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ADF Group Inc. SV ( (TSE:DRX) ) has shared an update.
ADF Group Inc. reported fiscal 2026 revenue of $258.7 million and net income of $26.3 million, down sharply from the prior year as gross margin narrowed to 23.1% amid lower volumes and the impact of U.S. tariffs on both demand and steel prices. To manage reduced fabrication hours, the company implemented a Work-Sharing program at its Terrebonne plant, yet still saw adjusted EBITDA fall to $43.5 million, while maintaining strong operating cash flow of $49.4 million and a higher cash position despite share buybacks and the purchase of Groupe LAR.
Despite weaker earnings, ADF ended the year with a record order backlog of $561.1 million, nearly double the prior year, with 57% of contracts from Canada and $138.2 million contributed by Groupe LAR. Management highlighted that the larger, more geographically balanced backlog positions ADF more defensively against U.S. trade measures and supports execution visibility through fiscal 2028, underpinning confidence in its financial and operational outlook and its ability to continue shareholder returns, including a declared semi-annual dividend.
The most recent analyst rating on (TSE:DRX) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on ADF Group Inc. SV stock, see the TSE:DRX Stock Forecast page.
Spark’s Take on DRX Stock
According to Spark, TipRanks’ AI Analyst, DRX is a Outperform.
The score is primarily supported by strong profitability and a conservative balance sheet, reinforced by an established uptrend in the share price and attractive valuation (low P/E). Offsetting these positives are weak cash-flow performance and a cautious earnings backdrop where tariffs pressured revenue and margins despite a larger, more diversified backlog.
To see Spark’s full report on DRX stock, click here.
More about ADF Group Inc. SV
ADF Group Inc. is a Quebec-based corporation specializing in the fabrication and installation of complex steel structures, serving major construction and infrastructure projects in North America. The company operates plants including its Terrebonne facility and has recently expanded its capabilities and Canadian footprint through the acquisition of Groupe LAR Inc.
Average Trading Volume: 57,047
Technical Sentiment Signal: Buy
Current Market Cap: C$305.8M
Find detailed analytics on DRX stock on TipRanks’ Stock Analysis page.