Finning reports Q3 2025 results

Core Insights - Finning International Inc. reported strong Q3 2025 results, with a revenue increase of 14% year-over-year, driven by robust demand in the mining and power systems sectors despite challenges in the construction market [3][7][12]. Financial Performance - Q3 2025 revenue reached CAD 2.84 billion, up from CAD 2.49 billion in Q3 2024, with product support revenues increasing by 9% and new equipment sales rising by 12% [5][7]. - Gross profit for Q3 2025 was CAD 616 million, reflecting a gross profit margin of 21.7%, down from 23.4% in the previous year [5][7]. - SG&A costs decreased by 6% to CAD 382 million, resulting in an SG&A margin improvement to 13.4% [5][7]. - EBIT for Q3 2025 was CAD 240 million, a 51% increase from CAD 160 million in Q3 2024, with an EBIT margin of 8.5% [5][7][8]. - EPS from continuing operations was CAD 1.17, up 33% from CAD 0.88 in Q3 2024 [7][8]. Operational Highlights - Product support revenue exceeded CAD 1.5 billion, and new equipment revenue set a quarterly record of over CAD 1 billion [4][7]. - Equipment backlog stood at CAD 2.9 billion as of September 30, 2025, indicating strong future demand [7]. - The company continues to focus on maximizing product support and enhancing return on invested capital [4][7]. Regional Performance - South America operations saw a 17% revenue increase, with new equipment sales up 23% driven by mining deliveries [15][21]. - Canada operations reported a 4% revenue increase, primarily from new equipment sales, while product support revenue decreased by 3% [24][25]. - UK & Ireland operations experienced a 4% revenue increase, with product support revenue stable despite lower construction sector demand [28][24]. Market Outlook - The company anticipates steady activity levels in the mining sector and continued demand in the power systems market, particularly in data centers [21][26]. - In South America, strong copper prices and capital deployment into large-scale projects are expected to drive growth [21][22]. - The outlook for Western Canada remains mixed but is improving, with potential for accelerated resource development [25][26].