McCoy Global Inc. — Management Reports 2026

May 15, 2026

MCCOY GLOBAL

MANAGEMENT'S DISCUSSION AND ANALYSIS

March 31, 2026

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MCCOY
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Q1 2026

TABLE OF CONTENTS

EXPLANATORY NOTES... 2
STRATEGIC DEVELOPMENTS ... 6
OUTLOOK AND FORWARD-LOOKING INFORMATION ... 7
MARKET CONDITIONS ... 9
BUSINESS VISION ... 11
FINANCIAL RESULTS ... 13
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS ... 13
SUMMARY OF QUARTERLY RESULTS ... 16
LIQUIDITY AND CASH FLOW ... 17
OUTSTANDING SHARE DATA ... 19
CONTROLS AND PROCEDURES ... 19
INTERNAL CONTROLS OVER FINANCIAL REPORTING ("ICFR") ... 19
OTHER INFORMATION ... 19
OTHER INTERIM MD&A REQUIREMENTS ... 20

TSX:MCB
www.mccoyglobal.com

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MCCOY
GLOBAL
Q1 2026

EXPLANATORY NOTES

The following Management's Discussion and Analysis of Financial Results ("MD&A"), dated May 14, 2026, should be read in conjunction with the cautionary statement regarding forward-looking information and statements below, as well as the audited consolidated financial statements and notes thereto, for the years ended December 31, 2025, and 2024 (the "Financial Statements"). The annual consolidated financial statements have been prepared in accordance with IFRS Accounting Standards. All amounts in the following MD&A are in Canadian dollars unless otherwise stated. References to "McCoy," "McCoy Global," "the Corporation," "we," "us" or "our" mean McCoy Global Inc. and its subsidiaries, unless the context otherwise requires. Additional information relating to McCoy Global, including periodic quarterly and annual reports and Annual Information Forms ("AIF"), filed with Canadian securities regulatory authorities, is available on SEDAR+ at sedarplus.ca and our website at mccoyglobal.com. The information in this MD&A is current to May 14, 2026, unless otherwise noted.

FORWARD-LOOKING INFORMATION AND STATEMENTS

This MD&A contains certain 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 in this MD&A 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. In particular, this MD&A contains:

Forward-looking statements relating to McCoy Global's:
- business strategy;
- future development and organic growth prospects;
- the Corporation's development and commercialization of its Technology Roadmap;
- competitive advantages;
- merger and acquisition strategy;
- payment of quarterly dividends;
- the impact of order intake, contract awards and backlog on expected financial performance;
- the impact of new drilling activity, oil and gas prices, the entry or new market participants and M&A activity on the demand for the Corporation's products;
- potential tariffs imposed by the United States on Canadian imports;
- operational leverage; and
- capital spending for 2026.

Forward-looking statements respecting:
- the business opportunities for the Corporation that are based on the views of Management and current and anticipated market conditions; and
- the perceived benefits of the growth and operating strategies of the Corporation, which 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 reflect the Corporation's current plans, intentions, and expectations, which are based on Management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Corporation's expectation of operating and financial performance in 2026 and beyond is based on certain assumptions. McCoy Global's plans, intentions and expectations are inherently subject to significant business, economic, competitive, and other uncertainties, and contingencies regarding future events and as such, are subject to change. There is no assurance that the plans, intentions, or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties, and assumptions, including, but not limited to, those discussed

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elsewhere in this MD&A. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct, and such forward-looking statements included in this MD&A should not be unduly relied upon.

Forward-looking statements regarding the Corporation in this MD&A 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 considers 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 those set out below and those detailed elsewhere in this MD&A:

• domestic and foreign competition;
• technology;
• the level, timing, and prioritization of capital programs by National Oil Companies (NOCs) and Exploration & Production E&P operators (E&Ps), including the pace and direction of technology adoption across the drilling and completions supply chain;
• armed conflict or terrorist attack;
• international operations and international trade relations, including trade tariffs;
• replacement or reduced use of products and services;
• oil and natural gas price fluctuations;
• supply chain disruption and increasing material costs;
• reliance on key persons and workforce availability;
• major operations disruption due to severe weather events;
• mergers and acquisitions;
• ability to effectively manage growth;
• litigation;
• legal compliance;
• insurance sufficiency, availability, and rate risk;
• breach of confidentiality;
• shareholder activism;
• safety performance;
• information security and cybersecurity;
• foreign exchange;
• challenges by taxation authorities;
• availability of financing and increasing interest rates;
• raising equity through the issuance of shares;
• customers' inability to obtain credit/financing;
• sufficiency of internal controls;
• material differences between actual results and Management estimates and assumptions;
• global health crisis;
• change in government administrations;
• Greenhouse Gas ("GHG") regulations and other climate change related measures; and
• conservation measures and technological advances.

Readers are cautioned that the foregoing list is not exhaustive.

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The reader is further cautioned that the preparation of financial statements in accordance with IFRS Accounting Standards 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 MD&A, including the documents incorporated by reference herein, 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 MD&A are made as of the date of this MD&A 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.

DESCRIPTION OF NON-GAAP MEASURES

Throughout this MD&A, management uses measures which do not have a standardized meaning as prescribed by IFRS Accounting Standards and therefore are considered to be non-GAAP measures presented under IFRS Accounting Standards.

EBITDA is non-GAAP measure defined as net earnings, 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, before:

• depreciation of property, plant, and equipment;
• amortization of intangible assets;
• income tax expense (recovery);
• finance charges, net;
• provisions for (recovery of) excess and obsolete inventory;
• other losses (gains), net;
• restructuring charges;
• share-based compensation expense (recovery); and
• impairment losses.

The Corporation reports on EBITDA and adjusted EBITDA because they are important 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 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. Adjusted EBITDA should not be used as an exclusive measure of cash flow since it does not account for the impact of working capital changes, capital expenditures, debt changes and other sources and uses of cash, which are disclosed in the consolidated statements of cash flows.

Net cash is a non-GAAP measure defined as cash and cash equivalents, plus: restricted cash; less: borrowings. The Corporation reports net cash as it is an important measure used by management to evaluate liquidity. The Corporation believes net cash assists investors in assessing McCoy Global's current liquidity on a consistent basis taking into consideration cash and cash equivalents, restricted cash, and borrowings.

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Order intake is a measure of the amount of customer orders the Corporation has received, during a specified period of time, and is therefore an indicator of a base level of future revenue potential. Order intake is a supplementary financial measure, and, as a result, the definition and determination of order intake will vary among other issuers. The Corporation defines an order as a customer purchase commitment that has a high certainty of being delivered and is measured on the basis of the receipt of a customer purchase order or customer confirmation of McCoy sales order.

Backlog is a measure of the amount of customer orders the Corporation has received, but has not yet been recognized as revenue, and is therefore an indicator of a base level of future revenue potential. Backlog is a supplementary financial measure, and, as a result, the definition and determination of backlog will vary among other issuers reporting a backlog figure. The Corporation defines backlog as orders that have a high certainty of being delivered, but have not yet been recognized as revenue, 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.

smartProduct revenue is a non-GAAP measure and includes sales, rental and service 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.

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STRATEGIC DEVELOPMENTS

Earnings Performance & Cashflow Generation

Revenue for the three months ended March 31, 2026, was $9.4 million, representing a 52% decrease from the comparative period (Q1 2025 - $19.3 million). For the three months ended March 31, 2026, smartProducts revenue of $3.8 million accounted for 41% of total revenue (three months ended March 31, 2025 - 59%), a decrease of $7.6 million from the comparative period. The decline in total revenue and smartProducts revenue was primarily attributable to geopolitical instability in the Middle East and the effective suspension of shipping through the Strait of Hormuz, which resulted in delayed customer shipments and the deferral of revenue recognition during the quarter. As at December 31, 2025, over two-thirds the Corporation's backlog was destined for the Middle East, a substantial portion of which was directly impacted by these disruptions.

Net loss for the three months ended March 31, 2026, was $3.2 million, representing a 434% decrease in earnings from the comparative period (Q1 2025 - earnings of $0.9 million). Results were adversely affected by substantially lower revenue, reduced absorption of fixed operating costs, and higher other losses associated with severance and retirement-related charges. A portion of these costs was offset by the cost-reduction measures announced in March 2026, as well as additional targeted actions aimed at returning Adjusted EBITDA, gross profit, and selling, general & administrative expenses as a percentage of revenue to levels more consistent with historical performance.

Adjusted EBITDA for the three months ended March 31, 2026, was a loss of $1.3 million, or (14%) of revenue (Q1 2025 - $3.5 million, or 14% of revenue). Adjusted EBITDA was negatively impacted by lower shipment volumes and reduced operating leverage. During the quarter, the Corporation executed deliberate cost-containment measures to mitigate the impact of lower activity levels and support profitability amid reduced near-term visibility.

Cash used in operating activities of $0.2 million for the three months ended March 31, 2026, improved from the comparative period (cash used in operating activities of $2.7 million). The improvement was primarily driven by favourable working capital movements, including reductions in trade receivables and increased customer deposits as collections exceeded shipment activity, partially offset by lower adjusted EBITDA and increased inventory levels.

During the first quarter of 2026, the Corporation invested in its rental fleet and returned capital to shareholders through McCoy's quarterly dividend. As at March 31, 2026, the Corporation maintained a net cash position of $2.5 million (December 31, 2025 - $3.0 million).

Subsequent to March 31, 2026, the Corporation announced it has successfully closed a new US$10.0 million asset-based revolving credit facility (the "ABL Facility" or "ABL") with a leading U.S. Schedule I international banking institution as administrative agent and lender. The ABL Facility provides enhanced liquidity and financial flexibility to support working capital requirements, reduces financing costs, and replaces the Corporation's previous revolving credit facility with a Canadian chartered bank, which was fully repaid and terminated in Q2 2026. No amounts are currently drawn under the ABL Facility.

Advancing our Technology Roadmap

During 2025, McCoy successfully commercialized and delivered its first fully integrated smarTR™ systems, with field deployments initiated in the second half of the year. These systems are operating in live field environments and are meeting or exceeding technical, safety, and efficiency objectives, providing management with confidence in the system's readiness for broader commercial deployment.

In parallel, McCoy has commenced field trials of its smart Tail Stabbing Arm (smartTSA™)—an automated casing tailing and alignment solution engineered to precisely guide tubular connections during tailing and stabbing operations—along with additional smartTR™ accessories that represent the final system elements required to achieve targeted labour reductions of up to 67% compared to conventional casing installation methods. Management views this milestone as a significant step toward delivering the full value proposition of the smarTR™ system to oilfield service providers, drilling contractors, and E&P operators.

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Complementing these hardware advancements, the Corporation continues to enhance its integrated software platform, with a focus on improving automation, system efficiency, and expanded analytics and reporting capabilities. Collectively, these enhancements are designed to deliver improved operational insight and measurable performance gains to customers across McCoy's target markets.

Order Intake

McCoy reported $6.5 million of order intake, net of cancellations, for the three months ended March 31, 2026, representing a 72% decrease from the $23.4 million reported in the first quarter of 2025. Order intake also declined 73% sequentially compared to the $23.9 million reported in the fourth quarter of 2025. This reported order intake of $6.5 million was depressed by the cancellation of $6.5 million of orders included in previously booked backlog from a single Middle Eastern customer during the quarter. Excluding this cancellation, Q1 2026 order intake would have otherwise totaled $13.0 million. The cancellation resulted from the customer's reassessment of near-term capital commitments in response to project execution uncertainty, cash funding availability, and equipment delivery timelines. Order activity was otherwise subdued, primarily due to ongoing geopolitical instability in the Middle East, which has heightened uncertainty surrounding regional drilling activity and logistics timing.

These impacts were partially offset by continued demand for McCoy's smartFMS™ solutions in the North American land market, reflecting ongoing customer interest in technologies that enhance safety and operational efficiency. While near-term order intake remains sensitive to macro-geopolitical conditions, management's discussions with customers remain constructive, and management expects deferred opportunities to be revisited as market visibility improves.

OUTLOOK AND FORWARD-LOOKING INFORMATION

In early 2026, an abrupt outbreak of conflict in the Middle East occurred, which has persisted beyond the first quarter of 2026. Based on current conditions, the Corporation expects logistics disruptions, project deferrals, and subdued order activity to persist through at least late third quarter 2026, before shipping corridors, insurance availability, and customer purchasing behaviour begin to normalize. While the Corporation has near-term visibility over second-quarter revenue supported by its existing backlog, the extended duration of the conflict has reduced visibility beyond the near term and resulted in delayed customer shipments, cancellations of select backlog, and deferrals in the timing of new orders. As at March 31, 2026, approximately 30% of the Corporation's backlog was destined for the Middle East region, and continued logistics and security constraints affecting the region may further impact delivery timing and revenue recognition.

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. Over the next 12 months, several TRS contract awards remain under consideration which, in aggregate, represent a potential opportunity involving more than 100 rigs being allocated to TRS customers, subject to timing. The Corporation's smartCRT™ is one of only two non-proprietary tools that presently meets the technical qualification requirements under one of the larger regional tender frameworks, positioning McCoy favourably should awards proceed. Looking beyond 2026, the Corporation anticipates a further NOC TRS tender cycle in 2027 in a separate geography, representing an additional potential cumulative opportunity in excess of 200 rigs. Accordingly, McCoy's focus remains on methodical market development and technical qualification efforts with key customers, including the objective of having smartTR™ eligible under relevant tenders and supporting enhanced day-rate potential when the Corporation's technology replaces conventional tools.

Against the backdrop of extended geopolitical instability in the region, the Corporation now expects the timing of the NOC tender announcements and contract awards to be further extended, with award schedules remaining uncertain. While near-term timing risk has increased, underlying customer demand remains intact and, in certain respects, has strengthened. The conflict has contributed to meaningful reductions in regional oil production capacity, and recent developments — including the announcement by the United Arab Emirates regarding its future role within

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OPEC — reinforce expectations that drilling activity levels across our core markets are likely to recover to levels that meaningfully exceed pre-conflict expectations, driven by production capacity losses that will take years, not quarters, to restore.

In the North American land market, drilling activity remains subdued. We continue to take a targeted and deliberate approach to commercialization of our 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 adoption to follow a deliberate and iterative path, with continuous refinements informed by field experience and customer feedback. Importantly, pace of adoption is further driven by customer economics: the smarTR™ system replaces fully depreciated, labor-intensive conventional equipment, and the return profile is therefore closely tied to realized labor savings and operating efficiencies at the wellsite.

To navigate the near-term uncertainty, the Corporation has taken decisive actions to realign its cost structure, building on the initiatives previously announced in March 2026. In addition to those actions, management has implemented further targeted measures designed to ensure that Adjusted EBITDA, gross profit, sales, general and administrative expenses as a percentage of revenue are more closely aligned with historical performance levels under reduced activity scenarios. These actions are intended to preserve operational flexibility while maintaining investment in critical strategic priorities, including product development, controlled system deployment, customer support, and global technical capabilities. Capital expenditures for 2026 are expected to be lower than in 2025, which included several growth-related initiatives. Anticipated capital spending for the remainder of 2026 includes:

• up to US$1.6 million of investment in the development of 'Technology Roadmap' offerings;
• up to US$1.0 million of strategic investment in rental equipment, largely transferred from inventory, where meaningful returns are expected; and
• up to US$0.2 million of investments in production facility equipment.

Should the Middle East conflict persist, management expects that supply-driven responses in global drilling activity may partially offset prolonged regional disruption through increased investment in other markets. McCoy's longstanding international customer relationships and geographically diversified operations position the Corporation to benefit from improving activity levels in other markets, partially offsetting prolonged regional disruption.

Although near-term revenue and order timing remain uncertain, management remains confident in the Corporation's long-term strategy and technology roadmap. The current environment underscores the value proposition of McCoy's solutions, and management believes that once market conditions stabilize, the combination of constrained supply, elevated drilling requirements, and heightened safety and efficiency mandates is expected to drive renewed demand for the Corporation's smartProduct offerings.

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MARKET CONDITIONS

Management uses active rig counts, as well as number and length of wells being drilled, as data points to monitor and set expectations of the future performance of the Corporation. Generally, these metrics are leading indicators of demand for McCoy Global's products and services, although there are many factors that may impact any correlation.

A summary of historical and forecasted rig and well counts, which includes both land and offshore, obtained from Spears & Associates Drilling and Production Outlook, March 2026, is as follows:

International vs North American Rig™ & Well Counts

*Forecasted

**Cumulative

At a macro level, the demand for McCoy Global's products and services is related to drilling activity levels and customers' capital and operating budgets, which in turn are influenced by oil and natural gas prices and expectations as to future price trends. The availability of existing capital equipment adequate to serve drilling activity requirements, or lack thereof, further drives demand levels for McCoy's capital equipment products. The introduction and adoption of new products and technologies is a further driver of capital equipment demand and continues to play a more significant role as the adoption of McCoy's new technologies accelerates.

Backlog

Backlog is a measure of the amount of customer orders the Corporation has received and is therefore an indicator of a base level of future revenue potential. Backlog is a supplementary financial measure, and, as a result, the definition and determination of backlog will vary among other issuers reporting a backlog figure.

The Corporation 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.

McCoy Global's backlog as at March 31, 2026, totaled $23.3 million (US$16.7 million), a decrease of $2.5 million or 10% from backlog of $25.8 million (US$18.8 million) as at December 31, 2025. Compared to March 31, 2025, backlog decreased $4.2 million, or 15%, from $27.5 million (US$19.1 million).

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Backlog

Book-to-Bill Ratio

The book-to-bill ratio is a measure of net sales orders received to revenues recognized. The ratio is an indicator of customer demand and sales order processing times. The book-to-bill ratio is a supplementary financial 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. Orders received are those orders in a period which have been included in backlog. Orders received are typically booked in $USD. For each reporting period, orders received are converted to $CAD at an average foreign exchange rate for the period. As a result, orders received can fluctuate from one reporting period to another because of foreign exchange volatility. Set out below are orders received, revenue and the book-to-bill ratio:

Orders Received (in millions of Canadian dollars)

Revenue (in millions of Canadian dollars)

Book-to-Bill Ratio

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BUSINESS VISION

Our vision is to redefine wellbore construction as the foremost global provider of innovative, automated tubular makeup technology and world class support.

McCoy Global Inc. is incorporated and domiciled in Canada and is a leading provider of technologies and equipment designed to support tubular running operations, enhance wellbore integrity, and assist with collecting critical data for the global energy industry. McCoy Global's core products are used predominantly during the well construction phase for both land and offshore wells during both oil and gas exploration and development.

The Corporation is engaged in the following:

• design, production and distribution of capital equipment and technology to support tubular running operations, enhance wellbore integrity and increase safety;
• design, production and distribution of aftermarket products and services such as technical support, consumables and replacement parts that support its capital equipment sales;
• design, production and distribution of data collection technologies used in rugged applications for the global energy industry as well as in construction, marine and aerospace;
• repair, maintenance and calibration of the Corporation's capital equipment install base and similar competitor products; and
• rental of the Corporation's equipment and technologies.

Since mid-2008, the oil & gas extraction complex has experienced an increasingly volatile pricing environment and growing public and investor pressure to reduce its impact on the environment and improve safety. In turn, producers have been acutely focused on managing their costs and adapting their business strategy to demonstrate compliance with broader sustainability efforts.

McCoy has a reputation of innovation within tubular running services (TRS) operations globally. The Corporation has extensive experience launching new products into the markets it serves, offering the highest quality, technological advancements, and safety standards available, and has done so for more than three decades.

McCoy believes the TRS space is primed for transformation employing automation and advanced software solutions. Tools and processes used in TRS today are mechanical, highly repetitive, require significant labour inputs, have a high rate of personnel safety exposure, and maintain minimal well integrity data. Recognizing this opportunity, McCoy has conceptualized a 'Smart' TRS system that will operate autonomously using the Corporation's cloud-based data repository and machine learning to improve effectiveness. Our cloud-based platform and digital infrastructure that was developed in 2019, will enable future digital product offerings and enhancements. This cloud based, real time, remote data transmission infrastructure will support our ability to integrate, digitize, and automate the historically manual processes of tubular make up through our smarTR™ automated casing running system.

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McCoy is engaged with three key customer groups:

Service Companies and Drilling Contractors - Producers are challenging contractors to reduce costs. In most cases, their largest cost is people. With several significant downturns in the last decade and increasing volatility in oil and gas activity, personnel have left the industry to the point where there is now a critical shortage of skilled and experienced labour. This lack of labour and the reality that 65% of TRS cost can be directly attributed to labour is a driving force behind the transition to an increasingly automated system. In addition to providing enhanced data, McCoy's smartTR™ targets a significant reduction in the labour costs associated with TRS.

Producers - McCoy's Virtual Thread Rep™ consolidates data on every connection made in a Producer's completion program. This repository of data supports verifiable and reliable well integrity that validates Environmental Social Governance (ESG) initiatives.

Tubular Manufacturers - Threaded connection integrity is the standard that all manufacturers are measured by. Tubular connections at wellsite, which are currently made up by people, will be controlled, and torqued to factory specifications by McCoy's 'Smart' tools, leveraging autonomous machine learning. OEM's and manufacturers will benefit from reduced operational risk with systems in place to ensure connections are made correctly and in accordance with specifications related to project parameters, reducing the environmental impact of faulty connections and leaking wells.

McCoy's digital strategy will meet this demand. Our cloud platform is the nucleus of the Corporation's digital strategy and serves as a repository for real-time, well integrity data.

Set out below are McCoy Global's principal operations:

Operating Name	Country of Incorporation	Operating Region	Ownership Interest
McCoy Global Canada Corp.	Canada	Canada	100%
McCoy Global FZE	United Arab Emirates	Eastern Hemisphere	100%
McCoy Global USA, Inc.	United States	United States, Central America & Latin America	100%

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Q1 2026

FINANCIAL RESULTS

SUMMARY OF CONSOLIDATED FINANCIAL RESULTS

| As at and for the three months ended March 31
($000 except per share amounts) | 2026 | 2025 |
| --- | --- | --- |
| Revenue | 9,362 | 19,346 |
| Net (loss) earnings | (3,159) | 946 |
| Per common share – basic | (0.12) | 0.03 |
| Per common share – diluted | (0.12) | 0.03 |
| Adjusted EBITDA | (1,269) | 3,479 |
| Per common share – basic | (0.05) | 0.13 |
| Per common share – diluted | (0.05) | 0.13 |
| Total assets | 93,748 | 93,302 |
| Total liabilities | 26,423 | 27,471 |
| Total non-current liabilities | 700 | 2,468 |

EBITDA and adjusted EBITDA are calculated as follows:

| For the three months ended March 31
($000) | 2026 | 2025 |
| --- | --- | --- |
| Net (loss) earnings | (3,159) | 946 |
| Depreciation of property, plant, and equipment | 863 | 679 |
| Amortization of intangible assets | 515 | 464 |
| Income tax (recovery) expense | (649) | 143 |
| Finance charges, net | 172 | 44 |
| EBITDA | (2,257) | 2,276 |
| Other losses, net | 1,093 | 174 |
| Share-based compensation (recovery) expense | (302) | 872 |
| Provision for excess and obsolete inventory | 198 | 157 |
| Adjusted EBITDA | (1,269) | 3,479 |

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REVENUE

	For the three months ended March 31
($000 except percentages)	2026	2025	Change	% Change
smartProduct sale, rental and service revenue	3,801	11,363	(7,562)	(67%)
Legacy product sale, rental and service revenue	5,561	7,983	(2,422)	(30%)
Revenue	9,362	19,346	(9,984)	(52%)

Revenue for the three months ended March 31, 2026, decreased 52% from the comparative period. The decrease was primarily due to continued geopolitical instability in the Middle East and the effective suspension of shipping through the Strait of Hormuz, which resulted in delayed customer shipments and reduced revenue recognized during the quarter.

Revenue in the first quarter of 2025 reflected strong demand for the Corporation's smartProducts, including deliveries of multiple smart hydraulic casing running tools (smartCRT™) to the Middle East, as well as a deep-water offshore integrated casing running system supporting development of the smarTR™ system for offshore and deep-water markets.

GROSS PROFIT

	For the three months ended March 31
($000 except percentages)	2026	2025	Change	% Change
Gross profit	529	6,608	(6,079)	(92%)
Gross profit as a % of revenue	6%	34%	(28%)

Gross profit as a percentage of revenue for the three months ended March 31, 2026, was 6%, a decrease of twenty-eight percentage points compared to first quarter of 2025. The decrease in gross profit primarily reflects substantially lower revenue levels during the quarter, which materially reduced the Corporation's ability to absorb fixed operating costs across assembly, service, and support functions. While the Corporation took actions to align its cost structure with reduced activity levels, including reductions in force implemented in March 2026, the full impact of these actions was not realized within the quarter.

The Corporation's cost-reduction initiatives are intended to support a return to more normalized gross profit performance on an annualized basis as shipment activity stabilizes and revenue levels improve; however, near-term gross margin performance is expected to remain sensitive to volume variability.

Gross profit for the three months ended March 31, 2026, includes a $0.2 million provision of excess and obsolete inventory (three months ended March 31, 2025 - $0.2 million).

Gross profit for the first quarter of 2025 was impacted by a shift in product mix towards smartProduct revenues with favourable product margins and away from traditional capital equipment which has lower gross margins, as well as supply chain cost containment efforts which reduced material cost for a number of product lines.

GENERAL AND ADMINISTRATION EXPENSE (G&A)

	For the three months ended March 31
($000 except percentages)	2026	2025	Change	% Change
G&A	1,400	3,268	(1,868)	(57%)
G&A as a % of revenue	15%	17%	(2%)

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G&A decreased 57% from the comparative period, primarily due to a recovery of share-based compensation expense driven by volatility in the Corporation's share price. To a lesser extent, the decrease reflected recoveries of previously provided for trade receivables. G&A was also impacted by cost-reduction initiatives implemented during the quarter, though the full benefit of these actions was not reflected in the three-month period. As a percentage of revenue, G&A decreased by 2% from the comparative period.

During the three months ended March 31, 2025, G&A was impacted by stock-based compensation, which in turn was primarily attributable to the appreciation of the Corporation's stock price on cash-settled share-based compensation expense. To a lesser extent, the Corporation's investment in an AI platform for enhanced operational decision making also contributed to greater G&A spend.

PRODUCT DEVELOPMENT AND SUPPORT

($000 except percentages)	For the three months ended March 31
	2026	2025	Change	% Change
Product development and support expense	1,133	1,369	(236)	(17%)
Capitalized development expenditures	595	249	346	139%
Product development and support expenditures	1,728	1,618	110	7%
Product development and support expenditures as a % of revenue	18%	8%	10%

During the three months ended March 31, 2026, McCoy continued to advance its Technology Roadmap initiative through the design, development, and field validation of additional smartProduct enhancements and system capabilities. The Corporation commenced field trials of its smart Tail Stabbing Arm (smartTSA™)—an automated casing alignment solution designed to precisely guide tubulars during stabbing and make-up operations—along with additional smartTR™ 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.

In the current period, product development and support expenses decreased from the comparative period, primarily due to a higher proportion of labour costs being capitalized as development expenditures, as well as lower intellectual property-related costs relative to the prior-year period. Cost-reduction initiatives implemented in March 2026 were not fully reflected in the current-period results, with further benefits expected to be realized in subsequent periods. The increase in total product development and support expenditures as a percentage of revenue primarily reflects lower revenue levels during the period rather than an increase in absolute spend.

During the three months ended March 31, 2025, McCoy further advanced its 'Technology Roadmap' initiative by developing additional 'smart' product enhancements and complementary product accessories for McCoy's smartCRT™ and smartFMS™.

SALES AND MARKETING EXPENSE (SALES & MARKETING)

($000 except percentages)	For the three months ended March 31
	2026	2025	Change	% Change
Sales and Marketing	539	664	(125)	(19%)
Sales and Marketing as a % of revenue	6%	3%	3%

Sales and marketing expenses decreased $0.1 million, or 19%, from the comparative period, primarily due to lower marketing and discretionary promotional spending during the quarter. Cost-reduction initiatives implemented in

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March 2026 are not fully reflected in the current-period results, with additional benefits expected to be realized in subsequent periods.

For the three months ended March 31, 2025, Sales & Marketing included additional headcount for sales and customer support activities, as well as marketing expenses to promote the Corporation's smartProducts.

OTHER ITEMS

($000 except percentages)	For the three months ended March 31
	2026	2025	Change	% Change
Other losses, net	1,093	174	919	528%
Finance charges, net	172	44	128	291%

For the three months ended March 31, 2026, other losses, net primarily consist of severance and retirement planning arrangement lump-sum payments, and foreign exchange losses. In connection with the retirement of CEO, Jim Rakievich, the Corporation recognized a provision of $920 for a lump sum retirement payment, which is payable on or before May 28, 2026. Other losses, net for the comparative period comprised of foreign exchange losses.

For the three months ended March 31, 2026, finance charges, net, includes interest on borrowings, finance charges imputed on operating leases in accordance with IFRS 16, partially offset by interest income on cash and cash equivalents. For the three months ended March 31, 2025, finance charges, net, includes finance charges imputed on operating leases in accordance with IFRS 16, partially offset by interest income on cash and cash equivalents, and interest income on long-term customer finance leases.

SUMMARY OF QUARTERLY RESULTS

| ($000 except per share amounts) | 2026
Mar 31 | 2025 | | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 |
| Revenue | 9,362 | 25,554 | 14,828 | 24,051 | 19,346 | 25,222 | 15,842 | 19,910 |
| Net (loss) earnings | (3,159) | 6,148 | 554 | 1,367 | 946 | 4,255 | 516 | 3,125 |
| Per share - Basic | (0.12) | 0.23 | 0.02 | 0.05 | 0.03 | 0.16 | 0.02 | 0.12 |
| Per share - Diluted | (0.12) | 0.22 | 0.02 | 0.05 | 0.03 | 0.15 | 0.02 | 0.11 |
| EBITDA | (2,258) | 8,176 | 1,630 | 2,978 | 2,276 | 5,598 | 1,826 | 4,638 |
| Adjusted EBITDA | (1,269) | 6,498 | 2,029 | 4,817 | 3,479 | 6,534 | 2,668 | 4,728 |

Results for the three months ended March 31, 2026, were materially impacted by the geopolitical conflict in the Middle East and the resulting disruption to shipping routes through the Strait of Hormuz. These conditions led to delayed customer shipments and deferral of revenue recognition during the quarter, which adversely affected earnings and margins. Results for the first quarter of 2026 were atypical and principally driven by external factors rather than a change in underlying demand for the Corporation's products and technologies.

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LIQUIDITY AND CASH FLOW

Selected cash flow information is as follows:

| For the three months ended March 31
($000) | 2026 | 2025 |
| --- | --- | --- |
| Cash used in operating activities | (239) | (2,741) |
| Cash used in investing activities | (817) | (1,910) |
| Cash generated from (used in) financing activities | 4,550 | (2,036) |

Cash used in operating activities for the three months ended March 31, 2026, improved from the comparative period, primarily due to favourable working capital movements, including reductions in trade receivables and increased customer deposits, as collections exceeded shipment activity. These improvements were partially offset by a decrease in adjusted EBITDA during the quarter, inventory investments made to support future backlog and transfer to restricted cash. Cash used in operating activities for the three months ended March 31, 2025, was principally driven by unfavourable working capital movements, including reductions in trade payables and increased inventory levels to support backlog and forecast demand. Income tax payments further contributed to cash outflows in the prior-year period.

Cash used in investing activities for the three months ended March 31, 2026 and 2025, related primarily to strategic investments in the Corporation's rental fleet and production equipment, as well as continued investment in McCoy's Digital Technology Roadmap initiatives.

Cash generated from financing activities for the three months ended March 31, 2026, was primarily attributable to borrowings and proceeds from the issuance of common shares under the Corporation's stock option and restricted share plans, partially offset by principal payments on lease obligations, dividends paid, and repayments of borrowings. Cash used in financing activities for the comparative period primarily reflected share repurchases under the Corporation's normal course issuer bid, principal payments on lease obligations, and dividends paid, partially offset by proceeds from the issuance of common shares under the Corporation's restricted share plan and stock option exercises.

| As at
($000) | March 31, 2026 | December 31, 2025 |
| --- | --- | --- |
| Cash and cash equivalents | 6,466 | 3,000 |
| Restricted cash | 1,368 | - |
| Borrowings | (5,324) | - |
| Net cash | 2,510 | 3,000 |
| Undrawn availability under revolving demand facility
and term loan | 178 | 5,360 |

As at March 31, 2026 the Corporation held a revolving demand facility with a Canadian chartered bank. As at March 31, 2026, the amount available under the revolving demand facility was $0.2 million, with $0.1 million committed to letters of credit. The balance available was calculated as the lessor of $5.5 million and the total of 75% of eligible US and Canadian accounts receivables, net of customer deposits, aged less than 90 days; and 50% of raw materials and finished goods inventory, net of 30 days accounts payable to a maximum of US$2.0 million. During the first quarter of 2026, the Corporation made a series of draws totaling $5.6 million, of which $0.3 million was repaid as at March 31, 2026.

Subsequent to March 31, 2026 the Corporation successfully closed a new US$10.0 million asset based revolving credit facility (the "ABL Facility" or "ABL") with a U.S. Schedule I international banking institution as administrative agent and lender. The ABL facility replaces the Corporation's previous revolving credit facility with a Canadian

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chartered bank (note 8), which was fully repaid and terminated in April 2026. The ABL Facility has a three year term and is available to McCoy Global Inc. and McCoy Global USA Inc. The facility is secured by a first priority lien on substantially all assets of the borrowers and related guarantors. Availability under the facility is determined by an asset based borrowing formula primarily driven by eligible accounts receivable, with inventory also eligible for inclusion in the borrowing base for up to twelve months following closing, subject to a scheduled step down and customary eligibility criteria. Borrowings under the facility bear interest at variable rates based on SOFR or CORRA, as applicable, plus an applicable margin ranging from 1.75% to 2.25% per annum, depending on the Corporation's average excess availability, together with an undrawn commitment fee ranging from 0.35% to 0.45% per annum. In addition, the ABL facility includes customary affirmative and negative covenants, reporting requirements, and collateral monitoring provisions consistent with asset based lending structures of this nature.

Capital expenditures for 2026 are expected to be lower than in 2025, which included several growth-related initiatives. Anticipated capital spending for the remainder of 2026 includes:

• up to US$1.6 million of investment in the development of 'Technology Roadmap' offerings;
• up to US$1.0 million of strategic investment in rental equipment, largely transferred from inventory, where meaningful returns are expected; and
• up to US$0.2 million of investments in production facility equipment.

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Q1 2026

OUTSTANDING SHARE DATA

As at May 14, 2026, the following class of shares and equity securities potentially convertible into common shares were outstanding:

Common shares	27,147,827
Convertible equity securities:
Stock options	1,855,904
Restricted shares	114,079

The stock options and restricted share plan units are exercisable into an equal number of common shares. Stock options may be exercised after they have vested. Restricted share plan units are converted to common shares at pre-determined vesting dates.

Options with the following exercise price ranges were outstanding as at May 14, 2026:

Exercise price range	Options outstanding	Weighted average remaining contractual life
	#	years
<$1	440,000	3.59
$1 to $2	452,598	6.23
$2 to $3	405,000	6.43
$3 to $4	558,306	8.99
	1,855,904	6.48

CONTROLS AND PROCEDURES

INTERNAL CONTROLS OVER FINANCIAL REPORTING ("ICFR")

Management has evaluated whether there were changes in our Internal Controls over Financial Reporting ("ICFR") during the three-month period ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, our ICFR. No such changes have been identified.

ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with IFRS. Management is responsible for establishing and maintaining adequate ICFR.

OTHER INFORMATION

Additional information relating to the Corporation, including the Corporation's Annual Information Form for the year ending December 31, 2025, is available on SEDAR at www.sedarplus.ca.

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OTHER INTERIM MD&A REQUIREMENTS

There have been no significant changes to the following items from those described in our 2025 MD&A and Consolidated Annual Financial Statements. Please refer to the page numbers listed below from McCoy Global's 2025 MD&A and Consolidated Annual Financial Statements:

• Financial risk management and financial instruments - pages 36-39 Consolidated Annual Financial Statements;
• Capital management - page 39 Consolidated Annual Financial Statements;
• Contractual obligations - page 24 MD&A
• Related party transactions - page 40 Consolidated Annual Financial Statements;
• Critical accounting estimates and judgements - pages 14-15 Consolidated Annual Financial Statements; and
• Risks and uncertainties - pages 27 MD&A.

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