Overview

* ADF Q2 revenue of CAD 53 mln missed analyst expectations

* Adjusted EBITDA of CAD 14.1 mln beat expectations, per LSEG data

* Order backlog rose 60% since Jan 2025, reaching CAD 468 mln

Outlook

* Company aims to diversify amid U.S. market uncertainties

* ADF's order backlog to support operations through fiscal 2027

* Company plans to invest in new equipment for major contract

Result Drivers

* U.S. TARIFFS - Revenue and gross margins were negatively impacted by uncertainty surrounding U.S. tariffs and increased steel prices

* WORK-SHARING PROGRAM - Implementation of a Work-Sharing program at the Terrebonne plant reduced fabrication hours and revenue

* ORDER BACKLOG GROWTH - Order backlog increased by 60% since January 2025, indicating potential future revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss C$53 mln C$58.20

Revenue mln (1

Analyst)

Q2 Net C$900,00

Income 0

Q2 Beat C$14.10 C$10 mln

Adjusted mln (1

EBITDA Analyst)

Q2 Gross 20.7%

Margin

Q2 Order C$468

Backlog mln

Analyst Coverage

* The one available analyst rating on the shares is "strong buy"

* The average consensus recommendation for the iron & steel peer group is "buy."

* Wall Street's median 12-month price target for ADF Group Inc ( ADFJF ) is C$12.00, about 20.7% above its September 10 closing price of C$9.52

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)