Ag Growth International beats Q2 revenue expectations

Overview

• Ag Growth International Q2 2025 revenue of C$349 mln beats analysts' expectations

• Adjusted EBITDA of C$54 mln towards high-end of guidance

• Order book up 4% YOY, driven by international Commercial growth

Outlook

• AGI maintains full-year adjusted EBITDA guidance at C$225 mln

• Company sees strong visibility in Commercial segment for H2 2025

• Farm segment faces limited visibility due to challenging market conditions

• AGI estimates minor direct cost impact from tariffs in 2025

Result Drivers

• COMMERCIAL SEGMENT GROWTH - Strong growth in international markets, particularly Brazil and EMEA, driven by long-term projects

• FARM SEGMENT DECLINE - Revenue and adjusted EBITDA impacted by soft farmer demand and high dealer inventory levels

• ORDER BOOK INCREASE - Order book up 4% YOY, supported by significant growth in international Commercial businesses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 Ag Growth International Inc is C$50.50, about 17.2% above its July 30 closing price of C$41.83

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw7jfX3ha