VANCOUVER, British Columbia, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) ("Finning”, the "Company”, "we”, "our” or "us”) reported fourth quarter and annual 2024 results today. All monetary amounts are in Canadian dollars unless otherwise stated.

HIGHLIGHTS

All comparisons are to Q4 2023 results unless indicated otherwise.

  • Q4 2024 revenue of $2.9 billion and net revenue of $2.6 billion were up 8% and 7%, respectively, driven by a 12% increase in new equipment revenue and a 6% increase in product support revenue. Full year 2024 net revenue of $10.1 billion was up 6% relative to full year 2023.
  • Q4 2024 EBIT (1) was $223 million. EBIT as a percentage of net revenue (2) was 8.7%, down 90 basis points from Q4 2023 Adjusted EBIT as a percentage of net revenue (2)(4), with substantial improvements in the UK and Ireland offset primarily by lower margins in our Canadian business.
  • Q4 2024 EBIT as a percentage of net revenue was 10.9% in South America, 8.1% in Canada and 5.8% in the UK & Ireland.
  • Q4 2024 SG&A (1) as a percentage of net revenue (2) was 16.0%, a decrease of 30 basis points from Q4 2023.
  • Q4 2024 EPS (1) of $1.02 was a Q4 record, up 7% from Q4 2023 Adjusted EPS (2)(4).
  • Q4 2024 free cash flow (3) was $399 million, bringing full year 2024 free cash flow to $865 million.
  • 2024 year-end net debt to Adjusted EBITDA (1)(2)(4) was 1.5 times, down from 1.7 times in Q3 2024.
  • Equipment backlog (2) of $2.6 billion at December 31, 2024 was up 14% from September 30, 2024 reflecting strong order intake from mining and construction customers. Equipment backlog was also up 27% from December 31, 2023.
"Overall, 2024 was another strong year for Finning. Through the commitment of our employees, we have built a stronger and more resilient company to reliably service our customers. We are proud to have achieved several important milestones in 2024 including records of $10.1 billion of total net revenue and $5.5 billion of product support revenue. We delivered this growth in 2024 while also achieving record low SG&A as a percentage of net revenue of 16.3% and substantial free cash flow of $865 million. Importantly, we exited the year with strong momentum including record Q4 EPS of $1.02 while concurrently generating Q4 free cash flow of $399 million and rebuilding our backlog to a robust $2.6 billion,” said Kevin Parkes, President and CEO.

"I am very pleased with how each region finished the fourth quarter. South America delivered product support revenue growth over 10%, our UK and Ireland team more than doubled their EBIT through effective strategy execution, and Canada demonstrated resilience, sequentially improving EBIT in difficult market conditions. The geographic and end market diversity of our business was critical to our strong performance in 2024, and this diversity, with approximately half of our business outside of Canada, will remain important as we move through 2025.”  

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"Our focus in 2025 will remain squarely on executing our strategy to maximize product support, drive full-cycle resilience and grow our used, rental and power businesses to improve our return on invested capital,” said Mr. Parkes.

Q4 2024 FINANCIAL SUMMARY

  3 months ended

  Years ended 
  December 31  December 31 
     % change     % change 
  2024  2023  fav(1)  2024  2023  fav 
 ($ millions, except per share amounts)  (Restated) (unfav)(1)    (Restated)(unfav) 
 New equipment921  819  12%  3,612  3,262  11% 
 Used equipment136  135  0%  507  392  29% 
 Equipment rental75  88  (14)%  295  327  (10)% 
 Product support1,394  1,313  6%  5,480  5,378  2% 
 Net fuel and other53  48  11%  202  184  10% 
 Net revenue2,579  2,403  7%  10,096  9,543  6% 
 Gross profit631  622  1%  2,478  2,504  (1)% 
 Gross profit as a percentage of net revenue(2)24.5% 25.9%    24.5% 26.2%   
 SG&A(412) (391) (5)%  (1,645) (1,571) (5)% 
 SG&A as a percentage of net revenue(16.0)% (16.3)%    (16.3)% (16.5)%   
 Equity earnings of joint ventures4  1     9  9    
 Other income-  13     -  54    
 Other expenses-  (68)    (19) (86)   
               
 EBIT223  177  26%  823  910  (10)% 
 EBIT as a percentage of net revenue8.7% 7.4%    8.2% 9.5%   
 Adjusted EBIT(3)(4)223  232  (4)%  856  942  (9)% 
 Adjusted EBITas a percentage of net revenue8.7% 9.6%    8.5% 9.9%   
               
 Net income attributable to shareholders of Finning141  85  63%  509  523  (3)% 
 EPS1.02  0.59  72%  3.62  3.55  2% 
 Adjusted EPS1.02  0.96  7%  3.80  3.91  (3)% 
 Free cash flow399  280  43%  865  66

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