Caterpillar dealer Finning's Q2 revenue rises 20%, beats estimates

Finning International

05/08/2026 22:34

Overview
Canada Caterpillar dealer's Q2 revenue rose 20%, beating analyst expectations
Adjusted EPS for Q2 rose 21% to C$1.22
Equipment backlog at record C$3.8 bln, up 22% since start of year

Outlook
Finning expects strong mining and power & energy activity in Western Canada
Company expects construction demand in UK & Ireland to remain soft, with growth in power & energy
Finning sees some moderation in near-term product support activity in Chilean mining

Result Drivers
NEW EQUIPMENT SALES - Q2 revenue growth was led by strong new equipment sales in all regions, with Canada showing particularly high demand in mining and construction
PRODUCT SUPPORT GROWTH - Product support revenue increased 11%, with Canada up 19%, reflecting strong demand across all sectors, especially mining
RECORD BACKLOG - Equipment backlog maintained a record level of C$3.8 bln, up 22% since the start of the year, driven by order intake outpacing deliveries, especially in mining and power & energy

Company press release: ID:nGNXcfSQwr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$3.13 bln
C$2.76 bln (8 Analysts)
Q2 EPS
 
C$1.22
 
Q2 EBIT
 
C$249 mln
 
Q2 Free Cash Flow
 
C$15 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "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$120.00, about 20.3% above its August 4 closing price of C$99.75
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Aug 4 - Caterpillar lifts 2026 sales growth forecast as AI buildout powers on
Aug 3 - CNH raises annual profit forecast on improving construction equipment demand
Aug 3 - Mexico mining industry sees investment jump in 2026 as firms expand projects, buy equipment

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)