- ADF Group (TSX:DRX), a small-cap industrial stock specializing in steel superstructures, has signed new contracts in Quebec and the U.S. Midwest totalling C$55 million
- The company has significantly increased market share and profitability over the past four years
- ADF Group is a North American company focused on the design and engineering of complex steel structures, heavy steel build-ups, as well as miscellaneous and architectural metals for the non-residential infrastructure sector
- ADF Group stock has added 134.95 per cent year-over-year and 870.43 per cent since 2019, well ahead of the TSX’s 21.09 per cent and 43.62 per cent returns, respectively
ADF Group (TSX:DRX), a small-cap industrial stock specializing in steel superstructures, has signed new contracts in Quebec and the U.S. Midwest totalling C$55 million.
The new U.S. orders concern a steel structure for an industrial building under a project in the pharmaceutical industry announced in May 2023 and expanded in December 2023. The company will begin fabrication work in the coming months and expects to deliver on the new contracts by May 2025.
The new orders in Quebec include structural steel fabrication projects across multiple regions, all in the province’s industrial sector.
ADF Group has grown revenue by 91.7 per cent from C$172.59 million in fiscal 2020 to C$331.02 million in fiscal 2023, while growing net income by 447 per cent from C$6.87 million to C$37.62 million over the period. This is in addition to more than C$31 million in net income added through the first half of the ongoing fiscal year.
The company’s order backlog stood at C$402.3 million as of July 31, 2024, including numerous orders announced Tuesday, affording it with plenty of room to run to extend its profitable track record.
About ADF Group
ADF Group is a North American company focused on the design and engineering of complex steel structures, heavy steel build-ups, as well as miscellaneous and architectural metals for the non-residential infrastructure sector.
ADF Group stock (TSX:DRX) is up by 1.09 per cent, trading at C$11.16 per share as of 9:46 am ET. The stock has added 134.95 per cent year-over-year and 870.43 per cent since 2019, well ahead of the TSX’s 21.09 per cent and 43.62 per cent returns, respectively.
Join the discussion: Find out what everybody’s saying about this small-cap industrial stock’s profitable run on the ADF Group Inc. Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top photo of ADF Group’s steel specialists at work: ADF Group)
