HIGHLIGHTS
(All amounts are in Canadian dollars unless otherwise indicated.)
- Revenues of $108.5 million recorded during the six (6) month period ended July 31, 2025, down compared to the corresponding period a year earlier, in line with the uncertainty surrounding the U.S. tariffs.
- Gross margin, as a percentage of revenue (1), of 20.7% and 21.3% recorded during the three (3) month and six (6) month periods ended July 31, 2025, respectively.
- Net income of $0.9 million and $9.6 million, recorded during the three (3) month and six (6) month periods ended July 31, 2025, respectively, down compared to the same periods in 2024.
- Order backlog (1) at $468.0 million as at July 31, 2025, up 60% compared to January 31, 2025.
TERREBONNE, QC, Sept. 11, 2025 /CNW/ – ADF GROUP INC. (“ADF” or the “Corporation”) (TSX: DRX), recorded revenues of $53.0 million in the second quarter ended July 31, 2025, compared to $74.9 million for the same period a year earlier. After the first six (6) months of the fiscal year, revenues totaled $108.5 million, $73.8 million less than for the same period a year earlier.
Gross margin, as a percentage of revenue (1), went from 36.9% for the three (3) months ended July 31, 2024, to 20.7% for the same period ended July 31, 2025. Gross margin, as a percentage of revenue (1), went from 32.3% in the first six (6) months ended July 31, 2024, to 21.3% in the same period ended July 31, 2025.
These decreases, both in terms of revenues and margins, are directly attributable to the impacts of the U.S. tariffs. As previously explained, and although these tariffs have limited direct impacts on the Corporation’s costs, the uncertainty related to these tariffs, as well as the increase in the price of steel, had a negative impact on the Corporation’s results. Moreover, and as previously announced, a Work-Sharing program was implemented at ADF’s plant in Terrebonne, Quebec, which was in place for almost the entire quarter ended July 31, 2025, thus reducing fabrication hours and revenue for the same quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) for the six (6) months ended July 31, 2025, totaling $14.1 million, down compared with the same period, a year earlier.
For the three (3) months ended July 31, 2025, ADF recorded net income of $0.9 million ($0.03 per share basic and diluted) compared with net income of $16 million ($0.51 per share, basic and diluted) a year earlier. After six (6) months, net income totaled $9.6 million ($0.34 per share, basic and diluted) as at July 31, 2025, compared with a net income of $31.3 million ($0.98 per share, basic and diluted) for the same period a year earlier.
The Corporation’s order backlog (1) stood at $468.0 million as at July 31, 2025, up 60% compared with January 31, 2025. It should be noted that the order backlog as at July 31, 2025, does not include the option to extend the contract that was announced on July 23, 2025, by an additional five (5) years, nor the order backlog of Groupe LAR, that may be added pursuant to the completion of the Transaction (as this term is defined below). The projects currently in the order backlog will be carried out progressively by the end of the fiscal year ending January 31, 2027.
Although the order backlog is more than adequate, the uncertainty surrounding the U.S. tariffs has caused a non-recoverable delay in fabrication hours, mainly at ADF’s plant in Terrebonne, Quebec. As a result, contingency measures were put in place during the first semester of the 2026 fiscal year, including the Work-Sharing program at ADF’s Terrebonne plant, which allowed the Corporation to mitigate the negative impacts of reduced fabrication hours, however not entirely. This program ended near the close of the quarter ended July 31, 2025, with all employees at the Terrebonne plant back on a full-time basis.
As at July 31, 2025, the Corporation had a working capital (1) of $105.5 million. The Corporation’s operating activities generated $7.4 million in cash during the first six (6) months ended July 31, 2025. The Corporation remains in a good position to continue its ongoing operations and carry out its development projects.
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Order backlog, gross margin as a percentage of revenue, and working capital are additional financial measures. Refer to the Non-IFRS and Other Financial Measures section below for definitions of these measures. |
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Adjusted EBITDA is a non-IFRS financial measure. See the “Non-IFRS and Other Financial Measures” section below for the definition of this indicator. |
Financial Highlights
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Periods ended July 31, |
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