Canada's ADF Group Q1 revenue rises on new contracts

Adf

09/06/2026 12:10

Overview
Canada steel superstructure fabricator's Q1 revenue rose 78.8% yr/yr
Net income for Q1 increased to C$12.0 mln from C$8.7 mln a year earlier
Order backlog reached record C$645.8 mln, aided by Groupe LAR acquisition

Outlook
ADF Group plans investments to increase Groupe LAR fabrication plant capacity in coming quarters
Company expects order backlog to extend until end of fiscal 2028, excluding long-term contracts
ADF Group sees sector growth in hydroelectric projects following master contract in Quebec

Result Drivers
NEW CONTRACTS - Co said recently signed contracts, including from Groupe LAR, boosted Q1 revenue
MARGIN IMPROVEMENT - Higher revenue improved absorption of fixed costs, lifting gross margin despite higher input costs and tariffs

Company press release: ID:nCNWrrvf5a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$99.30 mln
C$80.20 mln (1 Analyst)
Q1 Net Income
 
C$12 mln
 
Q1 Gross Margin
 
24.20%
 
Q1 Operating Cash Flow
 
C$10.10 mln
 
Q1 Order Backlog
 
C$645.80 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the iron & steel peer group is "buy."
Wall Street's median 12-month price target for ADF Group Inc is C$13.00, about 26.3% above its June 8 closing price of C$10.29
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)