Want to see TSE:OGD full AI Analyst Report?
Top Page
Orbit Garant Drill
(TSX:OGD)
Select Model
Select Model
Rating:47Neutral
Price Target:
C$1.00
▼(-23.08% Downside)
Action:Reiterated
Date:09/29/26
The score is primarily held back by unstable profitability and weaker cash generation (including sharply negative recent free cash flow), alongside a bearish price trend below key moving averages. Valuation is also challenged by a negative P/E tied to losses. The main offset is the earnings-call outlook for improving fiscal 2027 profitability as pricing resets and contract ramp-ups mature, but this is tempered by higher near-term capital/working-capital needs and execution risk.
Positive Factors
Record revenue growth
Record annual revenue and continued year-over-year growth indicate expanding drilling activity and sustained client demand. A larger revenue base can improve operating scale and support stronger earnings potential if utilization and contract pricing continue to develop.
Negative Factors
Severe profitability deterioration
The sharp decline in gross margin, EBITDA, and net income shows that revenue growth is not yet translating into dependable earnings. Persistent pressure from contract pricing, efficiency, and operating costs could limit reinvestment capacity and weaken returns over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Record revenue growth
Record annual revenue and continued year-over-year growth indicate expanding drilling activity and sustained client demand. A larger revenue base can improve operating scale and support stronger earnings potential if utilization and contract pricing continue to develop.
Read all positive factors
Orbit Garant Drill (OGD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$42.08M
Dividend YieldN/A
Average Volume (3M)38.13K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth7.49%
EPS Growth-119.48%
CountryCA
Employees1,300
SectorBasic Materials
Sector Strength58
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.04
Shares Outstanding38,251,440
10 Day Avg. Volume67,081
30 Day Avg. Volume38,128
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.68
Price to Sales (P/S)0.23
P/FCF Ratio-4.85
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, Central and South America, and West Africa. The company provides surface and underground diamond drilling to mining companies through various stages of min...
How the Company Makes Money
OGD makes money primarily by contracting drilling services to mineral exploration and mining companies. Revenue is generated when clients hire OGD to execute drilling programs, typically billed based on contracted rates tied to drilling activity (...
Orbit Garant Drill Earnings Call Summary
Earnings Call Date:Sep 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
The call was mixed. Revenue reached records, utilization improved to 70%, demand and mining financing remained strong, and management expects pricing and project ramp-ups to improve fiscal 2027 profitability. However, these positives were offset by significant declines in gross margin, adjusted EBITDA, and earnings, customer-driven delays, weather and operational challenges, expected credit losses, higher debt, and additional capital and working capital requirements.Positive Updates
Record Quarterly and Annual Revenue
The company generated record-breaking quarterly revenue in Q4 fiscal 2026 and record annual revenue of $203.2 million, an increase of 7.5% compared to fiscal 2025.
Negative Updates
Quarterly Gross Profit and Margins Declined
Q4 gross profit decreased to $4.6 million, or 8.2% of revenue, from $7.6 million, or 16.0% of revenue, in Q4 fiscal 2025. Adjusted gross margin declined to 13.6% from 20.2%.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue
The company generated record-breaking quarterly revenue in Q4 fiscal 2026 and record annual revenue of $203.2 million, an increase of 7.5% compared to fiscal 2025.
Read all positive updates
Company Guidance
For fiscal 2027, Orbit Garant expects contract pricing adjustments to progressively be reflected in profitability, with renegotiated pricing coming in Q1 and Q2 of fiscal 2027 and almost all contracts at the new price by the end of December; management expects an increase in margin, with a target to return to 20% gross margins, compared with 15% this year and around 19% in 2025. The Northern Canada contract currently has 2 rigs working, with 6 extra rigs to be added eventually until, let's say, June 2027, while ramp-up costs are expected to continue through Q3 of '27 and the first 10 to 12 months are expected to generate lower margins than anticipated or that is typical of a specialized drilling contract. Fiscal 2027 CapEx was stated as around $19.3 million and then as $19 million, including $6.3 million dedicated to the new long-term contract, working capital is expected to go up, with about another probably another $10 million used, and the main focus is to keep the rate of utilization at 70%.Orbit Garant Drill Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 203.21M | 189.05M | 181.24M | 200.98M | 195.47M |
| Gross Profit | 18.13M | 28.28M | 20.37M | 16.82M | 13.74M |
| EBITDA | 13.00M | 20.47M | 9.16M | 14.87M | 9.97M |
| Net Income | -1.51M | 7.54M | -1.32M | -669.00K | -6.65M |
Balance Sheet | |||||
| Total Assets | 164.01M | 130.64M | 119.88M | 127.56M | 137.06M |
| Cash, Cash Equivalents and Short-Term Investments | 1.99M | 3.54M | 332.00K | 2.18M | 1.02M |
| Total Debt | 43.20M | 32.66M | 34.12M | 37.01M | 40.31M |
| Total Liabilities | 95.44M | 62.22M | 59.65M | 65.92M | 74.55M |
| Stockholders Equity | 68.57M | 68.42M | 60.23M | 61.64M | 62.51M |
Cash Flow | |||||
| Free Cash Flow | -9.54M | 7.32M | 481.00K | 4.92M | -6.14M |
| Operating Cash Flow | 8.46M | 18.52M | 9.22M | 14.35M | 5.86M |
| Investing Cash Flow | -17.36M | -8.57M | -5.98M | -8.44M | -10.78M |
| Financing Cash Flow | 7.45M | -6.67M | -5.56M | -4.43M | 2.71M |
Orbit Garant Drill Technical Analysis
Negative
1.30
Price Trends
1.26
Negative
1.33
Negative
1.57
Negative
Market Momentum
-0.05
Positive
38.31
Neutral
46.12
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 1.3 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.26, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 46.12 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | C$66.40M | -28.23 | -9.80% | ― | ― | 11.97% | |
50 Neutral | C$62.87M | -33.58 | -2.57% | ― | ― | 6.94% | |
47 Neutral | C$42.08M | -28.24 | -2.18% | ― | 7.49% | -119.48% | |
42 Neutral | C$55.83M | -23.44 | -47.80% | ― | ― | -33.33% | |
42 Neutral | C$35.31M | -11.38 | -94.55% | ― | ― | -121.43% | |
40 Underperform | C$17.72M | -26.27 | -1.60% | ― | ― | 63.10% |
* Basic Materials Sector Average
TSE:OGD
Orbit Garant Drill
1.11
-0.65
-36.93%
TSE:ESK
Eskay Mining
0.30
-0.06
-16.67%
TSE:PX
Pelangio Exploration
0.14
-0.08
-37.78%
TSE:TK
Tinka Resources
0.45
0.02
3.49%
TSE:AZT
Aztec Minerals
0.35
0.07
27.27%
TSE:CNRI
Canadian North Resources, Inc.
0.16
-0.70
-81.76%
Orbit Garant Drill Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Orbit Garant Sets Revenue Records but Profits Suffer as It Bets on Major Northern Canada Contract
Negative
Sep 25, 2026
Orbit Garant delivered record revenue in its fiscal 2026 fourth quarter and full year, as growing drilling activity in Canada and South America pushed quarterly sales to $57.2 million and annual revenue to $203.2 million. Despite the top-line stre...
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.