Orbit Garant Drilling (OGD) Q1 2025 earnings summary

Executive summary

• Achieved the highest quarterly net earnings in four years, with improved margins and operating earnings in both Canadian and international operations compared to Q1 last year.

• Revenue increased 9.3% year-over-year to CAD 48.4 million, driven by higher drilling activity and a greater share of specialized drilling.

• Net earnings reached CAD 3.2 million (CAD 0.08 per share), reversing a net loss of CAD 0.4 million (CAD 0.01 per share) in Q1 last year.

• Canadian drilling activity increased year-over-year, with a higher proportion of specialized, higher-margin work and no major disruptions as seen in the prior year.

• International operations benefited from increased activity in Chile and Guyana and the cessation of unprofitable West African operations.

Financial highlights

• Total revenue was CAD 48.4 million in Q1 2025, up from CAD 44.3 million in Q1 2024.

• Adjusted gross margin rose to 19.7% from 15.2% last year.

• Gross profit increased to CAD 7.4 million (15.2% of revenue) from CAD 4.1 million (9.4% of revenue) in Q1 last year.

• Adjusted EBITDA was CAD 6.5 million, more than double the CAD 3.0 million in Q1 last year.

• Net earnings per share were CAD 0.08 (diluted), compared to a loss of CAD 0.01 per share last year.

Outlook and guidance

• Demand from senior and well-financed intermediate mining customers remains strong, supported by high gold and copper prices.

• Positioned to capture more business from junior exploration companies as their access to capital improves.

• Junior mining demand remains constrained due to limited financing; recovery in this segment could further boost demand.

• No specific EBITDA guidance provided, but recent six-month performance suggests stability at higher levels.