Finning reports Q3 2025 results

Executive Summary

• Finning International reported Q3 2025 revenue of C$2.8 bn, up 14% YoY, with all regions showing growth.
• Adjusted EBIT rose 25% to C$240 m (EBIT margin 8.5%) and EPS from continuing operations increased 33% to C$1.17.
• The Board approved a quarterly dividend of C$0.3025 per share and repurchased 1.2 m shares at an average price of C$59.45.

Key Details

• Revenue & Segments – Total revenue C$2,842 m (+14% YoY). New equipment sales C$1,046 m (+12%), used equipment C$199 m (+122%), product support C$1,517 m (+9%). Equipment backlog at quarter‑end C$2.9 bn.
• Profitability – Gross profit C$616 m (+6% YoY); gross margin 21.7% (down from 23.4%). SG&A margin improved to 13.4% (from 16.3%). Adjusted EBIT margin 8.5% (up from 7.8%).
• Earnings – Adjusted EPS C$1.17 vs. C$0.88 prior year; adjusted ROIC 19.3%. Free cash flow from continuing operations was a use of C$56 m, driven by higher inventory levels.
• Regional EBIT (adjusted) – Canada C$117 m (EBIT margin 8.7%), South America C$109 m (9.7% margin), UK & Ireland C$24 m (6.5% margin). Corporate EBIT loss of C$10 m, improved from a C$15 m loss year‑over‑year.
• Dividends & Share Repurchase – Quarterly dividend C$0.3025 per share payable 2025‑12‑11; share repurchase of 1.2 m shares at avg. C$59.45, ~0.9% of float.
• Outlook Highlights – Strong demand expected in mining and power systems; union negotiations concluded, de‑risking near‑term operations; capital expenditures to reflect negotiated agreements in Q4 2025.
• Investor Call – Scheduled for 2025‑11‑12 at 10:00 am ET (dial‑in details provided).

Notable Quotes

“Our strategy continues to produce excellent results… demand in the mining and power systems sectors remains strong,” – Kevin Parkes, President & CEO.
“Product support continued its steady growth… SG&A costs declined reflecting savings from restructuring actions,” – Kevin Parkes.