Finning International (FTT) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $2.8 billion, up 14% year-over-year, with growth across all regions and strong mining and power systems demand; new equipment sales hit a record $1.0 billion and backlog stood at $2.9 billion.

• Product support revenue for the last 12 months rose to $5.8 billion, up 7%, with strong mining activity in Canada and South America; product support revenue increased 9% year-over-year.

• Strategic execution focused on maximizing product support, building resilience through cost and capital management, and investing in automation and warehouse technology.

• Power systems backlog at the end of September was nearly $1 billion, up 23% from the prior year, reflecting robust demand in data centers, oil and gas, and industrial applications.

• The company continues to focus on long-term growth, resilience, and operational efficiency, with a positive outlook for mining, power, and construction markets.

Financial highlights

• Q3 EBIT was $240 million, up 25% from Q3 2024 adjusted EBIT, with EBIT margin up 70 bps to 8.5%; EPS of $1.17 increased 33% year-over-year.

• Free cash flow usage was $56 million in Q3, reflecting higher inventory to support increased activity.

• New equipment sales rose 12% to $1.0 billion, used equipment sales surged 122%, and product support revenue grew 9% year-over-year.

• Gross profit margin was 21.7%, down 170 bps due to revenue mix shift; SG&A margin improved to 13.4%, down 290 bps year-over-year.

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

Outlook and guidance

• Sustained optimism for long-term growth in oil and gas, mining, and power systems, with a constructive medium-term outlook; Q4 2025 expected to be an inflection point for free cash flow.

• Strong outlook for Chile mining supported by high copper prices and capital deployment into brownfield expansions; Canadian market outlook remains positive for mining and infrastructure.

• UK & Ireland expect soft construction demand but growing power systems contribution, especially in data centres.

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

• SG&A performance is expected to be sustainable, with further efficiency opportunities identified, especially in Canada and South America.