Earnings release
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PRESS RELEASE (1) Gross margin as a percentage of revenue and the order backlog are additional financial measures. Refer to the Non-IFRS and Other Financial Measures section below for definitions of these measures. (2) Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS and Other Financial Measures section below for the definition of this indicator. ADF GROUP INC. ANNOUNCES THE RESULTS OF THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JULY 31, 2026 HIGHLIGHTS (All amounts are in Canadian dollars unless otherwise indicated.) — Revenues of $95.0 million and $194.3 million recorded during the three (3) and six (6) month periods ended July 31, 2026, an increase of 79.3% and 79.0% respectively compared with the same periods last year. — Net income of $3.0 million and $15.0 million recorded in the three (3) month and six (6) month periods ended July 31, 2026, up compared with the same periods in 2025. — Results for the 3-month and 6-months periods ended July 31, 2026, were strongly and negatively affected by non- cash items not directly related to operating activities which reduced net income by $6.2 million ($0.22 per share) and $7.1 million ($0.25 per share), respectively. — Cash and cash equivalent at $91.4 million as at July 31, 2026. — Record high order backlog (1) of $693.7 million as at July 31, 2026, 64% of which is in Canada, including $243.3 million attributable to Groupe LAR Inc. Terrebonne, Quebec, September 10, 2026 ADF GROUP INC. ("ADF" or the "Corporation") (TSX/DRX), recorded revenues of $95.0 million in the second quarter ended July 31, 2026, compared with $53.0 million for the same period a year earlier. After the first six (6) months of the fiscal year, revenues totaled $194.3 million, an increase of $85.8 million compared with the same period a year earlier. Gross margin, as a percentage of revenue (1) went from 20.7% for the three (3) months ended July 31, 2025, to 18.7% for the same period ended July 31, 2026. Gross margin, as a percentage of revenue (1) went from 21.3% in the first six (6) months ended July 31, 2025, to 21.5% in the same period ended July 31, 2026. The increase in revenues is in line with the order backlog growth. It should also be noted that revenues for the periods ended July 31, 2025, were adversely affected by the work-sharing program that had been implemented at ADF’s Terrebonne plant during the second quarter ended July 31, 2025, in light of the uncertainties caused by U.S. tariffs. The change in gross margin, both in dollar terms and as a percentage of revenues, mainly reflects higher revenues , which favors better absorption of fixed costs. However, this positive effect was mitigated by higher input costs, particularly the price of steel, as well as by recent changes in customs duties. Compared with the same periods a year earlier, a djusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) (2) for the 3-month and 6-month periods ended July 31, 2026, went up by $4.7 million and $12.8 million respectively. It should be noted that the Adjusted EBITDA for the 3 -month and 6-month periods ended July 31, 2026, were severely and negatively impacted by the expense associated with Deferred Share Units ("DSUs"), Performance Share Units ("PSUs") and Restricted Share Units ("PSUs"), including the adjustment to the market value of these share units issued to external members of the Board of Directors and to certain offi cers and employees of the Corporate, in line with the variation in the Corporation's share price during the periods analyzed. This reduced EBITDA by $5.9 million and $7.7 million for the 3-month and 6-month periods ended July 31, 2026, respectively. ADF recorded net income of $3.0 million ($0.10 per share basic and diluted) during the 3-months ended July 31, 2026, compared with net income of $0.9 million ($0.03 per share, basic and diluted) a year earlier. After six (6) months, net income as at July 31, 2026, totalled $15.0 million ($0.52 per share, basic and diluted) compared with net income of $9.6 million ($0.34 per share, basic and diluted) for the same period a year earlier. Besides the expense related to the share units, the foreign exchange loss also had a negative impact on net income for the periods ended July 31, 2026. In total, DSUs, PSUs and RSUs had a negative impact on net income of $4.3 million ($0.15 per share, basic and diluted) and $5.6 million ($0.20 per share, basic and diluted) for the 3-month and 6-month periods ended July 31, 2026, respectively. The foreign exchange loss had a negative impact of $1.8 million or $0.06 per share , basic and diluted and $1.4 million, or $0.05 per share, basic and diluted for the same periods, respectively.
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ADF GROUP INC. – Press Release September 10, 2026 Page 2 of 4 As at July 31, 2026, the Corporation's order backlog (1) reached a new record high of $693.7 million, compared with $561.1 million as at January 31, 2026. As at July 31, 2026, the order backlog includes $243.3 million attributable to Groupe LAR Inc., acquired on September 18, 2025, and excludes the 5-year extension option on the contract announced on July 23, 2025. Excluding the long-term contracts announced in July 2025 and April 2026, most of the order backlog in hand as at July 31, 2026, is expected to be progressively executed by the end of the 2028 fiscal year. As at July 31, 2026, the Corporation had working capital (1) of $109.5 million. The Corporation’s operating activities generated liquidities of $47.1 million during the first six months ended July 31, 2026. The Corporation remains well positioned to continue its ongoing operations and carry out its development projects. (1) Order backlog and working capital are additional financial measures. Refer to the Non-IFRS and Other Financial Measures section below for definitions of these measures. Financial Highlights 3 Months 6 Months Periods Ended July 31, 2026 2025 2026 2025 (In thousands of dollars, and in dollars per share) $ $ $ $ Revenues 95,030 53,006 194,291 108,529 Adjusted EBITDA (1) 8,442 3,702 26,929 14,097 Income before income taxes expense 3,900 1,238 20,374 12,970 Net income for the period 2,950 898 14,987 9,644 — Per share, basic and diluted 0.10 0.03 0.52 0.34 (In thousands) Number Number Number Number Weighted average number of shares outstanding (basic and diluted) 28,553 28,438 28,553 28,416 (1) Adjusted EBITDA is a non-IFRS financial measure. Refer to the Non-IFRS and Other Financial Measures section below for the definition of this indicator. Outlook Mr. Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer, mentioned that "r esults for the periods ended July 31, 2026, were mixed. Despite a second consecutive quarter with revenues exceeding $90 million, the results for the quarter ended last July 31, were significantly impacted by non-cash items indirectly related to our activities." “We continue to operate in an environment shaped by the tariff discussions between Canada and the United States, but we are keeping our focus on elements we can control, namely our liquidity management, the growth of our order backlog, the integration of the Groupe LAR, including the expansion project at our plant in Métabetchouan-Lac-à-la-Croix, in the Lac Saint- Jean Region, Quebec, in order to pursue our sound and sustainable growth" concluded Mr. Paschini. Dividend On September 9, 2026, the Board of Directors of ADF Group approved the payment of a semi -annual dividend of $0.02 per Subordinate Voting Share and Multiple Voting Share payable on October 15, 2026, to Shareholders of Record as of September 25, 2026. Conference Call with Investors A conference call with investors is scheduled for today, September 10, 2026, at 10 a.m. (Montreal time) to discuss the results of the 3-month and 6-month periods ended July 31, 2026. To join the conference call without operator assistance, you can register with your phone number on https://emportal.ink/4vEHaRS 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, September 10, 2026, until midnight September 17, 2026, by dialing 1-888-660-6345; followed by the access code 32478 #. The conference call (audio) will also be available at www.adfgroup.com.. Members of the media are invited to join in listening mode.
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ADF GROUP INC. – Press Release September 10, 2026 Page 3 of 4 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 componen ts, as well as in miscellaneou s 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, indust rial 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, fabrication and insta llation 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 in volve 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: 3 Months 6 Months Periods Ended July 31, 2026 2025 2026 2025 (In thousands of dollars) $ $ $ $ Net income 2,950 898 14,987 9,644 Income taxes expense 950 340 5,387 3,326 Net financial expenses 70 74 377 91 Amortization 2,154 1,563 4,231 3,152 Foreign exchange loss (gain) 2,318 827 1,947 (2,116) Adjusted EBITDA 8,442 3,702 26,929 14,097 — 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 back log disclosed by the Corporation therefore includes the portion of confirmed contracts that have not been put into production.
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ADF GROUP INC. – Press Release September 10, 2026 Page 4 of 4 — 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. Contact: Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer Jean-François Boursier, CPA, Chief Financial Officer Telephone: (450) 965-1911 Website: www.adfgroup.com