- Industrial stock ADF Group (TSX:DRX) generated net income of C$37.6 million in fiscal 2024, a 152 per cent increase from C$14.94 million the year before
- The news extends ADF’s profitability streak to four consecutive years going back to fiscal 2021
- ADF Group is a North American company specializing in the design and engineering of complex steel structures for the non-residential infrastructure sector
- ADF Group stock has added 425 per cent year-over-year and 922.12 per cent since 2019
Industrial stock ADF Group (TSX:DRX) generated net income of C$37.6 million in fiscal 2024, a 152 per cent increase from C$14.94 million the year before. It yielded this profit from revenue of C$331 million, up by 32 per cent from C$250.9 million in fiscal 2023.
Adjusted EBITDA reached C$55.9 million in fiscal 2024, adding C$29.8 million or 114 per cent compared with the prior year, while gross margin as a percentage of revenue increased from 14.2 per cent to 22 per cent year-over-year thanks to higher fabrication volume and greater efficiency after investments in robotization and fabrication automation over the past few years.
At fiscal year-end on Jan. 31, the industrial stock had working capital of C$110.1 million, up by 68 per cent year-over-year, while having producing cash flow from operating activities of C$77.9 million throughout the year. The company will allocate some of its cash to a C$0.01 per share dividend, payable on May 15, to shareholders of record as of April 26.
ADF’s order backlog stood at C$510.9 million at year-end, up from C$376.5 million in fiscal 2023, with the majority of projects to be completed by the second half of fiscal 2026, setting the company up to extend its four-year profitability streak, including net income of C$6.87 million in fiscal 2021, C$9.56 million in fiscal 2022 and C$14.94 million in fiscal 2023.
ADF Group management insights
“These results reflect ADF’s efforts and strategies over the past few years, from the construction of our state-of-the-art fabrication plant in Great Falls, Montana, nearly 10 years ago, to our investment in robotization and increased automation of our fabrication process at our Terrebonne plant in Québec,” Jean Paschini, ADF Group’s chairman and chief executive officer, said in a statement.
“During this period, ADF has invested over C$110 million to strengthen its position as one of North America’s leading fabricators of all types of steel structures and heavy steel components,” he added. “Today, we are reaping the fruits of this work and the sustained efforts of all ADF employees.”
About ADF Group
ADF Group is a North American company specializing in the design and engineering of complex steel structures for the non-residential infrastructure sector. The company operates two fabrication plants, two paint shops and a construction division across Canada and the United States.
ADF Group Inc. stock (TSX:DRX) is up by 20.31 per cent on the news, trading at C$11.55 per share as of 10:23 am ET. The stock has added 425 per cent year-over-year and 922.12 per cent since 2019.
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