Canadian steel fabricator ADF Group misses Q2 revenue estimates as tariffs pose challenges

Adf

11/09/2025 12:11

Overview

ADF Q2 revenue of CAD 53 mln missed analyst expectations

Adjusted EBITDA of CAD 14.1 mln beat expectations, per LSEG data

Order backlog rose 60% since Jan 2025, reaching CAD 468 mln

Outlook

Company aims to diversify amid U.S. market uncertainties

ADF's order backlog to support operations through fiscal 2027

Company plans to invest in new equipment for major contract

Result Drivers

U.S. TARIFFS - Revenue and gross margins were negatively impacted by uncertainty surrounding U.S. tariffs and increased steel prices

WORK-SHARING PROGRAM - Implementation of a Work-Sharing program at the Terrebonne plant reduced fabrication hours and revenue

ORDER BACKLOG GROWTH - Order backlog increased by 60% since January 2025, indicating potential future revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$53 mln
C$58.20 mln (1 Analyst)
Q2 Net Income
C$900,000
Q2 Adjusted EBITDA
Beat
C$14.10 mln
C$10 mln (1 Analyst)
Q2 Gross Margin
20.7%
Q2 Order Backlog
C$468 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$12.00, about 20.7% above its September 10 closing price of C$9.52

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nCNWy0CrQa

(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.)