WEB NEWS Research
ADF Group Inc. (TSX:DRX) (OTC:ADFJF) (C$7.93; C$127.1M market cap) announced the signing of a major five-year infrastructure contract:
"We have the capabilities, the talents and state-of-the-art plants that give us the flexibility to carry out all types of steel structure projects that are entrusted to ADF, regardless of the complexity level and scale, thanks to careful planning of our production areas and strategic investments" said Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.
"Over the past few years, we have, among other things, undertaken to focused part of our market development efforts on developing the Canadian market, seeing promising business opportunities taking shape that correspond to our fields of expertise. We welcome the opportunity to once again collaborate with our major client, and we are proud to be able to contribute to Québec's reputation on a global scale through this structuring and promising project" concluded Mr. Jean Paschini.
Key highlights:
Signed a five-year contract valued between C$35 million and C$40 million annually for a Quebec energy-sector infrastructure project
Total contract value could approach C$400 million with inflation clauses and optional five-year extension
Steel fabrication will begin in the coming months at the Terrebonne, Quebec plant
ADF will invest in new equipment and hire additional production personnel to fulfill the contract
Order backlog stood at C$330.4 million as of April 30, 2025, excluding this new contract
"We have the capabilities, the talents and state-of-the-art plants that give us the flexibility to carry out all types of steel structure projects that are entrusted to ADF, regardless of the complexity level and scale, thanks to careful planning of our production areas and strategic investments" said Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.
"Over the past few years, we have, among other things, undertaken to focused part of our market development efforts on developing the Canadian market, seeing promising business opportunities taking shape that correspond to our fields of expertise. We welcome the opportunity to once again collaborate with our major client, and we are proud to be able to contribute to Québec's reputation on a global scale through this structuring and promising project" concluded Mr. Jean Paschini.
ADF Group Inc. designs, engineers, fabricates, and installs complex steel structures and components for non-residential construction projects, including office towers, industrial facilities, and transportation infrastructure.
Research
Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($13.88; $456.3M market cap) on the heels of recently announced strong Q1 2024 results, the company announced today it has repurchased 2.76 million of its shares.
"This share repurchase, combined with our recent dividend increase, represents an opportunity to create shareholder value through our cash utilization initiatives. The share repurchase will immediately be accretive to earnings per share. Our favorable financial position, the size of our order backlog and our cash flow generation profile place us in an ideal position to pursue these initiatives,”
In January 2024 we added ADFJF to our Infrastructure screen .
ADFJF engages in the design and engineering of connections in Canada and the United States.
Research
Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($13.00; $427.3M market cap) reported Q1 2024 results: (figures are in CAD)
Q1 sales of $107.4 million vs $80.3 million in the prior year, well above analyst estimates of $90.1 million
Q1 EPS of $0.47 vs $0.16 in the prior year and above analyst estimates of $0.34
As at April 30, 2024, the Corporation's order backlog (1) reached $427.5 million excluding the contracts announced on May 28, 2024, totaling $90.0 million. (Q4 backlog was $510.9)
"We started the 2025 fiscal year strong. With revenues for the 3-month period ended April 30, 2024, exceeding $100 million, we are building on the momentum of the recent quarters. This increase in revenues also allows us to improve our margins and thus record a significant increase in net income" said Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.
“Given the Corporation's favorable financial position, the size of its order backlog and its cash flow generation profile, the Board of Directors is evaluating the options available to the Corporation with respect to the use of excess cash to create value for shareholders, including dividends and share repurchases, and opportunities to finance certain projects that could provide additional long-term competitive advantages and allow the Corporation to benefit from prompt payment discounts negotiated with its suppliers”.
In January 2024 we added ADFJF to our Infrastructure screen .
ADFJF engages in the design and engineering of connections in Canada and the United States.
Research
Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($3.62; $66.2M market cap) report from last week:
Sales of $80.2 million vs $66.3 million in the prior year
EPS of $0.32 vs $0.17 in the prior year
"The improvement in internal efficiency continued, generating higher gross margins," said Jean Paschini, Chairman of the Board and Chief Executive Officer. "The contracts signed at the beginning of the quarter, on May 30, 2023, allow us to maintain a very attractive order backlog, and the opportunities in our markets remain more than attractive," concluded Mr. Paschini.
The company has steadily been increasing annual EPS over the last 4 years, however the level of quarterly earnings has reached a higher level over he last two quarters on the heels of strong gross margins and elevated sales levels. We will begin tracking the company closer.
