ADF Group (TSE:DRX) Announces Earnings Results

ADF Group (TSE:DRX) released its earnings results on Tuesday. The company reported C$0.42 earnings per share for the quarter, FiscalAI reports. The company had revenue of C$99.26 million during the quarter. ADF Group had a return on equity of 16.30% and a net margin of 9.79%.

Here are the key takeaways from ADF Group’s conference call:

• ADF reported a record quarterly backlog of CAD 645.8 million, including CAD 266.5 million from the long-term Gocław contract, giving the company stronger visibility into future work and revenue.
• First-quarter revenue jumped 78.8% year over year to CAD 99.3 million, with gross margin also improving to 24.2% from 22%, driven by higher volume and better fixed-cost absorption.
• Net income rose to CAD 12.0 million or CAD 0.42 per share, up from CAD 8.7 million a year ago, while cash remained strong at CAD 62.1 million and working capital stood at CAD 111.9 million.
• The company said the Groupe LAR acquisition contributed CAD 18.1 million of revenue and CAD 1.3 million of gross margin in the quarter, and management expects LAR’s expansion to double capacity once completed next fiscal year.
• Management said U.S. tariff policy remains a significant irritant and continues to pressure costs, although they believe their proactive approach is helping offset the impact.

ADF Group Stock Performance

TSE:DRX opened at C$13.98 on Thursday. The business has a 50 day moving average of C$10.30 and a 200 day moving average of C$9.42. The company has a market capitalization of C$399.17 million, a price-to-earnings ratio of 15.03 and a beta of -0.29. ADF Group has a 1-year low of C$6.90 and a 1-year high of C$14.00. The company has a debt-to-equity ratio of 20.56, a current ratio of 2.20 and a quick ratio of 1.74.

About ADF Group

ADF Group Inc is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors.