Orbit Garant Drilling Inc.

Good morning, ladies and gentlemen, and welcome to the Orbit Garant Drillings Financial Fiscal 2026 Second Quarter Results Conference Call and Webcast. At this time, all lines are in a listen-only mode. Following management's remarks, we will conduct a question-and-answer session. Please be aware that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking information. For more information on the risks, uncertainties, and assumptions relating to forward-looking information, please refer to the company's latest MD&A and annual information form, which are available on Stater Plus. Management may also refer to certain non-IFRS financial measures, Although Obert Garant believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meetings under IFRS. Please refer to the company's latest MD&A for additional information regarding non-IFRS financial measures. This call is being recorded on Thursday, February 12th, 2026. I would now like to turn the floor over to Mr. Daniel Mayhew, President and CEO of Orbit Garant Drilling. Welcome, sir.

Thank you, Jim, and good morning, ladies and gentlemen. With me on the call is Pierre-Luc Laplante, Chief Financial Officer. Following my opening remark, Pierre-Luc will review our financial results in greater detail, and I will conclude with comments on our outlook. We will then welcome questions. As expected, our results for our fiscal second quarter reflect the full resolution of certain projects in Canada and South America that were temporarily delayed in Q1 and the continuing ramp-up of new drilling projects in Canada. Aside from a customer-initiated delay on one drilling project in South America and unexpected modification to another during the Q2, We have increased overall drilling activity in the quarter in both Canada and South America, including a higher proportion of specialized drilling in Canada. Our revenue and margin for the quarter were somewhat constrained by the temporary delay on these two projects in South America. Competitive pricing on new projects and contract renewal remained during the quarter. Overall revenue for our Fiscal second quarter was up by 10.5% compared to Q2 a year ago, and our adjusted gross margin was 18.5% compared to 21.5% in Q2 last year. Our drill transition rate in the quarter reached the highest level in more than two years and supported by new drilling contracts and contract renewals. We expect further increase in our drilling utilization rate in our fiscal third quarter, which we can accommodate with minimal mobilization costs. Due to some of these increased utilization gains may not be fully realized until our fiscal fourth quarter, due to the various challenges caused by the severe winter weather conditions. We have experience in Canada in January, and into February. We also expect to continue to benefit from the continual advancement of our ramp-up activity on new projects in Canada, as projects typically yield lower gross margins during the ramp-up period. While we have experienced some unexpected project delay in the first half of the year, these projects are all back online now, and we are well positioned to continue increasing our drilling utilization rate to drive revenue growth. Demand for our drilling services in both Canada and South America remains strong. Supported by record gold prices and elevated copper prices and bidding activities, our new project remains at a high level. I will now turn the call over to Pierre-Luc to review our financial results for the second quarter in greater detail. Pierre-Luc?

Thank you, Daniel, and good morning, everyone. Revenue for the quarter totaled $47.9 million, up from $43.5 million due to last year. Canada revenue was $33.8 million in the quarter, an increase of 9.8%, of specialized drilling. International revenue totaled 14.1 million, an increase of 12.1% compared to due to a year ago, reflecting increased drilling activity in both Chile and Guyana. Still, our revenue was constrained in the quarter by a customer decision to temporarily delay one project and unexpected modifications to another drill program. The project that was temporarily delayed by a customer decision was fully resumed in January 2026. Those profits were $6.5 million, or 13.5% of revenue, compared to $7.2 million, or 16.5% of revenue, in QT 2025. Adjusted gross margin, excluding depreciation expenses, was 18.5% in the quarter, compared to 21.5% in QT last year. The decreases in gross profit and adjusted gross margins are primarily attributable to lower drilling productivity on certain projects in Canada, a competitive pricing environment on new contracts and contract renewals, and to the customer-initiated delay in modifications to certain drilling programs in South America. Adjusted EBITDA totaled $5.1 million up from $4.5 million due to last year. Net earnings for the quarter were $1.3 million, or $0.03 per share, diluted, compared to $0.5 million, or $0.01 per share, and diluted, in Q2 last year. Increases in adjusted EBITDA and net earnings were primarily attributable to lower income tax expenses and favorable foreign exchange variation, partially offset by lower operating earnings. Turning to our balance sheet. We repaid an amount of $3.3 million on our credit facility in the quarter, compared to a repayment of $2.4 million in Q2 a year ago. Our long-term debt under the credit facility, including the current portion, was $16.0 million at quarter end, down from $19.3 million at the end of Q1, but up from $14.0 million as of our fiscal 2025 year end. Our increased debt in the first half of fiscal 2026 is the result of our yearly shipments of equipment inventory for our operations in the network and leverage. We expect to continue to pay down debt on a net basis throughout the remainder of fiscal 2026. On December 22, 2025, the company entered into a sixth amended and restated credit agreement with National Bank and the lenders in respect for the credit facility. The credit facility consists of a $30.0 million revolving credit facility, along with the credit facility in the obvious amount of $5.0 million utilized for the purposes of standby letters of credit. The credit facility expires on December 22, 2029. On October 28, we announced that the Toronto Stock Exchange approved our renewed normal course issuer bid, which allows us to repurchase up to 500,000 shares over a 12-month period that began on October 31, 2025. During the quarter, we repurchased and canceled 141,450 shares at a weighted average price of $1.29 per share, pursuant to the NCIE program. We continue to view the NCID as a useful tool to enhance shareholder value when the underlying value of Orbit Grunt is not reflected in our share price. Our working capital was $51.9 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 total comments. Daniel?