ADF Group Q4 Earnings Call Highlights

2 months ago 28

MarketBeat

Thu, April 16, 2026 astatine 10:07 AM CDT 7 min read

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Weak fiscal 2026 results: Revenue fell to CAD 258.7 million (from CAD 339.6M) and gross borderline dropped to 23.1% (vs. 31.6% a twelvemonth earlier), with adjusted EBITDA and nett income besides down arsenic absorption blamed U.S. tariff changes, higher earthy worldly costs and task timing/mix.
Groupe LAR acquisition and backlog: The Sept. 2025 acquisition contributed astir CAD 20 million successful gross and astir CAD 138.2 million to backlog, helping nutrient an ending bid backlog of CAD 561.1 million (excluding CAD 157.3M of caller contracts), portion ADF works to amended LAR declaration margins done tighter bidding and hazard controls.
Tariff-driven outlook and superior plans: A caller U.S. 10% tariff connected fabricated projects could chopped margins (management estimates ~5% connected immoderate work), but ADF expects fiscal 2027 gross maturation with margins “somewhat stagnate” early; the institution plans astir CAD 35 million of capex for FY2027 and declared a semiannual dividend of CAD 0.02 per share.
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ADF Group (TSE:DRX) reported fiscal 2026 results that absorption described arsenic “exceptional” contempt a twelvemonth marked by shifting U.S. tariff rules, task timing disruptions, and a little favorable task premix than the anterior year.

Chief Financial Officer Jean-François Boursier said gross for the twelvemonth ended January 31, 2026, totaled CAD 258.7 million, down from CAD 339.6 million successful fiscal 2025, which helium characterized arsenic “an exceptionally bully twelvemonth with a favorable task mix.” Gross borderline declined to 23.1% of gross from 31.6% a twelvemonth earlier.

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Boursier attributed the fiscal 2026 borderline and measurement pressures to U.S. tariffs, citing some “higher earthy worldly costs” and delays successful task signing and fabrication start. In effect to the softer environment, helium said ADF implemented a work-sharing programme astatine its Terrebonne, Quebec installation earlier successful the year, reducing fabrication hours portion partially offsetting the outgo interaction done a Canadian employment program.

Adjusted EBITDA for the twelvemonth was CAD 43.5 million, oregon 16.8% of revenue, compared with CAD 91.3 million, oregon 26.9% of revenue, successful fiscal 2025. Selling and administrative expenses were CAD 23.2 million, up CAD 1.1 million twelvemonth implicit year, which Boursier said was wholly owed to the inclusion of Groupe LAR successful consolidated SG&A.

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ADF recorded a mostly non-monetary overseas speech summation of CAD 2.1 million versus a CAD 5.6 million nonaccomplishment a twelvemonth earlier, which Boursier said mostly reflected year-end mark-to-market movements connected outstanding FX contracts. Net income was CAD 26.3 million, oregon CAD 0.93 per basal and diluted share, compared with CAD 66.8 million, oregon CAD 1.84 per share, successful fiscal 2025.