ADF Group Inc. on Thursday reported a rise in second-quarter profit despite a 9.3% decline in revenue, as the company benefited from the forgiveness of a loan to its U.S. affiliate.

The Terrebonne, Quebec-based manufacturer of complex steel structures and heavy steel components posted net income of 5.4 million Canadian dollars ($4.1 million), or C$0.17 a share, for the three months ended July 31, compared with a profit of C$1.5 million, or C$0.05 a share, in the same period a year ago.

Revenue fell to C$66.4 million from C$73.2 million for the same period a year earlier.

The company said its gross margin increased due to the fabrication product mix and the forgiveness of a C$1.3 million loan issued to a U.S. affiliate, as part of a U.S. government program in response to Covid-19.

The company reported an order backlog worth C$348.3 million in the second quarter and said the current backlog will extend until January 2024.

Write to Glenn Johnson at Glenn.Johnson@WSJ.com

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