ADF Group Inc. (ADFJF) research, news, and more from GeoInvesting

Company description

Tue, 06 Sep 2022 21:16:37 GMT

ADF Group Inc. is a North American leader in the design and engineering of connections, manufacturing, including the application of industrial coatings, the erection of complex structural steel, heavy steel assembled components, as well as fabricated and architectural metals , for the non-residential infrastructure sector. ADF Group Inc. is one of the rare players in the industry able to carry out commercial, institutional, industrial and public mega-projects characterized by a very high level of technological complexity and accelerated deadlines. The Company today operates two manufacturing plants and two paint shops; in Canadaand in the United States, as well as a “Construction” division in the United States, which specializes in the erection of structural steel and other related products.

Research

Fri, 30 Jan 2026 15:36:29 GMT

ADF Group Inc. (TSX:DRX) (OTC:ADFJF) (C$8.03; C$132.3M market cap) announced that it has signed new contract wins totaling C$140 million in Quebec, Ontario, and U.S. West Coast states.:

Projects span public transportation, commercial, industrial, manufacturing, and hydroelectric sectors.
Fabrication to be carried out at ADF’s Terrebonne (Quebec) and Great Falls (Montana) plants, and Groupe LAR’s plant in Métabetchouan (Quebec).
Fabrication work starts June 2026; most projects are expected to run through the end of 2027.
Order backlog as of October 31, 2025, was C$497.1 million (excluding new contracts).

"The current fiscal year is off to a good start with the addition of these new contracts, not to mention that Groupe LAR is already contributing significantly to the growth of the Corporation's order backlog."

Our Quick Take:

In its Q3 2025 results, the company announced a backlog of C$497.1M, which already includes the contribution from the Groupe LAR acquisition. If we include the C$140.0M in newly announced contracts, the backlog would increase to approximately C$637.1M. One of the reasons ADF Group acquired Groupe LAR was to diversify its revenue base away from the U.S. (due to tariffs) and toward Canada. These contracts support that objective, since part of them will be executed in Quebec and Ontario.

On a side note, it’s worth noting that the stock is still well off the highs of ∼C$20.50 when the CEO and certain board members sold a big block of their stock, at C$17.31, during its last MultiBagger move and before a negative turn in the business.

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

Wed, 23 Jul 2025 14:30:14 GMT

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

Research

Thu, 12 Sep 2024 16:52:54 GMT

Adf Group Inc (OOTC:ADFJF) (TSX:DRX) ($9.70; $291.0M market cap) reported Q2 2024 results: (figures are in CAD)

Q2 sales of $74.9 million vs $80.2 million in the prior year
Q2 EPS of $0.51 vs $0.32 in the prior year
Gross margin, as a percentage of revenues, increased from 22.2% for the 3-month period ended July 31, 2023, to 36.9% for the same period ended July 31, 2024.

“Although revenues to date are $21.8 million higher than a year ago, those for the second quarter were impacted by one client's delays in construction site preparation. The Corporation estimates that had it not been for these delays, revenues for the quarter and the 6-month period ended July 31, 2024, would have been approximately $35.0 million higher, revenues coming from additional steel erecting (installation) work.”

If the delayed sales of $35 million would have hit in the quarter as expected, EPS would have been much higher. However, per the conference call, that $35 million would have been a bit lower margin level, more like Q1 margins of 29%. Management did indicate these orders could possibly be pushed out to next fiscal year.

Management also offered some cautious comments on green energy market demand beginning to slow, especially in the U.S.

Outlook:

"We closed the periods ended July 31, 2024, with higher net income while increasing our liquidities, even with the decrease in revenues during the quarter closed on July 31, 2024, compared with last fiscal year. We are therefore maintaining the same objectives that have guided us for the past few quarters, namely the order backlog growth, cash generation and operational excellence, in order to continue to grow our Corporation in the coming quarters" said Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer.

ADFJF engages in the design and engineering of connections in Canada and the United States.

Research

Thu, 13 Jun 2024 20:16:29 GMT

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

Tue, 11 Jun 2024 17:56:57 GMT

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

Wed, 29 May 2024 11:14:51 GMT

Adf Group Inc (OOTC:ADFJF) (DRX-TO) ($12.77; $416.6M market cap) announced it has signed a series of new orders totalling $90.0 million. This is a significant win, given the company's revenue and current backlog are already standing at $331.0 and $510.9 million, respectively.

“The nature and scope of this contract consist of the design and engineering of the connections, the fabrication work which includes industrial coating, the supply of the steel, as well as the erecting of the steel structure and heavy steel components of a large-surface industrial-type building. Fabrication began in February 2024 and the project will extend over a period of approximately 12 months.”

Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer, pointed out that "we have the means, ample capacity, and above all the talents to deliver the projects we currently have in our order backlog, to the satisfaction of our clients, as shown by the repeat business with them.

In January 2024 we added ADFJF to our Infrastructure screen. It has risen 139.13% since then.

ADFJF engages in the design and engineering of connections in Canada and the United States.

Research

Thu, 11 Apr 2024 17:01:59 GMT

Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($7.07; $228.7M market cap) reported Q4 2023 results: (figures are in CAD)

Q4 sales of $88.4 million vs $51.6 million in the prior year, well above analyst estimates of $77.1 million
Q4 EPS of $0.32 vs $0.07 in the prior year and above analyst estimates of $0.26
Full year sales of $331.0 million vs $250.9 million in the prior year
Full year EPS of $1.15 vs $0.46 in the prior year
As at January 31, 2024, the Corporation's order backlog (1) stood at $510.9 million, compared with $376.5 million as at January 31, 2023.

“These results reflect ADF's efforts and strategies over the past few years, from the construction of our state-of-the-art fabrication plant in Great Falls, Montana nearly 10 years ago, to our investment in robotization and increased automation of our fabrication process at our Terrebonne plant, in Québec," said Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.

Mr. Paschini concluded, "during this period, ADF has invested over $110 million to strengthen its position as one of North America's leading fabricators of all types of steel structures and heavy steel components. Today, we are reaping the fruits of this work and the sustained efforts of all ADF employees."

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

Tue, 12 Dec 2023 15:03:27 GMT

Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($5.00; $163.4M market cap) is shaping up to be one we might want to write about if we can get a call with management. The key from a conversation with management would be to understand if the company is diversifying into industries that are less cyclical that could lead to an expansion of the stock’s low valuation multiples.

The company engages in the design and engineering of steel construction in Canada and the United States. (Typically a very low valuation industry).

Yesterday morning, the company announced a series of large contact wins totalling CAD$234 million.

We have highlighted some of the recent strong Q2 and Q3 quarters the company reported, and while analyst estimates show muted growth for 2025 over 2024, we think that the estimates will need to be updated to reflect the strong new order momentum as well because the company has been crushing estimates by a wide margin.

This story is shaping up to be one we might want to write about if we can get a call with management. The key from a conversation with management would be to understand if the company is diversifying into industries that are less cyclical and could lead to an expansion of the stock’s low valuation multiples.

Research

Mon, 11 Sep 2023 18:27:25 GMT

Adf Group Inc (OOTC:ADFJF) (DRX.TO) ($3.62; $66.2M market cap) engages in the design and engineering of connections in Canada and the United States. We wanted to highlight the strong earnings 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.