Q2 2025 ADF Group Inc Earnings Call Transcript
Key Points
- Year-to-date revenue increased by 13.6% compared to the same period last year, reaching $182.3 million.
- Gross margins for the quarter improved significantly to 36.9%, up from 22.2% in the same quarter last year.
- Adjusted EBITDA more than doubled year-over-year, reaching $24.9 million for the quarter.
- Net income for the quarter increased to $16 million or $0.51 per share, compared to $10.5 million or $0.32 per share last year.
- Operating cash flow for the quarter was strong at $82.4 million, driven by favorable working capital variation and improved operating results.
- Quarterly revenues decreased by $5.3 million compared to last year, primarily due to client delays in construction site preparation.
- The $35 million in delayed revenues risk being moved forward to the next fiscal year, affecting short-term financial performance.
- SG&A expenses increased year-to-date by $3 million due to the rise in stock price, impacting overall profitability.
- There is a slowdown in the finalization of contractual agreements, particularly in the green energy sector, likely linked to the upcoming American presidential election.
- Future margins are expected to stabilize and potentially decrease as the mix of fabrication and installation work changes.
Good morning, ladies and gentlemen, and welcome to the ADF Group Inc., results. (spoken in foreign language) Results for the periods of three and six months closed July 31, 2024 conference call. (Operator Instructions) This call is being recorded on Thursday, September 12, 2024.
I would now like to turn the conference over to Jean-Francois Boursier, ADF, our Chief Financial Officer. Please go ahead.
Thank you. Good morning and welcome to ADF's conference call covering the second quarter and six months ended July 31, 2024.
I am with Jean Paschini, Chairman of the Board and CEO of ADF, who will be available to answer your questions at the end of the call. I will first update you on our quarterly and year-to-date results, which were disclosed earlier this morning by press release and then proceed with a quick update about our operations.
First, a word of caution. Please note that some of the issues discussed today may include forward looking statements.
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