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, driven by strong international Commercial segment performance, especially in Brazil, despite North American Farm market headwinds 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 and project wins 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 impacted by working capital needs for large international Commercial projects, with an investment vehicle established in Brazil to monetize receivables and support liquidity.

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 declined to 18.2% from 19.2% year-over-year, mainly due to a higher mix of Commercial revenue.

• Commercial segment revenue rose 48% to $256 million, with adjusted EBITDA margin expanding to 19.5% from 17.9%.

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

• Net debt leverage ratio was 3.9x at September 30, 2025, up from 3.1x a year ago, reflecting higher long-term debt and lower cash balances.

Outlook and guidance

• Q4 2025 adjusted EBITDA is expected to be lower both sequentially and year-over-year due to market headwinds, 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 receivables.