Finning International (TSE:FTT)
TSX:FTT
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Finning International
(TSX:FTT)
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Rating:68Neutral
Price Target:
C$94.00
▲(10.13% Upside)
Action:DowngradedDate:03/24/26
The score is driven primarily by solid underlying fundamentals and a positive earnings call emphasizing backlog growth, cash generation, and deleveraging. This is tempered by cash-flow volatility and mixed near-term demand/margins, while technical signals remain soft and valuation is only moderate.
Positive Factors
Product support revenue growth & technician additions
Durable aftermarket strength: growing product‑support revenues and added technicians expand recurring, higher‑margin service capacity tied to the installed base. This increases predictable annuity-like cash flows, supports cross-selling, and reduces reliance on cyclical new equipment sales.
Negative Factors
Volatile free cash flow history
Historic FCF swings highlight sensitivity to working capital, equipment cycles and fleet rotation. That variability complicates planning for capex, dividends or buybacks and reduces visibility on sustainable cash returns across cyclical downturns, increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Product support revenue growth & technician additions
Durable aftermarket strength: growing product‑support revenues and added technicians expand recurring, higher‑margin service capacity tied to the installed base. This increases predictable annuity-like cash flows, supports cross-selling, and reduces reliance on cyclical new equipment sales.
Read all positive factors
Finning International (FTT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.17B
Dividend Yield1.58%
Average Volume (3M)448.79K
Price to Earnings (P/E)19.6
Beta (1Y)1.43
Revenue Growth1.32%
EPS Growth24.27%
CountryCA
Employees13,188
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.00
Shares Outstanding130,817,570
10 Day Avg. Volume342,722
30 Day Avg. Volume448,793
Financial Highlights & Ratios
PEG Ratio3.94
Price to Book (P/B)3.55
Price to Sales (P/S)0.93
P/FCF Ratio20.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$103.20Price Target Upside20.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.69
Revenue Forecast (FY)C$10.94B
Finning International Business Overview & Revenue Model
Company Description
Finning International Inc. sells, services, and rents heavy equipment, and power and energy systems in Canada, Chile, the United Kingdom, Argentina, and internationally. The company offers telehandlers, articulated trucks, asphalt pavers, backhoe ...
How the Company Makes Money
Finning makes money primarily through a multi-stream dealer model centered on representing Caterpillar in its territories. (1) New equipment sales: It generates revenue by selling new Caterpillar machines and equipment packages to industrial and i...
Finning International Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call emphasized broad, measurable progress across core operating and financial metrics: revenue growth (+7%), record backlog (+20%), product support expansion (+8% to nearly $6B), improved returns (ROIC ~19.2%), strengthened leverage (net debt/EBITDA 1.2x) and strong free cash flow. Offsetting these positives were near-term margin pressures (gross margin down ~70 bps), one-time technology asset write-offs ($22M), higher LTIP expense, weaker used equipment sales (Q4 down 23%), and localized near-term softness and labor constraints in Chile and softer construction utilization in the U.K. Overall the company presented stronger earnings resilience, capital discipline and clear growth initiatives, while acknowledging some cyclical and execution challenges that management plans to manage through investments and operational actions.Positive Updates
Revenue and Backlog Growth
Full-year 2025 revenue up 7% to $10.6 billion; Q4 2025 revenue up 6% to $2.7 billion. Equipment backlog reached a record $3.1 billion at year-end, up 20% year-over-year and up 9% from September 2025.
Negative Updates
Margin Pressure and EBIT Volatility
Gross profit margin declined ~70 basis points in Q4, largely due to lower product support margins. Excluding a $22 million write-off, Q4 adjusted EBIT was down ~2% year-over-year. Q4 SG&A margin was ~15.4%, adversely affected by higher LTIP expense.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Backlog Growth
Full-year 2025 revenue up 7% to $10.6 billion; Q4 2025 revenue up 6% to $2.7 billion. Equipment backlog reached a record $3.1 billion at year-end, up 20% year-over-year and up 9% from September 2025.
Read all positive updates
Company Guidance
Management guided continued execution of the 2023 Investor Day strategy with a focus on product support and Power & Energy growth—after 2025 results of revenue +7% to $10.6B, product support ~ $6B (+8%), adjusted EPS +14% and backlog at a record $3.1B (+20% YoY; P&E backlog $1.0B, +25% YoY)—while targeting invested capital turns of 2.3–2.5x (Q4 at ~2.34x), an adjusted ROIC range of 18–25% (consolidated Q4 ROIC 19.2%), and SG&A well below the 17% target (2025 ~15%; Q4 15.4%); financial priorities include sustaining positive free cash flow (nearly $550M in 2025), lower leverage (net debt/adjusted EBITDA 1.2x vs 1.7x YE‑2024), disciplined capital allocation and selective growth investment (2026 net capex and net rental fleet spend expected > $350M), plus continued technician hiring (225 added in 2025).Finning International Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.59B | 11.21B | 10.53B | 9.28B | 7.29B |
| Gross Profit | 2.37B | 2.48B | 2.50B | 2.22B | 1.80B |
| EBITDA | 1.25B | 1.09B | 1.18B | 975.00M | 729.00M |
| Net Income | 506.00M | 509.00M | 523.00M | 503.00M | 364.00M |
Balance Sheet | |||||
| Total Assets | 7.80B | 7.73B | 7.56B | 7.27B | 5.97B |
| Cash, Cash Equivalents and Short-Term Investments | 397.00M | 316.00M | 177.00M | 288.00M | 502.00M |
| Total Debt | 2.31B | 2.58B | 2.70B | 2.33B | 1.81B |
| Total Liabilities | 5.01B | 5.09B | 5.03B | 4.81B | 3.63B |
| Stockholders Equity | 2.79B | 2.63B | 2.51B | 2.44B | 2.32B |
Cash Flow | |||||
| Free Cash Flow | 480.00M | 856.00M | 8.00M | -170.00M | 292.00M |
| Operating Cash Flow | 688.00M | 1.01B | 228.00M | 1.00M | 425.00M |
| Investing Cash Flow | 217.00M | -128.00M | -229.00M | -268.00M | -151.00M |
| Financing Cash Flow | -817.00M | -816.00M | -71.00M | -13.00M | -300.00M |
Finning International Technical Analysis
Negative
85.35
Price Trends
88.34
Negative
81.50
Positive
71.14
Positive
Market Momentum
-0.75
Positive
44.85
Neutral
54.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FTT, the sentiment is Negative. The current price of 85.35 is below the 20-day moving average (MA) of 88.75, below the 50-day MA of 88.34, and above the 200-day MA of 71.14, indicating a neutral trend. The MACD of -0.75 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 54.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FTT.
Finning International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$14.33B | 5.72 | 56.38% | 0.09% | 13.97% | 715.65% | |
73 Outperform | C$15.48B | 21.51 | 15.97% | 1.25% | 2.97% | -0.80% | |
70 Outperform | C$2.68B | 130.21 | 1.66% | 2.38% | 25.68% | ― | |
68 Neutral | C$11.17B | 19.57 | 24.05% | 1.58% | 1.32% | 24.27% | |
66 Neutral | C$686.92M | 10.32 | 10.91% | 5.09% | 3.71% | -12.70% | |
66 Neutral | C$2.60B | 14.57 | 10.04% | 3.88% | 8.15% | -3.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:FTT
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Finning International Corporate Events
Business Operations and StrategyFinancial Disclosures
Finning lifts 2025 revenue and backlog as product support and equipment sales hit records
Positive
Feb 11, 2026
Finning reported 2025 revenue of $10.6 billion, up 7% year over year, with fourth-quarter sales rising 6% to $2.7 billion on broad-based regional growth and robust demand for product support and new equipment. Product support revenue climbed 8% in...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.