AGI Announces Second Quarter 2025 Results and Reiterates Full Year Outlook

Executive Summary

• Ag Growth International Inc. (AGI) reported financial results for the three-month period ending June 30, 2025, with revenue effectively flat year-over-year at $349 million.
• The company reported Adjusted EBITDA of $54 million for Q2 2025, landing at the high-end of its previously stated guidance range of $50-$55 million.
• AGI reiterated its full-year 2025 Adjusted EBITDA outlook of at least $225 million, citing strong momentum in the international Commercial segment offset by softness in the North American Farm segment.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $349 million (effectively flat YoY).
  • Adjusted EBITDA: $54 million (vs. $68 million in Q2 2024).
  • Adjusted EBITDA Margin: 15.6% (impacted by segment mix favoring lower-margin Commercial revenue).
  • Profit Before Income Taxes: $36.6 million.
  • Free Cash Flow (LTM): $0.3 million, primarily due to temporary working capital requirements for large international Commercial projects.
  • Net Debt Leverage Ratio: 3.9x at June 30, 2025 (up from 3.6x at March 31, 2025, and 3.1x at June 30, 2024).
• Segment Performance:
  • Farm Segment: Revenue declined 35% YoY to $126.8 million; Adjusted EBITDA dropped 45% to $29.3 million. Margins compressed to 23.1% due to lower volumes and tariffs. North American demand remains soft due to low commodity prices and high dealer inventory.
  • Commercial Segment: Revenue grew 41% YoY to $221.7 million; Adjusted EBITDA grew 58% to $36.8 million. Margins expanded to 16.6%. Growth driven by large, long-term projects in Brazil and EMEA.
• Order Book:
  • Total order book increased 4% YoY to $660 million as of June 30, 2025.
  • Significant momentum continued after the quarter with international Commercial order commitments exceeding $100 million.
• Outlook & Strategy:
  • Full-year 2025 Adjusted EBITDA guidance remains at least $225 million.
  • Commercial segment visibility for H2 2025 is strong; Farm segment visibility remains limited.
  • Estimated minor direct cost impact from current tariff policies, already factored into outlook.
  • CFO Jim Rudyk announced plans to monetize receivables from international Commercial projects to reduce working capital and net debt leverage, targeting finalization in Q3 2025.
  • Reduction of approximately $9 million in professional fees associated with the 2024 strategic review process.
• Conference Call: Scheduled for August 1, 2025, at 8:00 am ET.

Notable Quotes

• “Our second quarter results reflect the continued strength of our international Commercial business, particularly in Brazil and EMEA... With year-over-year revenue stabilizing in the second quarter, and significant strength in our Commercial order book, we anticipate returning to top-line growth in the second half of 2025.” — Paul Householder, President and CEO
• “We are advancing structures to monetize receivables connected to our international Commercial projects which we expect to meaningfully reduce our working capital position and our net debt leverage ratio by year end... targeting to finalize them in the third quarter.” — Jim Rudyk, CFO