Orbit Garant Drill (TSE:OGD)
TSX:OGD
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Orbit Garant Drill
(TSX:OGD)
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Rating:54Neutral
Price Target:
C$1.50
▲(6.38% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by a financial recovery (rebounding revenue and positive earnings) but constrained by weak cash conversion (negative free cash flow) and thin/volatile margins. Technicals are a notable headwind with the stock trading below major moving averages and negative momentum indicators. Valuation is supportive with a modest P/E, while the latest earnings call is mixed—improving utilization and strong demand signals are tempered by ongoing margin and cost pressures.
Positive Factors
Revenue recovery
A 69% TTM revenue rebound signals a durable demand recovery and stronger contract activity. Sustained top-line growth improves fixed-cost absorption and provides operational leverage, helping the company rebuild profitability and support reinvestment if contract wins and utilization remain elevated.
Negative Factors
Weak free cash flow conversion
Negative free cash flow despite positive operating cash flow indicates weak cash conversion and higher capital intensity or timing pressures. Over months this limits capacity to self-fund equipment, pay down debt or return capital, increasing reliance on the credit facility and reducing resilience to lower activity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery
A 69% TTM revenue rebound signals a durable demand recovery and stronger contract activity. Sustained top-line growth improves fixed-cost absorption and provides operational leverage, helping the company rebuild profitability and support reinvestment if contract wins and utilization remain elevated.
Read all positive factors
Orbit Garant Drill (OGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$58.02M
Dividend YieldN/A
Average Volume (3M)42.83K
Price to Earnings (P/E)98.6
Beta (1Y)0.96
Revenue Growth3.14%
EPS Growth-90.42%
CountryCA
Employees1,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.01
Shares Outstanding38,170,940
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 providing contract drilling services to mining and mineral exploration customers. Revenue is generated through service contracts where OGD supplies drilling crews, drilling rigs, and associated field support to execute...
Orbit Garant Drill Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 22, 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
58
Neutral
Balance Sheet
62
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 193.17M | 189.05M | 181.24M | 200.98M | 195.47M | 163.29M |
| Gross Profit | 21.58M | 28.28M | 20.37M | 16.82M | 13.74M | 20.29M |
| EBITDA | 15.20M | 20.47M | 9.16M | 14.87M | 9.97M | 17.58M |
| Net Income | 594.00K | 7.54M | -1.32M | -669.00K | -6.65M | 2.29M |
Balance Sheet | ||||||
| Total Assets | 149.14M | 130.64M | 119.88M | 127.56M | 137.06M | 138.14M |
| Cash, Cash Equivalents and Short-Term Investments | 995.00K | 3.54M | 332.00K | 2.18M | 1.02M | 3.26M |
| Total Debt | 41.11M | 32.66M | 34.12M | 37.01M | 40.31M | 37.30M |
| Total Liabilities | 79.27M | 62.22M | 59.65M | 65.92M | 74.55M | 67.79M |
| Stockholders Equity | 69.87M | 68.42M | 60.23M | 61.64M | 62.51M | 70.35M |
Cash Flow | ||||||
| Free Cash Flow | -1.76M | 7.32M | 481.00K | 4.92M | -6.14M | 1.93M |
| Operating Cash Flow | 11.42M | 18.52M | 9.22M | 14.35M | 5.86M | 9.79M |
| Investing Cash Flow | -11.57M | -8.57M | -5.98M | -8.44M | -10.78M | -6.70M |
| Financing Cash Flow | -375.00K | -6.67M | -5.56M | -4.43M | 2.71M | -3.79M |
Orbit Garant Drill Technical Analysis
Negative
1.41
Price Trends
1.74
Negative
1.83
Negative
1.69
Negative
Market Momentum
-0.08
Negative
44.44
Neutral
85.71
Negative
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 1.58, below the 50-day MA of 1.74, and below the 200-day MA of 1.69, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | C$64.16M | -32.76 | -1.96% | ― | ― | 15.44% | |
54 Neutral | C$58.02M | 98.64 | 0.85% | ― | 3.14% | -90.42% | |
44 Neutral | C$32.58M | -45.77 | -1.60% | ― | ― | 63.10% | |
42 Neutral | C$36.47M | -12.89 | -756.36% | ― | ― | -114.00% | |
40 Underperform | C$83.96M | -35.00 | -50.02% | ― | ― | 58.59% |
* Basic Materials Sector Average
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Orbit Garant Drill
1.54
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13.24%
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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.