Finning reports Q3 2026 results

VANCOUVER, British Columbia, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) (“Finning”, the “Company”, “we”, “our” or “us”) reported third quarter 2026 results today. All monetary amounts are in Canadian dollars unless otherwise stated and all financial information in this earnings release represents the results from continuing operations, unless otherwise noted. ⁽¹⁾

HIGHLIGHTS
All comparisons are to Q3 2025 results unless indicated otherwise.

• Q3 2026 revenue was up 7% from Q3 2025, driven by new equipment sales and product support growth in Canada.
• Equipment backlog ⁽³⁾ grew to a record $4.1 billion at September 30, 2026, up 42% from September 30, 2025, driven by order intake outpacing deliveries in Canada and South America, particularly in the mining sector.
• Product support revenue increased 7% with growth in all regions, led by Canada. Q3 2026 was the tenth consecutive quarter of year-over-year product support growth.
• SG&A ⁽²⁾ margin ⁽³⁾ of 13.5% compared to 13.4% in Q3 2025.
• EBIT ⁽²⁾ at $243 million, was up on Q3 2025 by 1%.
• EBIT margin ⁽³⁾ was 8.0%, down 50 basis points from Q3 2025 EBIT margin. EBIT margin was 10.0% in South America, 7.8% in Canada, and 6.3% in the UK & Ireland.
• EPS ⁽²⁾ of $1.20 was up 3% from Q3 2025 EPS of $1.17.
• Adjusted ROIC ⁽²⁾ from continuing operations ⁽³⁾⁽⁵⁾ was 18.8%
• Q3 2026 Free cash flow ⁽⁴⁾ was $70 million and net debt to Adjusted EBITDA ^(2)(3)(5) as at September 30, 2026 was 1.6 times.
  
  

“We delivered another strong quarter of strategic execution, with strong product support revenue and a record $4.1 billion equipment backlog,” said Kevin Parkes, President and CEO of Finning. “Our growing installed base is creating significant opportunities for future product support growth, while disciplined cost and capital management, against rising costs, continues to strengthen the resilience of our business. We are also investing selectively in attractive growth opportunities and capabilities across mining, power and energy, and rental, positioning Finning to deliver sustainable earnings growth over the long term.”

“Our continued progress is a direct result of the commitment and execution of our people. I want to thank our employees across Finning for their relentless focus on our customers, disciplined execution and commitment to improving our business every day. Their efforts are strengthening our customer relationships, expanding our capabilities and positioning Finning to capture the opportunities ahead," concluded Mr. Parkes.

Q3 2026 FINANCIAL SUMMARY

		3 months ended September 30
							% change
								fav (2)
	($ millions, except per share amounts)	2026			2025		(unfav) (2)
	New equipment	1,162			1,046			11	%
	Used equipment	142			199			(28	)%
	Equipment rental	100			79			27	%
	Product support	1,631			1,517			7	%
	Other	1			1			7	%
	Revenue	3,036			2,842			7	%
	Gross profit	651			616			6	%
	Gross profit margin (3)	21.5	%		21.7	%
	SG&A	(411	)		(382	)		(8	)%
	SG&A margin	(13.5	)%		(13.4	)%
	Equity earnings of joint ventures	3			6
	EBIT	243			240			1	%
	EBIT margin	8.0	%		8.5	%
	Net income from continuing operations	155			154			1	%
	EPS	1.20			1.17			3	%
	Free cash flow from continuing operations	70			(56	)

	Q3 2026 EBIT by Operation				South			UK &						Finning
	($ millions, except per share amounts)	Canada			America			Ireland			Other			Total			EPS
	EBIT / EPS	132			94			25			(8	)		243			1.20
	EBIT margin	7.8	%		10.0	%		6.3	%		n/m			8.0	%

	Q3 2025 EBIT by Operation				South			UK &						Finning
	($ millions, except per share amounts)	Canada			America			Ireland			Other			Total			EPS
	EBIT / EPS	117			109			24			(10	)		240			1.17
	EBIT margin	8.7	%		9.7	%		6.5	%		n/m			8.5	%

QUARTERLY KEY PERFORMANCE MEASURES FROM CONTINUING OPERATIONS

																			2024
			2026							2025 (Restated) (1)									(Restated) (1)
			Q3		Q2		Q1			Q4		Q3		Q2		Q1			Q4		Q3
	EBIT ($ millions)		243		249		188			187		240		203		205			212		160
	Adjusted EBIT (4)(5) ($ millions)		243		249		204			209		240		215		205			212		193
	EBIT margin
		Consolidated	8.0	%	8.0	%	7.5	%		6.9	%	8.5	%	7.8	%	8.4	%		8.4	%	6.4	%
		Canada	7.8	%	8.3	%	8.1	%		7.7	%	8.7	%	8.5	%	8.4	%		7.5	%	5.0	%
		South America	10.0	%	9.7	%	9.2	%		9.9	%	9.7	%	10.1	%	10.6	%		10.9	%	10.6	%
		UK & Ireland	6.3	%	6.2	%	5.1	%		4.0	%	6.5	%	5.2	%	4.7	%		5.8	%	4.9	%
	Adjusted EBIT margin (3)(5)
		Consolidated	8.0	%	8.0	%	8.2	%		7.8	%	8.5	%	8.3	%	8.4	%		8.4	%	7.8	%
		Canada	7.8	%	8.3	%	8.1	%		8.1	%	8.7	%	9.4	%	8.4	%		7.5	%	6.9	%
		South America	10.0	%	9.7	%	11.1	%		10.4	%	9.7	%	10.1	%	10.6	%		10.9	%	10.9	%
		UK & Ireland	6.3	%	6.2	%	5.1	%		4.6	%	6.5	%	5.2	%	4.7	%		5.8	%	6.3	%
	EPS		1.20		1.22		0.93			0.88		1.17		0.94		0.95			0.97		0.69
	Adjusted EPS (3)(5)		1.20		1.22		1.02			1.00		1.17		1.01		0.95			0.97		0.88
	Invested capital from
		continuing operations (4) ($ millions)	5,123		5,025		4,822			4,313		4,876		4,580		4,333			4,275		4,495
	Adjusted ROIC from continuing operations
		Consolidated	18.8	%	19.0	%	18.7	%		19.2	%	19.3	%	18.7	%	18.7	%		17.9	%	18.0	%
		Canada	18.0	%	18.0	%	18.2	%		18.2	%	17.6	%	16.3	%	15.9	%		15.4	%	15.9	%
		South America	22.7	%	23.5	%	23.4	%		24.5	%	24.6	%	25.9	%	26.3	%		25.9	%	26.5	%
		UK & Ireland	22.6	%	21.6	%	19.3	%		20.1	%	20.2	%	18.4	%	16.9	%		15.0	%	11.5	%
	Invested capital turnover from
		continuing operations (3) (times)	2.36		2.35		2.29			2.34		2.31		2.28		2.26			2.16		2.10
	Free cash flow from
		continuing operations ($ millions)	70		15		(310	)		642		(56	)	(164	)	124			399		330
	Net debt to Adjusted EBITDA ratio from
		continuing operations (times)	1.6		1.6		1.6			1.2		1.7		1.6		1.6			1.7		1.9

Q3 2026 HIGHLIGHTS BY OPERATION
All comparisons are to Q3 2025 results unless indicated otherwise. All numbers, except Adjusted ROIC from continuing operations, are in functional currency: Canada – Canadian dollar; South America – US dollar (USD); UK & Ireland – UK pound sterling (GBP). These variances and ratios for South America and UK & Ireland exclude the foreign currency translation impact from the CAD relative to the USD and GBP, respectively, and are therefore considered to be specified financial measures. We believe the variances and ratios in functional currency provide meaningful information about operational performance of the reporting segment.

South America Operations

• New equipment sales were down 35%, due to higher deliveries of mining trucks in the prior year.
• Product support revenue was up 1%, driven by higher construction activity, partially offset by lower power & energy activity.
• EBIT margin of 10.0% was up 30 basis points from Q3 2025 EBIT margin, primarily driven by higher mix of product support revenue partially offset by higher SG&A margins.
• Adjusted ROIC of 22.7% was down 190 bps, impacted by higher average invested capital driven by working capital investments and lower EBIT in the last twelve-month period.

Canada Operations

• New equipment sales were up 55%, driven by strong mining deliveries. Rental revenue was up 26% from strong construction activity.
• Product support revenue was up 12%, reflecting strong demand across all sectors, particularly mining.
• EBIT margin of 7.8% was down 90 basis points, driven by higher proportion of revenue from new equipment and lower product support margins, partially offset by improved SG&A margin.
• Adjusted ROIC was 18.0%, up 40 basis points on higher EBIT in the last twelve-month period, partially offset by higher average invested capital.

UK & Ireland Operations

• New equipment sales were up 8%, driven by delivery of equipment to the construction sector.
• Product support revenue was up 4% due to increased activity in construction and power & energy sectors.
• EBIT margin of 6.3% was down 20 basis points as a result of lower mix of product support revenue.
• Adjusted ROIC was 22.6%, up 240 basis points, primarily reflecting higher EBIT in the last twelve-month period and lower average invested capital levels.

Corporate and Other Items

• EBIT loss for Corporate was $8 million compared to EBIT loss of $10 million in Q3 2025.
• The Board of Directors has approved a quarterly dividend of $0.325 per share, payable on December 10, 2026, to shareholders of record on November 26, 2026. This dividend will be considered an eligible dividend for Canadian income tax purposes.
• In Q3 2026, we repurchased 0.6 million shares at an average cost of $97.55 per share.
  
  

MARKET UPDATE AND BUSINESS OUTLOOK

The discussion of our expectations relating to the market and business outlook in this section is forward-looking information that is based upon the assumptions and subject to the material risks discussed under the heading “Forward-Looking Information Caution” at the end of this news release. Actual outcomes and results may vary significantly.

South America Operations

In Chile, our outlook is underpinned by growing global demand for copper, strong copper prices, capital deployment into large-scale brownfield expansions under supportive government priorities, and customer confidence to invest in greenfield projects. We are seeing a broad-based level of quoting, tender, and award activity for mining equipment, product support, and technology solutions. In the near term, we expect some moderation in product support activity levels as customers adjust their mine plans and existing equipment fleets. While demand for skilled labour remains high, we expect a more stabilized labour environment through 2028 as we have successfully concluded negotiations with all major unions as of Q1 2026.

In the Chilean construction sector, we continue to see demand from large contractors supporting mining operations, and we expect infrastructure construction activity to remain steady. In the power & energy sector, activity remains strong in the industrial and data centre markets, driving growing demand for electric power solutions.

In October 2026, Chile enacted tax reform aimed at strengthening the investment environment, including a phased reduction in the corporate income tax rate from 27% to 23% by 2029. The lower enacted rates are expected to result in a non-cash tax expense of USD 3 to USD 6 million in Q4 2026 from the remeasurement of deferred tax assets. The benefit of the lower corporate tax rate is partially offset by higher dividend withholding tax rates, with a temporary dividend withholding tax reduction that provides more tax-efficient capital repatriation.

In Argentina, we are carefully positioning our business to capture opportunities, particularly in the oil and gas and mining sectors. We are seeing increased quoting activity for equipment and are encouraged by our equipment order with Glencore’s Alumbrera copper mine in Q1 2026. At the same time, the operating environment remains dynamic, and we continue to closely monitor the government’s rules and policies, some of which help drive large-scale investment. We expect activity levels to continue to improve in the coming years, subject to a constructive investment environment.

Canada Operations

Our outlook for Western Canada is positive. We expect strong activity levels in our mining business as customers grow fleets and maintain and rebuild aging equipment. In the power & energy sector, activity remains strong in the oil and gas market, with longer-term potential in the data centre market where we secured a major data centre contract for backup power, included in the Q3 2026 backlog, and continue active discussions with numerous customers on primary and backup power generation opportunities. We are leveraging the expertise of our UK & Ireland operations with over a decade of experience in the data centre space, to become a trusted and value-add partner to our customers.

The construction sector continues to show signs of improvement. We are encouraged by announcements regarding the potential to accelerate resource development and infrastructure project activity, but we remain cautious with respect to the timing and magnitude of such potential activity.

We remain focused on building resilience by managing our cost and invested capital levels.

UK & Ireland Operations

With low GDP ⁽²⁾ growth projected in the UK to continue, we expect demand in the construction sector to remain soft. We expect a growing contribution from power & energy as we continue to execute our strategy. In power & energy, quoting activity remains strong, driven by healthy demand for primary and backup power generation, particularly backup power in the data centre market. We expect our product support business in the UK & Ireland to remain stable.

Global Trade and Geopolitical Risk Update

We continue to closely monitor the developing global trade dynamics including evolving tariff measures, along with the escalating geopolitical tension in the Middle East which has introduced heightened volatility across global energy and commodity markets. To date, we have not seen direct impacts on customer purchasing decisions, major supply chain shifts, or changes in the competitive environment in our operating regions. However, we remain cautious and are actively evaluating mitigation strategies and contingency measures to address these potential risks.

Execution Focus

We plan to continue to execute our strategy in 2026: maximize product support, improve our cost and capital position to drive full-cycle resilience, and disciplined growth in used, rental, and power & energy. Consistent execution will enable us to continue to meet our objective of achieving a sustainably higher Adjusted ROIC in the range of 18-25% in all market conditions.

To access Finning's complete Q3 2026 results, please visit our website at finning.com/investors

Q3 2026 INVESTOR CALL

We will hold an investor call on November 10, 2026, at 11:00 am Eastern Time. Dial-in numbers: 1-833-752-3398 (Canada and US toll free), 1-647-846-2852 (international toll). The investor call will be webcast live and archived for three months. The webcast and accompanying presentation can be accessed at https://www.finning.com/en_CA/company/investors.html

ABOUT FINNING

Finning is the world’s largest Caterpillar dealer. Headquartered in Surrey, British Columbia, we sell and rent Caterpillar equipment, and provide parts, service and performance solutions in Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland. Since 1933, we have delivered unrivalled customer service and are committed to solving our customers’ toughest challenges.

CONTACT INFORMATION
Email: FinningIR@finning.com

finning.com/investors

Description of Specified Financial Measures and Reconciliations    

Specified Financial Measures

We believe that certain specified financial measures, including non-GAAP ⁽¹⁾ financial measures, provide users of our Earnings Release with important information regarding the operational performance and related trends of our business. The specified financial measures we use do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Accordingly, specified financial measures should not be considered as a substitute or alternative for financial measures determined in accordance with GAAP (GAAP financial measures). By considering these specified financial measures in combination with the comparable GAAP financial measures (where available) we believe that users are provided a better overall understanding of our business and financial performance during the relevant period than if they simply considered the GAAP financial measures alone.

We use KPIs to consistently measure performance against our priorities across the organization. Some of our KPIs are specified financial measures.

There may be significant items that we do not consider indicative of our operational and financial trends, either by nature or amount. We exclude these items when evaluating our operating financial performance. These items may not be non-recurring, but we believe that excluding these significant items from GAAP financial measures provides a better understanding of our financial performance when considered in conjunction with the GAAP financial measures. Financial measures that have been adjusted to take these significant items into account are referred to as “Adjusted” measures. Adjusted measures are specified financial measures and are intended to provide additional information to readers of the Earnings Release.

Descriptions and components of the specified financial measures we use in this Earnings Release are set out below. Where applicable, quantitative reconciliations from certain specified financial measures to their most directly comparable GAAP financial measures (specified, defined, or determined under GAAP and used in our consolidated financial statements) are also set out below.

Adjusted EPS

Adjusted EPS excludes the after-tax per share impact of significant items that we do not consider to be indicative of operational and financial trends either by nature or amount to provide a better overall understanding of our underlying business performance. The tax impact of each significant item is calculated by applying the relevant applicable tax rate for the jurisdiction in which the significant item occurred. The after-tax per share impact of significant items is calculated by dividing the after-tax amount of significant items by the weighted average number of common shares outstanding during the period.

A reconciliation between EPS (the most directly comparable GAAP financial measure) and Adjusted EPS can be found on page 10 of this Earnings Release.

Adjusted EBIT and Adjusted EBITDA

Adjusted EBIT and Adjusted EBITDA exclude items that we do not consider to be indicative of operational and financial trends, either by nature or amount, to provide a better overall understanding of our underlying business performance.

Adjusted EBITDA is calculated by adding depreciation and amortization to Adjusted EBIT.

The most directly comparable GAAP financial measure to Adjusted EBITDA and Adjusted EBIT is EBIT.

Significant items identified by management that affected our results from continuing operations were as follows:

• In Q1 2026, we recorded severance costs for headcount reductions related to consolidation efforts and changes to our organizational structure aimed at simplifying structures and strengthening our service resiliency.
• In Q4 2025, following an evaluation of the business needs of our operations, including an alignment with Caterpillar’s digital and technology strategy, several technology assets have been decommissioned; as a result, we derecognized previously capitalized costs.
• In Q2 2025, we recorded severance costs for headcount reductions related to consolidation efforts and changes to our organizational structure focused on non-revenue generating positions, primarily in selected back office and technology roles.

• In Q3 2024, we recorded severance costs related to the headcount reductions and consolidation efforts focused on non-revenue generating positions, including selected technology and supply chain roles as well as some financial support functions as we worked to simplify our business activities in each of our operations.
• In Q3 2024, our Canadian operations recorded an estimated loss for receivables from Victoria Gold, a mining customer that was placed into receivership following a landslide at its mine.
• On December 13, 2023, the then newly-elected Argentine government devalued the ARS ⁽¹⁾ official exchange rate by 118% from 366.5 ARS to 800 ARS for USD 1. As a result of prolonged government currency restrictions, including no material access to USD starting in late August 2023, our ARS exposure increased and during this period economic hedges were not available. As a result of the growth in our ARS exposure and the significant devaluation of the ARS in the fourth quarter, our South American operations incurred a foreign exchange loss of $56 million which exceeds the typical foreign exchange impact in the region.
• We began to implement our invested capital improvement plan as outlined at our 2023 Investor Day, which targets selling and optimizing real estate and exiting low-ROIC activities. In Q4 2023:
  • our South American operations sold a property in Chile and recorded a gain of $13 million on the sale; and
  • following an evaluation of the business needs of our operations and related intangible assets, several software and technology assets had been or were planned to be decommissioned, and as a result, we derecognized previously capitalized costs of $12 million.
    
    

A reconciliation from EBIT to Adjusted EBIT and Adjusted EBITDA for our consolidated operations is as follows:

	3 months ended			2026				2025					2024					2023
	(Restated) ($ millions)			Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31
	EBIT (1)			243	249	188		187	240	203	205		212	160	220	195		168
	Significant items:
		Severance costs		—	—	16		—	—	12	—		—	19	—	—		—
		Write-off of intangible assets		—	—	—		22	—	—	—		—	—	—	—		12
		Estimated loss for a customer receivable		—	—	—		—	—	—	—		—	14	—	—		—
		Foreign exchange and tax
			impact of devaluation of ARS	—	—	—		—	—	—	—		—	—	—	—		56
		Gain on sale of property, plant, and equipment		—	—	—		—	—	—	—		—	—	—	—		(13	)
	Adjusted EBIT (1)			243	249	204		209	240	215	205		212	193	220	195		223
	Depreciation and amortization (1)			95	93	95		94	95	95	90		86	91	89	90		90
	Adjusted EBITDA (1)(4)(5)			338	342	299		303	335	310	295		298	284	309	285		313

The income tax impact of the significant items was as follows:

	3 months ended			2026					2025							2024
	($ millions)			Sep 30	Jun 30	Mar 31			Dec 31		Sep 30	Jun 30		Mar 31		Dec 31	Sep 30
	Significant items:
		Severance costs		—	—	(4	)		—		—	(3	)	—		—	(4	)
		Write-off of intangible assets		—	—	—			(6	)	—	—		—		—	—
		Estimated loss for a customer receivable		—	—	—			—		—	—		—		—	(4	)
	Recovery of taxes on the significant items			—	—	(4	)		(6	)	—	(3	)	—		—	(8	)

A reconciliation from EPS to Adjusted EPS for our consolidated operations is as follows:

	3 months ended			2026				2025					2024
	(Restated) ($)			Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30
	EPS (1)(a)			1.20	1.22	0.93		0.88	1.17	0.94	0.95		0.97	0.69
	Significant items:
		Severance costs		—	—	0.09		—	—	0.07	—		—	0.11
		Write-off of intangible assets		—	—	—		0.12	—	—	—		—	—
		Estimated loss for a customer receivable		—	—	—		—	—	—	—		—	0.08
	Adjusted EPS (1)(a)			1.20	1.22	1.02		1.00	1.17	1.01	0.95		0.97	0.88

A reconciliation from EBIT to Adjusted EBIT for our Canadian operations is as follows:

	3 months ended		2026				2025					2024					2023
	(Restated) ($ millions)		Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31
	EBIT (1)		132	138	112		98	117	114	101		90	61	123	105		108
	Significant items:
		Write-off of intangible assets	—	—	—		5	—	—	—		—	—	—	—		5
		Severance costs	—	—	—		—	—	11	—		—	9	—	—		—
		Estimated loss for a customer receivable	—	—	—		—	—	—	—		—	14	—	—		—
	Adjusted EBIT (1)		132	138	112		103	117	125	101		90	84	123	105		113

     ^(a) The per share impact for each quarter has been calculated using the weighted average number of common shares outstanding during the respective quarters; therefore, quarterly amounts may not add to the annual or year-to-date total.

A reconciliation from EBIT to Adjusted EBIT for our South American operations is as follows:

	3 months ended			2026				2025					2024					2023
	($ millions)			Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31
	EBIT			94	104	77		98	109	96	101		103	101	93	84		55
	Significant items:
		Severance costs		—	—	16		—	—	—	—		—	3	—	—		—
		Write-off of intangible assets		—	—	—		5	—	—	—		—	—	—	—		4
		Foreign exchange and tax
			impact of devaluation of ARS	—	—	—		—	—	—	—		—	—	—	—		56
		Gain on sale of property, plant, and equipment		—	—	—		—	—	—	—		—	—	—	—		(13	)
	Adjusted EBIT			94	104	93		103	109	96	101		103	104	93	84		102

A reconciliation from EBIT to Adjusted EBIT for our UK & Ireland operations is as follows:

	3 months ended			2026				2025					2024					2023
	($ millions)			Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31
	EBIT			25	24	15		17	24	17	14		22	16	15	14		6
	Significant items:
		Write-off of intangible assets		—	—	—		3	—	—	—		—	—	—	—		3
		Severance costs		—	—	—		—	—	—	—		—	4	—	—		—
	Adjusted EBIT			25	24	15		20	24	17	14		22	20	15	14		9

A reconciliation from EBIT to Adjusted EBIT for our Other operations is as follows:

	3 months ended		2026							2025									2024									2023
	($ millions)		Sep 30		Jun 30		Mar 31			Dec 31		Sep 30		Jun 30		Mar 31			Dec 31		Sep 30		Jun 30		Mar 31			Dec 31
	EBIT		(8	)	(17	)	(16	)		(26	)	(10	)	(24	)	(11	)		(3	)	(18	)	(11	)	(8	)		(1	)
	Significant items:
		Write-off of intangible assets	—		—		—			9		—		—		—			—		—		—		—			—
		Severance costs	—		—		—			—		—		1		—			—		3		—		—			—
	Adjusted EBIT		(8	)	(17	)	(16	)		(17	)	(10	)	(23	)	(11	)		(3	)	(15	)	(11	)	(8	)		(1	)

Equipment Backlog

Equipment backlog is defined as the retail value of new equipment units ordered by customers for future deliveries. We use equipment backlog as a measure of projecting future new equipment deliveries. There is no directly comparable GAAP financial measure for equipment backlog.

Free Cash Flow from Continuing Operations

Free cash flow is defined as cash flow provided by or used in operating activities less net additions to property, plant, and equipment and intangible assets, as disclosed in our financial statements. Free cash flow from continuing operations excludes free cash flow from discontinued operations. We use free cash flow from continuing operations to assess cash operating performance, including working capital efficiency. Positive free cash flow generation enables us to re-invest capital to grow our business, repay debt, and return capital to shareholders. A reconciliation from cash flow used in or provided by operating activities to free cash flow from continuing operations is as follows:

	3 months ended		2026							2025									2024
	($ millions)		Sep 30		Jun 30		Mar 31			Dec 31		Sep 30		Jun 30		Mar 31			Dec 31		Sep 30
	Cash flow (used in) provided by operating activities		100		63		(284	)		724		(58	)	(127	)	149			441		383
	Additions to property, plant, and equipment and intangible assets		(30	)	(48	)	(32	)		(93	)	(59	)	(30	)	(26	)		(44	)	(38	)
	Proceeds on disposal of property, plant, and equipment		—		—		6			11		61		14		12			2		1
	Less free cash flow from discontinued operations (4)		—		—		—			—		—		(21	)	(11	)		—		(16	)
	Free cash flow from continuing operations		70		15		(310	)		642		(56	)	(164	)	124			399		330

Invested Capital from Continuing Operations

Invested capital is defined as net debt plus total equity. Invested capital is also calculated as total assets less total liabilities, excluding net debt. Net debt is calculated as short-term and long-term debt, net of cash and cash equivalents. We use invested capital from continuing operations as a measure of the total cash investment made in Finning and each reportable segment. Invested capital from continuing operations is used in a number of different measurements (ROIC from continuing operations, Adjusted ROIC from continuing operations, invested capital turnover from continuing operations) to assess financial performance against other companies and between reportable segments. Invested capital from continuing operations is calculated as follows:

		2026							2025									2024									2023
	($ millions)	Sep 30		Jun 30		Mar 31			Dec 31		Sep 30		Jun 30		Mar 31			Dec 31		Sep 30		Jun 30		Mar 31			Dec 31
	Cash and cash equivalents	(343	)	(280	)	(253	)		(369	)	(312	)	(431	)	(433	)		(316	)	(298	)	(233	)	(215	)		(152	)
	Short-term debt	910		919		816			518		1,022		944		939			844		1,103		1,234		1,322			1,239
	Long-term debt
	Current	284		464		181			180		181		—		6			6		—		—		68			199
	Non-current	1,221		923		1,201			1,196		1,200		1,375		1,390			1,390		1,378		1,378		1,379			949
	Net debt (4)	2,072		2,026		1,945			1,525		2,091		1,888		1,902			1,924		2,183		2,379		2,554			2,235
	Total equity	3,051		2,999		2,877			2,788		2,785		2,692		2,676			2,642		2,591		2,590		2,574			2,530
	Invested capital (3)	5,123		5,025		4,822			4,313		4,876		4,580		4,578			4,566		4,774		4,969		5,128			4,765
	Less invested capital
	from discontinued operations (4)	—		—		—			—		—		—		(245	)		(291	)	(279	)	(286	)	(285	)		(292	)
	Invested capital from continuing operations	5,123		5,025		4,822			4,313		4,876		4,580		4,333			4,275		4,495		4,683		4,843			4,473

Invested Capital Turnover from Continuing Operations

We use invested capital turnover from continuing operations to measure capital efficiency. Invested capital turnover from continuing operations is calculated as revenue from continuing operations for the last twelve months divided by average invested capital from continuing operations of the last four quarters.

Net Debt to Adjusted EBITDA Ratio from Continuing Operations

We use this ratio to assess operating leverage and ability to repay debt. This ratio approximates the length of time, in years, that it would take us to repay debt, with net debt and Adjusted EBITDA held constant. This ratio is calculated as net debt from continuing operations at the reporting date divided by Adjusted EBITDA for the last twelve months. Net debt from continuing operations is calculated as follows:

		2026				2025					2024						2023
	($ millions)	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31		Dec 31	Sep 30	Jun 30	Mar 31			Dec 31
	Net debt	2,072	2,026	1,945		1,525	2,091	1,888	1,902		1,924	2,183	2,379	2,554			2,235
	Less net debt from discontinued operations (4)	—	—	—		—	—	—	39		31	35	5	(1	)		(11	)
	Net debt from continuing operations (4)	2,072	2,026	1,945		1,525	2,091	1,888	1,941		1,955	2,218	2,384	2,553			2,224

Gross Profit Margin, SG&A Margin, and EBIT Margin

We use these specified financial measures to assess and evaluate the financial performance or profitability of our reportable segments. We may also calculate EBIT margin using Adjusted EBIT to exclude significant items we do not consider to be indicative of operational and financial trends either by nature or amount to provide a better overall understanding of our underlying business performance.

The ratios are calculated, respectively, as gross profit divided by revenue, SG&A divided by revenue, and EBIT divided by revenue.

Adjusted ROIC from Continuing Operations

ROIC is defined as EBIT for the last twelve months divided by average invested capital of the last four quarters, expressed as a percentage. We also calculate Adjusted ROIC from continuing operations using Adjusted EBIT to exclude significant items that we do not consider to be indicative of operational and financial trends either by nature or amount to provide a better overall understanding of our underlying business performance and invested capital from continuing operations. We use Adjusted ROIC from continuing operations as a useful measure for capital allocation decisions that drive profitable growth and attractive returns to shareholders.

FOOTNOTES

⁽¹⁾ As a result of the sales of our interests in ComTech ⁽²⁾ and 4Refuel ⁽²⁾ on May 15, 2025 and June 30, 2025, respectively, these businesses qualified as discontinued operations. Effective Q2 2025, the comparative figures have been restated to exclude the results of discontinued operations. For the purposes of this Earnings Release, balance sheet key performance measures and free cash flow have also been restated to exclude the results of discontinued operations from the relevant comparative periods. Unless otherwise indicated, all financial information in this Earnings Release represents the results from continuing operations. For more information, please refer to our 2025 Annual MD&A ⁽²⁾.

⁽²⁾ 4Refuel Holdings Limited, Midnight Holding Inc., and their respective affiliates (collectively “4Refuel”); Argentine peso (ARS); Compression Technology Corporation (ComTech); Earnings from continuing operations Before Finance Costs and Income Taxes (EBIT); Earnings from continuing operations Before Finance Costs, Income Taxes, Depreciation and Amortization (EBITDA); Basic Earnings per Share from continuing operations (EPS); favourable (fav); generally accepted accounting principles (GAAP); gross domestic product (GDP); Management’s Discussion and Analysis (MD&A); not meaningful (n/m); Return on Invested Capital (ROIC); Selling, General & Administrative Expenses (SG&A); unfavourable (unfav).

⁽³⁾ See “Description of Specified Financial Measures and Reconciliations” on page 7 of this Earnings Release.

⁽⁴⁾ These are non-GAAP financial measures. See “Description of Specified Financial Measures and Reconciliations” on page 7 of this Earnings Release.

⁽⁵⁾ Certain financial measures were impacted by significant items management does not consider indicative of operational and financial trends either by nature or amount; these significant items are described on page 8 of this Earnings Release. The financial measures that have been adjusted to take these items into account are referred to as “Adjusted” measures.

Forward-Looking Information Disclaimer

Forward-looking information in this news release includes, but is not limited to: our belief in our strategy and ability to execute; our belief that our growing installed base is creating significant opportunities for future product support growth; our expectation that our selective investments in attractive growth opportunities across mining, power & energy and rental position Finning to deliver sustainable earnings growth over the long term; our expectations regarding the impact of the enacted tax reform in Chile, including the anticipated Q4 2026 impact from the remeasurement of deferred tax assets and the effects of changes in corporate income and dividend withholding tax rates, including on capital repatriation; all information in the section entitled “Market Update and Business Outlook”, including for our South America operations: our outlook for Chile based on growing global demand for copper, strong copper prices, capital deployment into large-scale brownfield expansions under supportive government priorities and customer confidence to invest in greenfield projects; our expectation of some near-term moderation in product support activity levels as customers adjust their mine plans and existing equipment fleets; although demand for skilled labour remains high, our expectation of a more stabilized labour environment through 2028 as we successfully concluded negotiations with all major unions in Chile as of Q1 2026; our expectation that infrastructure construction in Chile will remain steady (based on assumptions of continued demand from large contractors supporting mining operations); in the power & energy sector, our expectation regarding growing demand for electric power solutions from strong activity in the industrial and data centre markets; in Argentina, our belief that the operating environment remains dynamic and our careful business positioning to capture opportunities, particularly in the oil and gas and mining sectors; our continued monitoring of rules and policies, some of which help drive large-scale investment; and our expectation that activity levels will continue to improve in the coming years, subject to a constructive investment environment; for our Canada operations: our positive outlook for Western Canada; our expectation of strong activity levels in our mining business as customers grow fleets and maintain and rebuild aging equipment; our belief that in the power & energy sector, activity remains strong in the oil and gas market, with longer-term potential in the data centre market where we secured a major data centre contract for backup power, included in the Q3 2026 backlog, and continue active discussions with numerous customers on primary and backup power generation opportunities; our expectation to leverage the expertise of our UK & Ireland operations in the data centre space to become a trusted and value-add partner to our customers; our belief that construction sector activity continues to show signs of improvement; our expectations regarding the potential to accelerate resource development and infrastructure project activity and our cautious approach with respect to timing and magnitude of such potential activity; and our continued focus on building our resilience by managing our cost and invested capital levels; for our UK & Ireland operations: our expectation for demand in the construction sector to remain soft (based on assumptions that low GDP growth projected in the UK will continue); our expectation of a growing contribution from power & energy as we continue to execute our strategy; in power & energy, our expectation of continued strong quoting activity (based on assumptions of healthy demand for primary power and backup power generation, particularly backup power in the data centre market); our expectation that our product support business will remain stable; for global trade and geopolitical risk: our continued monitoring of the developing global trade dynamics, along with the escalating geopolitical tension in the Middle East which has introduced heightened volatility across global energy and commodity markets; and our intention to remain cautious and actively evaluate mitigation strategies and contingency measures to address these potential risks; and overall: our expectation to continue executing our strategy to maximize product support, improve our cost and capital position to drive full-cycle resilience, and grow prudently in used, rental, and power & energy; our expectation that consistent execution will enable us to continue to meet our objective of achieving a sustainably higher Adjusted ROIC in the range of 18-25% in all market conditions; and the Canadian income tax treatment of the quarterly dividend. All such forward-looking information is provided pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws.
Unless we indicate otherwise, forward-looking information in this news release reflects our expectations at the date of this news release. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise.

Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on a number of assumptions. This gives rise to the possibility that actual results could differ materially from the expectations expressed in or implied by such forward-looking information and that our business outlook, objectives, plans, strategic priorities and other information that is not historical fact may not be achieved. As a result, we cannot guarantee that any forward-looking information will materialize. Factors that could cause actual results or events to differ materially from those expressed in or implied by this forward-looking information include: the specific factors stated elsewhere in this news release; the impact and duration of, and our ability to respond to and manage, high inflation, geopolitical and trade uncertainty, energy market fluctuations, changing tariffs and interest rates, and supply chain challenges; general economic and market conditions, including increasing inflationary cost pressure, in the regions where we operate; prospects for investments in oil and gas and mining projects in Argentina; capital deployment into large-scale brownfield expansions; support and commitment by Canadian federal and provincial governments in infrastructure development; foreign exchange rates; commodity prices; interest rates; the level of customer confidence and spending, and the demand for, and prices of, our products and services; our ability to maintain our relationship with Caterpillar; our dependence on the continued market acceptance of our products, and the timely supply of parts and equipment; our ability to continue to improve productivity and operational efficiencies while maintaining customer service; our ability to manage cost pressures as revenue grows; our ability to effectively integrate and realize expected synergies from businesses that we acquire; our ability to deliver our equipment backlog; our ability to access capital markets for additional debt or equity, to finance future growth and to refinance outstanding debt obligations, on terms acceptable to us, which will depend upon prevailing market conditions and our financial condition; our ability to negotiate satisfactory purchase or investment terms and prices, obtain necessary regulatory or other approvals, and secure financing on attractive terms or at all; our ability to manage our growth strategy effectively; our ability to effectively price and manage long-term product support contracts; our ability to drive continuous cost efficiency; our ability to attract sufficient skilled labour resources as market conditions, business strategy or technologies change; the intensity of competitive activity; our ability to maintain a safe and healthy work environment across all regions; our ability to raise the capital needed to implement our business plan; business disruption resulting from business process change, systems change and organizational change; regulatory initiatives or proceedings, litigation and changes in laws, regulations or policies, including changes in applicable accounting standards and those relating to environmental protection, environmental disclosure and/or energy transition; stock market volatility; changes in political and economic environments in the regions where we carry on business; our ability to respond to climate change-related risks; the availability of carbon-neutral technology or renewable power; the cost of climate change initiatives; the occurrence of one or more natural disasters, pandemic outbreaks, geopolitical events, acts of terrorism, social unrest or similar disruptions; the availability of insurance at reasonable rates and whether insurance coverage will be adequate to cover all liability or loss that we incur; the potential for warranty claims to exceed our expectations; the integrity, reliability and availability of, and benefits from, information technology and the data it processes; and our ability to protect our business from cybersecurity threats or incidents. Forward-looking information is provided in this news release to give information about our current expectations and plans and allow investors and others to better understand our operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.

Forward-looking information provided in this news release is based on assumptions that we believed were reasonable on the day the information was given, including but not limited to: the specific assumptions and expectations stated above; that we will successfully manage our business through volatile commodity prices, high inflation, changing tariffs and interest rates, and supply chain challenges, and successfully execute our strategies to win customers, achieve full-cycle resilience and continue business momentum; that we will continue to source and hire technicians, build capabilities and capacity and successfully and sustainably improve workshop efficiencies; that commodity prices will remain at constructive levels; that our customers will not curtail their activities; that general economic and market conditions will continue to be supportive; that customer confidence and spending, and the demand for, and prices of, our products and services will be maintained; that support and demand for renewable energy and power generation solutions will continue to grow; that supply chain and inflationary challenges will not materially impact large project deliveries in our equipment backlog; that we will successfully execute initiatives to reduce our GHG emissions and support our customers on their GHG reduction pathways; that we will successfully execute our plans, including our strategic priorities; that we will attract and retain skilled staff; that market competition will remain at similar levels; that the products and technology offered by our competitors will be as expected; that identified growth opportunities will result in revenue; that we will have sufficient liquidity to meet operational needs, commitments and obligations; that legislation where we operate will remain consistent and stable; that there will be no disruptive changes in the technology environment; that our good relationship with Caterpillar, our customers and our suppliers, service providers and other third parties will be maintained and that Caterpillar and such other suppliers will deliver quality, competitive products with supply chain continuity; that oil prices will remain supportive of customer activity; that maximizing product support growth will positively affect our strategic priorities; that quoting activity for requests for proposals for equipment and product support is reflective of opportunities; and that market recoveries in the regions in which we operate will continue. Some of the assumptions, risks, and other factors that could cause results to differ materially from those expressed in the forward-looking information contained in this news release, are discussed in our current AIF and in our annual and most recent quarterly MD&A for the financial risks. We caution readers that the risks described in the annual and most recent quarterly MD&A and in the AIF are not the only ones that could impact us. Additional risks and uncertainties not currently known to us or that are currently deemed to be immaterial may also have a material adverse effect on our business, financial condition, or results of operations. Except as otherwise indicated, forward-looking information does not reflect the potential impact of any non-recurring or other unusual items or of any dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date of this news release. The financial impact of these transactions and non-recurring and other unusual items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same manner we present known risks affecting our business.