Finning International Inc

FTT

Equity

ISIN CA3180714048 / Valor 687841

Toronto Stock Exchange (2025-03-17)

CAD 40.56+1.96%

Finning International Inc
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About company

Finning International Inc. is a prominent global distributor and service provider for Caterpillar equipment, recognized as the largest dealer of Caterpillar products worldwide. Established in 1933 and headquartered in Vancouver, Canada, the company operates across multiple regions, including the Americas and the UK. Finning's core business involves the sale, rental, and servicing of heavy machinery and engines, catering to diverse sectors such as mining, construction, petroleum, and forestry, as well as various power systems applications. With a workforce of nearly 15,000 employees, Finning is committed to delivering reliable and resourceful solutions to its customers, maintaining a strong reputation for integrity and customer loyalty in the heavy equipment industry.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Revenue Growth

In the third quarter of 2024, Finning International Inc. reported a revenue of $2.8 billion, marking a 5% increase compared to the same period in 2023. The net revenue stood at $2.5 billion, reflecting a 4% rise. The growth was driven by a 7% increase in new equipment revenue and a 2% increase in product support revenue.

Free Cash Flow

Finning International Inc. generated a free cash flow of $346 million in Q3 2024, a significant improvement from the previous year. Over the last twelve months, the company accumulated a total free cash flow of $746 million, highlighting its strong cash generation capabilities.

EBIT and Adjusted EBIT

The company reported an EBIT of $170 million for Q3 2024, with an EBIT margin of 6.7% of net revenue. Adjusted EBIT, which excludes certain costs, was $203 million, representing 8.0% of net revenue. This was a decrease from the previous year's EBIT margin, primarily due to lower margins in the Canadian business.

Earnings Per Share

Finning International Inc.'s Adjusted EPS for Q3 2024 was $0.93, which is a 13% decline from the EPS reported in Q3 2023. This decrease reflects the challenges faced in certain regions, despite strong performance in others.

Equipment Backlog

As of September 30, 2024, Finning International Inc. reported an equipment backlog of $2.3 billion, a 4% increase from June 30, 2024. This growth is attributed to strong order intake from mining and power systems customers, indicating a healthy demand pipeline.

Summarized from source with an LLMView Source

Key figures

9.41%1Y

4.59%3Y

257%5Y

Performance

29.9%1Y

31.4%3Y

34.6%5Y

Volatility