finance
Orbit Garant Drilling Reports Q3 Revenue of $51.4M but Posts Net Loss Amid Weather and Mobilization Costs
The drilling services company achieved its highest third-quarter revenue in history and a 67 percent utilization rate, the highest in more than 10 years. Severe winter weather in Canada and costs tied to new long-term contracts weighed on profitability, producing a $1.2 million net loss.
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Orbit Garant Drilling held its fiscal 2026 third-quarter earnings conference call on Thursday, May 14, 2026. 7 percent increase year-over-year. Daniel Maheu, President and CEO of Orbit Garant Drilling, said the overall level of drilling activity continued to increase as the company reached its highest drilling utilization rate in more than 10 years at 67 percent.
5 percent compared to Q3 last year.
7 percent. 9 percent of revenue. 5 percent in Q3 2025.
4 million in Q3 2025. 2 million for Q3 fiscal 2026. Profitability was negatively impacted by the mobilization of drill rigs under new long-term contracts in Canada.
Severe winter weather in Canada negatively impacted productivity on surface drilling operations in Q3 fiscal 2026. Orbit Garant Drilling experienced more severe winter weather in Canada than usual in its fiscal Q3 2026. Maheu noted that the company's fiscal third quarter is typically its weakest quarter due to post-holiday ramp-up and winter weather conditions in Canada.
"Our profitability for the quarter was also negatively impacted by the ramp up of drilling rig under new long term contract in Canada," Maheu added. Lapin attributed the lower margins to those mobilization costs, legacy pricing pressure on contracts from previous quarters and the weather-related productivity declines.
Orbit Garant Drilling is deploying significant capital including $20 million for a new five-year contract in Northern Canada. The new five-year contract in Northern Canada is expected to generate over $100 million in revenue, with half of the rigs for the new Northern Canada contract refurbished and half newly built.
