DRX: Executing on Growth; $157.3M in New Contracts
What you need to know:• ADF announced $157.3M in new contracts across Quebec and the western US, including a four-year hydroelectric master contract at Groupe LAR’s Metabetchouan facility.
• Other contracts include transportation infrastructure and commercial building projects in the western US, utilizing Great Falls and Terrebonne.
• On a pro-forma basis, today’s contracts lift ADF’s order backlog to $718.4M, from $561.1M reported at the end of January.
• ADF is set to report its FY26 financials on April 16th pre-market, with a conference call to follow on the same day at 10AM EST.
This morning, ADF Group (DRX:TSX, ADFJF:OTCPK) announced $157.3M in new contract awards across Quebec and the western US. The largest contract is a four-year master contract for the fabrication and delivery of heavy steel structures for a hydroelectric project in Quebec, with fabrication to begin shortly at Groupe LAR’s Metabetchouan, Quebec plant. The remaining contracts cover transportation infrastructure and commercial buildings in the western US, involving ADF’s Terrebonne and Great Falls facilities. On a pro-forma basis, these awards lift ADF’s backlog to $718.4M, from $561.1M as of January 31st. We are maintaining our BUY rating and our target price of $13.00/share on ADF Group.
The 4-year duration of the hydroelectric contract is notable, providing multi-year revenue visibility at LAR and marking the first meaningful contract win in the hydro sector since ADF's September 2025 acquisition. This is precisely the use case management outlined when acquiring LAR, and the speed at which it has executed is encouraging. Hydro-Quebec's planned $35-45B in infrastructure investment through 2035 remains a significant long-term tailwind for LAR’s Metabetchouan and ADF’s Terrebonne facilities.
Today's announcement also reinforces that ADF's US business remains active despite the broader pivot toward Canadian projects. The transportation and commercial contracts in the western US, to be completed via the Great Falls, Montana facility, are a strong sign and suggest the US fabrication business is holding up alongside the LAR ramp-up, despite the trade tensions.
ADF Group is engaged in the design and engineering of connections, fabrication and installation of complex steel superstructures, heavy steel built-ups, as well as architectural and miscellaneous metalwork for the five principal segments of the non-residential construction market namely, office towers and high-rises, commercial and recreational buildings, airport facilities, industrial complexes and nuclear facilities, and transport infrastructures.
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