ADF Group Q4 Earnings Call Highlights

ADF Group (TSE:DRX) reported fiscal 2026 results that absorption described arsenic “exceptional” contempt a twelvemonth marked by shifting U.S. tariff rules, task timing disruptions, and a little favorable task premix than the anterior year.

Chief Financial Officer Jean-François Boursier said gross for the twelvemonth ended January 31, 2026, totaled CAD 258.7 million, down from CAD 339.6 million successful fiscal 2025, which helium characterized arsenic “an exceptionally bully twelvemonth with a favorable task mix.” Gross borderline declined to 23.1% of gross from 31.6% a twelvemonth earlier.

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Boursier attributed the fiscal 2026 borderline and measurement pressures to U.S. tariffs, citing some “higher earthy worldly costs” and delays successful task signing and fabrication start. In effect to the softer environment, helium said ADF implemented a work-sharing programme astatine its Terrebonne, Quebec installation earlier successful the year, reducing fabrication hours portion partially offsetting the outgo interaction done a Canadian employment program.

Adjusted EBITDA for the twelvemonth was CAD 43.5 million, oregon 16.8% of revenue, compared with CAD 91.3 million, oregon 26.9% of revenue, successful fiscal 2025. Selling and administrative expenses were CAD 23.2 million, up CAD 1.1 million twelvemonth implicit year, which Boursier said was wholly owed to the inclusion of Groupe LAR successful consolidated SG&A.

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ADF recorded a mostly non-monetary overseas speech summation of CAD 2.1 million versus a CAD 5.6 million nonaccomplishment a twelvemonth earlier, which Boursier said mostly reflected year-end mark-to-market movements connected outstanding FX contracts. Net income was CAD 26.3 million, oregon CAD 0.93 per basal and diluted share, compared with CAD 66.8 million, oregon CAD 1.84 per share, successful fiscal 2025.

Boursier said the acquisition of Groupe LAR, finalized connected September 18, 2025, contributed CAD 20 million successful gross and added CAD 2 million to consolidated gross borderline since closing. In the 4th quarter, ADF posted gross of CAD 78.8 million, up CAD 1.4 million twelvemonth implicit year; the 4th included CAD 13.8 million of gross from Groupe LAR.

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Fourth-quarter gross borderline was 21.5%, down from 31% successful the comparable play of fiscal 2025. Boursier said the alteration was chiefly owed to merchandise and fabrication mix, including lower-margin LAR projects. Fourth-quarter nett income was CAD 6.4 million versus CAD 9.1 million a twelvemonth earlier, and Boursier said LAR “basically broke adjacent for the quarter.”