Growth International (AFN) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 9% year-over-year to CAD 389 million ($389 million), with Adjusted EBITDA up 4% to CAD 71 million ($71 million), driven by strong international Commercial segment growth, especially in Brazil and EMEA, despite challenging Farm markets and a delay in financial filings due to internal control issues in Brazil.

• Strategic focus remained on profitable organic growth, operational excellence, and balance sheet discipline, with key initiatives in Brazil, India, and emerging markets.

• Facility consolidations and manufacturing optimization in North America streamlined operations and reduced costs.

• Safety performance improved, with a 15% year-over-year reduction in recordable incident rate and over half of production facilities surpassing one year without a lost-time accident.

• Free cash flow was negative due to temporary working capital needs for large international Commercial projects.

Financial highlights

• Consolidated revenue reached CAD 389 million ($389 million), up 9% year-over-year; Adjusted EBITDA was CAD 71 million ($71 million), up 4%.

• Adjusted EBITDA margin was 18.2%, down from 19.2% year-over-year, due to a mix shift toward Commercial projects.

• Commercial segment revenue rose 48% to $256 million, with margin expanding to 19.5% from 17.9% year-over-year.

• Farm segment revenue declined 27% to $134 million, with margin compressing to 20.5% from 24.6%.

• Net debt leverage ratio was 3.9x, steady quarter-over-quarter but up from 3.1x a year ago.

Outlook and guidance

• Q4 2025 Adjusted EBITDA is expected to decline sequentially and year-over-year, driven by challenging market conditions, negative mix, and higher SG&A costs.

• Commercial segment order book provides visibility into the first half of 2026, while Farm segment visibility remains limited due to ongoing market uncertainty.

• Free cash flow is expected to turn positive in 2026 as the Brazil investment fund monetizes long-term receivables.

• Order book as of September 30, 2025 was CAD 667 million ($667 million), up slightly year-over-year, with over 90% allocated to commercial projects and strong growth in Brazil and LATAM.