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ADF Group Surges 23% on Robust Revenue and Margin Growth

Investors pushed ADF Group shares up 23% to 12.64 Canadian dollars on Tuesday after the steel fabricator reported that surging contract volume successfully neutralized the drag of U.S. steel tariffs, driving quarterly net income to 12 million Canadian dollars.

ADF Group Surges 23% on Robust Revenue and Margin Growth

The Terrebonne-based company saw revenue climb to 99.3 million Canadian dollars for the quarter ended April 30, nearly doubling the 55.5 million reported during the same period last year. While U.S. tariffs on imported steel continue to inflate logistics costs, the firm managed to expand its margins to 24.2% from 22%. This efficiency gain stemmed from spreading fixed costs across a significantly larger output volume.

ADF Group’s backlog now stands at 645.8 million Canadian dollars, bolstered by the integration of Groupe LAR, an acquisition finalized last September. Chairman and CEO Jean Paschini signaled plans for further capital expenditure to modernize the Groupe LAR fabrication facility and expand its production capacity, aiming to sustain the current momentum despite ongoing trade headwinds.

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