Finning International (FTT) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue grew 7–11% year-over-year to $2.5 billion, with strong product support and new equipment sales, and 50% of revenue from international operations.

• Adjusted EPS increased 18% to $0.99, excluding a $0.22 per share impairment loss; reported EPS was $0.77.

• Adjusted EBIT rose 6% to $213 million, with margin at 8.5% of net revenue, down 20 bps year-over-year.

• Free cash flow was $135 million, a significant improvement from a $210 million outflow in Q1 2024.

• Equipment backlog reached a record $2.8 billion, up 45% year-over-year and 9% sequentially, mainly from large mining orders.

Financial highlights

• Gross profit was $624 million (+5%), with gross margin at 24.9%, down 70 bps year-over-year due to lower product support margins.

• SG&A as a percentage of net revenue improved to 16.4%, down 50 bps year-over-year.

• Net income attributable to shareholders was $104 million, down 13% due to impairment loss.

• Adjusted EBIT margins by region: South America 10.6%, Canada 8.7%, UK & Ireland 4.7%.

• Inventory turns (dealership) at 2.73x; working capital to net revenue at 26.5%.

Outlook and guidance

• South America outlook remains positive, driven by copper demand and mining investment, but faces higher labor costs.

• Canada expects increased infrastructure and energy sector spending, but near-term market uncertainty persists.

• UK & Ireland anticipate soft construction demand but resilient product support and power systems growth.

• Global trade and tariff changes introduce uncertainty, though direct impacts have been limited so far.

• Proceeds from 4Refuel and ComTech sales expected to be used for share repurchases, debt reduction, and general purposes.