We may earn commissions if you use the recommended services on this site.  

Finning Announces Q3 2023 Financial Results

Latest Business News

Finning Reports Q3 2023 Results

Finning International Inc. (TSX: FTT) ("Finning" or the "Company") announced its financial results for the third quarter of 2023. The highlights of the report show positive growth and strong performance in various areas of the business.

Financial Highlights

- Q3 2023 EPS of $1.07, up 9% from Q3 2022, driven by higher revenues and strong operating margins. - Q3 2023 revenue of $2.7 billion and net revenue of $2.4 billion, up 13% and 16% respectively, driven by increased sales in new equipment and product support. - Q3 2023 EBIT was up 12%, with EBIT as a percentage of net revenue at 10.3%. - Invested capital turnover increased to 2.08 times, up from 1.96 times in Q3 2022. - Q3 2023 Adjusted ROIC was 20.2%, up 190 basis points from Q3 2022, led by strong performance in South America. - Q3 2023 free cash flow was at breakeven compared to a use of $57 million in Q3 2022. - Consolidated equipment backlog was $2.3 billion at September 30, 2023.

Operations by Region

Canada Operations

- Net revenue increased by 18%, driven by a 57% increase in new equipment sales and a 10% increase in product support revenue. - EBIT was up 10%, with EBIT as a percentage of net revenue at 10.8%.

South America Operations

- Net revenue increased by 20%, driven by strong mining volumes and increased sales in construction and power systems. - EBIT was up 20%, with EBIT as a percentage of net revenue at 12.3%.

UK & Ireland Operations

- Net revenue decreased by 17% due to lower construction sales, partially offset by higher revenues in power systems. - EBIT as a percentage of net revenue was 5.9%.

Outlook and Future Plans

Finning remains optimistic about its future prospects and is focused on driving customer loyalty and executing its strategic priorities. The company expects continued growth in its diverse end markets, supported by a healthy equipment backlog and strong service levels. Finning plans to invest approximately $300 million in net capital expenditures and net rental fleet additions in 2023 to support its growth strategy. The company is committed to delivering sustainable growth, full-cycle resilience, and driving product support. In conclusion, Finning's Q3 2023 results demonstrate positive financial performance and strong operational capabilities across its regions. The company remains well-positioned for growth and is dedicated to providing excellent service to its customers in the renewable energy sector. The Q3 2023 results from Finning International Inc. are a testament to the company's robust growth strategy and operational capabilities. For new businesses, this performance sets a precedent and offers valuable insights. The 9% increase in EPS, driven by higher revenues and strong operating margins, indicates that focusing on quality and efficiency can significantly boost profitability. The 13% and 16% respective growth in revenue and net revenue, driven by increased sales in new equipment and product support, underscores the importance of diversifying income streams. The company's strong performance in South America, leading to a 190 basis point increase in Adjusted ROIC, shows that geographical diversification can also be a key growth driver. The breakeven free cash flow, compared to a $57 million use in Q3 2022, demonstrates the importance of cash flow management for sustainability. The company's future plans to invest $300 million in net capital expenditures and net rental fleet additions in 2023, and its commitment to sustainable growth and product support, highlight the need for forward planning and strategic investment. In essence, Finning's Q3 2023 results offer a blueprint for new businesses on how to achieve growth, profitability, and resilience.
Story First Published at: https://financialpost.com/globe-newswire/finning-reports-q3-2023-results
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online
Business Formation Services: View Top 3 Online LLC Filing Companies

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.