Core Insights - Finning International Inc. reported strong Q3 2025 results, with revenue growth across all regions and sectors, particularly in mining and power systems [1][5][10] Financial Performance - Q3 2025 revenue reached CAD 2.842 billion, a 14% increase from CAD 2.489 billion in Q3 2024, driven by strong demand in mining and power systems [4][5] - New equipment sales increased by 12% to CAD 1.046 billion, while used equipment sales surged by 122% to CAD 199 million [4][5] - Product support revenue grew by 9% to CAD 1.517 billion, reflecting robust mining sector activity [5][10] - Gross profit for Q3 2025 was CAD 616 million, with a gross profit margin of 21.7%, down from 23.4% in Q3 2024 [4][5] - EBIT increased by 51% to CAD 240 million, with an EBIT margin of 8.5%, up from 6.4% in Q3 2024 [4][5][6] - Adjusted EPS from continuing operations was CAD 1.17, a 33% increase from CAD 0.88 in Q3 2024 [5][6] Operational Highlights - Product support continued to show steady growth, exceeding CAD 1.5 billion in Q3 2025 [3][5] - The company maintained an invested capital turnover of 2.3 times, consistent with the previous quarter [3][8] - SG&A costs decreased by 6% to CAD 382 million, reflecting cost control measures and restructuring savings [4][5] Regional Performance - South America saw a 17% revenue increase, with new equipment sales up 23% driven by mining deliveries [13] - Canada operations reported a 13% revenue increase, with used equipment sales up 105% [13] - UK & Ireland operations experienced a 4% revenue increase, primarily from new equipment sales [13] Market Outlook - The company anticipates steady demand in the mining sector, supported by strong copper prices and capital investments in Chile [16][20] - In Canada, the outlook is mixed but improving, with potential for increased resource development and infrastructure projects [19][20] - The UK market is expected to remain soft, but power systems demand is projected to grow, particularly in data centers [22] Shareholder Returns - The Board of Directors approved a quarterly dividend of CAD 0.3025 per share, payable on December 11, 2025 [23] - In Q3 2025, the company repurchased 1.2 million shares at an average cost of CAD 59.45 per share [23]

Core Insights - Cloudflare, Inc. (NYSE:NET) has garnered attention from investors, particularly Jim Cramer, who expressed strong support for the company's leadership and potential despite its stock price being in the 200s [1] - The company reported an excellent earnings quarter, which initially led to a 3.6% decline in stock price due to broader market sell-off, but subsequently rebounded by over 4%, reaching its highest level in nearly four years [1] - Cloudflare's performance included better-than-expected numbers across all metrics and strong future guidance, indicating robust operational health [1] Company Overview - Cloudflare provides cloud-based security, networking, and performance solutions aimed at protecting and optimizing websites, applications, and IoT devices [1] - The company is recognized for its significant potential in the cybersecurity sector, particularly following its recent earnings report [1] Market Context - Despite Cloudflare's positive outlook, there is a belief that certain AI stocks may present greater upside potential with less downside risk, suggesting a competitive landscape for investment opportunities [1]

Group 1 - Finning International Inc. will report Q2 2025 results on August 5, 2025, after market close [1] - The investor call is scheduled for August 6, 2025, at 10:00 AM Eastern Time [1] - The investor call will be accessible via a toll-free number for Canada and the US, as well as an international toll number [1] Group 2 - Finning is the world's largest Caterpillar dealer, providing services for over 90 years [2] - The company is headquartered in Surrey, British Columbia, and operates in multiple regions including Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland [2]

Company Overview - Finning International Inc. is the world's largest Caterpillar dealer, providing equipment, parts, services, and performance solutions for over 90 years [2] Upcoming Financial Results - Finning will report its Q2 2025 results on August 5, 2025, after market close [1] - An investor call is scheduled for August 6, 2025, at 10:00 AM Eastern Time [1] - The investor call will be accessible via a toll-free number for Canada and the US, as well as an international toll number, and will be webcast live with an archive available for three months [1]

Core Viewpoint - Finning International Inc. has appointed David Primrose as the new Chief Financial Officer (CFO) following the departure of Greg Palaschuk, who is leaving for another opportunity in the financial services sector [1][2]. Company Leadership Transition - The appointment of David Primrose is part of the company's succession planning process [2]. - Greg Palaschuk will remain with the company until July 31, 2025, in an advisory role to ensure a smooth transition [2]. - Kevin Parkes, President and CEO, acknowledged Greg's positive impact and contributions during his tenure as CFO [3]. David Primrose's Background - David Primrose has held various senior management roles at Finning over his 36-year career, including President of Finning Canada and Managing Director for Finning UK and Ireland [4][5]. - He is a Chartered Professional Accountant and is expected to drive the execution of the company's strategy and financial results [4][5]. Company Overview - Finning is the world's largest Caterpillar dealer, providing equipment, parts, services, and performance solutions across multiple regions including Western Canada, Chile, Argentina, Bolivia, the UK, and Ireland [6].

Core Insights - Finning International Inc. released its 2024 Sustainability Report, showcasing progress in sustainability performance and objectives [1][2] - The company aims for a 40% reduction in absolute Scope 1 and Scope 2 GHG emissions by 2027 from a 2017 baseline and is currently on track to meet this target [4][6] Sustainability Performance - In 2024, Finning increased safety-related critical control verifications by 27% compared to 2023 [2] - The company reported a 30% reduction in absolute Scope 1 and Scope 2 GHG emissions from the 2017 baseline [6] - 64% of graduates from the Semillero technician trainee program in Chile were women, promoting gender equity in the mining industry [6] - Finning procured $32.8 million from Indigenous-owned businesses in Canada [6] - The company remanufactured 14,820 components to like-new condition, reducing waste and resource use [6] - 56% of non-hazardous waste was diverted from landfills [6] Strategic Initiatives - Finning is focusing on advancing diversity and inclusion, as well as supporting customers with exceptional product support and technology solutions [2] - The company is encouraged by the increased demand for technologies such as battery energy storage systems and dynamic gas blending to assist customers in their energy transitions [2]

Core Insights - Finning International Inc. reported strong financial results for Q1 2025, with net revenue of CAD 2.5 billion, up 7% year-over-year, driven by a 7% increase in new equipment revenue and an 11% increase in product support revenue [6][11] - The company generated CAD 135 million in free cash flow, a significant improvement from a cash use of CAD 210 million in Q1 2024, reflecting higher inventory turns and reduced working capital [6][11] - Finning's backlog reached an all-time high of CAD 2.8 billion, up 9% from the previous quarter, primarily due to large mining equipment orders in Canada [6][11] Financial Performance - Q1 2025 revenue was CAD 2.8 billion, with a gross profit of CAD 624 million, representing a gross profit margin of 24.9% [6][7] - Adjusted EPS for Q1 2025 was CAD 0.99, an 18% increase compared to Q1 2024, while reported EPS was CAD 0.77, which included a CAD 0.22 impairment loss related to non-core assets [6][7] - Adjusted EBIT for Q1 2025 was CAD 213 million, up 6% from the previous year, with an adjusted EBIT margin of 8.5% [6][7] Operational Highlights - The company experienced double-digit growth in product support, with a 5% increase in product support revenue over the last twelve months [3][4] - Significant business was won with data center customers in the UK and Ireland, as well as mining customers in Canada, contributing to the strong backlog [4][11] - The company announced a 10% increase in its quarterly dividend, marking the 24th consecutive year of dividend growth [4][11] Regional Performance - South America operations saw a 17% increase in net revenue, driven by new equipment deliveries and strong product support growth in the mining segment [16] - Canada operations reported a decrease in net revenue by 8%, primarily due to lower new equipment sales in power systems, but product support revenue increased by 4% [16] - UK & Ireland operations faced soft demand in the construction sector, but strong activity in power systems and product support helped maintain resilience [32] Corporate Developments - Finning entered into agreements to sell 4Refuel for an implied transaction value of up to CAD 450 million and Compression Technology Corporation for CAD 40 million [6][11] - The proceeds from these transactions are expected to be used for share repurchases, debt repayment, and general corporate purposes [33] - The company has received approval to renew its normal course issuer bid to purchase up to 13.3 million common shares, representing 9.9% of the public float [17][18]

Core Points - Finning International Inc. has entered into a definitive agreement to sell 100% of its mobile on-site refueling business, 4Refuel, to H.I.G. Capital for a total purchase price of up to $400 million, with an implied transaction value of approximately $450 million including leases and other indebtedness [1][5] - 4Refuel is a leading North American mobile on-site liquid refueling company with approximately 650 employees, serving various critical industries [2] - The decision to sell 4Refuel was made after careful consideration of the company's strategic direction and return on invested capital objectives, with the belief that H.I.G. will support 4Refuel's long-term growth [3][4] - Since its acquisition in 2019, 4Refuel has generated strong growth and significant free cash flow, contributing to Finning's capital improvement plan [4] - The transaction will simplify Finning's operations, allowing a focus on maximizing product support, improving earnings resilience by lowering SG&A, and creating sustainable growth around core dealership operations [4] - Finning will receive approximately $400 million in consideration, with $330 million payable in cash upon closing, and the purchaser will assume lease liabilities and other indebtedness of about $50 million [5] - The net proceeds from the transaction are expected to be used for share repurchases, paying down credit facilities, and reinvesting in core dealership operations, with an expectation that the transaction will be accretive to earnings per share [6] - The transaction has been approved by Finning's Board of Directors and is anticipated to close in the third quarter of 2025, subject to customary closing conditions [7] - Separately, Finning has also agreed to sell its interest in Compression Technology Corporation (ComTech) for a total implied transaction value of $40 million, with closing expected in the second quarter of 2025 [8] - In the year ended December 31, 2024, 4Refuel and ComTech generated over $190 million in net revenue, incurred $85 million in SG&A, and generated $72 million in EBITDA and $37 million in EBIT [9]

Core Viewpoint - Finning International Inc. is set to report its Q1 2025 results on May 12, 2025, and will hold an investor call on May 13, 2025, at 10:00 AM Eastern Time [1] Group 1: Company Overview - Finning is the world's largest Caterpillar dealer, providing equipment, parts, services, and performance solutions for over 90 years [2] - The company is headquartered in Surrey, British Columbia, and operates in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland [2] Group 2: Investor Communication - The investor call can be accessed via a toll-free number for Canada and the US, as well as an international toll number [1] - The call will be webcast live and archived for three months, with access available on the company's website [1]