Growth International (AFN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $287 million, down 9% year-over-year, with adjusted EBITDA of $31 million, slightly above expectations, as Commercial segment strength offset Farm segment weakness.

• Commercial segment delivered a 53% year-over-year revenue increase to $192 million, driven by large international turnkey projects, especially in Brazil and EMEA, and achieved a 12.8% adjusted EBITDA margin.

• The consolidated order book stands near a record at $725 million, up 5% year-over-year, with Commercial up 26% and Brazil's commercial order book up over 200%.

• Farm segment continues to face headwinds from low crop prices, elevated dealer inventory, and tariff uncertainty, with limited visibility for improvement before the second half of 2025.

• Net debt leverage ratio rose to 3.6x, driven by temporary working capital needs for Commercial projects, with deleveraging a priority for H2 2025.

Financial highlights

• Q1 consolidated revenue was $287 million, down 9% year-over-year, with adjusted EBITDA of $31 million and a margin of 10.9%, down from 15.9% due to higher Commercial revenue mix.

• Commercial segment Q1 revenue rose 53% year-over-year to $192 million, with adjusted EBITDA up 85% to $24 million and margin improving to 12.8%.

• Farm segment Q1 revenue fell to $95 million, with adjusted EBITDA dropping to $19 million and margin down to 10.2%.

• Free cash flow for the last twelve months was $41 million, down from $50 million a year ago, reflecting working capital investments.

• Net debt at March 31, 2025, was $893 million, up from $815 million at December 31, 2024.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance reiterated at a minimum of $225 million.

• Q2 2025 adjusted EBITDA expected in the range of $50–$55 million, with continued Farm segment softness offset by Commercial strength.

• 2025 EBITDA margin expected in the 17%–19% range, with tariff impacts currently considered nominal.

• Mid-cycle EBITDA is expected to exceed $300 million as Farm recovers and Commercial grows, with margin potential of 18%–20%.

• Commercial segment revenue visibility remains strong for 2025, supported by the order book.