ADF GROUPE ANNOUNCES THE SIGNING OF A SERIES OF NEW CONTRACTS IN QUEBEC AND IN THE U.S.A. WORTH $157.3 MILLION

• On 9 Apr 2026 ADF announced signed fabrication contracts in Quebec (hydro‑electric) and the United States worth C$157.3 million.
• The flagship deal is a four‑year master agreement for heavy steel structures supporting a major hydro project in Québec, to be built at the recently acquired Groupe LAR plant.
• Additional U.S. contracts cover transportation infrastructure and commercial buildings, to be fabricated at ADF’s Terrebonne (QC) and Great Falls (MT) facilities.
• Including these new orders, order backlog rises to C$561.1 million (as of 31 Jan 2026), excluding the newly announced work.
• Management reiterates that the LAR acquisition (Sept 2025) is now delivering capacity and diversification benefits.

• Backlog expansion: The backlog increase of roughly C$64 million (from C$497 M in Jan 2026 to C$561 M) represents a ~13% uplift, materially improving revenue visibility for the next 2‑3 years.
• Sector exposure: The hydro‑electric contract aligns with Québec’s multi‑billion‑dollar investment plan through 2035, providing a relatively stable, government‑backed pipeline.
• Geographic diversification: U.S. contracts mitigate concentration risk and tap into potential tariff‑driven demand for domestic steel fabricators.
• Capital efficiency: All work will be executed at existing or newly acquired capacity (LAR plant), limiting immediate capex outlay beyond the previously announced C$35 M LAR upgrade program.
• Earnings outlook: Assuming average gross margin of ~28% (historical Q3‑2025) on the new contracts, incremental EBITDA could be in the range of C$40‑45 million over the contract life, a meaningful boost to FY‑2026/27 earnings.

Overall, the announcement exceeds prior expectations for order flow and materially strengthens ADF’s near‑term financial outlook → Material – Positive.

ADF Group Inc. is a North‑American steel fabrication company serving hydro‑electric, transportation, and commercial construction markets. Its flagship project is the four‑year heavy‑steel structure contract for a Québec hydro‑electric plant, executed at the Groupe LAR facility in Métabetchouan. The acquisition of Groupe LAR (Sept 2025) expanded ADF’s capacity to produce specialized hydro‑electric steel components.