HIGHLIGHTS

   -- Revenue of $258.7 million. 
 
   -- Net income of $26.3 million or $0.93 per share, basic and diluted. 
 
   -- Cash flows from operations of $49.4 million for the fiscal year ended 
      January 31, 2026. 
 
   -- Record order backlog (1) reaching $561.1 million as at January 31, 2026, 
      57% of which is made up of Canadian contracts. 
 
   -- Higher cash position even with the acquisition of Groupe LAR finalized on 
      September 18, 2025. 

TERREBONNE, QC, April 16, 2026 /CNW/ - ADF GROUP INC. ("ADF" or the "Corporation") (TSX: DRX) closed its 2026 fiscal year with revenues of $258.7 million compared to $339.6 million last year.

Gross margin, as a percentage of revenues (1) , went from 31.6% for the fiscal year ended January 31, 2025, to 23.1% for the fiscal year ended January 31, 2026. This variation is in line with the decrease in revenues and is largely explained by the impact of U.S. tariffs.

The decrease in revenues obliged ADF to implement a Work-Sharing program at its Terrebonne plant during the first quarter ended April 30, 2025. This program has allowed the Corporation to mitigate the negative impacts of the decrease in fabrication hours, but not entirely. U.S. tariffs also had an indirect negative impact on the Corporation's margins; impact caused by the increase in the price of steel set by the U.S. steel mills.

Adjusted earning before interest, taxes, depreciation, and amortization ((1) () (adjusted EBITDA) for the fiscal year ended January 31, 2026, totalled $43.5 million, compared with $91.3 millions a year earlier.

For the fiscal year ended January 31, 2026, ADF posted net income of $26.3 million ($0.93 per share basic and diluted) compared with net income of $56.8 million ($1.84 per share, basic and diluted) a year earlier.

As at January 31, 2026, the Corporation had a working capital (1) of $104.8 million, which is $4.4 million less than from the same date a year earlier. Moreover, the Corporation generated cash flow from operating activities totalling $49.4 million during the fiscal year ended January 31, 2026. The Corporation closed the fiscal year ended January 31, 2026, with $62.7 million in liquidities compared with $60.0 million the previous fiscal year, including the buyback and cancellation the Subordinated Voting Shares, totaling $9.0 million during the fiscal year ended January 31, 2026, and the acquisition of Groupe LAR Inc. totaling $16.4 million.

The Corporation's order backlog (1) reached a record high of $561.1 million as at January 31, 2026, compared to $293.1 million as at January 31, 2025. The Corporation's order backlog includes the orders of Groupe LAR, which totaled $138.2 million, and does not include the option to extend the contract announced on July 23, 2025, by five (5) years.

Most of the contracts in hand as at January 31, 2026, will progressively be executed by the end of the fiscal year ending January 31, 2028.

 
(1)  The order backlog, gross margin as a percentage of 
      revenues and working capital are additional financial 
      measures. Refer to the "Non-IFRS and Other Financial 
      Measures" section herein for the definition of these 
      indicators. 
(2)  Adjusted EBITDA is a non-IFRS financial measure. Refer 
      to the "Non-IFRS Financial Measures and Other Financial 
      Measures" section of this press release for the definition 
      of this indicator. 
 

Financial Highlights

 
Fiscal Years Ended January 31,                             2026     2025 
(In thousands of Canadian dollars, and dollars per         $        $ 
 share) 
Revenues                                                   258,736  339,632 
Adjusted EBITDA (1)                                         43,501   91,289 
Income before income taxes expense                          35,793   78,407 
Net income for the fiscal year                              26,311   56,790 
 
 --    Basic and diluted per share                            0.93     1.84 
Cash flows from operations                                  49,417   55,056 
(In thousands)                                              Number   Number 
Average number of outstanding shares (basic and diluted)    28,426   30,852 
 
 
(1)  Adjusted EBITDA is a non-IFRS financial measure. Refer 
      to the "Non-IFRS Financial Measures and Other Financial 
      Measures" section of this press release for the definition 
      of this indicator. 
 

Outlook

"Although the results for the fiscal year ended January 31, 2026 are lower than the exceptional results of the previous year, we can certainly be more than satisfied with the financial and operational performances, and the acquisition of Groupe LAR that we were able to carry out successfully " indicated Mr. Jean Paschini, Chairman of the Board and Chief Executive Officer

"The order backlog increase, including Groupe LAR's inclusion following the acquisition finalized on September 18, 2025, as well as a more neutral breakdown of the order backlog between the U.S. and Canadian projects places ADF in a more appropriate position regarding the new tariffs reality with our neighbours to the south" concluded Mr. Paschini.

Dividend

On April 15, 2026, ADF Group announced the payment of a semi-annual dividend of $0.02 per subordinate voting share and per multiple voting shares, which will be paid on May 15, 2026, to Shareholders of Record as at April 27, 2026.

Conference Call with Investors

A conference call with investors is scheduled for April 16, 2026, at 10 a.m. (Montreal time) to discuss the results of fiscal year ended January 31, 2026.

To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/4brhmzo 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 this conference call will be available from 1:00 p.m. on April 16, 2026, until April 23, 2026, by dialing

1-888-660-6345, followed by access code 40793 #.

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

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

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

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

Results for the first quarter ended April 30, 2026, will also be released at the Annual Meeting of Shareholders.

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-ups, 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 two fabrication plants and two 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 Lac-à-la-Croix, in the 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 shows the extent to which the Corporation generates profits from operations, without considering the following items:

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

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