ADF Group Inc. (DRX:TSX)

ADF is entering a multi-year growth phase due to major tailwinds in infrastructure spending and non-residential construction. The U.S. tariffs have put a pause on this.
ADF spent FY22 and FY23 adding a robotic fabrication line to its Terrebonne, Quebec facility, which has significantly expanded margins.
The Company has largely improved its balance sheet over the last few years.
ADF currently trades at 3x FY26E EBITDA, a large discount to its peers.

Investment Summary

ADF Group is a North American leader in the design, engineering, fabrication, and installation of complex steel structures, heavy steel built-ups, as well as in architectural metals for the non-residential infrastructure sector. ADF is one of the few players capable of handling highly technically complex mega projects on fast-track schedules in the commercial, industrial and public sectors. The Company operates two fabrication plants and two paint shops (in Canada and the U.S.).

Company Description