Finning International (FTT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose 14% year-over-year to $2.8 billion, with growth across all regions and business lines, driven by strong mining and power systems demand.

• Product support revenue increased 9% to $5.8 billion for the last 12 months, with new equipment sales up 12% to over $1.0 billion and used equipment sales surging 122%.

• EBIT grew 25% to $240 million, with EBIT margin up to 8.5%; EPS from continuing operations was $1.17, up 33% year-over-year.

• Free cash flow was a use of $56 million in Q3, mainly due to higher inventory to support increased activity.

• Equipment backlog remained strong at $2.9 billion, up 26% year-over-year, supporting future activity and product support opportunities.

Financial highlights

• Gross profit increased 6% to $616 million, but gross margin declined to 21.7% due to lower product support margins and a higher mix of used equipment.

• SG&A margin improved to 13.4%, down 290 bps year-over-year, reflecting cost control and restructuring benefits.

• Net income from continuing operations was $154 million, up 60% year-over-year.

• Finance costs decreased to $32 million from $41 million in Q3 2024, reflecting lower debt and interest rates.

• Invested capital turnover was 2.31 times; adjusted ROIC reached 19.3%; net debt to adjusted EBITDA at 1.7x.

Outlook and guidance

• Sustained optimism for long-term growth in oil and gas, mining, and power systems, with a constructive medium-term outlook.

• Power systems backlog and construction backlogs in Canada and the U.K. are up significantly, supporting future growth.

• Q4 2025 expected to be an inflection point for free cash flow, with strong seasonal cash generation anticipated.

• South America outlook is positive, supported by copper demand and project activity, but labor market tightness persists.

• UK & Ireland expect soft construction demand but stable product support and growing power systems contributions.