Thank you, Jim, and good morning, ladies and gentlemen. With me on the call today is Pier-Luc Laplante, Chief Financial Officer.

Following my opening remarks, Pier-Luc will review our financial results in greater detail, and I will conclude with comments on our outlook. We will then welcome questions.

Our overall level of drilling activity continue to increase in the quarter, as we reach our highest drilling utilization rate in more than 10 years at 67%, and record our highest third-quarter revenue in the company history. Our fiscal third quarter is typically our weakest quarter due to the gradual ramp-up of operations after the shutdown of mining and exploration activities over the holiday season and more difficult winter weather conditions in Canada, our continue utilization gain are a positive sign.

This quarter, we experienced more severe winter weather in Canada than usual, which had a negative impact on productivity on surface drilling operations. Our profitability for the quarter was also negatively impacted by the ramp-up of drilling rigs under new long-term contract in Canada, related as we increase our drilling utilization rate.

The legacy pricing on contract from previous quarters, and continuous modification to a drilling program in South America. During the first half of our fiscal year, we experienced pricing pressure that result in us losing or walking away from certain bids, we had at ease our pricing strategy discipline on certain important new contracts and renewal during this period.

Pricing pressure has now disappeared, and we saw an improved pricing environment during our third quarter and into April and May. Due to the sustained high level of demand in our industry and conflicts in the Middle East and Ukraine, we are experiencing cost inflation with respect to supply, material, and wages, we will continue to work with customers to accommodate these expect increase to our input cost with future contract and renewal supported by an important pricing environment.

We also expect to continue to benefit from the continuous advancement of our ramp-up activities on newer project in Canada. In summary, while continue to experience highly favorable industry fundamental and customer demand, we have had some challenge over our first three fiscal quarter this year, many of which were out of our control.

We believe our operational headwinds are behind us now, and we are well positioned to achieve further increase in our drilling utilization rate, improved operating performance, and more profitable financial result in our fourth quarter. I will now turn the call over to Pier-Luc to review our financial result in greater detail.

Pier-Luc?

Thank you, Daniel, and good morning, everyone. Revenue for the quarter totaled $51.4 million, an increase of 2.7% compared to Q3 last year.

Canada revenue was $36.3 million in the quarter, an increase of 0.5% compared to Q3 last year. The increase was attributable to increased overall drilling activity, partially offset by lower average revenue per meter drilled resulting from a decline in meters drilled on certain specialized drilling projects due to more severe winter weather conditions compared to Q3 2025, and legacy pricing on contracts from previous quarters.

International revenue totaled $15.1 million, an increase of 8.2% compared to Q3 a year ago. The increase reflects increased drilling activity in both Chile and Guyana, partially offset by continued modifications to an existing drilling program and lower average revenue per meter drilled due to a decline in certain specialized drilling activities.

Gross profit was $2.9 million, or 5.7% of revenue, compared to $5.9 million, or 11.9% of revenue, in Q3 2025. Adjusted gross margin, excluding depreciation expenses and a gain on disposal of property, plant, and equipment, was 10.3% in the quarter compared to 16.5% in Q3 last year.

The decrease in gross profit, gross margin, and adjusted gross margin was attributable to: the mobilization of drill rigs under new long-term contracts in Canada and the associated ramp-up periods; legacy pricing pressure on contracts from previous quarters; and more severe winter weather conditions in Canada compared to Q3 last year, which negatively impacted productivity on all surface drilling projects, including specialized surface drilling. The continued modifications to a drilling program and a decline in certain specialized drilling activities in South America also negatively impacted profitability.

Adjusted EBITDA totaled $1.4 million compared to $5.4 million in Q3 last year. The decrease was primarily attributable to the factors already discussed, and also reflects a negligible foreign exchange gain in the quarter compared to $1.2 million dollar gain in Q3 last year.

Our net loss for the quarter was $1.2 million, or 3 cents per share diluted, compared to net earnings of $1.9 million, or 5 cents per share diluted, in Q3 last year, reflecting the same factors discussed previously. Turning to our balance sheet.

We drew a net amount of $4.8 million on our credit facility in the quarter, compared to a drawdown of $0.8 million in Q3 a year ago. The increase was primarily due to $3.6 million in capital expenditures.

Our long-term debt under the credit facility, including the current portion, was $20.8 million at quarter-end compared to $14.0 million as at our fiscal 2025 year-end. During the quarter, pursuant to our normal course issuer bid, we repurchased and canceled 20,450 shares at an average weighted price of $1.83 per share.

We continue to view the NCIB as a useful tool to enhance shareholder value when the underlying value of Orbit Garant is not reflected in our share price. Our working capital was $52.7 million at quarter-end compared to $50.4 million at the end of fiscal 2025.

I will now turn the call back to Daniel for closing comments. Daniel?

Thank you, Pier-Luc. Demand for our drilling services in both Canada and South America remains strong, supported by historically high gold and copper price and a robust financing environment for mining company.

In 2025, mining company listed on the TSX and the TSX Venture complete aggregate equity financing totaling more than $16 billion, a 53% increase compared to 2024. Our bidding activity on new projects remain at a high level.

Today, we are pleased to announce that subsequent to the end of the quarter, we commenced mobilizing drill rigs for a new 5-year specialized drilling contract in Northern Canada with a senior mining company with a client extension option for 2 additional year. We estimate that this project will generate revenue exceeding $100 million over the initial 5-year term.

Two drill rigs have already be deployed on this project, and 6 additional drill rigs will be mobilized by September this year. We expect to finance the $20 million in required capital expenditure for modification or manufacturing of drill rig and related inventory through internally generate cash flows, an increase in available borrowing on our credit facility, and by securing a new long-term loan.

This new long-term contract is an important success for our strategic plan, which remains the same going forward: a strategic focus on senior and well-finance intermediate customer in Canada and South America, our discipline strategy, and continuous operational improvement program. There are other contract of this kind on the market currently, and we are making every effort to secure this type of long-term contract with leading mining company for specialized drilling.

By focusing on these priority, we intend to capitalize on opportunities in this period of elevated customer demand to deliver enhance profitability and value for our shareholders. Our business outlook is positive, and the next step we want to take is to reach a utilization rate of 70% of our drill rigs.

Customer demand remain high, and our pricing environment is improving. Barring any unforeseen events, we look forward to strong performance and improved profitability in our fourth quarter and into next fiscal year-end.

That conclude our formal remarks this morning. We will now welcome any question.

Jim, please begin the question period.

Hi, Daniel. Hi, Pier-Luc.

Thanks--

Hi, good morning.

Good morning. Thanks for the call and taking my questions.

It's great to see the utilization rate kind of picking up this quarter to that 67% level. You talked about it a little bit in your opening remarks, but I was just kind of wondering just over the next quarter or kind of towards year-end, where do you think that could go?

Do you think that 70% you mentioned is kind of where it caps out, or, yeah, just a little more color and context as you see that over the next couple quarters would be helpful.

With the current demand, we expect to select contract in the next quarter and till, let's say, the end of calendar 2026, up to 70%, yes, because, as you could see, we start with in Q1 with a 56% of utilization rate. In Q2, we have 62%.

Now we are at 67%. That mean we had more than 5 rigs on new contract every quarter since Q1, and that momentum is still there.

Our big focus is to select good contract in specialized drilling with major, intermediate customer. If we bid on smaller contract with juniors, we will do that with someone we know well and we know they are well-financed, but this is not our priority.

Priority is focusing on specialized, long-term contract as the one we just mentioned earlier, and that's where we want to go on in our strategic plan. That's exactly the kind of contract we want you to get to increase our utilization rate.

That makes a lot of sense. It would be great to have some long-term stability in the top line.

Right.

I had a couple other questions. If it's okay with you, I'll kind of go through them.

There was a little bit of a lag in the revenue line item versus that utilization rate, and maybe that's because things weren't deployed for the full quarter, whatever. I was wondering if you could provide some commentary on how we should think about the revenue line over the next couple quarters as that utilization rate picks up.

For example, how are you thinking about revenues once you get to that 70% utilization for the overall business? Is there something you can help us there?

You are right. We have a lag in the revenue in Q3 because technically when you add rigs, you have a kind of ramp-up time, you have a learning curve, let's say.

Especially in Q3, we are in a very bad situation of weather in Canada. In North of Canada, the weather was very bad.

We start, let's say, in the quarter we had 7 new rigs on new contracts, and it's a very poor condition. You're right, we have a lag.

Technically, we expect to have more increase revenue in Q4 and Q1 of next fiscal year. You see for the last 12 months, we have a slight increase of revenue.

We are at $193 million compared to last year we have $189 million of revenue. We have a slight increase, but progressively with the addition of new rigs.

That mean we will have more than if we reach 70% utilization rate, that mean it's more than 15 rigs add during the year. That's mean the revenue should increase progressively, not that much, but last year we reached $189 million of income, we will have that probably around to $200 million for fiscal 2026.

That makes sense. If I were to look at the Q3 '26 results, there's about $51 million, a little bit over that, of revenue, which annualizes to kind of $206 million of revenue.

It's kind of a seasonally weak quarter with rigs being added. If we were to move to 70% and kind of the business was operating kind of in a normalized rate, what do you think that revenue number could be?

Oof,

we don't provide a guidance, but we could say if we came from a 56% utilization rate to a 70%, it will be over $200 million for 2027. That makes sense.

Right. Then you kind of talked about some legacy issues during the quarter, and then you talked about Q4 kind of normalizing a bit.

Do you think those issues will be behind you completely by Q4, or you just see a gradual improvement and takes a little more time?

Very good question. That's exactly the situation.

We decide to sign long-term contract with senior customer here in Canada and in Chile, and we fixed some price, let's say, in between July and December 2025, which the market was under pressure, price are under pressure. Now the market changed, we still have these contract and we will be respect price for these contract.

Now progressively we see better price, for example in the new contract we signed in Northern Canada for 5 years. That will be progressively.

That's exactly what we want to do. We want to build a strong, long-term base of contract, and we had to respect the market.

Now market is good for all the industry, and we are following that and focusing on long-term contract. We build for a long-term profitability.

I would add to that that to answer your question also, we expect this to be progressive, as we have some contracts with legacy pricing that are stopping or were being completed in April, some in May, and some in June. We expect that to be progressive while we mobilize those rigs on new contracts with better, more favorable pricing.

That makes sense. It sounds like these legacy contracts, they're not multiyear contracts.

They'll kind of end over the next kind of 3, 6 months and then kind of move to market, is that what I'm hearing?

Yes, that's correct. Yes, that's correct.

Okay. Then maybe as you look at fiscal year '27, do you think of 15% EBITDA target is a realistic target?

We don't provide guidance on that, but as we already said, we target a 12% EBITDA on revenue as a target. As you could see right now, our last 12 months percentage is 7%.

I can't say it will be 15% for 2027. We are focused to increase our profitability, and we expect that the 7% will increase progressively.

Thanks. I had one more question.

The new contract you announced, you mentioned there's 2 rigs deployed and 6 more coming. Are those all new rigs or are those existing rigs or some mix of that that you're putting to work?

We refurbish half of the rigs, and that's mean on 8 rigs, half of them will be refurbished rigs. The 2 fly rigs already on the site is refurbished, and we will build 4 new rigs for this contract.

If in the future this contract needs extra more drill, we will build these drill here in Val-d'Or because we have the facility to build all the rigs we need. Let's say half of them will be built, new rigs, and half of them are existing rig we will refurbish.

Thanks, that's helpful. Then maybe this is a little bit of a tricky question, because it sounds like some of it's refurbishments and some's new CapEx, but just on the $20 million you're going to be spending, how are you thinking about the return on that investment as you've modeled that out?

Just to be more clear, what do you mean by the return of investment? Are we talking about the time or--

Even the IRR in terms of you spend $20 million, how much do you expect to make? I guess maybe if you want to talk about that contract just in general, as you think about investing going forward, is there a certain return that you target?

For that contract, for the investment return on that $20 million, we're expecting somewhere in 10% range. Obviously I don't want this to be confused with the margin of the project.

This is a specialized drilling project, it will have good margins. Also, when we check that for that IRR, it considers that the equipment will be there for a long time, we believe that this will be a very good contract for the company and that it will help with our margins and our profitability.

Thanks. Those were all my questions.

I appreciate you guys taking the time today.

Thank you very much.

Yes, good morning and thank you for doing this call. I appreciate it.

My question is: we have a number of legacy contracts where obviously the inflation and price increases have sort of caught up to the contract and exceeded, such that profitability was hurt. Is there any escalation clauses in the new contracts which you're doing in the event that prices would go up dramatically?

What I'm thinking about is on these long-term contracts, they of course become legacy contracts over time, and is there pricing increases possible should there remain pressures on wages in particular? I notice that precision or I'm sorry, Major Drilling said that they're having trouble with price increases on labor and getting labor, in fact, and also with oil prices the way they are.

Is there a way of passing that back onto the customer in these new contracts? Thank you.

Thank you for the question. Yes, we introduce adjustment let's say, every 12 months, we have a standard clause about let's say, something like at least 2% or price index--

There's a yearly price index typically baked into most long-term contracts. Some of them have indeed clauses about rises in costs of labor or a few, typically, yes.

Yes. On surface contract where we have to provide fuels, we have a clause if the fuel exceed 15% of the actual price when we start the contract, we have an adjustment when it's over 15% of that price.

Essentially, yes, we have adjustment clause. We have to understand, for example, in the fuel situation, all the underground drilling, it's almost by electricity, we don't have fuel there.

On certain remote, specialized drilling contract, the fuel is provide by the client. Essentially the adjustment clause is to cover the supply and the wages increase.

It's always a discussion with the customer, because in some specific situation, customer will understand the situation and we will have an adjustment. Technically in most of the case, it's every year we have a clause of at least 2% or IPC.

Thank you.

Thank you, Jim, and thank you to everyone for participating today. We look forward to speak with you again soon.