Orbit Garant Drilling (OGD) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was CAD 46.7 million, down 3.7% year-over-year due to early project completions and client-initiated delays in Canada and South America, including a Chilean project delayed by an earthquake.

• Gross profit declined to CAD 5.7 million (12.1% margin), with adjusted gross margin at 17.0%, both lower than the prior year.

• Net earnings were CAD 0.3 million (CAD 0.01 per share, diluted), compared to CAD 2.9 million (CAD 0.08 per share, diluted) last year.

• Demand for drilling services is increasing, supported by high gold and copper prices, with customers planning to increase drilling activity over the next 12 months.

Financial highlights

• Q1 revenue was CAD 46.7 million, down from CAD 48.4 million year-over-year.

• Gross profit was CAD 5.7 million (12.1% of revenue), compared to CAD 7.6 million (15.8%) last year.

• Adjusted EBITDA was CAD 3.7 million, down from CAD 6.2 million in Q1 last year.

• General and administrative expenses increased to CAD 4.4 million (9.4% of revenue) due to higher promotional and business development costs.

• Working capital rose to CAD 55.1 million from CAD 50.4 million at fiscal year-end.

Outlook and guidance

• Delayed projects are resuming and ramp-up activities on new projects are expected to drive improved results in Q2 and Q3.

• Management is confident in the business outlook for the remainder of fiscal 2026, citing strong mineral prices and increasing customer demand, especially from senior and well-financed intermediate customers.

• Bidding activity is increasing, with clients indicating plans to boost drilling over the next 12 months.

• Some Q1 issues may persist into Q2, but most are expected to resolve by January 2026.