Adf Group Inc
TSX:DRX
Adf Group Inc
ADF Group, Inc. engages in the non-residential construction activities. The company is headquartered in Terrebonne, Quebec. The Company’s products and services are intended for the five principal segments of the non-residential construction industry: office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes and transport infrastructure. The firm operates two manufacturing plants and two paint shops in Canada and the United States, and a construction division in the United States, which specializes in the assembly of steel structures and other related products.
ADF Group, Inc. engages in the non-residential construction activities. The company is headquartered in Terrebonne, Quebec. The Company’s products and services are intended for the five principal segments of the non-residential construction industry: office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes and transport infrastructure. The firm operates two manufacturing plants and two paint shops in Canada and the United States, and a construction division in the United States, which specializes in the assembly of steel structures and other related products.
Revenue Drop: Quarterly revenue was $71.4 million, down $8.5 million from last year, and year-to-date revenue fell significantly to $179.9 million from $262.2 million.
Margin Pressure: Gross margin decreased to 27.6% from 30.4% in the quarter, and to 23.8% year-to-date, hurt by lower volumes and higher steel costs due to U.S. tariffs.
Lower Profitability: Net income for the quarter was $10.3 million ($0.36/share) versus $16.4 million ($0.55/share) last year. Year-to-date net income nearly halved to $20 million.
Groupe LAR Acquisition: Newly consolidated, contributed $6.2 million in revenue and $0.5 million in adjusted EBITDA since September; integration is underway and expected to bring future efficiencies.
Backlog Strength: Order backlog surged to $497.1 million, up sharply from both a year ago and the previous quarter, with growing Canadian content to offset U.S. trade uncertainty.
Outlook: Management expects Q4 to be similar to Q3, with ongoing focus on integrating LAR and diversifying backlog across North America.
