Growth International (AFN) Q2 2026 earnings summary

Executive summary

• Q2 2026 results reflect strong North American farm segment growth with double-digit revenue and EBITDA increases, while commercial markets remain soft globally, especially in North America, EMEA, and certain international regions.

• Farm revenue rose 10% to CAD 140 million and adjusted EBITDA increased 12% to CAD 33 million, with North American farm revenue up 16% year-over-year.

• Commercial segment revenue declined 17% to CAD 183 million, with adjusted EBITDA falling to CAD 19 million and margin compression due to lower project activity and geopolitical uncertainty.

• Consolidated adjusted EBITDA was CAD 43 million, down 20% year-over-year, with a margin of 13.4%, a decline of 217 basis points.

• Strategic Review Committee established to assess alternatives for maximizing shareholder value, with independent directors overseeing the process.

Financial highlights

• Q2 2026 revenue was $323 million, down 7% year-over-year; Adjusted EBITDA was $43 million, down 20% year-over-year.

• Farm segment: Revenue up 10% to CAD 140 million, adjusted EBITDA up 12% to CAD 33 million, and North American farm revenue up 16% year-over-year.

• Commercial segment: Revenue down 17% to CAD 183 million, adjusted EBITDA at CAD 19 million, with margin compression of 602 basis points to 10.6%.

• Free cash flow improved, driven by CAD 106 million in monetized long-term accounts receivable from Brazil, applied to debt reduction.

• Q2 2026 loss before income taxes was $22.5 million, compared to a profit of $36.6 million in Q2 2025.

Outlook and guidance

• Order book at June 30, 2026, was $516 million, down 22% year-over-year, mainly due to Commercial segment softness and fewer large projects in Brazil.

• H2 2026 is expected to mirror H1, with farm progression and commercial challenges persisting.

• Cost reduction benefits and asset monetization are expected to support improved free cash flow and margin recovery as volumes return.

• Expectation to monetize at least $20 million from unused facility and asset sales in H2 2026.