What you need to know: • ADF Group announced that it has signed $120M in new contracts across Quebec and the U.S., resulting in the pro-forma backlog reaching $450M. • Despite the concerns about tariffs, management was able to execute on its plan to sign new contracts, setting up the Company for a strong 2025. • Since announcing its NCIB, ADF has repurchased 721K shares, representing 2.4% of its shares outstanding. • ADF continues to trade at only 2.6x/3.0x FY25E/FY26E EBITDA. This morning, ADF Group (DRX:TSX, ADFJF:OTC) announced $120M in new contracts in Quebec and the United States, bringing the backlog to $450M. While ADF stock has pulled back significantly on the declining backlog and tariff concerns, this announcement should ease investors and highlight the major tailwinds supporting ADF’s business model. We also provide a preview of the Q4 and FY25 financials which will be released at the end of April. ADF has also been actively buying back stock, having repurchased 721K shares since December (2.4% of its shares outstanding). We are maintaining our BUY rating and $23.00/share target price on ADF Group. Contract Announcement ADF reported that it has signed a series of new contracts in Quebec and the Western U.S., totalling $120M. The largest contract in the group was the fabrication and installation of steel structures and heavy steel components for a major renovation program for a sports complex in the Western United States. The other orders were various structural steel contracts in the recreational sector, also in the Western U.S. and in Quebec for a major client which ADF has previously completed other work for. Both of ADF’s fabrication facilities will be utilized to complete the orders over the coming 15 months. The backlog was last reported at $330.3M as of October 2024, and adjusting for today’s release, the pro-forma backlog is $450.3M. This is the highest the backlog has been since fiscal Q1/25. We remind readers that >80% of the backlog is typically converted into sales over 15 months. We will also reiterate that management has executed on exactly what they said they would do on the Q3 conference call, building our confidence further.