Q1 2027 ADF Group Inc Earnings Call

June 9, 2026

Operator: Good morning, ladies and gentlemen, and welcome to the ADF Group Inc. Results for the Three-Month Period Ended 30 April 2026 Conference Call. At this time, note that all participant lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star for the operator. Sorry, star zero for the operator. Also note that this call is being recorded on Tuesday, 9 June 2026. I would now like to turn the conference over to Monsieur Jean-François Boursier, Chief Financial Officer. Please go ahead, sir.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. And if at any time during this call you require immediate assistance, please press star for the operator.

Speaker #1: I'm sorry, star zero for the operator. Also note that this call is being recorded on Tuesday, June 9, 2026. I would now like to turn the conference over to Mr. Jean-François Boursier, Chief Financial Officer.

Speaker #1: Please go ahead, sir.

Jean-François Boursier: Merci. Good morning, and welcome to ADF's conference call covering the Q1 ended 30 April 2026. I am with Pierre Paschini, Chief Operating Officer of ADF, who will be available to answer your questions at the end of the call. We are currently an hour from hosting our 2026 annual shareholders meeting, which will take place here at our corporate office in Terrebonne. I will now update you on our quarterly results, which were disclosed earlier this morning by press release. First, a word of caution. Please note that some of the issues discussed today may include forward-looking statements. These are documented in ADF Group's management report for the Q1 ended 30 April 2026, which were filed with SEDAR this morning. Our fiscal 2027 is off to an excellent start.

Speaker #2: Merci. Good morning and welcome to ADF's conference call covering the first quarter and the April 30, 2026. I am with Pierre Pasquini, Chief Operating Officer of ADF, who will be available to answer your questions at the end of the call.

Speaker #2: We are currently in our form-hosting for our 2026 Annual Shareholders' Meeting, which will take place here at our corporate office in Taubon. I will now update you on our quarterly results, which were disclosed earlier this morning by press release.

Speaker #2: First, a word of caution. Please note that some of the issues discussed today may include forward-looking statements. These are documented in ADF Group's Management Report.

Speaker #2: For the first quarter and the April 30, 2026, which were filed with CEDAR this morning. Our fiscal 2027 is off to an excellent start.

Speaker #2: Even if we are dealing with the numerous and never-ending tariff changes, we are still keeping our focus and managing these challenges proactively. Revenues during the three-month period ended April 30, 2026, total 99.3 million dollars, 78.8% higher than the 55.5 million dollars for the same period ended a year ago.

Jean-François Boursier: Even if we are dealing with the numerous and never-ending tariff changes, we are still keeping our focus and managing these challenges proactively. Revenues during the three-month period ended 30 April 2026, totaled CAD 99.3 million, 78.8% higher than the CAD 55.5 million for the same period ended a year ago. The increase comes from the recently signed contracts, which are now in fabrication. It is also worth mentioning that our Q1 revenues a year ago were negatively impacted by the then recently announced tariffs. The gross margin at CAD 24.4 million almost double when compared with the same period of the previous fiscal year. Gross margin as a percentage of revenues went from 22% during the three-month period ended 30 April 2025, to 24.2% during the same period ended 30 April 2026.

Speaker #2: The increase comes from the recently signed contracts, which are now in fabrication. It is also worth mentioning that our first quarter revenues a year ago were negatively impacted by the then recently announced tariffs.

Speaker #2: The gross margin at 24.0 million dollars almost doubled when compared with the same period of the previous fiscal year. Gross margin as a percentage of revenues went from 22% during.

Speaker #2: Three-month period ended April 30, 2025, to 24.2% during the same period ended April 30, 2026. The increase in margin, both in dollars and as a percentage of revenues, is explained by the higher revenues, which improves the absorption of fixed costs despite higher input prices, including the price of steel and the recent changes to tariffs.

Jean-François Boursier: The increase in margin, both in CAD and as a percentage of revenues, is explained by the higher revenues, which improves the absorption of fixed costs despite higher input prices, including the price of steel and the recent changes to tariffs. The revenues and margin for the quarter ending 30 April 2026, are now inclusive of the Groupe LAR acquisition, which was finalized in September 2025. As such, our revenues and gross margin for the quarter ended 30 April 2026, included CAD 18.1 million and CAD 1.3 million respectively, coming from Groupe LAR. For the three-month period ended 30 April 2026, selling and administrative expenses amounted to CAD 7.6 million, posting a CAD 4.2 million increase compared with the same period a year ago.

Speaker #2: The revenues and margin for the quarter ending April 30, 2026 are now inclusive of the group law acquisition, which was finalized in September 2025.

Speaker #2: As such, our revenues and gross margin for the quarter ended April 30, 2026, included $18.1 million and $1.3 million, respectively, coming from group laws.

Speaker #2: For the three-month period ended April 30, 2026, selling and administrative expenses amounted to 7.6 million dollars posting a 4.2 million dollars increase compared with the same period a year ago.

Speaker #2: This variation is mainly explained by the adjustment in the market value of deferred share units and performance share units granted to external board of directors' members and certain members of senior management, in line with the variation in the Corporation’s share price during the periods analyzed.

Jean-François Boursier: This variation is mainly explained by the adjustment in the market value of Deferred Share Units and in Performance Share Units granted to external board of directors members and certain members of senior management, in line with the variation in the corporation share price during the periods analyzed. The acquisition of Groupe LAR also had an upward impact on selling administrative expenses of CAD 1.1 million during the three-month period ended 30 April 2026. We therefore closed our first quarter with net income of CAD 12 million, or CAD 0.42 per share, compared to CAD 8.7 million or CAD 0.30 per share for the same quarter a year ago. Our balance sheet remains very strong. We closed our first quarter, ended last 30 April, with cash and cash equivalent of CAD 62.1 million, only CAD 0.6 million lower than our 31 January 2026 ending balance. Working capital stood at CAD 111.9 million for a 2.2:1 ratio.

Speaker #2: The acquisition of Group Law also had an upward impact on selling and administrative expenses of $1.1 million during the three-month period ended April 30, 2026.

Speaker #2: We therefore close our first quarter with net income of $12 million, or $0.42 per share, compared to $8.7 million, or $0.30 per share, for the same quarter a year ago.

Jean-François Boursier: We therefore closed our first quarter with net income of CAD 12 million, or CAD 0.42 per share, compared to CAD 8.7 million or CAD 0.30 per share for the same quarter a year ago. Our balance sheet remains very strong. We closed our first quarter, ended last 30 April, with cash and cash equivalent of CAD 62.1 million, only CAD 0.6 million lower than our 31 January 2026 ending balance. Working capital stood at CAD 111.9 million for a 2.2:1 ratio.

Speaker #2: Our balance sheet remains very strong. We closed our first quarter and did last April 30 with cash and cash equivalent of 62.1 million 0.6 million dollars lower than our January 31, 2026, ending balance.

Speaker #2: Working capitals stood at 111.9 million dollars for a 2.2 to 1 ratio. Acquisition of property plan and equipment and intangible assets for the first quarter ended last April 30, total 9 million dollars including the modification of an existing fabrication bay in Taubon, the start of the expansion capex and metabituan for group law, and the redesign of the corporation's integrated ERP software package.

Jean-François Boursier: Acquisition of property, plant and equipment and intangible assets for the first quarter ended last 30 April total CAD 9 million, including the modification of an existing fabrication bay in Terrebonne, the start of the expansion CapEx in Métabetchouan for Groupe LAR, and the redesign of the corporation's integrated ERP software package. We actually had the first shovel ceremony last week for our LAR expansion project. We expect full-year CapEx to be approximately CAD 35 million. Finally, we closed the quarter with a record-breaking backlog of CAD 645.8 million. This backlog includes CAD 266.5 million coming from Groupe LAR, which includes the multi-year contract announced last April. Worth mentioning, the 30 April 2026 backlog includes 72% of Canadian projects. As previously mentioned, we are very satisfied with the results of our first quarter, which is highlighted by the progress of our operating activities and the ongoing growth of our order backlog.

Speaker #2: We actually had the first shovel ceremony last week for our law expansion project. We expect full-year capex to be approximately 35 million dollars. Finally, we closed the quarter with a record-breaking backlog of 645.8 million dollars.

Jean-François Boursier: Finally, we closed the quarter with a record-breaking backlog of CAD 645.8 million. This backlog includes CAD 266.5 million coming from Groupe LAR, which includes the multi-year contract announced last April. Worth mentioning, the 30 April 2026 backlog includes 72% of Canadian projects. As previously mentioned, we are very satisfied with the results of our first quarter, which is highlighted by the progress of our operating activities and the ongoing growth of our order backlog.

Speaker #2: This backlog includes $266.5 million coming from group law, which includes the multi-year contract announced last April. Worth mentioning, the April 30, 2026 backlog includes 72% of Canadian projects.

Speaker #2: As previously mentioned, we are very satisfied with the results of our first quarter which is highlighted by the progress of our operating activities and the ongoing growth of our quarter backlog.

Speaker #2: As announced this past April, we have finalized a long-term contract in the hydroelectric sector in Quebec for group law which confirms our optimism expressed in our year-end reporting and communication and highlights the importance of the investments we will make in the coming quarters to not only increase the production capacity of group law's plant but also outfit it with state-of-the-art equipment.

Jean-François Boursier: As announced this past April, we have finalized a long-term contract in the hydroelectric sector in Quebec for Goclaw, which confirms our optimism expressed in our year-end reporting and communication, and highlights the importance of the investments we will make in the coming quarters to not only increase the production capacity of Goclaw's plant, but also outfit it with state-of-the-art equipment. Our financial position remains strong, and we are continuing our discussion with the goal of securing adequate financing for our capital investment in Alex-Anger. As such, we were able to reach an agreement with the federal government for a CAD 12.5 million loan, which, subject to certain conditions, would be 50% forgivable and 50% interest-free. We expect to have the full financing package confirmed before the end of the Q2, ending next 31 July.

Speaker #2: Our financial position remains strong, and we are continuing our discussions with the goal of securing adequate financing for our capital investment in Lexangia. As such, we were able to reach an agreement with the federal government for a $12.5 million loan which, subject to certain conditions, would be 50% forgivable and 50% interest-free.

Jean-François Boursier: Our financial position remains strong, and we are continuing our discussion with the goal of securing adequate financing for our capital investment in Alex-Anger. As such, we were able to reach an agreement with the federal government for a CAD 12.5 million loan, which, subject to certain conditions, would be 50% forgivable and 50% interest-free. We expect to have the full financing package confirmed before the end of the Q2, ending next 31 July.

Speaker #2: We expect to have the full financing package confirmed before the end of the second quarter, ending next July 31. Though our market remains active, U.S. tariffs policy remains a significant irritant and will continue to put pressure, directly and indirectly, on our cost structure.

Jean-François Boursier: Though our market remains active, US tariffs policy remains a significant irritant and will continue to add pressure, directly and indirectly, to our cost structure. This being said, and as shown by our results for the first quarter, our proactive approach allows us to continue our orderly growth and minimize the risks associated with existing uncertainties. Thank you for your interest and confidence in ADF. J.I. and I will now answer your questions.

Speaker #2: This being said, and as shown by our results for the first quarter, our proactive approach allows us to continue our orderly growth and minimize the risks associated with existing uncertainties.

Speaker #2: Thank you for your interest and confidence in ADF. GI and I will now answer your questions.

Speaker #1: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touch-tone phone.

Operator: Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to withdraw from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions. Thank you. Your first question will be from Nicholas Cortellucci at Atrium. Please go ahead.

Speaker #1: You will then hear a prompt that your hand has been raised. And should you wish to withdraw from the polling process, please press star followed by two.

Speaker #1: And if you're using your speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you have any questions.

Speaker #1: Thank you. And your first question will be from Nicholas Cottalucci at Atrium. Please go ahead.

Speaker #3: Morning, gentlemen. Thanks for answering my questions. And congrats on the quarter here. It's really strong results.

Nicholas Cortellucci: Morning, gentlemen. Thanks for answering my questions, and congrats on the quarter here. It's really strong results.

Speaker #4: Thanks, Nick.

Jean-François Boursier: Thanks, Nick.

Jean-François Boursier: Thanks, Nic.

Speaker #3: So I was wondering about the timeframe on the lower capex plan. Is it kind of a phased approach or how long do you think it'll take to get a meaningful revenue impact from that?

Nicholas Cortellucci: I was wondering about the timeframe on the large CapEx plan. Is it kind of a phased approach, or how long do you think will it'll take to get a meaningful revenue impact from that?

Speaker #4: Well, construction actually—as I mentioned, we had the first shovel ceremony last week. We actually started construction on the site yesterday. We plan to have the building closed out before the winter, so around November or December, and finalize the setup during the winter.

Jean-François Boursier: Well, construction, actually, as I mentioned, we had the first shovel ceremony last week. We actually started construction on the site yesterday. We plan to have the building closed out before the winter, so around November, December, finalize the setup during the winter. Technically April, May, the plan should be up and running. Starting with the Q2 of next fiscal year, we should start to see some impact from the additional volume and the improved efficiency coming from the new equipment.

Speaker #4: So technically, April, May, the plan should be up and running. So starting with the second quarter of next fiscal year, we should start to see some impact from the additional volume and the improved efficiency coming from the new equipment.

Speaker #3: Okay. And would you be able to tell us what LAR's capacity was prior to this? Maybe just in dollars versus after or maybe even just a percentage increase if that is easier.

Nicholas Cortellucci: Great. Would you be able to tell us what LAR's capacity was prior to this, maybe just in CAD versus after, or maybe even just a % increase if that was easier?

Speaker #4: Well, they typically volume-wise with the mix of product, the present they have, they were able to do about 100 million, maybe a bit more, the expansion will double the capacity.

Jean-François Boursier: Well, typically, volume wise, with the mix of product they presently have, they were able to do about CAD 100 million, maybe a bit more. The expansion will double the capacity. Again, depending on mix, we should be able to double that. On a revenue standpoint, it always depends on margins and the pricing of the projects, but basically the expansion should double the capacity.

Speaker #4: So again, depending on mix, we should be able to double on a revenue standpoint. It always depends on margins and the pricing of the projects.

Speaker #4: But basically, the expansion should double the capacity.

Speaker #3: Okay. Okay. That sounds good. And then for JF, on the SGNA levels going forward, is this kind of the baseline, what we saw in Q4 and Q1, if we exclude the stock-based compensation?

Nicholas Cortellucci: Okay. That sounds good. For J.F., on the SG&A levels going forward, is this kind of the baseline, what we saw in Q4 and Q1, if we exclude the stock-based compensation?

Speaker #4: Yes. Yes, pretty much. LAR is included. So as I mentioned, the impact of LAR alone in Q1 is 1.1. We can grow the revenues without really having to grow much of the SGNA, at least not significantly.

Jean-François Boursier: Yes. Pretty much. LAR is included, as I mentioned, the impact of LAR alone in Q1 is CAD 1.1. We can grow the revenues without really having to grow much of the SG&A, at least not significantly. Besides inflation on salaries, SG&A should be pretty flat. There's always the PSUs and DSUs fluctuation based on market. Just based on this morning's stock reaction, my SG&A just went up significantly, so I guess that's good. Besides that, it should be pretty stable.

Speaker #4: So besides inflation on salaries, SG&A should be pretty flat. There's always the PSUs and DSUs fluctuation based on the market. So just based on this morning's stock reaction, my SG&A just went up significantly.

Speaker #4: But I guess that's good. But besides that, there's it should be pretty stable.

Speaker #3: Okay. Got it. Understood. And then last but for me, if you guys have an update on more of kind of the growth sectors or growth projects, whether that's nuclear, data centers, are you seeing any more volume in areas like that?

Nicholas Cortellucci: Okay. Got it. Understood. Last one for me, if you guys have an update on more of kind of like the growth sectors or growth projects, whether that's nuclear or data centers, are you seeing any more volume in areas like that?

Speaker #4: Yeah. Most beautiful skinny. Okay. Yeah. We've got some volumes coming in the States also. We're looking at some data centers and some other jobs, big jobs that we could do a great falls and all that.

Pierre Paschini: Yeah, I'm Pierre Paschini. Okay. Yeah, we've got some volumes coming in the space also. We're looking at some data centers and.

Pierre Paschini: Yeah, I'm Pierre Paschini. Okay. Yeah, we've got some volumes coming in the space also. We're looking at some data centers and some other jobs, big jobs that we can do at Great Falls and all that. I think there's a lot of jobs bidding. There's competition. There's niche work that we can do over here in Canada. Well, there's a lot of work coming with Quebec and other places in Ontario, also some nuclear stuff. We'll be busy in estimating, basically.

Pierre Paschini: Some other jobs, big jobs that we can do at Great Falls and all that. I think there's a lot of jobs bidding. There's competition. There's niche work that we can do over here in Canada. Well, there's a lot of work coming with Quebec and other places in Ontario, also some nuclear stuff. We'll be busy in estimating, basically. We grew our gang to do more estimates so we can pick up more work, but at decent prices. For us, market is good. The reason why we're able to do what we're doing is that we can do jobs in the States. Buy American Act is not an issue with the Great Falls plant and some other stuff. Even with the tariffs, with the new equipment, we can be competitive here in Montreal.

Speaker #4: So I think there's a lot of jobs bidding. There's competition. There's niche work that we can do over here and in Canada. Well, there's a lot of work coming with Hydro-Quebec and other places in Ontario also, some nuclear stuff.

Speaker #4: So, we'll be busy in estimating. I mean, basically. So, we grew our gang to do more estimates, so we can pick up more work.

Pierre Paschini: We grew our gang to do more estimates so we can pick up more work, but at decent prices. For us, market is good. The reason why we're able to do what we're doing is that we can do jobs in the States. Buy American Act is not an issue with the Great Falls plant and some other stuff. Even with the tariffs, with the new equipment, we can be competitive here in Montreal. LAR, well, LAR I think is quite an acquisition and they're going to do their work. There's enough volume, and I think the volume is going to be there for the next five years.

Speaker #4: But that decent price is for us, I mean, it's market is good. I mean, the reason why we're able to do what we're doing is that we can do jobs in the States by American Act is not an issue with the great fall plan.

Speaker #4: And some other stuff, I mean, even with the tariffs with the new equipment, we can be competitive here in Montreal. And LAR, I think, is quite an acquisition.

Pierre Paschini: LAR, well, LAR I think is quite an acquisition and they're going to do their work. There's enough volume, and I think the volume is going to be there for the next five years.

Speaker #4: And it's getting they're going to do their work. I mean, there's enough clients and I think the volume is going to be there for the next five years.

Speaker #3: Yeah. Very good. Okay. Thanks for answering my questions. And congrats again, Jens.

Nicholas Cortellucci: Yeah, very good. Okay. Thanks for answering my questions and congrats again, guys.

Speaker #4: Thanks, Nick.

Jean Paschini: Thanks, Dave. Thanks.

Jean-François Boursier: Thanks, Dave. Thanks.

Speaker #3: Thanks.

Speaker #1: Once again, ladies and gentlemen, if you do have any questions, please press star followed by one on your touchdown phone. Next question will be from Sébastien Charlin at AGIV Capital.

Operator: Once again, ladies and gentlemen, if you do have any questions, please press star followed by one on your touchtone phone. Next question will be from Sébastien Charland at Agave Capital. Please go ahead.

Speaker #1: Please go ahead.

Speaker #5: Bon matin, messieurs. Félicitations pour le trimestre record.

Sébastien Charland: Good morning, gentlemen. Congratulations on the record quarter.

Sébastien Charland: Good morning, gentlemen. Congratulations on the record quarter. My first question is regarding the gross margin. I think a very positive surprise this morning. Last quarter, I believe the guidance or perhaps what we discussed was more in the lower 20% range, 20% to 22%. It seems we're recovering towards that 24% and up despite the lower margin contracts at LAR. I'm just wondering what could explain the stronger performance in Q1. I think we were more expecting this in H2. Has there been any project pull forward? Anything exceptional? Do you expect a Q2 a bit weaker?

Speaker #4: Merci.

Jean Paschini: Sébastien.

David Brown: My first question is regarding the gross margin. I think a very positive surprise this morning. Last quarter, I believe the guidance or perhaps what we discussed was more in the lower 20% range, 20% to 22%. It seems we're recovering towards that 24% and up despite the lower margin contracts at LAR. I'm just wondering what could explain the stronger performance in Q1. I think we were more expecting this in H2. Has there been any project pull forward? Anything exceptional? Do you expect a Q2 a bit weaker?

Speaker #5: My first question is regarding the gross margin. I think a very positive surprise this morning. Last quarter, I believe the guidance or perhaps what we discussed was more in the lower 20% range, 20 to 22.

Speaker #5: It seems we're recovering towards that 24 and up despite the lower margin contracts at LAR. I'm just wondering what could explain the stronger performance in Q1.

Speaker #5: I think we were more expecting this in the second half of the year. Has there been any project pull-forward or anything exceptional? Do you expect the second quarter to be a bit weaker?

Speaker #4: Well, I'd love to be more precise on the guidance, and that's why we don't provide specific guidance. But sometimes it's not a whole lot of things.

Jean-François Boursier: Well, I'd love to be more precise on the guidance. That's why we don't provide specific guidance. Sometime it's not a whole lot of things. It's just a project coming in sooner than expected or one not coming in with lower margin as soon as expected. It's really more a matter of the product mix. It's not a huge shift, but to your point, maybe a point or two higher than we might have expected. I expect margins in Q2 to be pretty similar as with considering the volume that we should be able to tackle in that Q2. As we also mentioned at year-end, we're still working on the integration of Groupe LAR. In H2, we should start seeing some of the benefits from the synergies being driven by this.

Speaker #4: It's just a project coming in sooner than expected or one not coming in with lower margin as soon as expected. So it's really more a matter of the product mix.

Speaker #4: So it's not a huge shift, but to your point, maybe a point or two higher than we might have expected. I expect margins in the second quarter to be pretty similar.

Speaker #4: As with considering the volume that we should be able to tackle in that second quarter, as we also mentioned at year-end, we're still working on the integration of Group LAR.

Speaker #4: So, in the second half of the year, we should start seeing some of the benefits from the synergies being driven by this.

Speaker #4: But the step change will really be as I mentioned on the first question, the step change will really be next year when the new addition and the expansion in Group LAR kicks in with the new equipment.

Jean-François Boursier: As I mentioned on the first question, the step change will really be next year when the addition and the expansion in Groupe LAR kicks in with the new equipment. Again, we're obviously happy with the numbers. I guess it shows that we've been able to execute the project. As I said, sometime it's not a whole lot, it's just timing of maybe a couple of weeks that might have pushed some of the margins up higher than expected.

Speaker #4: But again, we were obviously happy with the numbers. And I guess it just proves—it shows—that we've been able to execute the project.

Speaker #4: But as I said, sometimes it's not a whole lot. It just timing of maybe a couple of weeks that might have pushed some of these some of the margins up higher than expected.

Speaker #3: Got it. That's helpful. And apologies—I shouldn't have said 'guidance.' Perhaps I should say you manage our expectations, right? So that was a positive surprise.

Sébastien Charland: Got it. That's helpful. Apologies, I shouldn't have said guidance. Perhaps I should say you manage our expectations right. That was a positive surprise. On the financing agreement news, that's great to see the feds, Le Fédéral coming in with this. I was wondering, would it be crazy to expect the provincial level to maybe come in as well, especially in the Saguenay–Lac-Saint-Jean region?

Speaker #5: On the financing agreement news, that's great to see the Fed's Le Fédéral coming in with this. I was wondering would it be crazy to expect the provincial level to maybe come in as well, especially in the Saguenay-Lac-Saint-Jean region?

Speaker #4: It's But still having discussions. So hopefully, we'll be able to button down everything. We're working on. So but we're looking at obviously both level of government.

Jean-François Boursier: It wouldn't, but still having discussions, so hopefully we'll be able to button down everything we're working on. We're looking at, obviously, both level of government, and we've always had a good relationship at both levels, so we're pleased to be able to finalize on the federal side and working for the rest of the package. We'll have more to say in the coming weeks, definitely, at least unless something drastic happens. As I said, we should be able to button down everything by the end of the quarter.

Speaker #4: And we've always had a good relationship at both levels. So we're pleased to be able to finalize with, on the federal side, and we're working for the rest of the package.

Speaker #4: So we'll have more to say in the coming weeks. Definitely, at least unless something drastic happens. But we should be able, as I said, we should be able to button down everything.

Speaker #4: But at the end of the quarter.

Speaker #3: Got it. And maybe the last one for me. I think we understand LAR is pretty much buckled up for the foreseeable future, plus the expansion plan.

Sébastien Charland: Got it. Maybe the last one for me. I think we understand LAR is pretty much buckled up for the foreseeable future, plus the expansion plan. If we focus back on Terrebonne and even Great Falls, can you comment on perhaps the capacity that's left there, maybe as a percentage or calendar-wise for 2026 and 2027?

Speaker #3: If we focus back on Terrebonne and even Great Falls, can you comment on perhaps the capacity that's left there? Maybe as a percentage or calendar-wise for '26 and '27?

Speaker #4: Well, Great Falls, obviously with the issues with the tariffs, it's definitely much easier to sign U.S. contracts for U.S. projects being fabricated in Great Falls, because obviously you take the tariff discussion out of the equation.

Jean-François Boursier: Well, Great Falls, obviously with the issues with the tariffs, it's definitely much easier to sign US

Jean-François Boursier: Well, Great Falls, obviously with the issues with the tariffs, it's definitely much easier to sign contract for US projects being fabricated in Great Falls, because obviously you take the tariff discussion out of the equation. As it stands now, our Great Falls plant is getting pretty full for the year, and we already have volume for next year. At Terrebonne this year, obviously, in normal circumstances, we do have good volume coming from the US.

Jean-François Boursier: To sign contract for US projects being fabricated in Great Falls, because obviously you take the tariff discussion out of the equation. As it stands now, our Great Falls plant is getting pretty full for the year, and we already have volume for next year. At Terrebonne this year, obviously, in normal circumstances, we do have good volume coming from the US. As surprising as this may seem, and even with the difficulties, we're still having US projects that are coming in Terrebonne, where we manage the tariff's impact along with our clients. We're also, because of the success we have and the fact that the expansion in LAR for Gohl Plaza is not in place, we're also doing volume that would have normally been done at the Gohl Plaza site. We're helping out LAR, which fills some of the capacity here in Terrebonne.

Speaker #4: So as it stands now, our Great Falls plan is getting pretty full for the year. And we've already have volume for next year. At Terrebonne this year, obviously, in normal circumstances, we do have good volume coming from the US.

Jean-François Boursier: As surprising as this may seem, and even with the difficulties, we're still having US projects that are coming in Terrebonne, where we manage the tariff's impact along with our clients. We're also, because of the success we have and the fact that the expansion in LAR for Gohl Plaza is not in place, we're also doing volume that would have normally been done at the Gohl Plaza site. We're helping out LAR, which fills some of the capacity here in Terrebonne.

Speaker #4: A surprising as it may seem, and even with the difficulties, we're still having projects US projects that are coming in Terrebonne. Where we manage the tariffs impact, along with our clients.

Speaker #4: And we're also because of the success we have and the fact that the expansion in LAR for Group LAR is not in place, we're also doing volume that would have normally been done at the Group LAR sites.

Speaker #4: So we're helping out LAR, which fills some of the capacity here in Terrebonne for next year. You saw the backlog. So we're starting also to have good volume.

Jean-François Boursier: For next year, you saw the backlog, we're starting also to have good volume. The long-term contract gives us longer term visibility, which is something new for ADF, which is also really nice to have the longer term visibility. As Dara mentioned, in spite of everything, the market are still strong. There are still a lot of projects out there. The plan is to fill as much as possible the shops. The initial objective was really to put additional effort on LAR, and I think we've been pretty successful of doing that. Now it's just making sure that we fill the capacity here in Terrebonne for the remainder of the year and next year. We still have room. There's still capacity available.

Speaker #4: The long-term contract gives us longer-term visibility, which is something new for ADF, which is also really nice to have, the longer-term visibility. And as Pierre mentioned, the markets are still, in spite of everything, the markets are still strong.

Speaker #4: There's still a lot of projects out there. So the plan is to fill as much as possible the shops. The initial objective was really to put a additional effort on LAR.

Speaker #4: And I think we've been pretty successful at doing that. So now it's just a matter of making sure that we fill the capacity here in Terrebonne for the remainder of the year.

Speaker #4: And next year. But we still have room; there's still capacity available. So things are looking good. And there's always the possibility also, in Great Falls—as we have mentioned in previous communications—to add capacity should we get to that point.

Jean-François Boursier: Things are looking good and there's always a possibility also in Great Falls, as we have mentioned in previous communication, to add capacity should we get to that point. There's nothing on the table now, we're obviously monitoring the situation.

Speaker #4: There's nothing on the table now. But we're obviously monitoring the situation.

Speaker #3: Got it. That's it for me. Congrats again.

Sébastien Charland: Got it. That's it from me. Congrats again.

Jean-François Boursier: Thanks.

Speaker #4: Thanks.

Operator: Thank you. At this time, Monsieur Boursier, we have no other questions registered. Please proceed.

Speaker #1: Thank you. And at this time, Monsieur Boursier, we have no other questions registered. Please proceed.

Speaker #4: Again, we wish to thank you for your interest in ADF Group and your remind you that we will hold our fiscal 2026 shareholders' meeting in just a few minutes at 11:00 here at our corporate office in Terrebonne, Quebec.

Jean-François Boursier: Again, we wish to thank you for your interest in ADF Group and remind you that we will hold our fiscal 2026 shareholders meeting in just a few minutes at 11:00 AM here at our corporate office in Terrebonne, Quebec. Thank you.

Speaker #4: Thank you.

Speaker #5: Thank you.

Sébastien Charland: Thank you.

Speaker #1: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.

Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines. Enjoy the rest of your day.

Q1 2027 ADF Group Inc Earnings Call

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