ORBIT GARANT REPORTS FISCAL 2026 SECOND QUARTER FINANCIAL RESULTS

Executive Summary

• Orbit Garant Drilling Inc. reported Q2 2026 revenue of C$47.9 M, a 10.5% increase year‑over‑year, and net earnings of C$1.3 M ($0.03 per diluted share).
• Adjusted EBITDA rose to C$5.1 M (10.5% margin) driven by favourable foreign‑exchange effects despite lower operating earnings.
• The company repaid a net C$3.3 M on its revolving credit facility, issued 185,549 shares from option exercises and repurchased 141,450 shares under its NCIB program at $1.29 average price.

Key Details

• Revenue: C$47.9 M (Q2 2026) vs. C$43.5 M (Q2 2025); Canada C$33.8 M (+9.8%); International C$14.1 M (+12.1%).
• Gross Profit: C$6.5 M (13.5% margin) vs. C$7.2 M (16.5%) in Q2 2025. Adjusted gross margin fell to 18.5% from 21.5%.
• Adjusted EBITDA: C$5.1 M (10.5% of revenue), up from C$4.5 M (10.4%) in Q2 2025; increase attributed mainly to favourable FX variation.
• Net Earnings: C$1.3 M, or $0.03 per diluted share, versus C$0.5 M ($0.01) a year earlier. Gains driven by lower income‑tax expense and FX benefit.
• General & Administrative Expenses: C$4.5 M (9.4% of revenue), slightly down from C$4.4 M (10.1%).
• Liquidity / Debt: Repayment of net C$3.3 M on credit facility; total long‑term debt $16.0 M as of Dec 31 2025 (up from $14.0 M).
• Credit Facility: $30 M revolving facility plus US$5 M standby LC, guaranteed by EDC, expiring Dec 22 2029.
• Share Activity:
• NCIB repurchase: 141,450 shares at weighted‑average $1.29; total NCIB capacity up to 500,000 shares (Oct 31 2025 – Oct 30 2026).
• Options exercised: 185,549 shares issued.
• Prior NCIB (Oct 31 2024 – Oct 30 2025) repurchased 68,916 shares at $0.82 average.
• Shares outstanding as of Feb 11 2026: 37,935,389.
• Working Capital: $51.5 M at Dec 31 2025 (up from $50.4 M). Primarily tied to inventory funding and accounts receivable financing.
• Conference Call: Management (President & CEO Daniel Maheu; CFO Pier‑Luc Laplante) scheduled for Feb 12 2026, 10:00 a.m. ET; registration link provided.

Notable Quotes

“Our drill utilization rates in the quarter reached their highest level in more than two years… With record gold prices and historically high copper prices supporting strong customer demand for our drilling services, we are confident in our business outlook for the second half of fiscal 2026 and entering into fiscal 2027.” – Daniel Maheu, President & CEO.