Orbit Garant Drilling (TSE:OGD) Issues Earnings Results

Orbit Garant Drilling (TSE:OGD) announced its quarterly earnings data on Friday. The company reported C($0.05) EPS for the quarter, FiscalAI reports. The firm had revenue of C$57.17 million during the quarter. Orbit Garant Drilling had a net margin of 0.31% and a return on equity of 0.85%.

Here are the key takeaways from Orbit Garant Drilling’s conference call:

• Fiscal 2026 revenue reached a record CAD 203.2 million, up 7.5% year over year, while fourth-quarter revenue rose 21.3% to CAD 57.2 million. Rig utilization reached 70%, the highest level since fiscal 2012, supported by strong demand in Canada and South America.
• Profitability deteriorated despite the revenue growth: fiscal 2026 adjusted EBITDA fell to CAD 13.7 million from CAD 21.7 million, and the company posted a CAD 1.5 million net loss versus CAD 7.5 million of earnings last year. Lower drilling efficiency, contract pricing pressure, inflation, training costs, project delays and ramp-up expenses weighed on margins.
• Management expects profitability to return in fiscal 2027 as recently negotiated price increases flow through, ramp-up costs decline, productivity improves and new drilling tools contribute. The company is targeting a recovery in adjusted gross margin from 14.7% toward its prior 20% level, although it provided no formal guidance.
• Orbit Garant secured a specialized Northern Canada contract expected to generate more than CAD 100 million over its initial term, with two rigs operating now and six additional rigs expected to be added by around June 2027. Management said the contract should become more profitable after its initial 10–12 month ramp-up period.
• Funding the new contract and other growth initiatives increased leverage, with year-end credit-facility debt rising to CAD 23.7 million from CAD 14.0 million. Fiscal 2027 capital expenditures are expected to be about CAD 19.3 million, including CAD 6.3 million for the new contract, while working capital could consume roughly CAD 10 million.

Orbit Garant Drilling Trading Down 15.9%

Shares of Orbit Garant Drilling stock opened at C$1.06 on Friday. The company has a market capitalization of C$40.46 million, a P/E ratio of 15.14, a price-to-earnings-growth ratio of 0.65 and a beta of 1.53. The stock has a fifty day simple moving average of C$1.28 and a 200 day simple moving average of C$1.50. Orbit Garant Drilling has a 12-month low of C$0.91 and a 12-month high of C$2.48. The company has a current ratio of 2.24, a quick ratio of 1.01 and a debt-to-equity ratio of 58.84.

Orbit Garant Drilling Company Profile

Headquartered in Val-d’Or, Quebec, Orbit Garant is one of the largest Canadian-based mineral drilling companies, providing both underground and surface drilling services in Canada and internationally through its 180 drill rigs and approximately 1,300 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. The Company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies.