Canada's ADF Group Q3 revenue falls on US tariffs uncertainty

Adf

11/12/2025 12:11

Overview

Canada steel fabricator's Q3 revenue falls

Net income for Q3 fell to C$10.3 mln from C$16.4 mln a year ago

Company completed acquisition of Groupe LAR Inc., boosting revenue and backlog

Outlook

ADF Group plans to continue integrating Groupe LAR Inc. into its operations

Company emphasizes growth of order backlog and cash generation as key strategies

ADF Group remains cautious due to uncertainty in U.S. markets

Result Drivers

GROUPE LAR ACQUISITION - The acquisition of Groupe LAR Inc. contributed C$6.2 mln to Q3 revenues and increased order backlog by C$91.9 mln

U.S. TARIFF IMPACT - Uncertainty related to U.S. tariffs affected gross margins and cumulative results

INCREASED FABRICATION VOLUME - Higher fabrication volume in Q3 led to improved revenues and margins compared to previous quarters

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
C$71.40 mln
C$70.80 mln (1 Analyst)
Q3 EPS
C$0.36
Q3 Net Income
C$10.30 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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$12.00, about 56.7% above its December 10 closing price of C$7.66

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nCNWMqMQka

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(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.)