VAL-D’OR, QC, Sept. 24, 2025 /CNW/ – Orbit Garant Drilling Inc. (TSX:OGD) (“Orbit Garant” or the “Company”) today announced its financial results for the three-month period (“Q4 2025”) and fiscal year ended June 30, 2025. 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, 2025 |
Year ended June 30, 2024 2 |
|
Revenue |
47.2 |
45.3 |
189.1 |
181.2 |
|
Gross Profit |
7.6 |
7.5 |
28.3 |
21.2 |
|
Gross Margin (%) |
16.0 |
16.6 |
15.0 |
11.7 |
|
Adjusted Gross Margin (%)¹ |
20.2 |
17.8 |
19.5 |
15.9 |
|
Adjusted EBITDA¹ |
5.5 |
6.7 |
21.7 |
14.7 |
|
Net earnings (loss) |
2.2 |
(2.3) |
7.5 |
(2.4) |
|
Net earnings (loss) per share |
||||
|
– basic and diluted ($) |
0.06 |
(0.06) |
0.20 |
(0.06) |
|
(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. |
|
(2) As adjusted. See note 2 to the audited consolidated financial statements |
“Staying the course with our strategic plan, we generated strong year-over-year growth in earnings for the year, driven by the improved profitability of our operations in both Canada and South America,” said Daniel Maheu, President and CEO of Orbit Garant. “Our positive results are attributable to our focus on senior and well-financed intermediate customers in Canada and South America, our disciplined approach in our business strategy, and continued execution of our operational improvement program supported by strong customer demand. Our strong growth in cash flow from operations provided us with the flexibility to both significantly reduce our Credit Facility debt during the year and buy back shares through our normal course issuer bid. These capital allocation activities will help drive further value creation for shareholders.”
“The price of gold is currently at historically high levels, and the price of copper also remains strong, which provides a strong incentive for our customers to continue to invest in mine exploration and development activities. Looking ahead, we intend on staying disciplined in our business strategy, keep delivering on our operational improvement program, continuing to pay down debt to strengthen our balance sheet and remain focused on our core regions, Canada and South America. We still have significant operational capacity to service new drilling contracts in Canada and a potential to expand our regional presence with minimal mobilization costs.”
Fourth Quarter Results
Revenue for Q4 2025 totalled $47.2 million, an increase of 3.9% compared to $45.3 million for the three-month period ended June 30, 2024 (“Q4 2024”). Canada revenue totalled $33.8 million in Q4 2025, an increase of 2.7% compared to $32.8 million in Q4 2024, reflecting higher revenue per metre drilled. International revenue totalled $13.4 million in Q4 2025, an increase of 7.0% compared to $12.5 million in Q4 2024, reflecting increased drilling activity in South America.
Gross profit for Q4 2025 was $7.6 million, or 16.0% of revenue, compared to $7.5 million, or 16.6% of revenue, in Q4 2024. Adjusted gross margin¹, excluding depreciation expenses and a gain on disposal of property, plant and equipment, was 20.2% in Q4 2025, compared to 17.8% in Q4 2024. The increases in gross profit and adjusted gross margin¹ were primarily attributable to higher revenue per metre drilled in Canada, increased drilling activity in South America and the cessation of drilling activities in West Africa during Q2 2024, which were unprofitable.
General and Administrative expenses were $4.2 million, or 9.0% of revenue, in Q4 2025, compared to $4.3 million, or 9.4% of revenue, in Q4 2024.
Adjusted EBITDA¹ totalled $5.5 million in Q4 2025 compared to $6.7 million in Q4 2024. The decrease was primarily attributable to an unfavourable foreign exchange variance and start-up costs for a new project in South America, partially offset by increased operating earnings in Canada.
Net earnings for Q4 2025 were $2.2 million, or $0.06 per share (diluted), compared to a net loss of $2.3 million, or $0.06 per share (diluted), in Q4 2024. The Company’s net earnings in Q4 2025 were primarily attributable to the effect of the substantial modification of a …