Latest news with #ADFGroup
Yahoo
2 days ago
- Business
- Yahoo
ADF Group Inc (ADFJF) Q1 2026 Earnings Call Highlights: Navigating Tariff Challenges with ...
Revenue: $55.5 million for the three-month period ended April 30, 2025, compared to $107.4 million for the same period in 2024. Gross Margin: $12.2 million, decreased by $19.1 million from the previous year; gross margin percentage decreased from 29.2% to 22%. Net Income: $8.7 million or $0.30 per share, compared to $15.3 million or $0.47 per share in the previous year. Selling and Administrative Expenses: $3.4 million, a decrease of $6.3 million from the previous year. Cash and Cash Equivalents: $75.3 million, $15.3 million higher than the January 31, 2025, ending balance. Working Capital: $108.6 million with a ratio of 2.45:1. CapEx: $1.6 million for the quarter, with full-year CapEx expected to be under $8 million. Order Backlog: $330.4 million as of April 30, 2025. Share Repurchase: 699,000 subordinate voting shares repurchased for $5.1 million during the quarter; total NCIB program repurchase of 1.8 million shares for $14.1 million. Warning! GuruFocus has detected 6 Warning Signs with PYYX. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ADF Group Inc (ADFJF) reported a strong order backlog exceeding $300 million as of April 30, 2025, indicating potential future revenue growth. The company closed the first quarter with a robust cash and cash equivalents position of $75.3 million, which is $15.3 million higher than the previous quarter. Net income for the quarter was $8.7 million, benefiting from lower net financial expenses and a $2.9 million foreign exchange gain. ADF Group Inc (ADFJF) successfully completed its NCIB program, repurchasing 1.8 million shares, which reflects confidence in the company's value. The company anticipates an increase in revenues and profitability in the second half of the fiscal year ending January 31, 2026, based on current market conditions. Revenues for the quarter decreased significantly to $55.5 million from $107.4 million in the same period last year, primarily due to US tariffs. Gross margin decreased by $19.1 million, with margins dropping from 29.2% to 22% year-over-year, impacted by tariffs and increased steel prices. The uncertainty surrounding US tariffs has caused delays in fabrication hours, particularly affecting the Terrebonne plant in Quebec. The company faced a loss of certain business opportunities due to the imposition of tariffs, affecting its US client base. Selling and administrative expenses decreased by $6.3 million, but this was mainly due to adjustments in market value of deferred share units and performance share units, not operational improvements. Q: Can you clarify if the expected growth in the second half of the year implies year-over-year growth back to the $80 million plus level, or is it growth over the quarter reported today? A: Based on current knowledge, we expect revenues to return to levels seen last year, around $80 to $85 million, assuming current conditions remain unchanged. - Jean Paschini, CEO Q: How are contract discussions going with clients regarding exemptions? Are you seeing more receptiveness, and should we expect new contracts soon? A: We anticipate new contracts in the coming months, though it's uncertain if they will be US contracts due to ongoing tariff uncertainties. Conversations with clients are positive, but the situation remains fluid. - Jean-Francois Boursier, CFO Q: Are you seeing any momentum with Canadian clients, given that this quarter was almost entirely US-focused? A: Yes, there is significant momentum with Canadian clients, and we see substantial potential in this area. - Jean-Francois Boursier, CFO Q: With the NCIB completed and a large cash balance, what are your plans for capital allocation? Are you considering paying down debt or any CapEx projects? A: We are exploring various CapEx projects and scenarios to utilize our cash effectively, focusing on projects within our shop. - Jean-Francois Boursier, CFO Q: What are your expectations for the second half of the fiscal year in terms of revenue and profitability? A: We expect an increase in revenues and profitability for the second half of the fiscal year, supported by a strong order backlog exceeding $300 million. - Jean Paschini, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Bloomberg
2 days ago
- Business
- Bloomberg
Tariffs Hit Canadian Firm That Made World Trade Center's Spire
ADF Group Inc., a Canadian maker of steel structures, reported lower earnings and slowed its production partly because of the uncertainty caused by US tariffs. The company's first quarter revenue plunged 48% to C$55.5 million ($40.6 million), while its profit margin grew narrower. Earnings per share dropped by 36%.
CTV News
3 days ago
- Business
- CTV News
ADF Group reports Q1 profit, revenue falls from year ago amid tariff uncertainty
TERREBONNE — ADF Group Inc., a maker of steel superstructures, reported a first-quarter profit of $8.7 million as its revenue plunged compared with a year earlier due to the uncertainty related to U.S. tariffs. Revenue for the quarter totalled $55.5 million, down from $107.4 million in the same quarter last year. The Quebec-based company says the drop came as it earned a profit of 30 cents per diluted share for the quarter ended April 30 compared with a profit of $15.3 million or 47 cents per diluted share a year earlier. ADF, which builds complex steel structures, says the uncertainty surrounding the application and functioning of the U.S. tariffs caused an unrecoverable delay in fabrication hours, mainly at its plant in Terrebonne. It says the drop in revenue forced it to take contingency measures and start a work-sharing program at the plant that helped mitigate the negative impacts of the decrease in fabrication hours. ADF also says the tariffs hurt its margins. This report by The Canadian Press was first published June 10, 2025.
Globe and Mail
3 days ago
- Business
- Globe and Mail
ADF GROUP INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED APRIL 30, 2025
QUARTER HIGHLIGHT Revenues of $55.5 million , down from the same period last year, in line with the uncertainty related to the U.S. tariffs. Gross margin, as a percentage of revenue (1) stood at 22.0%, compared to 29.2% a year ago. Cash flow from operations of $25.3 million . Net income of $8.7 million , down compared to April 30, 2024 . Order Backlog (1) at $330.4 million as at April 30, 2025 , up compared with January 31, 2025 . All amounts are in Canadian dollars unless otherwise noted. TERREBONNE, QC , June 10, 2025 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), a North American leader in the fabrication of steel superstructures, recorded revenues of $55.5 million for the first quarter ended April 30, 2025 , compared to $107.4 million for the same period a year earlier. Gross margin, as a percentage of revenue (1) went from 29.2% for the three (3) months ended April 30, 2024 , to 22.0% for the same period ended April 30, 2025 . These variations are attributable to the direct and indirect impacts of the U.S. tariffs. Although the Corporation's order backlog (1) is more than adequate, exceeding $300 million as at April 30, 2025 , the uncertainty surrounding the application and functioning of these tariffs has caused an unrecoverable delay in fabrication hours, mainly at ADF's plant in Terrebonne, Quebec . The decline in revenues forced the Corporation to take contingency measures and initiate a work-sharing program at its Terrebonne plant. This program has allowed the Corporation to mitigate the negative impacts of the decrease in fabrication hours, however not entirely. The tariffs also had an indirect negative impact on the Corporation's margins, which is caused by the increase in the price of steel sold by U.S. steel mills. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) (2) amounted to $10.4 million , or 18.7% of revenues, compared with $23.1 million or 21.5% of revenues on April 30, 2024 . For the first quarter ended April 30, 2025 , ADF recorded net income of $8.7 million ( $0.30 per share basic and diluted) compared to net income of $15.3 million ( $0.47 per share basic and diluted) for the same period a year earlier. As at April 30, 2025 , the Corporation's order backlog (1) was $330.4 million , up compared with January 31, 2025 , when the order backlog stood at $293.1 million . As at April 30, 2025 , the Corporation had working capital (1) of $108.6 million while operating activities generated cash of $25.3 million during the three (3) month period ended April 30, 2025 , closing the same quarter with cash and cash equivalents of $75.3 million . _______________________________ (1) The order backlog, gross margin as a percentage of revenues and working capital are additional financial measures. Refer to the "Non-IFRS and Other Financial Measures" section herein for the definition of these indicators. (2) Adjusted EBITDA is a non-IFRS financial measure. Refer to the "Non-IFRS Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. Financial Highlights Three-Month Period Ended April 30, 2025 2024 (In thousands of Canadian dollars, and dollars per share) $ $ Revenues 55,523 107,400 Adjusted EBITDA (1) 10,395 23,099 Income before income taxes expense 11,732 21,258 Net income for the period 8,746 15,265 — Basic and diluted per share 0.30 0.47 Number Number Weighted average number of outstanding shares (basic and diluted) (In thousands) 28,751 32,640 (1) Adjusted EBITDA is a non-IFRS financial measure. Refer to the "Non-IFRS Financial Measures and Other Financial Measures" section of this press release for the definition of this indicator. U.S. Tariffs In recent months, the tariff measures put in place by the US authorities have been marked by frequent and sometimes unpredictable developments. In this context, and now that the official documents have been published and interpreted by the Corporation's customs experts, Management has a clearer view of the different impacts of these tariffs, including the impact of the announcements in the recent weeks. The products exported by ADF comply with the requirements of the Canada -United States-Mexico Agreement (USMCA). As a result, they are only subject to the specific steel tariffs, set at 25% by U.S. Government Proclamation 10896. These duties only apply if the raw materials used are not smelted and poured in the United States . However, ADF generally obtains steel from US-based mills and has done so for several years. Thus, when this condition is met, ADF's exports are exempt from these duties, allowing the Corporation to maintain its competitiveness in the U.S. market. At the same time, the Canadian government introduced countermeasures in the form of surtaxes on steel imports from the United States . However, these surcharges are recoverable upon exports. To facilitate the management of these costs for manufacturers, a remission order has been issued, allowing for immediate relief from these surtaxes at the time of import. Outlook "Given the circumstances, and more particularly the uncertainty related to U.S. tariffs, we are pleased with the results of the first quarter of our current fiscal year, which ended on April 30, 2025 . We were able to generate cash, while continuing our normal course issuer bid program, which we have completed since the close of the first quarter" indicated Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer. " We closed our first quarter with an order backlog (1) of $330 .4 million, allowing us to expect an increase in revenue and profitability for the second half of our fiscal year ending January 31, 2026 " concluded Mr. Jean Paschini. Dividend On April 9, 2025 , ADF Group's Board of Directors approved the payment of a semi-annual dividend of $0.02 per share, which was paid on May 15, 2025 , to Shareholders of Record as at April 24, 2025 . Conference Call with Investors A conference call with investors is scheduled today, April 10, 2025 , at 10 a.m. ( Montreal time) to discuss the results of the quarter ended April 30, 2025 . To join the conference call without operator assistance, you can register with your phone number on to receive an instant automatic reminder. You can also join the conference call with operator assistance by dialing 1-800-990-4777 a few minutes prior to the conference call scheduled start time. A replay of this conference call will be available from 1:00 p.m. on June 10, 2025 , until June 17, 2025 , by dialing 1-888-660-6345, followed by access code 63247#. The conference call (audio) will also be available at the Members of the media are invited to join in listening mode. ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR ENDED JANUARY 31, 2025 ADF Group Inc.'s Annual Meeting of Shareholders will be held on: About ADF Group Inc. | 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. The Corporation operates two fabrication plants and two paint shops, in Canada and in the United States , and a Construction Division in the United States , which specializes in the installation of steel structures and other related products. Forward-Looking Information | This press release contains forward-looking statements reflecting ADF's objectives and expectations. These statements are identified by the use of verbs such as "expect" as well as by the use of future or conditional tenses. By their very nature these types of statements involve risks and uncertainty. Consequently, reality may differ from ADF's expectations. Non-IFRS Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with IFRS. In addition, readers should avoid comparing these non-IFRS financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measures issued by the International Accounting Standards Board ("IFRS Accounting Standards") is as follows: Adjusted EBITDA shows the extent to which the Corporation generates profits from operations, without considering the following items: Net financial expenses; Income taxes expense ; Foreign exchange losses, and Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets. Net income is reconciled with adjusted EBITDA in the table below: Gross Margin as a Percentage of Revenues Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues. Order Backlog The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production. The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. It is therefore equal to current assets, less current liabilities.
The Market Online
6 days ago
- Business
- The Market Online
Weekend sampler: 3 micro-cap stocks to watch
With the TSX up by 5.7 per cent over the past month, just shy of its all-time-high, driven by a rebound in the price of oil, and the S&P 500 following suit, up by 6.8 per cent, emboldened by strong U.S. jobs data, investors are growing increasingly immune to Trump's tariff bluster. They're realizing that he's but one among many short-term headwinds, along with wars, recessions and a diversity of cultural conflicts, which stocks have proven more than capable of overcoming on their way to delivering attractive long-term returns. While financial media has a vested interest in making you worry about next quarter's earnings or the effects of a single central bank interest rate decision, fundamentals and value will always prevail in the end. This means it's always the right time to consider stocks with the potential to reward patient investors, grounded in the understanding that short-term volatility is the price of long-term gains. To this end, as you kick your feet up and kick off the well-deserved weekend, here are three fundamentally attractive micro-cap stocks for your perusing pleasure, each of them worth a deep dive towards a potential investment thanks to positive earnings per share year-over-year and evidence for keeping the profits flowing into the future. BQE Water Our first micro-cap stock pick, BQE Water (TSXV:BQE), market cap C$65.93 million, last trading at C$51 per share, specializes in water treatment and management for the mining, smelting and refining markets. Although the stock has added 363 per cent since 2020, supported by more than 100 per cent revenue and net income growth – including a strong Q1 2025 – it's down by 20 per cent year-over-year, likely discounting numerous projects near completion expected to drive growth through year-end. Olympia Financial Group Our second micro-cap stock pick, Olympia Financial (TSX:OLY), market cap C$266.57 million, last trading at C$110.78, administers self-directed registered plan accounts, corporate trusts, transfer agency services, currency exchange, global payments, private health plans and information technology services in the Canadian market. The company more than doubled revenue from C$48.62 million in 2020 to C$102.92 million in 2024, while tripling net income over the period from C$7.99 million to C$23.92 million, respectively, following this up with a steady Q1 2025 marked by a growing client base. Under the care of a long-tenured management team with 34-per-cent insider ownership, Olympia is in the midst of a multi-pronged growth plan (slide 25) to expand its established position in private markets, granting investors a data-driven thesis for meaningful gains, despite the stock adding 184 per cent since 2020. ADF Group Our final micro-cap stock to watch, ADF Group (TSX:DRX), market cap C$188.29 million, last trading at C$6.70, is a top designer and engineer of steel structures for the North American non-residential infrastructure sector. The company's over 65-year track record includes infrastructure projects spanning airports, stadiums, factories and office towers, with a current capacity to manufacture 125,000 tons of structural steel per year. If we look at ADF's past five years, we see expanding market share justified by accelerating profits. This includes revenue growth from C$172.59 million in fiscal 2021 to C$339.63 million in fiscal 2025, proven efficient by net income growth from C$6.87 million to C$56.79 million over the period. Tariff fears have since hit the stock with steep losses to the tune of 60 per cent year-over-year – most recently hampered by an increase in U.S. steel tariffs which Canada may reciprocate – with new contracts slowing and lower expected revenue and margins through the fiscal year ending January 2026. That said, the stock remains up by more than 500 per cent since 2020 – including the year-over-year loss – thanks to management's stellar operational track record. While tariff uncertainty is peaking at the moment, the high likelihood of a reasonable resolution between Canada and the U.S., given that they're commercially tied-at-the-hip, puts the profitable ADF on a path to retracing recent losses, fueled by an over C$400 million backlog as of January 2025. Should you invest in BQE Water, Olympia Financial and ADF Group today? The stocks we've discussed in this article only deserve a place in your portfolio if they match up with your financial goals, risk tolerance and time horizon. Take care to paint a clear picture of your personal financial circumstances and conduct thorough due diligence on a prospective company before putting any money to work. Join the discussion: Find out what everybody's saying about these micro-cap stocks to watch on the BQE Water Inc., Olympia Financial Group Inc. and ADF Group Inc. Bullboards and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
