ADF Group Reports Strong Q2 Financial Performance Amid Tariff Challenges
ADF Group (TSE:DRX) reported strong financial results for its second quarter and first half ended July 31, 2026. Second-quarter revenue rose to C$95 million from C$53 million a year earlier, with adjusted EBITDA increasing to C$8.4 million and net income reaching C$3 million. The company attributed the growth to increased fabrication activity and a customer-claim settlement that added C$20.2 million in revenue for Groupe LAR. ADF Group also reported record order backlog of C$693.7 million at quarter-end, supported by strong demand across its operations. However, higher steel costs and tariff-related charges are impacting margins despite the company not expecting direct exposure to a new 50% U.S. tariff. The firm plans over C$40 million in capital spending for full-year 2026, including expansions in Quebec and Montana. The first-half revenue climbed by 79%, driven partly by an easier comparison with the prior year's work-sharing program at its Terrebonne plant due to tariff uncertainty. CFO Jean-François Boursier noted that non-cash mark-to-market costs related to share units reduced net income, along with foreign-exchange losses.
Topics: backlog capital_spending ebitda liquidity net_income revenue_growth tariffs