ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE YEAR ENDED JANUARY 31, 2026

ADF GROUP INC. ANNOUNCES THE RESULTS FOR THE YEAR ENDED JANUARY 31, 2026 Canada NewsWire TERREBONNE, QC, April 16, 2026 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-IFRSFinancial 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: Fiscal Years Ended January 31 2026 2025 (In thousands of dollars) $ $ Net income 26,311 56,790 Income taxes expense 9,482 21,617 Net financial expenses 827 1,116 Amortization 6,920 6,160 Fees related to business combination 2,109 - Foreign exchange loss (gain) (2,148) 5,606 Adjusted EBITDA 43,501 91,289 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 As at January 31, 2026 2025 (In thousands of Canadian dollars) $ $ ASSETS Current assets Cash and cash equivalents 62,729 59,983 Accounts receivable 73,259 83,910 Current income taxes assets 5,278 1,586 Contract assets 22,158 26,491 Inventories 19,568 13,489 Derivative financial instruments 465 ― Prepaid expenses 3,822 3,095 Assets held for sale 836 ― Other current assets 3,451 1,010 Total current assets 191,566 189,564 Non-current assets Property, plant and equipment 106,306 91,886 Right-of-use assets 20,579 22,119 Intangible assets 8,345 4,328 Goodwill 97 ― Deferred income tax assets 1,647 ― Other non-current assets 135 ― Total assets 328,675 307,897 LIABILITIES Current liabilities Accounts payable and other current liabilities 58,130 50,236 Current income taxes liabilities 1,634 6,454 Contract liabilities 21,838 11,484 Derivative financial instruments ― 7,198 Current portion of lease liabilities 893 821 Current portion of long-term debt 4,272 4,177 Total current liabilities 86,767 80,370 Non-current liabilities Long-term debt 34,425 38,208 Lease liabilities 2,038 2,423 Deferred income taxes liabilities 21,715 17,449 Other non-current liabilities 125 135 Total liabilities 145,070 138,585 SHAREHOLDERS' EQUITY Capital stock 62,541 61,754 Contributed surplus 5,958 6,179 Accumulated other comprehensive income 8,705 15,536 Retained income 106,401 85,843 Total shareholders' equity 183,605 169,312 Total liabilities and shareholders' equity 328,675 307,897 CONSOLIDATED STATEMENTS OF INCOME Fiscal Years Ended January 31, 2026 2025 (In thousands of Canadian dollars, except the number of shares and the amounts per share) $ $ Revenues 258,736 339,632 Cost of goods sold 198,964 232,391 Gross Margin 59,772 107,241 Selling and administrative expenses 23,191 22,112 Net financial expenses 827 1,116 Fees related to business combination 2,109 ― Foreign exchange (gain) loss (2,148) 5,606 23,979 28,834 Income before income taxes expense 35,793 78,407 Income taxes expense 9,482 21,617 Net income for the fiscal year 26,311 56,790 Earnings per share Basic and diluted per share 0.93 1.84 Weighted average number of outstanding basic and diluted shares (in thousands) 28,426 30,852 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Years Ended January 31, 2026 2025 (In thousands of Canadian dollars) $ $ Net income for the fiscal year 26,311 56,790 Other comprehensive income (loss): Exchange differences on translation of foreign operations (a) (6,831) 7,253 Comprehensive income for the fiscal year 19,480 64,043 (a) Will subsequently be reclassified to net income. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Retained Income Total (In thousands of Canadian dollars) $ $ $ $ $ Balance, February 1, 2024 68,127 6,435 8,283 79,285 162,130 Net income for the fiscal year ― ― ― 56,790 56,790 Other comprehensive income ― ― 7,253 ― 7,253 Comprehensive income for the fiscal year ― ― 7,253 56,790 64,043 Buyback and cancellation of shares (6,373) (256) ― (49,308) (55,937) Dividends ― ― ― (924) (924) Balance, January 31, 2025 61,754 6,179 15,536 85,843 169,312 Capital Stock Contributed Surplus Accumulated Other Comprehensive Income Retained Income Total (In thousands of Canadian dollars) $ $ $ $ $ Balance, February 1, 2025 61,754 6,179 15,536 85,843 169,312 Net income for the fiscal year ― ― ― 26,311 26,311 Other comprehensive income ― ― (6,831) ― (6,831) Comprehensive income for the fiscal year (6,831) 26,311 19,480 Buyback and cancellation of shares (2,907) (221) ― (4,591) (7,719) Issuance of shares 3,694 ― ― (16) 3,678 Dividends ― ― ― (1,146) (1,146) Balance, January 31, 2026 62,541 5,958 8,705 106,401 183,605 CONSOLIDATED STATEMENTS OF CASH FLOWS Fiscal Years Ended January 31, 2026 2025 (In thousands of Canadian dollars) $ $ OPERATING ACTIVITIES Net income for the fiscal year 26,311 56,790 Non-cash items: Amortization of property, plant and equipment 5,518 4,917 Amortization of right-of-use assets 772 745 Amortization of intangible assets 630 498 Loss (gain) on derivative financial instruments (7,662) 7,403 Non-cash foreign exchange gain 2,525 (5,298) Share-based compensation 987 1,386 Income taxes expense 9,482 21,617 Investment tax credit 680 (1,601) Net financial expenses 827 1,116 Interest income 1,871 2,590 Provision for inventories depreciation (294) 212 Others (283) (362) Net income adjusted for non-cash items 41,364 90,013 Change in non-cash working capital items (1) 25,012 (25,067) Income taxes paid (16,959) (9,890) Cash flows from operating activities 49,417 55,056 INVESTING ACTIVITIES Business combination, net of cash acquired (16,381) ― Acquisition of property, plant and equipment (7,402) (8,283) Acquisition of intangible assets (3,666) (810) Others 176 384 Cash flows used in investing activities (27,273) (8,709) FINANCING ACTIVITIES Repurchase and cancellation of shares (9,001) (54,574) Repayment of the long-term debt (4,024) (3,076) Payment of lease liabilities (719) (700) Dividends paid (1,146) (924) Interest paid (1,925) (2,795) Cash flows used in financing activities (16,815) (62,069) Impact of fluctuations in foreign exchange rate on cash and cash equivalents (2,583) 3,326 Net change in cash and cash equivalents during the fiscal year 2,746 (12,396) Cash, and cash equivalents, beginning of fiscal year 59,983 72,379 Cash and cash equivalents, end of fiscal year 62,729 59,983 (1) The following table sets out in detail the components of the "Change in non-cash working capital items": Fiscal Years Ended January 31, 2026 2025 (In thousands of Canadian dollars) $ $ Accounts receivable 14,599 159 Contract assets 10,438 20,210 Inventories (2,813) 244 Prepaid expenses 264 (658) Other current assets (2,730) 776 Accounts payable and other current liabilities (893) (9,398) Contract liabilities 6 157 (36,389) Others (10) (11) Change in non-cash working capital items 25,012 (25,067) 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. Fiscal Years Ended January 31, 2026 2025 (In thousands of Canadian dollars) $ $ Revenues Canada 42,798 40,836 United States 215,938 298,796 258,736 339,632 As at January 31, 2026 2025 (In thousands of Canadian dollars) $ $ Non-current assets (1) Canada 89,322 68,624 United States 46,140 49,709 135,462 118,333 (1) The non-current assets mainly include property, plant and equipment, intangible assets, right-of-use assets, goodwill and others non-current assets. 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: Fiscal Years Ended January 31, 2026 (1) 2025 (1) (In thousands of Canadian dollars) $ $ Client A 128,412 170,351 Client B 62,423 ― Client C ― 93,383 190,835 263,734 (1) From the United States. SOURCE ADF Group Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2026/16/c7789.html Contact: Jean Paschini, Chairman of the Board of Directors and Chief Executive Officer; Jean-François Boursier, CPA, Chief Financial Officer, Telephone: (450) 965-1911