Orbit Garant Drill (TSE:OGD)
TSX:OGD
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Orbit Garant Drill
(TSX:OGD)
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Rating:64Neutral
Price Target:
C$2.00
▲(41.84% Upside)
Action:ReiteratedDate:02/18/26
The score reflects improving fundamentals and manageable leverage, but with thin profitability and inconsistent free-cash-flow conversion. Technicals are supportive with a clear uptrend, while valuation appears middling at ~16.7x earnings and no dividend data. The latest earnings call was constructive on utilization and demand, but near-term margin and cost inflation risks remain meaningful.
Positive Factors
Utilization Recovery
Sustained higher rig utilization meaningfully boosts revenue per fixed-cost base and improves long-term unit economics. Management’s guidance that utilization can reach ~65% with minimal mobilization implies better capacity absorption, more predictable revenue streams and stronger margin leverage as new contracts fully ramp.
Negative Factors
Thin Net Margins
Very narrow bottom-line margins leave earnings highly sensitive to input cost inflation, pricing pressure and productivity swings. Even small adverse changes in fuel, labor or contract pricing can wipe out net profits, making earnings and retained capital less durable across commodity cycles and operational hiccups.
Read all positive and negative factors
Positive Factors
Negative Factors
Utilization Recovery
Sustained higher rig utilization meaningfully boosts revenue per fixed-cost base and improves long-term unit economics. Management’s guidance that utilization can reach ~65% with minimal mobilization implies better capacity absorption, more predictable revenue streams and stronger margin leverage as new contracts fully ramp.
Read all positive factors
Orbit Garant Drill (OGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$67.10M
Dividend YieldN/A
Average Volume (3M)42.83K
Price to Earnings (P/E)10.4
Beta (1Y)0.87
Revenue Growth1.04%
EPS Growth107.55%
CountryCA
Employees1,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.03
Shares Outstanding38,127,388
10 Day Avg. Volume52,775
30 Day Avg. Volume42,829
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.89
Price to Sales (P/S)0.32
P/FCF Ratio8.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Orbit Garant Drill Business Overview & Revenue Model
Company Description
Orbit Garant Drilling Inc. provides mineral drilling services in Canada, the United States, South America, and West Africa. It provides underground and surface diamond drilling services to mining companies through various stages of mineral explora...
How the Company Makes Money
OGD makes money primarily by charging mining and mineral exploration clients for contract drilling services. Revenue is typically generated on a per-meter drilled basis and/or through day-rate arrangements (depending on contract structure and proj...
Orbit Garant Drill Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: top-line growth (+10.5% revenue) and stronger adjusted EBITDA and net earnings were reported alongside meaningful operational progress (highest utilization in >2 years, ramp-up of new projects, strong commodity-driven demand). However, margin compression (adjusted gross margin down 3.0 percentage points), temporary South America project disruptions, competitive pricing, lower productivity on some Canadian projects, and expected cost inflation temper the upside. Management remains optimistic on demand and is targeting continued utilization improvements and debt paydown, but near-term margin pressure and weather-related timing effects create uncertainty.Positive Updates
Revenue Growth
Total revenue of $47.9M, up 10.5% year-over-year (from $43.5M).
Negative Updates
Margin Compression
Adjusted gross margin (ex-depreciation) declined to 18.5% from 21.5% a year ago (down 3.0 percentage points). Gross profit fell to $6.5M (13.5% of revenue) from $7.2M (16.5% of revenue).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $47.9M, up 10.5% year-over-year (from $43.5M).
Read all positive updates
Company Guidance
Management guided that drilling utilization — which rose from ~56% in Q1 to ~62% in the quarter (the highest in >2 years) — should increase to about 65% in Q3, with some gains only fully realized in Q4, and can be accommodated with minimal mobilization costs; demand is expected to remain strong on record gold and elevated copper prices and high RFP activity (including junior programs now exceeding 5k–20k meters). They warned of cost inflation for supplies, materials and wages and noted ramp‑up projects typically yield lower gross margins, but expect to continue net debt paydown (long‑term debt $16.0M vs $19.3M in Q1 and $14.0M at FY2025 year‑end) while operating under a $30.0M revolving credit facility (+ unused USD5.0M LC capacity) expiring Dec 22, 2029. Recent Q2 metrics cited alongside this guidance: revenue $47.9M (+10.5% YoY; Canada $33.8M, +9.8%; International $14.1M, +12.1%), gross profit $6.5M (13.5% of revenue), adjusted gross margin 18.5% (vs 21.5% LY), adjusted EBITDA $5.1M, net earnings $1.3M ($0.03/diluted), working capital $51.9M, $3.3M net credit‑facility repayment in the quarter, and an NCIB with 141,450 shares repurchased at a $1.29 weighted average (of a 500,000‑share program).Orbit Garant Drill Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
61
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 191.84M | 189.05M | 181.24M | 200.98M | 195.47M | 163.29M |
| Gross Profit | 25.29M | 28.28M | 20.37M | 16.82M | 13.74M | 20.29M |
| EBITDA | 20.81M | 20.47M | 9.16M | 14.87M | 9.97M | 17.58M |
| Net Income | 4.45M | 7.54M | -1.32M | -669.00K | -6.65M | 2.29M |
Balance Sheet | ||||||
| Total Assets | 136.36M | 130.64M | 119.88M | 127.56M | 137.06M | 138.14M |
| Cash, Cash Equivalents and Short-Term Investments | 1.96M | 3.54M | 332.00K | 2.18M | 1.02M | 3.26M |
| Total Debt | 39.29M | 32.66M | 34.12M | 37.01M | 40.31M | 37.30M |
| Total Liabilities | 65.46M | 62.22M | 59.65M | 65.92M | 74.55M | 67.79M |
| Stockholders Equity | 70.90M | 68.42M | 60.23M | 61.64M | 62.51M | 70.35M |
Cash Flow | ||||||
| Free Cash Flow | 6.33M | 7.32M | 481.00K | 4.92M | -6.14M | 1.93M |
| Operating Cash Flow | 17.39M | 18.52M | 9.22M | 14.35M | 5.86M | 9.79M |
| Investing Cash Flow | -9.00M | -8.57M | -5.98M | -8.44M | -10.78M | -6.70M |
| Financing Cash Flow | -7.13M | -6.67M | -5.56M | -4.43M | 2.71M | -3.79M |
Orbit Garant Drill Technical Analysis
Negative
1.41
Price Trends
1.93
Negative
1.68
Positive
1.65
Positive
Market Momentum
-0.07
Positive
32.73
Neutral
23.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGD, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 1.93, and below the 200-day MA of 1.65, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:OGD.
Orbit Garant Drill Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | C$67.10M | 10.45 | 6.47% | ― | 1.04% | 107.55% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
47 Neutral | C$44.11M | -105.70 | -1.96% | ― | ― | 5.26% | |
46 Neutral | C$30.30M | -128.63 | -1.60% | ― | ― | 88.42% | |
41 Neutral | C$45.27M | -104.07 | -756.36% | ― | ― | 47.56% | |
40 Underperform | C$71.83M | -1,508.00 | -50.65% | ― | ― | 62.70% |
* Basic Materials Sector Average
TSE:OGD
Orbit Garant Drill
1.76
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44.26%
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Orbit Garant Drill Corporate Events
Business Operations and StrategyFinancial Disclosures
Orbit Garant Grows Q2 Revenue on Strong Drilling Demand Despite Margin Pressure
Positive
Feb 12, 2026
Orbit Garant reported a 10.5% year-over-year rise in second-quarter fiscal 2026 revenue to $47.9 million, driven by higher drilling activity and a greater share of specialized work in Canada, as well as stronger volumes in Chile and Guyana. Despit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.