ORBIT GARANT REPORTS FISCAL 2026 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS

Canada NewsWire

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

"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."

Fourth Quarter Results

Revenue for Q4 2026 totalled $57.2 million, an increase of 21.3% compared to $47.2 million for the three-month period ended June 30, 2025 ("Q4 2025"). Canada revenue totalled $39.4 million in Q4 2026, an increase of 16.8% compared to $33.8 million in Q4 2025. The increase was primarily attributable to increased overall drilling activity, partially offset by lower revenue per metre drilled on certain legacy contracts that were signed during the first half of Fiscal 2026. International revenue totalled $17.8 million in Q4 2026, an increase of 32.7% compared to $13.4 million in Q4 2025, reflecting increased drilling activity in both Chile and Guyana.

Gross profit for Q4 2026 was $4.6 million, or 8.2% of revenue, compared to $7.6 million, or 16.0% of revenue, in Q4 2025. Adjusted gross margin¹, excluding depreciation expenses and a gain on disposal of property, plant and equipment, was 13.6% in Q4 2026, compared to 20.2% in Q4 2025. The decline in gross profit, gross margin and adjusted gross margin¹ was primarily attributable to lower drilling productivity in Canada due to higher drill rig utilization rates, which resulted in an increased number of trainee drillers, lower revenue per metre on certain legacy drilling contracts in Canada, inflation in production costs and drilling consumables, and investments in workforce training and development. Additionally, increased depreciation expenses of $0.7 million in Q4 2026, due to increased capital expenditures incurred in Fiscal 2026 and Fiscal 2025 in Canada and South America, negatively impacted gross profit and gross margin. These factors were partially offset by increased drilling activity in Canada and South America.

General and Administrative expenses were $4.7 million, or 8.3% of revenue, in Q4 2026, compared to $4.2 million, or 9.0% of revenue, in Q4 2025.

Adjusted EBITDA¹ totalled $3.6 million in Q4 2026 compared to $5.5 million in Q4 2025. The decrease was primarily attributable to lower drilling efficiency in Canada due to higher rig utilization rates, resulting in an increased number of trainee drillers, lower revenue per metre on certain legacy drilling contracts in Canada, and inflation in production costs, drilling consumables and investments in workforce training and development, partially offset by a $0.7 million favourable variation in foreign exchange.

Net loss for Q4 2026 was $1.9 million, or $0.05 per share (diluted), compared to net earnings of $2.2 million, or $0.06 per share (diluted), in Q4 2025. The net loss for Q4 2026 is attributable to the factors discussed above as well as a $1.4 million expected credit loss, net of interest revenue, recognized in the quarter related to the long-term receivable for the sale of the Company's assets in West Africa, partially offset by a $0.7 million favourable variation in foreign exchange.

Fiscal 2026 Results

Revenue in Fiscal 2026 totalled $203.2 million, an increase of 7.5% compared to $189.1 million for the year ended June 30, 2025 ("Fiscal 2025"). Canada revenue totalled $143.2 million for Fiscal 2026, an increase of 5.3% from $136.1 million in Fiscal 2025. The increase was primarily attributable to slightly higher revenue per metre drilled and increased drilling activity, partially offset by client-initiated project delays and project completions during the Company's first quarter of Fiscal 2026 ("Q1 2026"), the ramp-up of new drilling projects in both Q1 2026 and the Company's third quarter of Fiscal 2026 ("Q3 2026"), and the negative impact of more severe winter weather conditions in Q3 2026 compared to the Company's third quarter of Fiscal 2025 ("Q3 2025"). International revenue for Fiscal 2026 increased by 13.2% to $60.0 million compared to $53.0 million in Fiscal 2025. The increase was primarily attributable to increased drilling activity in both Chile and Guyana, partially offset by modifications to a certain drilling program in Chile during the first nine months of Fiscal 2026, and customer decisions to temporarily delay certain drilling programs during the first half of Fiscal 2026.

Gross profit for Fiscal 2026 was $19.7 million, or 9.7% of revenue, compared to $28.3 million, or 15.0% of revenue, in Fiscal 2025. Adjusted gross margin¹, excluding depreciation expenses and a gain on disposal of property, plant and equipment, was 14.7% in Fiscal 2026, compared to adjusted gross margin¹, excluding depreciation expenses and a gain on disposal of property, plant and equipment, of 19.5% in Fiscal 2025. The decline in gross profit, gross margin and adjusted gross margin¹ reflects the mobilization of several major long-term drilling contracts during Fiscal 2026. These contracts typically generate lower margins during their initial ramp-up phase before reaching normalized productivity levels. Inflation in production costs, drilling consumables and investments in workforce training and development also impacted gross profit and margins. The more severe winter weather conditions in Canada during Q3 2026 compared to Q3 2025 also negatively impacted productivity on surface drilling projects. Continued modifications to a drilling program and a decline in certain specialized drilling activities in South America also negatively impacted profitability. Additionally, increased depreciation expenses of $1.4 million due to increased capital expenditures incurred in Fiscal 2026 and Fiscal 2025 negatively impacted gross profit and margins. These factors were partially offset by increased drilling activity in Canada and South America in Fiscal 2026 compared to Fiscal 2025.

General and Administrative expenses were $18.2 million, or 8.9% of revenue, in Fiscal 2026, compared to $16.7 million, or 8.8% of revenue, in Fiscal 2025.

Adjusted EBITDA¹ totalled $13.7 million in Fiscal 2026 compared to $21.7 million in Fiscal 2025. The decline was attributable to the factors discussed above, partially offset by a $0.5 million favourable foreign exchange gain.

Net loss for Fiscal 2026 was $1.5 million, or $0.04 per share (diluted), compared to net earnings of $7.5 million, or $0.20 per share (diluted), in Fiscal 2025. The Company's net loss in Fiscal 2026 was attributable to the factors discussed above and also reflects an expected credit loss of $1.2 million, net of interest revenue, on the long-term receivable related to the Company's sale of assets in West Africa, partially offset by an income tax recovery of $0.3 million and a favourable foreign exchange gain of $0.5 million in Fiscal 2026.

Liquidity and Capital Resources

The Company withdrew a net amount of $9.7 million on its Credit Facility in Fiscal 2026 mostly related to net capital expenditures of $17.5 million, compared to a repayment of $7.5 million in Fiscal 2025. The Company's long-term debt under the Credit Facility, including the current portion, was $23.7 million as at June 30, 2026, compared to $14.0 million as at June 30, 2025. The increased debt is primarily attributable to the Company's increased draw downs to fund start-up costs for a new, long-term specialized drilling contract in Canada. This contract is expected to generate revenue exceeding $100 million over the initial five-year term. Orbit Garant is financing the $20.0 million in required capital expenditures for modification or manufacturing of drill rigs and related inventory through its internally generated cash flows, an increase in available borrowings on its Credit Facility and through a new $9.67 million term loan with the Business Development Bank of Canada.

On October 28, 2025, the Company announced that the Toronto Stock Exchange ("TSX") accepted its notice of intention to make a normal course issuer bid (the "NCIB Program") to purchase outstanding common shares of Orbit Garant on the open market in accordance with the rules of the TSX. Pursuant to the NCIB Program, Orbit Garant may purchase, from time to time, in aggregate up to 500,000 common shares over a 12-month period commencing on October 31, 2025, and terminating on October 30, 2026. During Fiscal 2026, Orbit Garant repurchased and cancelled 161,900 Common Shares at a weighted average price of $1.36 per share pursuant to the NCIB Program. During Fiscal 2026, the Company issued 833,499 Common Shares as a result of options being exercised.

As at June 30, 2026, Orbit Garant had 38,251,439 common shares issued and outstanding.

As at June 30, 2026, the Company's working capital totalled $48.7 million compared to $50.4 million as at June 30, 2025. Orbit Garant's working capital requirements are primarily related to the funding of inventory and the financing of accounts receivable.

Orbit Garant's audited consolidated financial statements and management's discussion and analysis for Fiscal 2026 are available via the Company's website at www.orbitgarant.com or SEDAR+ at www.sedarplus.ca .

Conference Call

Daniel Maheu, President and CEO, and Pier-Luc Laplante, CFO, will host a conference call for analysts and investors on Friday, September 25, 2026 at 10:00 a.m. (ET). To join the conference call without operator assistance, you can register and enter your phone number at https://registrations.events/easyconnect/4753813/recW2CPHdggUsIoLB/ to receive an instant automated call back. Alternatively, you can dial 647-932-3411 or 1-800-715-9871 to reach a live operator that will join you into the call.

A live webcast of the call will be available on Orbit Garant's website at http://www.orbitgarant.com/en/events . The webcast will be archived following conclusion of the call. To access a replay of the conference call dial 647-362-9199 or 1-800-770-2030, passcode: 4753813 #. The replay will be available until October 2, 2026.

RECONCILIATION OF NON - IFRS FINANCIAL MEASURES

Financial data has been prepared in conformity with International Financial Reporting Standards ("IFRS"). However, certain measures used in this news release do not have any standardized meaning under IFRS and could be calculated differently by other companies. The Company believes that certain non-IFRS financial measures, when presented in conjunction with comparable IFRS financial measures, are useful to investors and other readers because the information is an appropriate measure to evaluate the Company's operating performance. Internally, the Company uses this non-IFRS financial information as an indicator of business performance. These measures are provided for information purposes, in addition to, and not as a substitute for, measures of financial performance prepared in accordance with IFRS.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Management believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are important measures when analyzing its operating profitability, as they remove the impact of financing costs, certain non-cash items, income taxes and restructuring costs. As a result, Management considers these measures as useful and comparable benchmarks for evaluating the Company's performance, as companies rarely have the same capital and financing structure.

Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted Gross Profit and Adjusted Gross Margin

Although adjusted gross profit and adjusted gross margin are not recognized financial measures defined by IFRS, Management considers them to be important measures as they represent the Company's core profitability, without the impact of depreciation expense. As a result, Management believes they provide a useful and comparable benchmark for evaluating the Company's performance.

Reconciliation of Adjusted Gross Profit and Adjusted Gross Margin

About Orbit Garant

Headquartered in Val-d'Or, Quebec, Orbit Garant is one of the largest Canadian-based mineral drilling companies, providing both underground and surface drilling services in Canada and internationally through its 180 drill rigs and approximately 1,300 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. The Company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. For more information, please visit the Company's website at www.orbitgarant.com .

Forward-looking information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Orbit Garant Drilling Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Risks and uncertainties that could cause actual results, performance or achievements to differ materially include the world economic climate as it relates to the mining industry; the Canadian economic environment; the Company's ability to attract and retain customers and to manage its assets and operating costs; the political situation in certain jurisdictions in which the Company operates and the operating environment in the jurisdictions in which the Company operates, as well as the risks and uncertainties are discussed in the Company's regulatory filings available at www.sedarplus.ca . There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities laws.

SOURCE Orbit Garant Drilling Inc.

View original content: http://www.newswire.ca/en/releases/archive/September2026/24/c8362.html

Canada Newswire

September 24, 2026 - 7:45 PM PDT

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