- ADF Group (TSX:DRX) signed a five-year contract with a repeat client in Quebec’s energy sector expected to be worth just shy of C$400 million
- ADF Group is a steel engineering company building complex structures for the non-residential infrastructure sector
- ADF Group stock has given back 41.04 per cent year-over-year but remains up by 595.61 per cent since 2020
ADF Group (TSX:DRX), a North American steel engineering specialist, signed a five-year contract with a repeat client in Quebec’s energy sector expected to be worth just shy of C$400 million.
This content has been prepared in collaboration with ADF Group Inc., and is intended for informational purposes only.
ADF will deliver steel structures for the client’s new infrastructure project, with work expected to kick off over the next few months at its plant in Terrebonne, Quebec, following new investments in equipment and personnel to meet contract demand.
According to Wednesday’s news release, the contract will earn ADF C$35-C$40 million per year and includes an option to extend for another five years.
ADF’s order backlog reached C$330.4 million as of April 30, 2025, excluding the contract reported here, which management sees as a strong conduit towards higher revenue and profitability in the second half of fiscal 2026, bolstered by the company’s contained exposure to US tariffs. This would follow 1.96x revenue growth and 8.26x net income growth over the past five years, reaching C$339.63 million and C$56.79 million in fiscal 2025, respectively.
Leadership insights
“We have the capabilities, the talents and state-of-the-art plants that give us the flexibility to carry out all types of steel structure projects that are entrusted to ADF, regardless of the complexity level and scale, thanks to careful planning of our production areas and strategic investments,” Jean Paschini, chairman and chief executive officer of ADF Group, said in a statement.
“Over the past few years, we have, among other things, undertaken to focus part of our market development efforts on developing the Canadian market, seeing promising business opportunities taking shape that correspond to our fields of expertise,” Paschini added. “We welcome the opportunity to once again collaborate with our major client, and we are proud to be able to contribute to Québec’s reputation on a global scale through this structuring and promising project.”
About ADF Group
ADF Group is a steel engineering company building complex structures for the non-residential infrastructure sector. It operates two fabrication plants and two paint shops in Canada and in the United States, as well as a construction division in the United States.
ADF Group stock (TSX:DRX) last traded at C$7.93. The stock has given back 41.04 per cent year-over-year but remains up by 595.61 per cent since 2020.
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