Q2 2026 Finning International Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $68.17 (-4.94%)

Transcript

Key Points

Positve

Finning International Inc (FINGF) achieved record quarterly EPS of $1.22, up 21% year-over-year, and surpassed $3 billion in quarterly revenue for the first time in its history.
Product support revenue grew 11% year-over-year, marking the ninth consecutive quarter of growth, with Canada leading at 19% growth across all sectors.
Equipment backlog remained strong at $3.8 billion, up 26% from the prior year, driven by strategically significant mining orders in Chile and gas compression orders in Canada.
The company is capitalizing on a generational power opportunity for data centers in Western Canada, leveraging its decade-long experience in the UK and Ireland to support prime, bridging, and backup power solutions.
Rental revenue grew 19% year-over-year, led by Canada, with construction rental revenue up 60% in the quarter, reflecting strong market share gains and improving end-market demand.
SG&A as a percentage of revenue improved to 14.5% on a last 12-month basis, down 120 basis points, demonstrating continued cost discipline and operational leverage.

Negative

Gross profit margin declined 240 basis points to 21.3%, impacted by lower product support margins and a higher proportion of new equipment revenue in the sales mix.
Product support margins compressed in both Canada and South America due to a mix shift toward larger customers, training and productivity ramp-ups for new technicians, and the impact of tariffs on heavy steel products.
Free cash flow was only $15 million, as investments in working capital to support growth largely offset increased collections from higher revenues.
South America's EBIT margin declined 40 basis points, and adjusted return on invested capital fell 240 basis points due to working capital investments supporting growth.
The company noted near-term moderation in product support activity levels in Chile and a more stabilized labor environment through 2028, which could temper growth in the region.
The timing and magnitude of data center projects in Western Canada remain uncertain, pending project approvals and infrastructure build-out, limiting near-term financial contribution.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FTT.TO - Finning International Inc
Q2 2026 Finning International Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by. This is the conference operator. Welcome to the Penning International Inc. Second Quarter 2026 Investor Call and Webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions. Analysts who wish to join the question queue may press star then 1 on the telephone keypad. To do need assistance during the conference call, you may reach an operator by pressing star then 0.

I would now like to turn the conference over to David Primrose, Executive Vice President and Chief Financial Officer. Please go ahead.

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