Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>ADF reported Q3 financial results that were in line with our expectations on revenue and beat our expectations on EBITDA.</li>
<li>Revenue came in at $80.0M (-3% YoY) vs. our $80.4M and EBITDA came in at $24.0M (+35% YoY) vs. our $19.0M.</li>
<li>While the impact of the Trump victory and tariffs is still uncertain, management remains positive on its end markets and backlog.</li>
</ul>


ADF reported Q3 financial results that were in line with our expectations on revenue and beat our expectations on EBITDA.
Revenue came in at $80.0M (-3% YoY) vs. our $80.4M and EBITDA came in at $24.0M (+35% YoY) vs. our $19.0M.
While the impact of the Trump victory and tariffs is still uncertain, management remains positive on its end markets and backlog.


DRX: Solid Q3 Financials; Margins Remain Strong

<ul>
<li>Our team visited the Terrebonne facility earlier this week, where we toured the plant and met with management.</li>
<li>The Trump victory has mixed implications, with general support for infrastructure spending but potential to defund spending packages and implement tariffs on imported steel.</li>
<li>Earlier this week, we had the pleasure of visiting ADF Group’s (DRX:TSX, ADFJF:OTC) Terrebonne facility.</li>
</ul>


Our team visited the Terrebonne facility earlier this week, where we toured the plant and met with management.
The Trump victory has mixed implications, with general support for infrastructure spending but potential to defund spending packages and implement tariffs on imported steel.
Earlier this week, we had the pleasure of visiting ADF Group’s (DRX:TSX, ADFJF:OTC) Terrebonne facility.


DRX: Facility Visit & Updates; Staying Bullish

<ul><li>Quarterly Coverage Update As we enter the final quarter of the year, we are excited to release our quarterly recap report to update our readers on all the research content we have published in the last three months.</li><li> This quarter included substantial momentum across several sectors, with strong performance from the companies we cover.</li><li>Omai Gold Mines (+55%) led the way, followed by Allegiant Gold (+27%), Moon River Moly (+11%), and BQE Water (+10%).</li></ul>

Quarterly Coverage Update As we enter the final quarter of the year, we are excited to release our quarterly recap report to update our readers on all the research content we have published in the last three months. This quarter included substantial momentum across several sectors, with strong performance from the companies we cover.Omai Gold Mines (+55%) led the way, followed by Allegiant Gold (+27%), Moon River Moly (+11%), and BQE Water (+10%).

Sailfish Royalty Corp - Q3/24 Recap: All Our Research in One Place!

<ul>
<li>ADF announced $55M in new contracts across Quebec and the U.S. Midwest, including additional work for its U.S. pharmaceutical client.</li>
<li>Today’s announcement gives us further confidence that ADF can continue to grow the backlog as the infrastructure spending cycle prolongs.</li>
<li>ADF trades at 3.5x EBITDA, the lowest multiple we have seen since covering the stock and a major discount to its peers and precedent transactions.</li>
</ul>


ADF announced $55M in new contracts across Quebec and the U.S. Midwest, including additional work for its U.S. pharmaceutical client.
Today’s announcement gives us further confidence that ADF can continue to grow the backlog as the infrastructure spending cycle prolongs.
ADF trades at 3.5x EBITDA, the lowest multiple we have seen since covering the stock and a major discount to its peers and precedent transactions.


<ul>
<li>ADF reported mixed Q2 financials that missed our revenue estimate due project delays but largely beat our profitability estimates.</li>
<li>Revenue came in at $74.9M vs. our $92.6M (due to $35M in delays) while EBITDA came in at $24.9M (33% margin) vs. our estimate of $17.9M.</li>
<li>Management remained bullish on the long-term growth of the sector and ended the quarter in large net cash position.</li>
</ul>


ADF reported mixed Q2 financials that missed our revenue estimate due project delays but largely beat our profitability estimates.
Revenue came in at $74.9M vs. our $92.6M (due to $35M in delays) while EBITDA came in at $24.9M (33% margin) vs. our estimate of $17.9M.
Management remained bullish on the long-term growth of the sector and ended the quarter in large net cash position.


DRX: Revenue Misses Due to Delays but Margins Smash Expectations

Canada

ADF Group Inc. manufactures and erects structural steel for complex structures and miscellaneous metal work. The Company offers Standard Structural Steel, Complex Steel Structures, and Trial Assemblies. ADF Group serves clients throughout North America and Canada.

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ADF Group (DRX CN)

DRX: Solid Q3 Financials; Margins Remain Strong

ADF reported Q3 financial results that were in line with our expectations on revenue and beat our expectations on EBITDA.

Atrium Research

DRX: Facility Visit & Updates; Staying Bullish

The Trump victory has mixed implications, with general support for infrastructure spending but potential to defund spending packages and implement...

Atrium Research

Sailfish Royalty Corp - Q3/24 Recap: All Our Research in One Place!

Quarterly Coverage Update As we enter the final quarter of the year, we are excited to release our quarterly recap report to update our readers on...

Atrium Research

DRX: $55M in New Contracts Signed

ADF announced $55M in new contracts across Quebec and the U.S. Midwest, including additional work for its U.S. pharmaceutical client.

Atrium Research

DRX: Revenue Misses Due to Delays but Margins Smash Expectations

ADF reported mixed Q2 financials that missed our revenue estimate due project delays but largely beat our profitability estimates.

Atrium Research

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