Orbit Garant Drilling (OGD) Q3 2025 earnings summary

Executive summary

• Q3 revenue grew 3.9% year-over-year to CAD 50.0 million, driven by strong South American drilling activity, offsetting slower Canadian operations.

• Net earnings rose to CAD 2.7 million (CAD 0.08/share) from CAD 2.0 million (CAD 0.05/share) last year, aided by favorable foreign exchange and international growth.

• Adjusted EBITDA increased to CAD 6.2 million from CAD 3.9 million year-over-year, reflecting improved profitability in South America and FX gains.

• Fiscal Q3 is typically the slowest period for Canadian operations due to seasonal factors and lower surface drilling demand.

• Year-to-date margins and profitability improved, reflecting a focus on senior and intermediate customers and operational improvements.

Financial highlights

• Q3 revenue was CAD 50.0 million, up from CAD 48.2 million in Q3 last year.

• Gross profit was CAD 5.9 million (11.9% margin), down from CAD 6.4 million (13.2%) last year due to lower Canadian activity.

• Adjusted EBITDA margin improved to 12.4% from 8.2% year-over-year.

• General and administrative expenses increased to CAD 4.3 million (8.6% of revenue) from CAD 3.7 million (7.7%), reflecting wage inflation and higher marketing spend.

• Year-to-date revenue up 4.5% and adjusted gross margin at 19.3%, up from 15.3% last year.

Outlook and guidance

• Management expects increased demand for surface drilling from senior and well-financed intermediate companies through 2025.

• Strong gold and copper prices are expected to support continued demand for drilling services.

• Well-positioned to benefit from gold exploration, with over 60% of revenue from gold drilling in the first nine months.

• Underground drilling demand remains strong, supporting continued operational focus.

• Anticipate eventual recovery in demand from junior mining companies.