Finning International Q2 revenue misses estimates

Finning International

05/08/2025 22:57

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$2.61 bln
C$2.74 bln (9 Analysts)
Q2 Adjusted EPS
Miss
C$1.01
C$1.09 (9 Analysts)
Q2 EPS
C$0.94
Q2 EBIT
C$203 mln
Q2 Free Cash Flow
-C$164 mln


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

(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.)