Finning International Inc

FTT

Equity

ISIN CA3180714048 / Valor 687841

Toronto Stock Exchange (2024-09-17)

CAD 39.84+0.73%

Finning International Inc
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About company

Finning International Inc. is the world's largest Caterpillar dealer with a history spanning over 90 years. The company sells, rents, and provides parts and service for equipment and engines to customers in industries such as mining, construction, petroleum, forestry, and power systems applications. With over 12,000 employees worldwide and operations in three geographies, Finning has built a reputation for integrity, reliability, and resourcefulness since its establishment in Canada in 1933. The company's growth is attributed to its commitment to earning customer loyalty through unrivaled service.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Revenue Growth

Finning International Inc. reported a 9% increase in Q1 2024 revenue, reaching $2.6 billion. This growth was driven by a 25% rise in new equipment sales and a 48% increase in used equipment sales, despite a 1% decline in product support revenue compared to Q1 2023.

EBIT Performance

Finning International Inc.'s Q1 2024 EBIT was $202 million, down 7% from the adjusted EBIT in Q1 2023. The decline was primarily due to a shift in revenue mix towards new and used equipment sales. The EBIT as a percentage of net revenue was 8.7%, compared to 11.2% in Q1 2023.

Dividend Increase

Finning International Inc. announced a 10% increase in its quarterly dividend to $0.275 per share for Q1 2024. This marks the company's 23rd consecutive year of dividend growth, reflecting its improved earnings capacity and commitment to returning capital to shareholders.

Free Cash Flow

In Q1 2024, Finning International Inc. reported a use of cash of $210 million in free cash flow, compared to a use of $245 million in Q1 2023. This reflects normal seasonality and improved cash flow management.

Order Backlog

Finning International Inc.'s equipment backlog remained strong at $2.0 billion as of March 31, 2024, consistent with December 31, 2023 levels. Significant new equipment orders totaling over $700 million were received in April, including contracts with copper mines in Chile and oil sands in Canada.

Summarized from source with an LLMView Source

Key figures

-5.73%1Y

26.3%3Y

68.5%5Y

Performance

28.4%1Y

30.6%3Y

34.2%5Y

Volatility