Canada's Orbit Garant Q4 revenue rises on increased drilling activity

Orbit Garant Drilling

25/09/2026 03:58

Overview
Canada mineral drilling firm's fiscal Q4 revenue grew 21% yr/yr to record level
Profitability declined due to higher costs, increased trainee drillers, inflation, and credit loss
Company secured major new drilling contract in northern Canada, increasing capital expenditures and debt

Outlook
Company expects improved profitability in fiscal 2027 due to better pricing and project advancement
Orbit Garant says pricing adjustments on contracts should benefit profitability in fiscal 2027
Company expects to prioritize debt reduction after new Canadian project reaches full capacity

Result Drivers
HIGH UTILIZATION & DEMAND - Record revenue driven by strong demand and highest drill rig utilization rate since fiscal 2012, per CEO Daniel Maheu
PRODUCTIVITY & COST PRESSURES - Profitability declined due to increased trainee drillers, inflation in input costs and wages, and lower revenue per metre on legacy contracts

Company press release: ID:nCNWgGdPga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
 
C$57.20 mln
 
Q4 Net Loss
 
C$1.90 mln
 
Q4 Adjusted Gross Margin
 
13.60%
 
Q4 EBITDA
 
C$2.20 mln
 
Q4 Gross Profit
 
C$4.60 mln
 

Analyst Coverage
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)