Orbit Garant Drilling (OGD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 10.5% year-over-year to CAD 47.9 million, driven by resumed and new drilling projects in Canada and South America, with increased specialized drilling in Canada.

• Drill utilization rates reached their highest level in over two years, with further increases expected in Q3, though some gains may be delayed to Q4 due to winter weather.

• Demand for drilling services remains strong, supported by record gold and high copper prices, with high billing activity on new projects.

Financial highlights

• Q2 2026 revenue: CAD 47.9 million, up from CAD 43.5 million in Q2 2025; YTD 2026 revenue: CAD 94.6 million, up from CAD 91.9 million.

• Gross profit was CAD 6.5 million (13.5% margin), down from CAD 7.2 million (16.5%) in Q2 2025; adjusted gross margin: 18.5% vs. 21.5%.

• Adjusted EBITDA for Q2 2026: CAD 5.1 million, up from CAD 4.5 million; adjusted EBITDA margin: 10.5%.

• Net earnings for Q2 2026: CAD 1.3 million (CAD 0.03/share diluted), up from CAD 0.5 million (CAD 0.01/share diluted) in Q2 2025.

Outlook and guidance

• Utilization rate reached its highest in over two years and is expected to increase further in Q3, with some gains potentially realized in Q4 due to winter weather challenges.

• Strong demand from both senior/intermediate and junior mining companies is expected to continue, with cost inflation anticipated for supplies, materials, and wages.

• Increased junior exploration activity may positively impact pricing.

• Strong business outlook for the second half of fiscal 2026 and into fiscal 2027, supported by robust commodity prices.