Furthermore,
Action jumped 30 % |:
Obtaining an important contract for a major infrastructure. For example, project in the energy sector in Quebec made the value of the ADF on the stock market on Wednesday.
Posted at 11:56 a.m. Updated at 3:16 p.m.
Obtaining an important contract for a major infrastructure project in. Moreover, the energy sector in Quebec made the value of the ADF on the stock market on Wednesday.
The agreement announced by the manufacturer of metal frames of Lanaudière is lasting five years. Furthermore, must generate between 35 and 40 million dollars per year, with the possibility of action jumped 30 % | extension for five more years.
If the extension materializes, the contract could generate income of nearly $ 400 million.
ADF’s order book amounted to $ 330 million dated early May.
The company of Terrebonne will manufacture. However, deliver steel structures for a customer whose identity cannot be revealed for the moment, a common practice during adf ads.
The structures manufactured by ADF will be installed in different regions of Quebec according to the customer’s requirements. Furthermore, indicates to The press The chief executive officer of ADF, Jean-François Boursier.
He adds that in the fact of a global announcement. Similarly, it is one of the biggest contracts ever dropped by ADF, although total income will get away over a much longer period (10 years).
Production must start in the coming months at the Terrebonne factory and investments are planned in new equipment. ADF’s management also plans to hire additional staff to its Terrebonne factory to support the project.
“We are still to assess the requirements in terms of hiring and investment,” says Jean-François Boursier. “The type of equipment will allow us to automate the production of the required parts in order to maximize. our internal efficiency. »»
“It is very encouraging. ” comments analyst Nicholas Cortellucci, of the Atrium Research firm, because ADF demonstrates its ability to diversify outside the United States and sign a longer-term recurrent contract, thus reducing the cyclicity of its activities. Additionally, »»
This expert emphasizes that in the United States. pricing uncertainties make customers more reluctant to work with ADF despite action jumped 30 % | the compliance of the company’s products to the requirements of the Canada-US-Mexico Agreement (AEUMC).
The announcement of the contract also coincides. he says, with the “Buy Canadian” movement, where governments and businesses seek to favor Canadian suppliers.
Nicholas Cortellucci adds that this contract provides ADF with long -term foreseeable income. thus reducing the risk of a sudden drop in turnover as that observed in the last months.
The ADF group’s action appreciated 30 % on Wednesday to end $ 10.30 at the Toronto Stock Exchange. The title had fallen up to $ 5 in April in the days following the big announcement of customs. duties by Donald Trump in the Roseraie de la Maison White.
Since the tariff context affected the ADF group’s ability to increase its income. management announced action jumped 30 % | in April a reduction in the hours worked at its Terrebonne factory.
The implementation in the spring of a shared time program received around 120 employees in Terrebonne. Jean-François Boursier indicates that employees have all returned full time since the start of the week.
In addition to its Terrebonne factory. the ADF group operates a factory in Great Falls, in Montana, in the United States.
It is the second time in two months that the action of the ADF group takes 30 % in one session. Last month, investors had propelled the title after being reassured about the impact of customs duties on business activities.
Management had informed the markets that ADF was exempt from customs duties when it buys steel from American steel.
Action jumped 30 action jumped 30 % | % |
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