Finning International (FTT) Q4 2025 earnings summary

Executive summary

• Achieved 2025 revenue of $10.6 billion, up 7% year-over-year, with strong growth in all regions and a record equipment backlog of $3.1 billion, up 20% from 2024.

• Product support revenue rose 8% to nearly $6 billion, with 10% growth in Canada, 5% in South America, and flat in UK & Ireland.

• Completed operational simplification, including restructuring and the sale of 4Refuel, to focus on core dealership growth and capital efficiency.

• Enhanced digital and technology capabilities, added 225 new technicians, and executed disciplined cost control.

• Adjusted EPS reached $4.12, up 14% from 2024, and free cash flow was $546 million for 2025.

Financial highlights

• Q4 2025 revenue was $2.7 billion, up 6% year-over-year; adjusted EBIT was $209 million, and adjusted EPS was $1.00, up 3% year-over-year.

• Gross profit margin for Q4 2025 was 23.0%, with SG&A margin at 15.4%, down 10 bps year-over-year.

• Q4 free cash flow was $642 million; annual free cash flow reached $546 million.

• Net debt to adjusted EBITDA ratio reduced to 1.2x from 1.7x year-over-year.

• Adjusted ROIC reached 19.2% in Q4, up 130 bps year-over-year.

Outlook and guidance

• Remain constructive on long-term outlook in all markets, with focus on growth, earnings expansion, and strong ROIC.

• Expect to build rental fleet and invest over $350 million in 2026 to capture market opportunities as construction recovers.

• Anticipate continued strong demand in power and energy, especially for data center prime power in Alberta.

• Cautious optimism for resource development and infrastructure in Western Canada; steady mining activity expected in Canada and South America.

• Medium-term bullish outlook for South American copper; near-term moderation in Chile as fleets are realigned.