’s (Nov. 7) results.

In a Nov. 4 preview, Stanley said he is looking for Q3 revenue of $15.6-million and Adjusted EBITDA of $2.6-million (17% margin), which he noted is conservative versus the only other published estimates of $18.7-million and $3.4-million (18% margin). Management had cautioned in August that Q3 could reflect slower revenue and earnings growth due to the timing of awards from national oil companies (NOCs) and continued softness in the North American land drilling market. His forecast assumes a sequential pullback from Q2’s $24.1-million revenue and $4.8-million of EBITDA (20% margin).

Stanley is also modelling Q3 operating cash flow of $2.5-million before working capital, or $2.8-million after, assuming a modest release tied to the lower topline.

Edmonton-based McCoy Global develops equipment for tubular running services (TRS) used in well construction, with a growing emphasis on its next-generation “smartProducts” suite that embeds sensors and software to automate processes, lower labour requirements and improve efficiency, safety and data capture at the wellsite.

Stanley said the revenue mix will be closely watched, as smartProducts have grown from the low-30% range of sales in the first half of 2024 to the high-50% range in the first half of 2025. While quarterly orders can be “lumpy,” he prefers tracking trailing 12-month book-to-bill for trend clarity.

McCoy now trades at 4.1x Beacon’s 2026 Adjusted EBITDA forecast, which Stanley views as compelling. He pointed to Q3 results and outlook commentary, contract wins, and potential M&A activity as upcoming catalysts.

Stanley said McCoy should generate $16-million in Adjusted EBITDA on $80-million of revenue in fiscal 2025, improving to $24-million on $91-million of revenue in 2026.

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