Canada · Delayed Price · Currency is CAD Orbit Garant Drilling Earnings Call Transcripts
Fiscal Year 2026
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Third quarter revenue reached a record high with a 67% utilization rate, despite severe winter weather and legacy contract pricing impacting profitability. New long-term contracts and improved pricing are expected to drive higher margins and revenue above CAD 200 million for fiscal 2026.
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Revenue grew 10.5% year-over-year to CAD 47.9 million, with strong demand in both Canada and South America. Margins declined due to competitive pricing and project delays, but utilization rates and net earnings improved. Ongoing high commodity prices and increased junior exploration support a positive outlook.
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Fiscal Q1 saw a 3.7% revenue decline and lower margins due to project delays and completions, but demand is rising with strong gold and copper prices. Most delays are resolving, and management expects improved results as projects ramp up and customer activity increases.
Fiscal Year 2025
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Shareholders elected six directors and reappointed the auditor. FY2025 saw revenue and profit growth, debt reduction, and a strategic focus on North and South America. Q1 2026 was affected by project delays, but demand is expected to rise.
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Achieved record net earnings for fiscal 2025, driven by strong gold and copper markets, operational improvements, and a strategic focus on Canada and South America. Revenue and margins improved year-over-year, with continued positive outlook supported by robust industry fundamentals.
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Revenue grew 3.9% year-over-year in Q3, driven by strong South American operations and favorable metal prices. Adjusted EBITDA and net earnings increased, while Canadian activity slowed. Capital allocation focuses on debt reduction and maintenance CapEx.
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Profitability improved year-over-year with higher margins, EBITDA, and net earnings, driven by increased drilling activity in Canada and South America and the exit from West Africa. Strong gold and copper prices support a positive outlook, with stable contracts and new rigs in Chile.
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Strongest quarterly net earnings in four years, with revenue up 9.3% and margins improved due to increased specialized drilling in Canada and growth in Chile and Guyana. Exit from West Africa and a new share buyback program further strengthened profitability and shareholder value.
Fiscal Year 2024
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Profitability improved in Q4 with adjusted gross margin above 20%, driven by strong Chilean operations and exit from unprofitable West Africa. Fiscal 2024 saw lower revenue but stable margins, with long-term contracts and high metal prices supporting a positive outlook.