Company Announcements

HIGHLIGHTS
(All amounts are in Canadian dollars unless otherwise indicated)

• Revenues of $99.3 million for the 3-month period ended April 30, 2026, up by 78.8% compared with the same 3-month period a year ago.
• Gross margin, as a percentage of revenue ⁽¹⁾ of 24.2% recorded during the 3-month period ended April 30, 2026.
• Cash flows from operations of $10.1 million for the 3-month period ended April 30, 2026.
• Net income of $12.0 million or $0.42 per share recorded during the 3-month period ended April 30, 2026, compared with $8.7 million or $0.30 per share for the same quarter ended April 30, 2025.
• All-time high order Backlog ⁽¹⁾ of $645.8 million as at April 30, 2026, of which 72% is Canadian, and includes $266.5 million from Groupe LAR Inc.

TERREBONNE, QC , June 9, 2026 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX), a North American leader in the fabrication of steel superstructures, recorded revenues of $99.3 million during the first quarter ended April 30, 2026, compared with $55.5 million for the same period a year ago.

Gross margin, as a percentage of revenues ⁽¹⁾ went from 22.0% for the 3-month period ended April 30, 2025, to 24.2% for the same period ended April 30, 2026.

Revenues in the first quarter ended a year ago on April 30, 2025, were negatively impacted by uncertainty related to new U.S. tariffs. Although this situation persists, the recently signed contracts have a positive impact on revenues in the current quarter. In addition, the increase in margins, in dollar terms and as a percentage of revenues, is explained by the increase in revenues, which improves the absorption of fixed costs, despite the increase in inputs, including the price of steel and recent changes in tariffs.

Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) ⁽²⁾ for the 3-month period ended April 30, 2026, stood at $18.5 million or 18.6% of revenues compared with $10.4 million or 18.7% of revenues as at April 30, 2025.

For the first quarter ended April 30, 2026, ADF recorded net income of $12.0 million ($0.42 per basic and diluted share) compared with net income of $8.7 million ($0.30 per share, basic and diluted) a year earlier.

The Corporation's order backlog ⁽¹⁾ stood at $645.8 million as at April 30, 2026, compared with $561.1 million as at January 31, 2026.  The order backlog as at April 30, 2026, includes the order backlog of Groupe LAR totaling $266.5 million, which was added pursuant to the closing of the acquisition on September 18, 2025, and does not include the option to extend the contract announced on July 23, 2025, by five (5) years. Excluding the long-term contracts announced in July 2025 and April 2026, the majority of the order backlog on hand as of April 30, 2026, will extend until the end of fiscal 2028.

As at April 30, 2026, the Corporation had a working capital ⁽¹⁾ of $111.9 million, whereas the operating activities generated liquidities of $10.1 million in cash during the 3-month period ended April 30, 2026, closing the same quarter with cash and cash equivalents of $62.1 million.

Financial Highlights

Outlook     

"Management is very pleased with the results for the first quarter of fiscal 2027, which reflect, among other things, the increase in operating activities and the growth of the order backlog" said Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer.

"As announced last April, we have finalized a master contract in the hydroelectric sector in Quebec for Groupe LAR, which confirms our optimism already announced in our communications as at January 31, 2026 and also underlines the importance of the investments we will make in the coming quarters in order to increase Groupe LAR's fabrication plant capacity and also to equip the plant with state-of-the-art equipment" concluded Jean Paschini.

Dividend

On April 15, 2026, the Board of Directors of ADF Group approved the payment of a semi-annual dividend of $0.02 per share, which was paid on May 15, 2026, to shareholders of record as of April 27, 2026.

Financing Agreement

On May 26, 2026, the Corporation entered into a contribution agreement with the Government of Canada under the Strategic Response Fund ("SRF") program to support an expansion project at its Terrebonne and Métabetchouan–Lac-à-la-Croix facilities in Quebec.

The project aims to increase production capacity and modernize the Corporation's facilities. Under the agreement, the Government of Canada has committed to providing the Corporation with a maximum contribution of $12.5 million. This contribution includes a non-repayable portion of $6.25 million and a repayable, interest-free portion of $6.25 million. The repayable portion will be payable in eight (8) equal annual installments beginning February 1, 2029. Government disbursements are subject to the terms and conditions of the agreement and will be made as the project progresses and eligible claims are submitted.

Conference Call with Investors

A conference call with investors is scheduled for today, June 9, 2026, at 10 a.m. (Montreal time) to discuss the results of the three (3) months period ended April 30, 2026.

To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/3P8iLDZ to receive an instant automatic reminder. You can also join the conference call with operator assistance by dialing 1-800-990-4777 a few minutes prior to the conference call scheduled start time.

A replay of the conference call will be available from 1:00 p.m, June 9, 2026, until midnight June 16, 2026, by dialing 1-888-660-6345; followed by the access code 69765 #.

The conference call (audio) will also be available at www.adfgroup.com. Members of the media are invited to join in listening mode.

ANNUAL GENERAL MEETING OF SHAREHOLDERS FOR THE YEAR ENDED JANUARY 31, 2026

The Annual Meeting of Shareholders of ADF Group Inc. will be held on:

Date:               June 9, 2026
Time:               11 a.m.
Location:         ADF Group Inc.
                       300 Henry-Bessemer Street, Terrebonne (QC) J6Y 1T3

About ADF Group Inc. | ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication, including the application of industrial coatings, and installation of complex steel structures, heavy steel built up components, as well as in miscellaneous and architectural metals for the non-residential infrastructure sector. ADF Group Inc. is one of the few players in the industry capable of handling highly technically complex mega projects on fast-track schedules in the commercial, institutional, industrial and public sectors. The Corporation operates three (3) fabrication plants and three (3) paint shops, in Canada and in the United States, and a Construction Division in the United States, which specializes in the installation of steel structures and other related products.

About Groupe LAR Inc. | Established in 1942 and based in Métabetchouan in the Saguenay-Lac-Saint-Jean region, in Quebec, Groupe LAR Inc. operates in the machining, welding, and industrial mechanics sectors. Groupe LAR Inc. is a Canadian leader in the design, manufacture and installation of mechanically welded steel structures. Primarily focused on the rapidly expanding large-scale hydroelectricity market, Groupe LAR Inc. also offers customized overhead crane solutions for the heavy industry.

Forward-Looking Statements | This press release contains forward-looking statements that reflect ADF's objectives and expectations. These statements are identified by verbs such as "expects" as well as the use of future and conditional verb tenses. By their nature, these statements involve risks and uncertainties. As a result, actual facts may differ from ADF's expectations.

Non-IFRS Financial Measures and Other Financial Measures | Are measures derived primarily from the consolidated financial statements but are not a standardized financial measure under the financial reporting framework used to prepare the Corporation's financial statements. Therefore, readers should be careful not to confuse or substitute them with performance measures prepared in accordance with IFRS. In addition, readers should avoid comparing these non-IFRS financial measures to similarly titled measures provided or used by other issuers. The definition of these indicators and their reconciliation with comparable International Financial Reporting Standards measures issued by the International Accounting Standards Board ("IFRS Accounting Standards") is as follows:

• Adjusted EBITDA

Adjusted EBITDA is used by Management to assess the recurring operating performance of the Corporation's activities, excluding the impact of non-cash items or items unrelated to core activities, including the following items:

• • Net financial expenses;
  • Income taxes expense;
  • Foreign exchange gains or losses, and
  • Depreciation and amortization of property, plant and equipment, intangible assets, and right-of-use assets.

Net income is reconciled with adjusted EBITDA in the table below:

• Gross Margin as a Percentage of Revenues
  
  Gross margin as a percentage of revenue indicator is used by the Corporation to assess the level of profitability for a given period based on the project mix for that same period. This indicator is subject to fluctuations in project prices and also in the operational efficiency of the Corporation. The indicator of gross margin as a percentage of revenues results from dividing gross margin by revenues.

• Order Backlog
  
  The order backlog is a measure used by the Corporation to assess future revenue levels. The order backlog includes firm orders obtained by the Corporation, either through a firm contract or a formal notice to proceed confirmed by the client. The order backlog disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production.

• Working Capital
  
  The working capital indicator is used by the Corporation to assess whether current assets are sufficient to meet current liabilities. It is therefore equal to current assets, less current liabilities.

SOURCE ADF Group Inc.