Canada's Orbit Garant Q3 posts net loss as severe weather impacted productivity

Orbit Garant Drilling

13/05/2026 22:15

Overview

Canada mineral drilling firm's fiscal Q3 revenue rose 2.7% yr/yr to record high

Profitability declined with net loss and lower adjusted EBITDA due to weather and contract factors

Company announced new five-year specialized drilling contract in Canada worth over C$100 mln

Outlook

Company expects profitability to improve in fiscal Q4 due to seasonality and increased drilling activity

Company expects new Canadian contract to generate revenue exceeding C$100 mln over five years

Result Drivers

SEVERE WINTER WEATHER - Co said more severe winter weather in Canada negatively impacted productivity on all surface drilling operations

LEGACY CONTRACT PRICING - Profitability was hurt by legacy pricing on contracts from previous quarters, per management

RAMP-UP COSTS - Mobilization and ramp-up of drill rigs under new long-term contracts in Canada increased costs and reduced margins

Company press release: ID:nCNW9YmbZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$51.40 mln
Q3 Net Loss
C$1.20 mln
Q3 Adjusted Gross Margin
10.30%
Q3 EBITDA
C$1.40 mln
Q3 Gross Profit
C$2.90 mln


Analyst Coverage

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 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.)