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.

Financial Highlights

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:

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.

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.

Website: www.adfgroup.com 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

CONSOLIDATED STATEMENTS OF INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

CONSOLIDATED STATEMENTS OF CASH FLOWS

Segmented Information

The Corporation operates one operational sector, being, the non-residential construction industry, primarily in the United States and Canada. This sector includes the following areas of expertise: the design and engineering of connections, fabrication, including industrial coating, and installation of complex steel structures, heavy steel built-ups, as well as miscellaneous and architectural metalwork.

The Corporation also operates in the field of machining, welding and industrial mechanics and offers design, fabrication, and installation of welded steel structures, and customized overhead crane solutions for heavy industry.

Revenues from external clients were allocated to each country on the basis of the project's location.

During the fiscal year ended January 31, 2026, 74% of the Corporation's revenues was realized with two (2) clients, each representing 10% and more of its revenues (78% with two (2) clients during the fiscal year ended January 31, 2025).

The following table presents the breakdown of revenues for each of these clients:

SOURCE ADF Group Inc.