ORBIT GARANT REPORTS RECORD REVENUE FOR ITS FISCAL 2027 FIRST QUARTER

VAL-D'OR, QC, Nov. 11, 2026 /CNW/ -- Orbit Garant Drilling Inc. (TSX: OGD) ("Orbit Garant" or the "Company") today announced its financial results for the three-month period ("Q1 2027") ended September 30, 2026. All dollar amounts are in Canadian dollars unless otherwise stated.

Financial Highlights

"Our strong revenue growth recorded in recent quarters continued in Q1 2027 as we surpassed $60 million in quarterly revenue for the first time in company history and we reached a drill rig utilization rate of 72%, our highest quarterly level since fiscal 2012, reflecting the continued strong demand for our drilling services in both Canada and South America," said Daniel Maheu, President and CEO of Orbit Garant. "To meet this demand, and position Orbit Garant for its next phase of development, we have been making significant investments in expanding our workforce and training new drillers, as well as increased capital expenditures on equipment and inventories to ramp up and service new projects. Our investments in workforce development, combined with inflation in our input costs and wages, had a negative impact on our profitability for the quarter. However, we expect our recent pricing adjustments on certain legacy contracts and the improved pricing we have secured on new contracts, combined with gradual productivity improvements from our less experienced drillers, will be progressively reflected in our profitability during the remainder of fiscal 2027. We continue to ramp up on our operations on our new, major specialized drilling contract in northern Canada, which we expect to start making a positive contribution to our bottom line from the second half of our current fiscal year."

First Quarter Results

Revenue for Q1 2027 totalled $60.1 million, an increase of 28.9% compared to $46.7 million for the three-month period ended September 30, 2025 ("Q1 2026"). Canada revenue totalled $43.1 million in Q1 2027, an increase of 27.8% compared to $33.7 million in Q1 2026. The increase was attributable to increased drilling activity and improved contract pricing. International revenue totalled $17.0 million in Q1 2027, an increase of 31.5% compared to $13.0 million in Q1 2026, primarily reflecting increased drilling activity in Guyana. The Company's overall drill utilization rate reached 72% in Q1 2027, up from 56% in Q1 2026.

Gross profit for Q1 2027 was $5.1 million, or 8.5% of revenue, compared to $5.7 million, or 12.1% of revenue, in Q1 2026. The decline in gross profit and gross margin was primarily attributable to lower drilling productivity in Canada due to an increased number of trainee drillers, inflation in production costs and drilling consumables, and increased investments in workforce training and development. Additionally, a $1.1 million increase in depreciation expenses in Q1 2027 compared to Q1 2026 negatively impacted gross profit and gross margin. The increase in depreciation expenses reflects increased capital expenditures incurred over the past two fiscal years in Canada and South America. These factors were partially offset by increased drilling activity in both Canada and South America and improved contract pricing.

Adjusted gross profit and adjusted gross margin¹, excluding depreciation expenses and a gain on disposal of property, plant and equipment, were, respectively, $8.5 million and 14.1% in Q1 2027, compared to $8.0 million and 17.0% in Q1 2026.

General and Administrative expenses were $5.0 million, or 8.4% of revenue, in Q1 2027, compared to $4.4 million, or 9.4% of revenue, in Q1 2026.

Adjusted EBITDA¹ totalled $3.9 million in Q1 2027 compared to $3.8 million in Q1 2026. The increase was primarily attributable to increased drilling activity, partially offset by lower drilling productivity in Canada, reflecting higher drill rig utilization rates and an increased number of trainee drillers, inflation in production costs and drilling consumables, and increased investments in workforce training and development

Net loss for Q1 2027 was $0.9 million, or $0.02 per share (diluted), compared to net earnings of $0.3 million, or $0.01 per share (diluted), in Q1 2026. The net loss for Q1 2027 is attributable to the factors discussed above as well as a $0.2 million increase in interest expense and a $0.4 million unfavourable variation in foreign exchange, partially offset by a $0.2 million income tax recovery in the quarter.

Liquidity and Capital Resources

The Company withdrew a net amount of $10.3 million on its Credit Facility in Q1 2027 mostly related to net capital expenditures of $11.7 million, compared to a withdrawal of $5.3 million in Q1 2026. The Company's long-term debt under the Credit Facility, including the current portion, was $34.0 million as at September 30, 2026, compared to $23.7 million as at June 30, 2026. The increased debt is primarily attributable to the Company's increased draw downs to fund start-up costs for a new, long-term specialized drilling contract in northern Canada. This contract is expected to generate revenue exceeding $100 million over the initial five-year term. Orbit Garant is financing the $20.0 million in required capital expenditures for modification or manufacturing of drill rigs and related inventory through its internally generated cash flows, an increase in available borrowings on its Credit Facility and through a new $9.67 million term loan with the Business Development Bank of Canada. The majority of the required initial investments in equipment and inventory acquisition had already been made as at September 30, 2026.

On October 28, 2026, the Company announced that the Toronto Stock Exchange ("TSX") accepted its notice of intention to make a normal course issuer bid (the "NCIB Program") to purchase outstanding common shares of Orbit Garant ("Common Shares") on the open market in accordance with the rules of the TSX. Pursuant to the NCIB Program, Orbit Garant may purchase, from time to time, in aggregate up to 500,000 Common Shares over a 12-month period commencing on October 31, 2026, and terminating on October 30, 2027.

Orbit Garant repurchased and cancelled 246,100 Common Shares at a weighted average price of $1.28 per share pursuant to its previous normal course issuer bid from October 31, 2025, to October 30, 2026.

As at November 11, 2026, Orbit Garant had 38,167,239 Common Shares issued and outstanding.

As at September 30, 2026, the Company's working capital totalled $52.0 million compared to $48.7 million as at June 30, 2026. Orbit Garant's working capital requirements are primarily related to the funding of inventory and the financing of accounts receivable.

Orbit Garant's unaudited interim consolidated financial statements and management's discussion and analysis for Q1 2027 are available via the Company's website at www.orbitgarant.com or SEDAR+ at www.sedarplus.ca.

Conference Call

Daniel Maheu, President and CEO, and Pier-Luc Laplante, CFO, will host a conference call for analysts and investors on Thursday, November 12, 2026 at 10:00 a.m. (ET). To join the conference call without operator assistance, you can register and enter your phone number at https://registrations.events/easyconnect/8386342/recT033FrcBSUtmDF/ to receive an instant automated call back. Alternatively, you can dial 647-932-3411 or 1-800-715-9871 to reach a live operator that will join you into the call.

A live webcast of the call will be available on Orbit Garant's website at http://www.orbitgarant.com/en/events. The webcast will be archived following conclusion of the call. To access a replay of the conference call dial 647-362-9199 or 1-800-770-2030, passcode: 8386342 #. The replay will be available until November 19, 2026.

RECONCILIATION OF NON - IFRS FINANCIAL MEASURES

Financial data has been prepared in conformity with International Financial Reporting Standards ("IFRS"). However, certain measures used in this news release do not have any standardized meaning under IFRS and could be calculated differently by other companies. The Company believes that certain non-IFRS financial measures, when presented in conjunction with comparable IFRS financial measures, are useful to investors and other readers because the information is an appropriate measure to evaluate the Company's operating performance. Internally, the Company uses this non-IFRS financial information as an indicator of business performance. These measures are provided for information purposes, in addition to, and not as a substitute for, measures of financial performance prepared in accordance with IFRS.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

Management believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are important measures when analyzing its operating profitability, as they remove the impact of financing costs, certain non-cash items, income taxes and restructuring costs. As a result, Management considers these measures as useful and comparable benchmarks for evaluating the Company's performance, as companies rarely have the same capital and financing structure.

Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin  

Adjusted Gross Profit and Adjusted Gross Margin

Although adjusted gross profit and adjusted gross margin are not recognized financial measures defined by IFRS, Management considers them to be important measures as they represent the Company's core profitability, without the impact of depreciation expense. As a result, Management believes they provide a useful and comparable benchmark for evaluating the Company's performance.

Reconciliation of Adjusted Gross Profit and Adjusted Gross Margin  

About Orbit Garant

Headquartered in Val-d'Or, Quebec, Orbit Garant is one of the largest Canadian-based mineral drilling companies, providing both underground and surface drilling services in Canada and internationally through its 183 drill rigs and approximately 1,400 employees. Orbit Garant provides services to major, intermediate and junior mining companies, through each stage of mining exploration, development and production. The Company also provides geotechnical drilling services to mining or mineral exploration companies, engineering and environmental consultant firms, and government agencies. For more information, please visit the Company's website at www.orbitgarant.com.

Forward-looking information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Orbit Garant Drilling Inc. (the "Company") and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Risks and uncertainties that could cause actual results, performance or achievements to differ materially include the world economic climate as it relates to the mining industry; the Canadian economic environment; the Company's ability to attract and retain customers and to manage its assets and operating costs; the political situation in certain jurisdictions in which the Company operates and the operating environment in the jurisdictions in which the Company operates, as well as the risks and uncertainties are discussed in the Company's regulatory filings available at www.sedarplus.ca. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by applicable securities laws.

SOURCE Orbit Garant Drilling Inc.

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