Canadian steel fabricator ADF Group Q2 revenue rises on higher order backlog

Adf

10/09/2026 12:11

Overview
Canada steel structure fabricator's Q2 revenue rose 79.3% yr/yr
Q2 net income increased, but results were hit by non-cash share unit expenses and FX losses
Gross margin narrowed to 18.7% from 20.7% a year earlier

Outlook
ADF Group continues to operate amid ongoing Canada-U.S. tariff discussions
Company is focusing on liquidity management and order backlog growth
ADF Group is integrating Groupe LAR and expanding its Quebec plant

Result Drivers
ORDER BACKLOG GROWTH - Revenue increase attributed to higher order backlog, with backlog at record high as of July 31, 2026
HIGHER INPUT COSTS - Gross margin narrowed due to higher input costs, particularly steel prices, and recent changes in customs duties
NON-CASH EXPENSES - Results were negatively affected by non-cash items related to share units and foreign exchange losses

Company press release: ID:nCNWdQq3ka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$95.03 mln
C$85.80 mln (1 Analyst)
Q2 Net Income
 
C$2.95 mln
 
Q2 Adjusted EBITDA
Miss
C$8.44 mln
C$14.70 mln (1 Analyst)
Q2 Gross Margin
 
18.70%
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the iron & steel peer group is "hold."
Wall Street's median 12-month price target for ADF Group Inc is C$21.00, about 40% above its September 9 closing price of C$15.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

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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.)