Finning International Q2 revenue misses estimates

Overview

• Finning Q2 2025 revenue of CAD 2.6 bln missed analyst expectations, per LSEG data

• Adjusted EPS from continuing operations rose 5% but missed analyst estimates, per LSEG data

• Equipment backlog reached an all-time high of C$3.0 bln, driven by mining orders

Outlook

• Finning expects steady infrastructure activity in Chile's construction sector

• Company anticipates mixed outlook for Western Canada's resource development

• Finning expects soft construction demand in UK due to low GDP growth

Result Drivers

• PRODUCT SUPPORT - 5% growth in product support revenue across all regions, driven by increased demand from mining customers

• EQUIPMENT BACKLOG - Record equipment backlog of C$3 bln, fueled by large mining equipment orders in Canada

• SG&A EXPENSES - SG&A margin affected by C$16 mln increase in long-term incentive plan compensation due to 44% share price rise

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

• Wall Street's median 12-month price target for Finning International Inc is C$62.00, about 0.6% above its August 5 closing price of C$61.64

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX6GMzcj