Adf Group Stock Earnings Reports

ADF reported Q2 (ended July 31, 2025) revenues of $53.0M, down $21.9M YoY, and YTD revenues of $108.5M vs $182.3M a year ago. Adjusted EBITDA for the quarter was $3.7M (Q2 2024: $24.9M) and YTD adjusted EBITDA was $14.1M (YTD 2024: $48.0M). Gross margin declined to 20.7% (Q2 2024: 36.9%) largely due to reduced fabrication hours from a work-sharing program at the Terrebonne plant and higher steel costs indirectly related to U.S. tariffs. Net income for the quarter was $0.9M ($0.03/sh) and YTD net income was $9.6M ($0.34/sh). Cash balance was $50.9M and working capital $105.5M as of July 31, 2025. Order backlog stood at $468M (does not include the LAR backlog or optional 5-year extension to the July 23 contract). Management announced a recently signed 5-year (plus 5-year option) infrastructure contract in Quebec and an agreement to acquire Group LAR (≈$81M revenue FY2024; ~ $104.5M backlog as of July 31, 2025) — acquisition expected to close imminently and will increase Canadian content and reduce U.S. tariff exposure. Full-year CapEx is expected to be ~ $11M for ADF (excluding additional LAR-related investments), including equipment for the new long-term Terrebonne project and ERP upgrades over the next 3 years. The Board approved a second semiannual dividend of $0.02/share payable Oct 16, 2025 (record date Sept 26). Management highlighted the negative short-term earnings impact from tariff-related uncertainty but emphasized strategic actions (LAR acquisition, shifting more backlog to Canadian content, maximizing U.S. Montana plant where appropriate) to mitigate exposure and preserve long-term growth. No new NCIB expected in the near term given acquisition and CapEx needs.