Finning International Inc.

Finning reported Q2 2026 revenue of CAD 3.1 billion, up 20% versus Q2 2025; EBIT was CAD 249 million, up 16% versus Q2 2025 adjusted EBIT; and EPS was CAD 1.22, up 21% versus Q2 2025 adjusted EPS of CAD 1.01. Gross profit margin was 21.3%, down 240 basis points year over year; SG&A margin was 13.3%, down 220 basis points; and EBIT margin was 8.0%, down 30 basis points versus Q2 2025 adjusted EBIT margin. Product support revenue rose 11%, new equipment sales rose 34%, used equipment sales rose 18%, and rental revenue rose 19%. Free cash flow was positive CAD 15 million, net debt to adjusted EBITDA was 1.6 times, invested capital turns were 2.35 times, and adjusted ROIC from continuing operations was 19%. Backlog was CAD 3.8 billion at June 30, up 26% year over year and 22% from December 2025, and management said order intake continued to outpace deliveries. No formal next-quarter or full-year numerical guidance was provided, but management said backlog, improving market conditions, and growing installed base support future product support and earnings growth.

Kevin Parkes framed the quarter as proof that Finning’s strategy is working: grow the installed base, convert that into product support, and keep capital discipline tight. He pointed to record EPS, record revenue, nine straight quarters of product support growth, and strong backlog as evidence of a more resilient and scalable model. His tone was confident and constructive, especially around Western Canada power, data centers, gas compression, mining, and rental as long-term growth platforms.

David Primrose emphasized the hard numbers: revenue of CAD 3.1 billion, EBIT of CAD 249 million, EPS of CAD 1.22, and positive free cash flow of CAD 15 million. He noted margin pressure from mix, with gross margin at 21.3% and EBIT margin at 8.0%, and pointed out that LTIP expense was CAD 21 million, or about CAD 0.13 per share. He also highlighted balance-sheet strength, including net debt to adjusted EBITDA of 1.6 times, invested capital turns of 2.35 times, and ROIC of 19%, all within target ranges.

Analysts focused on two main themes: the potential for Alberta data-center and power opportunities, and the reasons product support margins compressed. Management said the data-center opportunity is real but still evolving, with backup, bridging, and eventually prime power all possible, and stressed that any production response in Western Canada would be incremental rather than a step change. On margins, Kevin Parkes said the pressure came from mix toward larger customers, technician ramp-up and training, more aggressive growth in competitive product support categories, and some tariff impact on heavy steel products, while David Primrose reinforced that Canada’s strong 19% product support growth and mining mix were major contributors.