Finning International Inc

FTT

Equity

ISIN null / Valor 687841

Toronto Stock Exchange (2025-11-21)

CAD 72.68+1.23%

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 and Product Support Growth

In Q2 2025, Finning International Inc. reported revenue of CAD $2.6 billion, consistent with the prior year. Product support services saw a 5% increase, contributing to the stable revenue performance across all three regions.

Record Equipment Backlog

The company's equipment backlog reached an all-time high of CAD $3.0 billion as of June 30, 2025, marking a 6% increase from the previous quarter. This backlog includes over CAD $1.0 billion in power systems orders, supported by nearly CAD $1.0 billion in new equipment sales during the quarter.

Improved Profit Margins

Finning achieved an SG&A margin of 15.5% in Q2 2025, up from 15.0% in Q2 2024, driven by strong execution and productivity initiatives. The Adjusted EBIT margin was reported at 8.3%, with regional margins of 10.1% in South America, 9.4% in Canada, and 5.2% in the UK & Ireland.

Enhanced Earnings Per Share

Adjusted EPS from continuing operations increased by 5% to CAD $1.01 in Q2 2025, compared to CAD $0.97 in Q2 2024. This improvement excludes earnings from discontinued operations and includes higher long-term incentive plan expenses.

Strong Return on Invested Capital

Finning reported an Adjusted ROIC of 18.7% for Q2 2025, reflecting effective capital utilization. Free cash flow from continuing operations was a use of CAD $164 million, primarily due to higher inventory levels supporting increased customer activity.

Summarized from source with an LLMView Source

Key figures

97.5%1Y

129%3Y

195%5Y

Performance

36.7%1Y

30.9%3Y

31.6%5Y

Volatility