ORBIT GARANT REPORTS FISCAL 2026 FIRST QUARTER FINANCIAL RESULTS

Executive Summary

• Orbit Garant Drilling Inc. reported Q1 2026 revenue of C$46.7 million, a 3.7% decline versus the prior year period.
• Net earnings fell sharply to C$0.3 million ($0.01 per diluted share) from C$2.9 million ($0.08 per diluted share) YoY, driven by lower gross profit and higher G&A expenses.
• The company withdrew C$5.3 million from its credit facility and disclosed an ongoing Normal Course Issuer Bid (NCIB) to repurchase up to 500,000 shares during the next 12 months.

Key Details

• Revenue: C$46.7 M (down 3.7% YoY); Canada segment C$33.7 M (‑4.8%); International segment C$13.0 M (flat).
• Gross Profit: C$5.7 M (12.1% margin) vs. C$7.6 M (15.8%) YoY. Adjusted gross margin fell to 17.0% from 20.2%.
• Adjusted EBITDA: C$3.7 M (7.9% of revenue) versus C$6.2 M (12.8%) YoY.
• Net Earnings: C$0.3 M, or $0.01 per diluted share, down from C$2.9 M ($0.08 per diluted share).
• General & Administrative Expenses: Increased to C$4.4 M (9.4% of revenue) from C$3.8 M (7.8%).
• Liquidity: Net drawdown of C$5.3 M from credit facility; total long‑term debt $19.3 M as of Sept 30 2025.
• NCIB Program: Permission to repurchase up to 500,000 shares between Oct 31 2025 and Oct 30 2026; 68,916 shares previously repurchased at a weighted average price of $0.82. Outstanding shares: 39,732,840 as of Sept 30 2025.
• Working Capital: $55.1 M (up from $50.4 M).
• Conference Call: Scheduled for Thursday, Nov 13 2025 at 10:00 a.m. ET; webcast available on the company website.

Notable Quotes

“Demand for drilling services in both Canada and South America is increasing… many of our current clients have indicated that they intend to increase their drilling activity over the next 12 months.” – Daniel Maheu, President & CEO
“We are confident in our business outlook for the remainder of fiscal 2026 and remain committed to our focus on senior and well‑financed intermediate customers.” – Daniel Maheu, President & CEO