Finning International (FTT) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $3.13 billion, up 20% year-over-year, surpassing $3 billion for the first time, driven by strong new equipment deliveries, robust mining activity, and sustained product support growth across all regions.

• Record quarterly EPS of $1.22, up 21% year-over-year, with EBIT up 16% to $249 million.

• Equipment backlog reached a record $3.8 billion, up 22% since December 2025, led by significant mining and power & energy orders.

• Product support revenue grew for the ninth consecutive quarter, up 11% year-over-year, with Canadian product support up 19%.

• Strategic investments in technician capacity and rental fleet are supporting growth and market share gains.

Financial highlights

• New equipment sales grew 34%, used equipment 18%, and equipment rental 19% year-over-year; Q2 revenue reached $3.13 billion, up 20% year-over-year.

• EBIT was $249 million, up 16% year-over-year; EBIT margin was 8.0%, down 30 bps; gross profit margin was 21.3%, down 240 bps.

• SG&A margin improved to 13.3% from 15.5%, reflecting cost discipline.

• Free cash flow was $15 million, reversing a prior year outflow; net debt to adjusted EBITDA was 1.6x.

• Adjusted ROIC from continuing operations was 19.0%.

Outlook and guidance

• Backlog strength and growing installed base provide confidence in future product support and earnings growth.

• Positive outlook for mining and power & energy in Canada and Chile, with construction sector activity improving but UK & Ireland demand expected to remain soft.

• South America outlook remains positive, especially in Chile due to copper demand and supportive government policies; Argentina remains dynamic.

• Focus remains on maximizing product support, expanding used, rental, and power & energy businesses, and maintaining adjusted ROIC in the 18–25% range.

• Power & energy backlog up 25% globally, with positive data centre and oil & gas sentiment in Canada.