Orbit Garant Drilling (OGD) Q1 2025 earnings summary

Executive summary

• Achieved the strongest quarterly net earnings in four years, with net earnings of CAD 3.2 million, reversing a net loss of CAD 0.4 million in the prior year quarter.

• Total contract revenue was CAD 48.4 million for Q1 FY2025, up 9.3% year-over-year, with improved margins and operating earnings in both Canadian and international operations.

• Canadian drilling activity increased, focusing on specialized, higher-margin work, while international operations benefited from growth in Chile and Guyana and the exit from unprofitable West African operations.

• Comprehensive earnings totaled CAD 3.3 million, compared to a comprehensive loss of CAD 0.9 million last year.

Financial highlights

• Gross profit increased to CAD 7.4 million (15.2% of revenue) from CAD 4.1 million (9.4% of revenue) in Q1 last year.

• Adjusted EBITDA was CAD 6.5 million, up from CAD 3 million in Q1 last year.

• Basic and diluted EPS were CAD 0.08, compared to CAD (0.01) in Q1 FY2024.

• Cash flow from operating activities was CAD 3.4 million, up from CAD 1.1 million in the prior year.

• Total assets increased to CAD 128.6 million from CAD 119.9 million at June 30, 2024.

Outlook and guidance

• Demand from senior and well-financed intermediate mining customers remains strong, supported by high gold and copper prices.

• Junior mining demand remains constrained due to limited financing; recovery in this segment could further boost demand.

• Management continues to focus on financial flexibility, capital preservation, and internal growth.

• Company remains compliant with all debt covenants and maintains access to credit facilities.

• No specific EBITDA guidance provided, but recent six-month performance suggests stability at higher levels.