VAL-D'OR, QC, Sept. 24, 2026 /CNW/ -- Orbit Garant Drilling Inc. (TSX: OGD) ("Orbit Garant" or the "Company") today announced its financial results for the three-month period ("Q4 2026") and fiscal year ended June 30, 2026. All dollar amounts are in Canadian dollars unless otherwise stated.
Financial Highlights
($ amounts in millions, except per share amounts) | Three months ended | Three months ended | Year ended June 30, 2026 | Year ended June 30, 2025 |
Revenue | 57.2 | 47.2 | 203.2 | 189.1 |
Gross Profit | 4.6 | 7.6 | 19.7 | 28.3 |
Gross Margin (%) | 8.2 | 16.0 | 9.7 | 15.0 |
Adjusted Gross Margin (%)¹ | 13.6 | 20.2 | 14.7 | 19.5 |
Adjusted EBITDA¹ | 3.6 | 5.5 | 13.7 | 21.7 |
Net earnings (loss) | (1.9) | 2.2 | (1.5) | 7.5 |
Net earnings (loss) per share | ||||
- basic and diluted ($) | (0.05) | 0.06 | (0.04) | 0.20 |
(1) | This is a non-IFRS measure and is not a standardized financial measure. The Company's method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to "Reconciliation of Non-IFRS financial measures" on page 4 of this news release for more information about each non-IFRS measure and for the reconciliations to the most directly comparable IFRS financial measures. |
"We generated record quarterly revenue in our fourth quarter this year and record annual revenue in fiscal 2026, supported by strong demand for our drilling services in both Canada and South America. We achieved a drill rig utilization rate of 70% during the quarter, our highest level since fiscal 2012," said Daniel Maheu, President and CEO of Orbit Garant. "With industry activity growing rapidly, we accelerated the training and development of new cohorts of apprentice drillers which, together with inflation in our input costs and wages, resulted in a reduction in productivity and profitability of our Canadian operations during the quarter. We have since renegotiated pricing on most of our contracts awarded during the first half of our fiscal year. These pricing adjustments should progressively be reflected in our profitability during fiscal 2027. Moreover, our financial results for the quarter were negatively impacted by a non-cash expected credit loss of $1.4 million related to the long-term receivable for the sale of our assets in West Africa."
"The new, major specialized drilling contract in northern Canada that we secured in Q4 2026 represents another milestone in the execution of our business plan. This contract, which is expected to generate more than $100 million over its initial five-year term, further strengthens our position as an industry leader in northern Canada and is consistent with our strategy of providing specialized drilling services to senior and well-financed intermediate mining companies. To prepare for the start-up of this project, we have since made significant capital expenditures on the equipment and inventory required to execute it. We financed these investments through drawdowns on our credit facility and a new term loan, which increases our debt level. We expect to resume prioritizing debt reduction once this project is operating at full capacity," continued Mr. Maheu. "We believe we are positioned to return to profitability in fiscal 2027 as a result of improved pricing on new and existing contracts, the continued advancement of several projects that were in their ramp-up phase during fiscal 2026, improved productivity from our new drilling crews, and continued strong customer demand."