Orbit Garant Drilling (OGD) Q4 2025 earnings summary

Executive summary

• Achieved highest net earnings in over 10 years for fiscal 2025, reflecting successful execution of strategic plan, operational improvements, and profitability in Canada and South America.

• Focused on senior and well-financed intermediate mining customers, exiting unprofitable West Africa operations.

• Six consecutive quarters of year-over-year net earnings growth, with strong demand from gold and copper mining sectors.

• Strong cash flow enabled significant debt reduction and share buybacks, enhancing shareholder value.

Financial highlights

• Fiscal 2025 revenue increased 4.3% to $189.1 million; Q4 revenue up 3.9% to $47.2 million.

• Net earnings for fiscal 2025 reached $7.5 million ($0.20 per share diluted), compared to a net loss in fiscal 2024.

• Adjusted gross margin improved to 19.5% from 15.9% year-over-year.

• Adjusted EBITDA was $5.5 million in Q4 and $21.7 million for the year, up from $14.7 million.

• Gross profit for fiscal 2025 was $28.3 million (15.0% margin), up from $21.2 million (11.7%) in 2024.

Outlook and guidance

• Expect continued strong demand from senior and intermediate mining companies, supported by high gold and copper prices.

• Well-positioned to benefit from increased gold and copper exploration, with over 60% of revenue from gold drilling and a strong presence in Chile.

• Plans to maintain disciplined strategy, continue operational improvements, pay down debt, and focus on core regions.

• Monitoring junior mining sector for potential growth as financing conditions improve.

• Significant operational capacity remains to service new contracts in Canada and expand regionally with minimal costs.