Orbit Garant Drilling (OGD) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 2026 revenue of CAD 51.4 million, up 2.7% year-over-year, with a 67% drilling utilization rate, the highest in over a decade.

• Severe winter weather in Canada and ramp-up costs for new long-term contracts, legacy contract pricing, and program modifications in South America negatively impacted productivity and profitability.

• Net loss for Q3 2026 was CAD 1.2 million (CAD 0.03/share diluted), compared to net earnings of CAD 1.9 million in Q3 2025.

• Pricing pressure experienced earlier in the year has eased, with improved pricing seen in Q3 and into April and May.

• Operational headwinds are believed to be largely resolved, positioning for improved results in Q4.

Financial highlights

• Q3 2026 revenue was CAD 51.4 million, up 2.7% year-over-year; Canada revenue was CAD 36.3 million (+0.5%), international revenue CAD 15.1 million (+8.2%).

• Gross profit was CAD 2.9 million (5.7% margin), down from CAD 5.9 million (11.9%) in Q3 2025; adjusted gross margin was 10.3% vs. 16.5% last year.

• Adjusted EBITDA was CAD 1.4 million, down from CAD 5.4 million in Q3 2025; adjusted EBITDA margin was 2.8% (Q3 2026) vs. 10.8% (Q3 2025).

• Net loss of CAD 1.2 million (CAD 0.03/share diluted) vs. net earnings of CAD 1.9 million (CAD 0.05/share diluted) in Q3 2025.

• Working capital at quarter end was CAD 52.7 million, up from CAD 50.4 million at fiscal 2025 year end.

Outlook and guidance

• Utilization rate expected to reach 70% by year-end 2026, with revenue projected to exceed CAD 200 million for fiscal 2026 if achieved.

• Legacy contract pricing issues are expected to phase out by Q4, with new contracts reflecting improved market rates.

• EBITDA margin target is 12% on revenue, with current trailing 12-month EBITDA margin at 7%.

• Profitability is expected to improve in Q4 2026, a seasonally strong quarter, as ramp-up costs subside and utilization rates remain high.

• Positive business outlook supported by strong customer demand, favorable commodity prices, and robust mining sector financing.