Finning International (FTT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $3.13 billion, up 20% year-over-year, surpassing $3 billion for the first time, driven by strong new equipment sales, robust mining activity, and product support growth across all regions.

• Record quarterly EPS of $1.22, up 21% year-over-year, with EBIT up 16% to $249 million.

• Equipment backlog reached a record $3.8 billion, up 22% since December 2025, supported by significant mining and power & energy orders.

• Product support revenue grew for the ninth consecutive quarter, up 11% year-over-year, with Canadian product support up 19%.

• Strategic investments in technician capacity, rental fleet, and power & energy segment are supporting growth and operational resilience, with data center opportunities emerging.

Financial highlights

• Q2 2026 revenue was $3.13 billion, up 20% year-over-year, with new equipment sales up 34%, used equipment up 18%, and rental revenue up 19%.

• EBIT was $249 million, up 16% from Q2 2025 adjusted EBIT; EBIT margin was 8.0%, down 30 bps year-over-year.

• Gross profit margin was 21.3%, down 240 bps due to higher new equipment mix and lower product support margins.

• SG&A margin improved to 13.3% from 15.5%, reflecting cost discipline despite $21 million in LTIP expense.

• Free cash flow was $15 million, reversing a prior year outflow, with net debt to adjusted EBITDA at 1.6x.

Outlook and guidance

• Backlog strength and growing installed base provide confidence in future product support and earnings growth.

• Mining outlook remains strong in Chile and Canada, with continued capital deployment and customer investment.

• Data center power opportunities in Alberta are seen as a generational growth driver, though timing remains uncertain.

• Construction sector demand is improving in Canada and UK & Ireland, though UK demand expected to remain soft.

• South America outlook supported by high copper prices and mining investment in Chile; Argentina remains dynamic but with improving activity.