ADF Group (TSE:DRX) Issues Quarterly Earnings Results

ADF Group (TSE:DRX) issued its quarterly earnings results on Tuesday. The company reported C$0.42 earnings per share for the quarter, FiscalAI reports. ADF Group had a return on equity of 15.07% and a net margin of 10.17%.The business had revenue of C$99.26 million during the quarter.

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 Up 30.0%

Shares of ADF Group stock opened at C$13.38 on Wednesday. ADF Group has a twelve month low of C$6.77 and a twelve month high of C$13.50. The company has a current ratio of 2.21, a quick ratio of 1.74 and a debt-to-equity ratio of 22.67. The business’s 50 day simple moving average is C$10.21 and its 200-day simple moving average is C$9.37. The stock has a market capitalization of C$382.04 million, a price-to-earnings ratio of 14.39 and a beta of -0.29.

ADF Group Company Profile

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.