At a time when tariffs are disrupting North American manufacturing and putting Canadian steel jobs at risk, a Quebec company has delivered an encouraging announcement: $82 million in new business on both sides of the border.
On October 15, 2026, Terrebonne-based ADF Group confirmed several contracts involving hydroelectric infrastructure in Canada and a recreational development on the American West Coast. The agreements will bring work to manufacturing facilities in Quebec and Montana, with production scheduled to begin over the coming months.
The announcement comes amid heightened trade tensions between Ottawa and Washington, rising steel costs and uncertainty surrounding major industrial investments. Yet ADF has continued attracting contracts, supported by growing demand for energy infrastructure and specialized steel fabrication.
With an existing order backlog of nearly $694 million before these new agreements, the company’s latest announcement highlights an important contrast within Canada’s struggling steel industry.
ADF Group Secures $82 Million in Contracts Across Two Countries
The newly signed agreements cover several projects rather than one enormous construction site. In its October 15 announcement, ADF Group said the combined value reached C$82 million, spanning Canadian hydroelectric work and a recreational-sector contract in the United States. The company is listed on the Toronto Stock Exchange under the symbol DRX and specializes in engineering, fabricating and installing complex steel structures for non-residential projects. Its customers need more than standard metal products: large structures must be built to precise specifications and delivered on demanding construction schedules.
The announcement is significant partly because the contracts are confirmed orders, not simply potential business under discussion. However, C$82 million in contract value should not be confused with immediate revenue or profit. Production will start at different times, and the work will unfold over several months. ADF has not published individual contract values or identified all clients, leaving the exact contribution of each project undisclosed. The agreements nevertheless add future work at a moment when tariffs have made cross-border manufacturing harder to plan.
Western Canada’s Hydroelectric Sector Accounts for the Largest New Project
The largest award in the new package is located in Western Canada and involves fabricating steel structures for a hydroelectric project. ADF said work is scheduled to begin in March 2027 and continue for roughly nine months. The company described the assignment as operating on a fast-track schedule, meaning its production teams will have a relatively concentrated period to manufacture and deliver what the customer needs. No province, client name or individual dollar value was disclosed.
That limited timetable can matter in heavy fabrication. Structures for major energy facilities must meet demanding engineering and quality requirements while arriving in the sequence a construction project requires. Delays in one workshop can affect work elsewhere on a site. ADF’s announcement does not specify whether the structures are intended for a new generating station, an upgrade or another hydroelectric installation, so identifying the project would be premature. What is clear is that energy-related infrastructure has become a substantial source of demand for the Quebec manufacturer.
Quebec, Ontario and Atlantic Canada Will Receive More Specialized Steel Components
The new agreements also extend across Quebec, Ontario and the Atlantic provinces, giving ADF projects in several Canadian regions at once. These contracts are all tied to the hydroelectric sector and call for the fabrication and delivery of mechanically welded steel structures. According to the company’s October 15 release, most of this work is expected to start in December 2026 and continue during the following 18 months. The schedule offers a clearer view of upcoming production than a single short-term order would provide.
Mechanically welded assemblies are specialized products. Rather than sending loose steel pieces to a customer, a fabricator produces components that must fit with other equipment and infrastructure. That places a premium on reliable measurements, welding expertise and coordination between workshops and project managers. The variety of provinces also matters commercially: ADF is not depending on one locality for all its new Canadian work. The company has not disclosed how the C$82 million is divided among these provinces, however, and regional economic benefits cannot yet be calculated.
A Repeat Customer on the U.S. West Coast Brings More Business Across the Border
The American portion of the announcement is a new recreational-sector project on the U.S. West Coast. ADF said the customer had previously received a major project from the company in the same sector and geographic region. That repeat relationship is noteworthy during a trade dispute: winning more business from an established client suggests that ADF’s expertise still holds value in at least some American construction markets. Work on the new contract is expected to begin within the coming months.
ADF did not identify the recreational facility, the client or the contract’s individual value. There is no basis for calling it a stadium, arena or theme park, even though the company’s steel fabrication expertise could be relevant to different kinds of large facilities. The company also operates a fabrication plant in Great Falls, Montana, which will participate in the newly announced work alongside Canadian facilities. Having operations in both countries gives ADF more production options, but it does not automatically remove customs obligations or the commercial effects of tariffs.
Three Manufacturing Facilities Will Share the Work, Including an Acquired Quebec Business
Three facilities will help deliver the new contracts: ADF’s plant in Terrebonne, its U.S. plant in Great Falls, Montana, and Groupe LAR’s plant in Métabetchouan-Lac-à-la-Croix, Quebec. The involvement of Groupe LAR reflects an important expansion. ADF completed its acquisition of the Quebec business in September 2025, with a final purchase consideration of approximately C$20.4 million. Established in 1942, Groupe LAR has longstanding experience in machining, welding, industrial mechanics and heavy structures used in hydroelectric projects.
For workers in the Saguenay–Lac-Saint-Jean region, the work illustrates how specialized regional manufacturing can become part of national infrastructure supply chains. Groupe LAR also makes customized overhead cranes for heavy industry, giving ADF capabilities beyond conventional structural steel fabrication. By July 31, 2026, Groupe LAR accounted for C$243.3 million of ADF’s order backlog. That figure is larger than the new C$82 million announcement, underscoring how important the acquired operation has become to ADF’s overall pipeline of work.
A Record $693.7 Million Order Backlog Provides Visibility for Future Work
The new contracts arrive after ADF reported its largest order backlog on record. As of July 31, 2026, the company had C$693.7 million in confirmed work awaiting production or completion, compared with C$561.1 million at the end of January. Approximately 64% of that backlog was associated with Canadian projects, while Groupe LAR accounted for C$243.3 million. These figures show that domestic infrastructure has become an important part of ADF’s business, even though the company continues serving American customers.
The timing requires careful interpretation. The C$693.7-million figure represents the backlog at July 31 and excludes the contracts announced on October 15. It cannot simply be treated as ADF’s current backlog or combined with the new C$82 million without accounting for work completed, recognized as revenue or added in the intervening months. Nevertheless, confirmed orders provide valuable planning visibility. Manufacturing managers can anticipate production requirements, allocate equipment and coordinate employees around upcoming projects. The challenge is turning those commitments into profitable deliveries while controlling costs, meeting deadlines and managing the risks of a changing trade environment.
Earlier Contracts Worth $140 Million, $157.3 Million and $127 Million Show Sustained Demand
October’s announcement is not an isolated success. On January 30, ADF revealed C$140 million in contracts involving Quebec, Ontario and the American West Coast, covering public transportation, commercial construction, manufacturing and hydroelectric infrastructure. On April 9, another C$157.3 million in agreements followed, including a four-year hydroelectric contract in Quebec. Then, on June 30, the company announced C$127 million in American projects, including a large building in the Midwest and rehabilitation work involving transportation infrastructure in the Great Lakes region.
Together, those announcements demonstrate the diversity of projects ADF has been pursuing throughout 2026. The company is not relying exclusively on hydroelectric construction, nor has it abandoned American business despite the tariff dispute. Following the June announcement, chief executive Jean Paschini credited targeted investments, geographical diversification and employee expertise with strengthening the company’s competitive position. However, the announced contract values should not be mistaken for revenue earned during the year. Different agreements have different timelines, and some will continue into 2028 or beyond. Their importance lies in the future workload they represent and the range of customers ADF has attracted.
Ottawa Is Supporting ADF’s $52.3 Million Modernization Project and Future Employment
ADF’s expansion has also attracted direct government assistance. On July 2, Industry Minister Mélanie Joly announced a C$12.5-million federal contribution toward a C$52.3-million modernization project at ADF’s Terrebonne and Métabetchouan facilities. The investment is intended to improve specialized steel fabrication capacity, including equipment needed to supply Hydro-Québec with electricity transmission pylons. Ottawa said the improvements are expected to create at least 100 jobs and maintain more than 525 existing positions over the project’s duration.
The company separately outlined plans for a C$40-million expansion at Groupe LAR’s Métabetchouan facility, including additional manufacturing space and advanced equipment. ADF said that portion of the investment could create 82 regional jobs. It also announced proposed financing of up to C$10 million from Investissement Québec, alongside other provincial support arrangements. Some financing remained subject to final agreements and conditions when announced. The public investment is important because increasingly complex contracts require manufacturing capacity as well as customers. New equipment may improve productivity and help Quebec suppliers compete for specialized infrastructure work, although projected employment and expansion benefits are not yet completed outcomes.
Revenue Has Rebounded Sharply, but Steel Prices and Customs Duties Remain a Problem
ADF’s latest financial results show substantial business growth alongside continued pressure on profitability. For the three months ended July 31, 2026, the company reported C$95 million in revenue, compared with C$53 million during the corresponding period in 2025. Revenue for the first six months reached C$194.3 million, an increase of approximately 79%. Quarterly net income rose to about C$3 million from C$900,000 a year earlier. Higher activity reflected the company’s expanding order backlog and improving production volumes.
The results were not uniformly positive. ADF’s second-quarter gross margin declined to 18.7% from 20.7% a year earlier. Management identified higher material expenses, particularly steel prices, and changes in customs duties as factors affecting profitability. The company also recorded expenses related to share-based compensation and foreign-exchange movements. Those pressures help explain why winning major contracts does not automatically translate into proportionally higher earnings. ADF had already experienced disruption in 2025, when tariff-related uncertainty contributed to a work-sharing arrangement at its Terrebonne plant. Its subsequent recovery is encouraging, but the financial figures show that trade tensions remain a measurable business challenge.
Stelco’s Layoffs Highlight Why ADF’s Success Does Not Mean the Steel Crisis Is Over
ADF’s announcement stands in sharp contrast to developments elsewhere in Canada’s steel industry. Washington imposed 50% tariffs on selected Canadian goods effective August 22, 2026, prompting Ottawa to introduce counter-tariffs ranging from 15% to 50% on designated American imports beginning September 8. The disruption has been especially painful for some steel producers. Ontario-based Stelco announced plans to lay off up to 500 workers, while its management reported that Canadian exports of cold-rolled and coated steel to the United States had fallen 58% against pre-trade-war levels.
The comparison requires an important distinction. Stelco produces steel products, whereas ADF primarily fabricates specialized structures using steel and other inputs. Their customers, production processes and exposure to individual tariffs differ considerably. ADF’s success therefore does not contradict reports of serious difficulties at steel mills and other manufacturers. Instead, it illustrates how unevenly the trade conflict is affecting Canadian industry. Some firms are struggling with lost export demand, while others continue securing specialized infrastructure contracts.
For ADF, the next test will be execution. The Western Canadian hydroelectric project is scheduled to begin fabrication in March 2027, while other agreements are expected to generate work sooner. Successful delivery, disciplined costs and continued customer demand will determine whether the company’s expanding order book translates into lasting growth. The C$82-million announcement offers genuine evidence of commercial momentum, but it is not proof that North America’s steel trade problems have been resolved.
