AGI Announces Fourth Quarter 2025 Results, Provides Corporate Update and Restructuring Plan

Executive Summary

• Ag Growth International reported Q4 2025 revenue of $395.8M (+4% YoY) but saw Adjusted EBITDA fall 38% YoY to $48.3M, with margins compressing to 12.2% due to execution issues in Brazil and lower North American volumes.
• Full-year 2025 revenue grew 1% to $1.42B, while Adjusted EBITDA declined 23% to $204.8M; net debt leverage increased to 4.7x as of year-end.
• The Company announced a comprehensive restructuring plan, including the immediate suspension of its $0.15/share quarterly dividend, a reduction of the executive leadership team from 17 to 8 members, consolidation of North American operations, and termination of the ERP deployment to improve cash flow and operational efficiency.

Key Details

• Q4 2025 Financials: Revenue of $395.8M (+4% YoY); Adjusted EBITDA of $48.3M (-38% YoY); Adjusted EBITDA Margin of 12.2% (-829 bps YoY); Loss before income taxes of $(44.7)M.
• Full Year 2025 Financials: Revenue of $1.42B (+1% YoY); Adjusted EBITDA of $204.8M (-23% YoY); Adjusted EBITDA Margin of 14.4% (-443 bps YoY); Loss before income taxes of $(1.8)M.
• Segment Performance (Q4): Farm revenue $123.1M (-8%), EBITDA $19.8M (-39%), Margin 16.0%; Commercial revenue $272.7M (+10%), EBITDA $32.7M (-39%), Margin 12.0%.
• Segment Performance (FY): Farm revenue $479.0M (-32%), EBITDA $95.7M (-46%); Commercial revenue $941.6M (+34%), EBITDA $143.8M (+19%).
• Geographic Revenue (Q4): Canada $53.6M (-39%), U.S. $110.7M (+10%), International $231.4M (+20%).
• Order Book: Declined 26% YoY to $542.7M as of December 31, 2025, primarily due to the execution of significant International Commercial projects and softened intake in late 2025/early 2026.
• Dividend Suspension: Quarterly cash dividend of $0.15 per share suspended effective immediately; no dividend declared for Q1 2026.
• Restructuring & Cost Savings: Executive leadership team reduced from 17 to 8; North American leadership/operations consolidated into a single regional business; corporate functions consolidated to Winnipeg HQ; compensation structures updated to align with shareholder returns.
• ERP Termination: ERP deployment plan terminated; IT systems will be upgraded instead, expected to save at least $20M over the next two years and allow focus on day-to-day operations.
• Restructuring Financial Impact: Up to $20M in non-recurring expenses expected in H1 2026; annualized cost savings of at least $20M expected post-completion.
• Strategic Shift in International Projects: Reevaluating approach to major Commercial projects (especially Brazil) to substantially improve free cash flow profile and return on invested capital, which may negatively impact near-term order book but improve long-term balance sheet quality.
• Brazil Financing Vehicle: Investment vehicle monetizing AGI financing receivables collected $7M to-date, with notable progress on securing additional inflows near-term.
• Net Debt Leverage: Increased to 4.7x at Dec 31, 2025 (vs. 3.9x at Sept 30, 2025 and 3.1x at Dec 31, 2024).
• Conference Call: Scheduled for March 25, 2026, at 8:00 am ET to discuss results.

Notable Quotes

• Paul Brisebois, Interim President and CEO: “Against a backdrop of continued market headwinds, particularly in North America, our financial results reflect the need for decisive action to position the Company for improved performance... These changes are designed to improve our ability to execute, accelerate decision‑making, and better align the organization with customer needs.”
• Jim Rudyk, CFO: “Addressing areas of our financial position is a key focus and we recognize that free cash flow generation as well as leverage levels need to improve... Our restructuring program is designed to drive margin recovery, better cash conversion, and a stronger balance sheet over time.”