Finning reports Q3 2024 results

Press Release

VANCOUVER, British Columbia, Nov. 12, 2024 — Finning International Inc. (TSX: FTT) (“Finning”, the “Company”, “we”, “our” or “us”) reported third quarter 2024 results today. All monetary amounts are in Canadian dollars unless otherwise stated.

HIGHLIGHTS
All comparisons are to Q3 2023 results unless indicated otherwise.

Q3 2024 free cash flow ⁽³⁾ of $346 million, up from Q3 2023 driven by invested capital velocity improvement. In the last twelve months, we have generated cumulative free cash flow of $746 million.
Q3 2024 revenue of $2.8 billion and net revenue ⁽²⁾ of $2.5 billion were up 5% and 4%, respectively. New equipment revenue was up 7% and product support revenue was up 2%.
Q3 2024 EBIT ⁽¹⁾ was $170 million and EBIT as a percentage of net revenue ⁽²⁾ was 6.7%. Excluding an estimated loss for receivables from a customer placed into receivership as well as severance costs across our regions (further described on page 9), Adjusted EBIT ⁽³⁾⁽⁴⁾ was $203 million.
Adjusted EBIT as a percentage of net revenue ⁽²⁾⁽⁴⁾ was 8.0%, down 230 basis points from Q3 2023 EBIT as a percentage of net revenue, primarily due to lower margins in our Canadian business.
Adjusted EBIT as a percentage of net revenue was 10.9% in South America, 6.3% in the UK & Ireland and 7.5% in Canada.
Q3 2024 Adjusted EPS ⁽¹⁾⁽²⁾⁽⁴⁾ was $0.93, down 13% from Q3 2023 EPS.
Equipment backlog ⁽²⁾ of $2.3 billion at September 30, 2024 was up 4% from June 30, 2024 reflecting strong order intake from mining and power systems customers.

“Our results in the third quarter were different by region and reflect the advantage of our diversified business. We had strong growth in South America, resilient profitability in the UK & Ireland, excellent free cash flow in all regions and our backlog remains healthy. Deliberate actions to generate strong cash flow coupled with tougher market dynamics resulted in more challenging margin performance in our Canadian business. We are focused on cost control to drive improved profitability going forward,” said Kevin Parkes, President and CEO.

“One year on from our Investor Day in Chile our product support growth overall is positive, and our working capital velocity is gaining momentum. We have acted to further align our cost base, maintain the quality of our inventory, and announced succession in our leadership team. We are all focused on driving the execution of our strategy.”

“Our strategy is focused on maximizing product support, continuously improving our cost and capital position to drive full-cycle resilience and growing prudently in used, rental and power – all with the objective of achieving a sustainably higher ROIC going forward,” said Mr. Parkes.

Q3 2024 FINANCIAL SUMMARY

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