Finning International (FTT) Q4 2025 earnings summary

Executive summary

• Revenue reached $10.6 billion in 2025, up 7% year-over-year, with growth in all regions and lines of business and strong execution of strategic initiatives.

• Product support revenue rose 8% to $5.9 billion, with mining in Canada and South America growing 10% and 5% year-over-year, respectively.

• Adjusted EPS increased 14% to $4.12, and adjusted EBIT was $869 million (up 6%), with SG&A margin improving to 15% and a more resilient earnings profile.

• Free cash flow from continuing operations was $546 million, with a strong balance sheet and net debt-to-adjusted EBITDA ratio reduced to 1.2x.

• Equipment backlog hit a record $3.1 billion, up 20% year-over-year, reflecting robust order intake across all segments.

Financial highlights

• Q4 2025 revenue was $2.7 billion, up 6% year-over-year, with growth across all regions.

• Q4 adjusted EBIT was $209 million (down 2%), with an adjusted EBIT margin of 7.8%.

• Q4 adjusted EPS was $1.00, up 3% year-over-year, driven by higher Canadian earnings and share repurchases.

• Gross profit margin for the year was 23.1% (down 70 bps), and SG&A margin improved to 15.0%.

• Q4 free cash flow was $642 million; consolidated adjusted ROIC was 19.2%, up 130 bps year-over-year.

Outlook and guidance

• Backlog remains robust, providing confidence in future activity and product support opportunities.

• Power and energy backlog at year-end was $1 billion, up 25% year-over-year, with deliveries through 2027.

• 2026 net capital and rental fleet expenditures expected to exceed $350 million, with focus on rental fleet growth and targeted investments.

• Positive long-term outlook in all markets, with particular excitement for power opportunities in Alberta, data centers, and infrastructure development.

• Targeting sustainable adjusted ROIC in the 18–25% range across cycles.