- ADF Group (TSX:DRX), a top small-cap industrial stock, has signed new orders in the United States totaling C$234 million
- The company’s order backlog now stands at C$573.3 million, representing growth of 69 per cent
- ADF Group specializes in the design and engineering of complex steel structures for the non-residential infrastructure sector
- ADF Group stock (TSX:DRX) is up by 194 per cent year-over-year, and has added 500 per cent since 2018
ADF Group (TSX:DRX), a top small-cap industrial stock, has signed new orders in the United States totaling C$234 million.
The new business includes an award for the first phase of a major pharmaceutical construction project in the Midwest, which has been amended to include additional work. Fabrication work is slated to begin in December 2023.
ADF Group has also reached an agreement with the same client for phase two of the construction project. The scope of phase-two work encompasses design and connection engineering, fabrication work (including the supply of steel and industrial coating), and erecting the steel structure and heavy steel components of the large-surface industrial building. Fabrication will begin in February 2024 and end by approximately May 2025.
The series of new orders is rounded off by two new contracts in Canada, one in the public infrastructure sector and one in the industrial sector, and a new contract in the U.S. Southeast with a global manufacturing company in the aluminum sector. The latter consists of fabrication and the delivery of a steel structure for a new industrial building and will extend over a six-month period.
ADF Group’s order backlog was C$339.3 million as of Oct. 31, excluding the new orders. It now stands at C$573.3 million, representing growth of 69 per cent.
“These new contracts will require a high-volume production and high technical competence,” Jean Paschini, ADF Group’s chairman and chief executive officer, said in a statement. “Our fabrication and assembly processes, which are now further enhanced by robot-assisted production lines and increased automation, are proven for projects such as these ones. With the excellent foundations of the corporation and our seasoned and talented teams, we are ready for projects of this scale, and we are eager to collaborate with our clients and support them as a business partner of choice.”
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 (TSX:DRX) last traded at C$5.88 per share. The stock is up by 194 per cent year-over-year, and has added 500 per cent since 2018. The TSX is up by 1.56 per cent and 39.30 per cent, respectively.
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