Orbit Garant Drill (OGD) AI Stock Analysis

• Market Cap: C$85.06M
• Dividend Yield: N/A
• Average Volume (3M): 42.83K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.57
• Revenue Growth: 1.04%
• EPS Growth: 107.55%
• Country: CA
• Employees: 1,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.03
• Shares Outstanding: 37,975,388
• 10 Day Avg. Volume: 52,775
• 30 Day Avg. Volume: 42,829
• PEG Ratio: -0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 8.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: C$2.50 ▲(77.30% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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

Rising drill utilization & demand

Higher utilization indicates better fleet productivity and revenue per rig, improving fixed-cost absorption. Sustained commodity-driven RFP activity and guidance to reach ~65% utilization imply multi-month contract visibility and the ability to scale activity with minimal mobilization, supporting durable revenue growth.

Recovering profitability and revenue growth

Return to positive TTM margins and solid revenue growth after multi-year losses reflects operational recovery and improved project mix. This trend suggests the company can sustain earnings through the cycle if utilization and contract mix hold, and indicates recovering ROE and financial resilience versus prior loss years.

Manageable leverage and available liquidity

Moderate leverage plus active net repayments and a sizable revolving facility provide balance sheet flexibility for capex and seasonal working capital. Stable equity and improving ROE reduce refinancing risk and support continued equipment deployment and debt paydown over the coming months.

Negative Factors

Margin compression

A 3 percentage-point gross margin decline signals persistent pricing pressure and lower productivity on some projects. If competitive pricing and ramp-up lower-margin work persist, this will structurally reduce earnings power and limit the company's ability to convert revenue gains into durable net income over the medium term.

Volatile free cash flow and weak conversion

Sharp swings in free cash flow and poor conversion to net income indicate working capital variability and episodic capex timing (e.g., equipment shipments). That unpredictability undermines reliable self-funding for growth, debt reduction, or buybacks and increases dependence on credit during troughs.

Operational disruptions and cost inflation risk

Project delays, regional disruptions and rising input costs create ongoing schedule and margin variability. These factors can defer utilization benefits, raise unit costs, and require client renegotiation to preserve margins, making near-term operational performance and profitability less predictable and more cyclical.

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 exploration, mine development, and production. The company also offers geotechnical and water drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. In addition, it manufactures and sells conventional and specialized drill rigs. As of June 30, 2021, the company operated 223 drill rigs, including 101 underground drills and 122 drill rigs. Orbit Garant Drilling Inc. was founded in 1965 and is headquartered in Val-d'Or, Canada.

How the Company Makes Money

Orbit Garant Drill generates revenue primarily through its drilling services, which are billed on a per-project basis or through long-term contracts with mining companies and exploration firms. Key revenue streams include surface and underground drilling operations, geotechnical services, and environmental drilling projects. The company benefits from significant partnerships with major mining companies, which provide a steady stream of contracts. Additionally, OGD's focus on maintaining a modern fleet of drilling equipment and investing in technology enhances its operational efficiency and service offerings, further contributing to its earnings.

Orbit Garant Drill Financial Statement Overview

Summary

Operations are in recovery with TTM profitability returning (gross ~14.0%, operating ~6.6%, net ~2.5%) and strong TTM revenue growth. Balance sheet leverage is moderate (debt-to-equity ~0.48–0.55) with ROE improving versus 2022–2024 losses. Offsetting positives are thin net margins and uneven cash generation, with sharp TTM free-cash-flow growth decline and weak FCF conversion versus net income.

Income Statement

Results have improved meaningfully versus the loss-making period in 2022–2024. TTM (Trailing-Twelve-Months) shows positive profitability with ~14.0% gross margin, ~6.6% operating margin, and ~2.5% net margin. Revenue growth is strong in TTM (2.435), and margins are notably better than 2023–2024. Offsetting this, profitability remains relatively thin at the bottom line, and the company has a recent history of negative net income (2022–2024), which suggests earnings can be cyclical and less durable.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.48 (FY2025) to ~0.55 (TTM), indicating moderate balance sheet risk rather than aggressive leverage. Equity has been generally stable, and returns on equity have recovered to ~11.0% (FY2025) and ~7.1% (TTM) after being negative in 2022–2024. The key weakness is the volatility in profitability (and therefore equity returns) over the last several years, which can pressure balance sheet flexibility during downcycles.

Cash Flow

Operating cash flow is positive and improved versus weaker years (TTM operating cash flow of ~$17.4M; FY2025 ~$18.5M), supporting ongoing operations. However, cash conversion is uneven: free cash flow is positive in TTM (~$6.3M) but shows a very sharp decline in the provided growth figure (TTM free cash flow growth -878.352) and is also shown as negative relative to net income in TTM (free cash flow to net income -0.067). This points to variability in working capital and/or capital spending needs, making cash generation less predictable than earnings.

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

• Technical Analysis Sentiment: Positive
• Last Price: 1.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OGD, the sentiment is Positive. The current price of 1.41 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 1.75, and below the 200-day MA of 1.60, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 62.54 is Neutral, neither overbought nor oversold. The STOCH value of 64.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OGD.

Orbit Garant Drill Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGD	64 Neutral	C$85.06M	18.92	7.13%	―	1.04%	107.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ESK	50 Neutral	C$106.34M	-46.34	-50.65%	―	―	62.70%
TK	47 Neutral	C$49.45M	-30.83	-1.53%	―	―	5.26%
CNRI	46 Neutral	C$49.16M	-68.25	-1.60%	―	―	88.42%
PX	41 Neutral	C$60.36M	-55.81	―	―	―	47.56%

Orbit Garant Drill Corporate Events

Orbit Garant Grows Q2 Revenue on Strong Drilling Demand Despite Margin Pressure

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. Despite this growth, gross margin and adjusted gross margin contracted due to lower productivity on some Canadian projects, competitive pricing pressures and customer-driven delays and changes to programs in South America, though net earnings improved to $1.3 million and adjusted EBITDA rose on favourable foreign exchange.

Management highlighted the full resumption of delayed projects, record-high drill utilization rates not seen in more than two years and a strengthening pipeline of requests from both major and junior mining clients, underpinned by record gold and high copper prices. The company expects further utilization gains in the second half of fiscal 2026 and into fiscal 2027, although some benefits may be deferred by severe winter weather in Canada, indicating solid underlying demand but ongoing operational and pricing challenges for stakeholders to monitor.

The most recent analyst rating on (TSE:OGD) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Orbit Garant Drill stock, see the TSE:OGD Stock Forecast page.