Growth International (AFN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $349 million, nearly flat year-over-year, with strong international Commercial performance, especially in Brazil and EMEA, offsetting North American Farm segment softness.

• Adjusted EBITDA reached $54 million, at the high end of guidance but down from $68 million in Q2 2024, with margin compressing to 15.6% from 19.3% due to a higher Commercial mix.

• Order book stands at $660 million, up 4% year-over-year, with Commercial orders up 15% and Farm order intake remaining slow.

• Over $100 million in new international Commercial orders were secured post-quarter, providing visibility into 2026.

• Free cash flow for the last twelve months was $0.3 million, constrained by working capital needs for large projects.

Financial highlights

• Q2 2025 revenue: $349 million, nearly flat year-over-year; Adjusted EBITDA: $54 million, down 20% year-over-year; margin: 15.6%, down from 19.3%.

• Commercial segment Q2 revenue: $221.7 million, up 41% year-over-year; Adjusted EBITDA: $36.8 million, up 58%; margin improved to 16.6% from 14.8%.

• Farm segment Q2 revenue: $126.8 million, down 35% year-over-year; Adjusted EBITDA: $29.3 million, down 45%; margin compressed to 23.1% from 27.4%.

• Net debt leverage ratio increased to 3.9x, with net debt at $904.6 million as of June 30, 2025.

• Free cash flow (LTM): $0.3 million, down from $64.9 million a year earlier.

Outlook and guidance

• Full-year 2025 Adjusted EBITDA guidance reiterated at at least $225 million, with Commercial strength expected to offset Farm segment weakness.

• Commercial segment outlook remains strong for H2 2025, supported by a robust order book and international momentum.

• Farm segment visibility for H2 2025 remains limited due to weak market conditions and elevated dealer inventories.

• Margin expectations for 2025 are around 17%, with long-term potential of 18%-20% as Farm segment recovers.

• Tariff and trade policy impacts in 2025 expected to be minor and already factored into guidance.