Finning International (FTT) Q1 2026 earnings summary

Executive summary

• Revenue reached $2.5 billion (CAD 2.5 billion), up 2% year-over-year, driven by strong product support in Canada and robust mining business.

• Adjusted EPS hit a record Q1 level of $1.02, up 17% year-over-year, with disciplined cost and capital allocation.

• Equipment backlog reached a record $3.8 billion, up 20% from December 2025 and 32% year-over-year, led by mining and construction orders in Canada and Argentina.

• Product support revenue grew for the eighth consecutive quarter, up 6% year-over-year, with Canadian rental revenue up 20%.

• Dividend increased by 7.4%, marking 25 consecutive years of growth.

Financial highlights

• Q1 revenue of $2.5 billion, up 2% from Q1 2025, with gross profit margin at 24.1% and SG&A margin at 16.0%.

• Adjusted EBIT was $204 million, flat year-over-year, excluding $16 million in South American severance costs.

• Free cash flow from continuing operations was negative $310 million, mainly due to higher inventory payments.

• Net debt to adjusted EBITDA ratio at 1.6x; invested capital turns at 2.3x.

• LTIP expense rose to $15 million ($0.09/share), reflecting share price appreciation.

Outlook and guidance

• Majority of current backlog expected to be delivered in 2026, supporting future product support opportunities.

• Positive outlook for Western Canada mining, power, and energy sectors, leveraging expertise from the U.K. and Ireland.

• Anticipate stable labor environment in Chile through 2028 after successful union negotiations.

• UK & Ireland construction demand expected to remain soft, but power and energy contributions to grow.

• Long-term optimism for mining in Argentina and Chile, with incremental investment and backlog growth.