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VANCOUVER, British Columbia, May 12, 2025 (GLOBE NEWSWIRE) — Finning International Inc. (TSX: FTT) (“Finning”, the “Company”, “we”, “our” or “us”) reported first quarter 2025 results today. All monetary amounts are in Canadian dollars unless otherwise stated.

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HIGHLIGHTS
All comparisons are to Q1 2024 results unless indicated otherwise.

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“Our team delivered another excellent quarter. We are driving value through the execution of our investor day strategy with increasing impact. Over the last twelve-month period, we have continued our growth with $10.3 billion of net revenue including 5% product support growth, demonstrated resilience by generating over $1.2 billion of free cash flow and reducing SG&A as a percentage of net revenue to 16.2%, while also sustainably growing our used and power businesses,” said Kevin Parkes, President and CEO.

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“Our strong start to 2025 comes at a very important time, with double digit product support growth and record backlog levels in Q1 being an excellent platform to demonstrate our improved resilience and earnings capacity in 2025. We won important business with data center customers in the UK and Ireland and mining customers in Canada, and our backlog now includes over 100 ultra class trucks across Canada and South America. We increased our inventory balances in Q1 to support our backlog as well as solid quoting activity in each region.”

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“Building upon our momentum from 2024, we have accelerated the delivery of our invested capital improvement plans which resulted in the $450 million sale of 4Refuel and healthy first quarter free cash flow reflecting improved working capital velocity. We continue our strong commitment to returning capital to shareholders and our board approved an increase in our quarterly dividend by 10%, marking our 24^th consecutive year of growth.”

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“We remain steadfast in our commitment to executing our strategy to maximize product support, drive full-cycle resilience and grow our used, rental and power businesses to improve our return on invested capital,” said Mr. Parkes.

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Q1 2025 FINANCIAL SUMMARY

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QUARTERLY KEY PERFORMANCE MEASURES

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Q1 2025 HIGHLIGHTS BY OPERATION
All comparisons are to Q1 2024 results unless indicated otherwise. All numbers, except ROIC, are in functional currency: Canada – Canadian dollar; South America – US dollar (USD); UK & Ireland – UK pound sterling (GBP). These variances and ratios for South America and UK & Ireland exclude the foreign currency translation impact from the CAD relative to the USD and GBP, respectively, and are therefore considered to be specified financial measures. We believe the variances and ratios in functional currency provide meaningful information about operational performance of the reporting segment.

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South America Operations

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Canada Operations

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UK & Ireland Operations

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Corporate and Other Items

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Renewal of Share Repurchase Program

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We have received approval from the Toronto Stock Exchange (“TSX”) to renew our normal course issuer bid (“NCIB”) to purchase for cancellation up to 13,300,000 of our common shares, representing 9.9% of the public float of 134,329,475 common shares as at May 2, 2025. As at May 2, 2025, Finning had a total of 134,569,536 common shares issued and outstanding.

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The NCIB, which will begin on May 15, 2025 and end no later than May 14, 2026, will be conducted through the facilities of the TSX or other Canadian alternative trading systems, if eligible, and will conform to their rules and regulations.

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Our Board of Directors believes that, from time to time, the purchase by Finning of its common shares represents a desirable use of its available cash to increase shareholder value.

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The average daily trading volume of our common shares over the six-month period ending April 30, 2025, as calculated in accordance with TSX rules, was 452,429 common shares. Consequently, under TSX rules, we will be allowed to purchase daily, through the facilities of the TSX, a maximum of 113,107 common shares representing 25% of such average daily trading volume, subject to certain exceptions for block purchases. All shares purchased pursuant to the normal course issuer bid will be cancelled.

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Purchases under the normal course issuer bid will be made by means of open market transactions or such other means as the TSX may permit. The price to be paid by us for any common share will be the market price at the time of acquisition, plus brokerage fees.

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In connection with the NCIB, we will enter into an automatic share purchase plan (“ASPP”) with a designated broker. The ASPP will allow for the purchase of shares under the NCIB at times when we would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout restrictions.

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The ASPP will provide a set of standard instructions to the designated broker to make purchases under the NCIB in accordance with the limits and other terms set out in the ASPP. The designated broker will determine the timing of these purchases in its sole discretion based on purchasing parameters set by us and subject to the rules of the TSX, applicable securities laws, and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be implemented as of May 15, 2025. All purchases made under the ASPP will be included in computing the number of shares purchased and cancelled by us under the NCIB. Outside of pre-determined blackout periods, shares may be purchased under the NCIB based on management’s discretion, in compliance with TSX rules, and applicable securities laws.

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Under the current NCIB, which expires on May 12, 2025, we obtained approval to purchase up to 14,000,000 common shares. As of May 2, 2025, we purchased and cancelled 7,626,395 common shares under the current NCIB on the open market through the facilities of the TSX and other alternative Canadian trading systems at a volume weighted average price paid of $39.64 per common share (excluding commissions and taxes).

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MARKET UPDATE AND BUSINESS OUTLOOK

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The discussion of our expectations relating to the market and business outlook in this section is forward-looking information that is based upon the assumptions and subject to the material risks discussed under the heading “Forward-Looking Information Caution” at the end of this news release. Actual outcomes and results may vary significantly.

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Global Trade

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Recent changing tariff related announcements by the US, Canada and other countries globally has introduced a higher level of uncertainty, cost and complexity to operating for many businesses. To date, the direct impact of announced and implemented tariffs to Finning has been limited and largely centered on our Canadian operations. The indirect impact through reduced economic activity, changes to inflation as well as deferred, delayed or cancelled investment decisions across our customer base remains unknown and difficult to predict. We have not yet seen major shifts in customer purchasing decisions, major supply chain changes or changes in the competitive dynamics in the markets we serve as a result of the global tariff landscape, however we remain cautious given the evolution of announcements over the past several months.

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South America Operations

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In Chile, our outlook is underpinned by growing global demand for copper, strong copper prices, capital deployment into large-scale brownfield expansions, and customer confidence to invest in brownfield and greenfield projects. We are seeing a broad-based level of quoting, tender, and award activity for mining equipment, product support, and technology solutions. While activity levels and outlook remain positive, we also expect a more challenging labour environment including higher compensation and union agreement payments in upcoming union negotiations.

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In the Chilean construction sector, we continue to see demand from large contractors supporting mining operations, and we expect infrastructure construction activity to remain steady. In the power systems sector, activity remains strong in the industrial and data centre markets, driving growing demand for electric power solutions.

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In Argentina, we continue to take a low-risk approach, while at the same time, we are positioning our business to capture opportunities, particularly in the oil & gas and mining sectors. The operating environment remains dynamic, and we continue to closely monitor the government’s new rules and policies, some of which are helping drive large-scale investment. The recent lifting of currency controls adds an element of optimism for improving activity levels.

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Canada Operations

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Our outlook for Western Canada is mixed. With new election results, we expect a focus on increasing infrastructure spend, removing interprovincial trade barriers and promoting growth in the energy sector. We expect ongoing commitments from federal and provincial governments as well as private sector projects for infrastructure development to support activity in the construction sector. We see a growing demand for reliable, efficient, and sustainable electric power solutions across communities in Western Canada that creates opportunities for our power systems business. We expect our mining customers to deploy capital to renew, maintain, and rebuild aging fleets.

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With a more uncertain market environment in the near term, we are focused on building our resilience by managing our cost and working capital. We also continue to assess and execute opportunities to optimize low-ROIC activities. We anticipate leveraging the structural changes and overhead reductions strategy demonstrated in our UK operations.

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UK & Ireland Operations

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With low GDP ⁽¹⁾ growth projected in the UK to continue, we expect demand in the construction sector to remain soft. We expect a growing contribution from used equipment and power systems as we continue to execute on our strategy. In power systems, quoting activity remains strong, driven by healthy demand for primary and backup power generation, particularly in the data centre market. We expect our product support business in the UK & Ireland to remain resilient.

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Corporate Development

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We expect the sale of 4Refuel to close in the third quarter of 2025 and the sale of ComTech to close in the second quarter of 2025. In the year ended December 31, 2024, 4Refuel and our interest in ComTech generated in aggregate over $190 million of net revenue, incurred $85 million of SG&A, and generated $37 million of EBIT. The net proceeds of the transactions are expected to be used to repurchase shares under our NCIB, subject to market conditions, to pay down our credit facility, and for general corporate purposes. We expect these transactions and planned share repurchases to be accretive to earnings per share.

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As we progress through 2025, we remain focused on the steady execution of our strategic plan: maximize product support, continuously improve our cost and capital position to drive full-cycle resilience and grow prudently in used, rental and power.

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To access Finning’s complete Q1 2025 results, please visit our website at https://www.finning.com/en_CA/company/investors.html

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Q1 2025 INVESTOR CALL
We will hold an investor call on May 13, 2025 at 10:00 am Eastern Time. Dial-in numbers: 1-833-752-3398 (Canada and US toll free), 1-647-846-2852 (international toll). The investor call will be webcast live and archived for three months. The webcast and accompanying presentation can be accessed at https://www.finning.com/en_CA/company/investors.html

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ABOUT FINNING
Finning is the world’s largest Caterpillar dealer, delivering unrivalled service to customers for over 90 years. Headquartered in Surrey, British Columbia, we provide Caterpillar equipment, parts, services, and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland.

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CONTACT INFORMATION
Neil McCann
VP Finance, Capital Markets and Corporate Development
Email: FinningIR@finning.com
https://www.finning.com

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Description of Specified Financial Measures and Reconciliations                                

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Specified Financial Measures

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We believe that certain specified financial measures, including non-GAAP ⁽¹⁾ financial measures, provide users of our Earnings Release with important information regarding the operational performance and related trends of our business. The specified financial measures we use do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Accordingly, specified financial measures should not be considered as a substitute or alternative for financial measures determined in accordance with GAAP (GAAP financial measures). By considering these specified financial measures in combination with the comparable GAAP financial measures (where available) we believe that users are provided a better overall understanding of our business and financial performance during the relevant period than if they simply considered the GAAP financial measures alone.

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We use KPIs to consistently measure performance against our priorities across the organization. Some of our KPIs are specified financial measures.

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There may be significant items that we do not consider indicative of our operational and financial trends, either by nature or amount. We exclude these items when evaluating our operating financial performance. These items may not be non-recurring, but we believe that excluding these significant items from GAAP financial measures provides a better understanding of our financial performance when considered in conjunction with the GAAP financial measures. Financial measures that have been adjusted to take these significant items into account are referred to as “Adjusted” measures. Adjusted measures are specified financial measures and are intended to provide additional information to readers of the Earnings Release.

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Descriptions and components of the specified financial measures we use in this Earnings Release are set out below. Where applicable, quantitative reconciliations from certain specified financial measures to their most directly comparable GAAP financial measures (specified, defined, or determined under GAAP and used in our consolidated financial statements) are also set out below.

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Adjusted EPS

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Adjusted EPS excludes the after-tax per share impact of significant items that we do not consider to be indicative of operational and financial trends either by nature or amount to provide a better overall understanding of our underlying business performance. The tax impact of each significant item is calculated by applying the relevant applicable tax rate for the jurisdiction in which the significant item occurred. The after-tax per share impact of significant items is calculated by dividing the after-tax amount of significant items by the weighted average number of common shares outstanding during the period.

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A reconciliation between EPS (the most directly comparable GAAP financial measure) and Adjusted EPS can be found on page 11 of this Earnings Release.

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Adjusted EBIT and Adjusted EBITDA

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Adjusted EBIT and Adjusted EBITDA exclude items that we do not consider to be indicative of operational and financial trends, either by nature or amount, to provide a better overall understanding of our underlying business performance.

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Adjusted EBITDA is calculated by adding depreciation and amortization to Adjusted EBIT.

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The most directly comparable GAAP financial measure to Adjusted EBITDA and Adjusted EBIT is EBIT.

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Significant items identified by management that affected our results were as follows:

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A reconciliation from EBIT to Adjusted EBIT and Adjusted EBITDA for our consolidated operations is as follows:

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The income tax impact of the significant items was as follows:

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A reconciliation from EPS to Adjusted EPS for our consolidated operations is as follows:

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	3 months ended			2025		2024					2023
	($)			Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31		Sep 30	Jun 30	Mar 31
	EPS (a)			0.77		1.02	0.75	1.02	0.84		0.59		1.07	1.00	0.89
	Significant items:
		Impairment loss related to ComTech		0.22		—	—	—	—		—		—	—	—
		Severance costs		—		—	0.10	—	—		—		—	—	0.09
		Estimated loss for a customer receivable		—		—	0.08	—	—		—		—	—	—
		Foreign exchange and tax impact of devaluation of ARS		—		—	—	—	—		0.37		—	—	—		& Recent Posts 3 min Planning For A Financial Revival In 2025... 3 min Drowning In Debt? How To Manage On A Dwindling Budget... Trending 3 min Planning For A Financial Revival In 2025... 2 min Check On These Tax Credits Before Filing Your Return In 2024... Related Articles Planning For A Financial Revival In 2025... Check On These Tax Credits Before Filing Your Return In 2024... WSP Announces Ambitious 2025-2027 Global Strategy and Renews... Netflix Considers A Bold New Play In The Creator Economy... How To Get A Free Cell Phone And Discounted Network Service... 10 Weekend Gigs That Will Help You Pad Your Savings... Stay Informed Get the best articles every day for FREE. Cancel anytime. Subscribe