Finning International (FTT) Q1 2026 earnings summary

Executive summary

• Revenue reached CAD 2.5 billion (or $2.5B), up 2% year-over-year, driven by strong product support in Canada and a record equipment backlog of $3.8B, up 20% from December 2025, with significant mining orders in Argentina and Canada.

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

• Product support revenue grew 6% globally, led by mining activity in Canada, marking the eighth consecutive quarter of growth; Canadian rental revenue rose 20%.

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

• Mining truck population in Western Canada and South America has grown consistently since 2021, supporting long-term product support opportunities.

Financial highlights

• Q1 revenue of CAD 2.5 billion, up 2% from Q1 2025, with product support up 6% globally and 13% in Canada.

• Adjusted EBIT was $204 million, flat year-over-year, with a margin of 8.2% (down 20 bps), excluding $16 million in severance costs in South America.

• 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; adjusted ROIC at 18.7%.

• LTIP expense was CAD 15 million (CAD 0.09 per share), up from CAD 7 million (CAD 0.04 per share) in Q1 2025.

Outlook and guidance

• Majority of current backlog expected to be delivered in 2026, with strong activity anticipated in mining and power and energy sectors.

• Canadian mining and power/energy outlook remains positive, with continued strong activity and market share gains in construction.

• U.K. and Ireland expected to see soft new construction equipment demand but growing power and energy contributions.

• South America outlook positive for long-term copper demand, with near-term moderation as customers adjust mine plans.

• Focus remains on maximizing product support, cost discipline, and prudent growth in used, rental, and power & energy segments.