ORBIT GARANT GENERATES HIGHEST NET EARNINGS IN MORE THAN TEN YEARS IN FISCAL 2025

Executive Summary

• Orbit Garant Drilling Inc. reported its financial results for the fourth quarter and fiscal year ended June 30, 2025, highlighting the highest net earnings in over ten years for the full fiscal period.
• The company achieved a significant turnaround in profitability, moving from a net loss in Fiscal 2024 to net earnings of $7.5 million in Fiscal 2025, driven by improved operational margins in Canada and South America.
• Management highlighted strong cash flow generation, which facilitated a $7.5 million reduction in credit facility debt and the repurchase of nearly 69,000 shares through a normal course issuer bid.

Key Details

• Fiscal 2025 Financial Highlights:
  • Revenue: $189.1 million (up 4.3% from $181.2 million in Fiscal 2024).
  • Gross Profit: $28.3 million (up from $21.2 million in Fiscal 2024).
  • Adjusted Gross Margin: 19.5% (up from 15.9% in Fiscal 2024).
  • Adjusted EBITDA: $21.7 million (up from $14.7 million in Fiscal 2024).
  • Net Earnings: $7.5 million ($0.20 per share diluted), compared to a net loss of $2.4 million ($0.06 per share diluted) in Fiscal 2024.
• Fourth Quarter (Q4 2025) Financial Highlights:
  • Revenue: $47.2 million (up 3.9% from $45.3 million in Q4 2024).
  • Gross Profit: $7.6 million (up from $7.5 million in Q4 2024).
  • Adjusted Gross Margin: 20.2% (up from 17.8% in Q4 2024).
  • Adjusted EBITDA: $5.5 million (down from $6.7 million in Q4 2024, primarily due to FX variance and South America start-up costs).
  • Net Earnings: $2.2 million ($0.06 per share diluted), compared to a net loss of $2.3 million in Q4 2024.
• Regional Performance:
  • Canada Revenue (Fiscal 2025): $136.1 million (up 2.6%), driven by higher revenue per metre drilled.
  • International Revenue (Fiscal 2025): $53.0 million (up 9.0%), driven by increased drilling activity in South America.
  • Cessation of unprofitable drilling activities in West Africa during Q2 2024 contributed to margin improvements.
• Liquidity and Capital Resources:
  • Repaid a net amount of $7.5 million on its Credit Facility during Fiscal 2025.
  • Long-term debt under the Credit Facility (including undrawn US$5.0 million revolving facility) stood at $14.0 million as of June 30, 2025, down from $21.5 million in Fiscal 2024.
  • Working capital totalled $50.4 million as of June 30, 2025.
• Share Repurchases:
  • Repurchased and cancelled 68,916 common shares at a weighted average price of $0.82 per share during Fiscal 2025 under the Normal Course Issuer Bid (NCIB).
  • Total shares issued and outstanding as of June 30, 2025: 37,579,840.

Notable Quotes

• "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... 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." — Daniel Maheu, President and CEO
• "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." — Daniel Maheu, President and CEO