Shares of Finning International rose after the company reported a stronger-than-expected third quarter, driven by robust growth in mining and power systems demand. The industrial equipment dealer posted broad-based gains across regions, including Canada and South America, with used equipment and product support contributing to the upside.
BNN Bloomberg spoke with Maxim Sytchev, managing director of industrial products at National Bank Financial, who said the results reflect operational discipline, cost control and stronger commodity-linked activity. He noted Finning’s growth trajectory aligns with improving industrial sentiment in Western Canada and steady demand in mining and energy markets.
Key Takeaways
- Finning’s adjusted earnings per share rose to $1.17, ahead of analyst estimates of $1.02.
- Net revenue increased 14 per cent to $2.84 billion, led by double-digit growth in Canada and Latin America.
- Product support revenue climbed nine per cent year over year, while used equipment sales nearly doubled.
- SG&A expenses fell as a share of revenue due to restructuring and cost control efforts.
- Analysts say the company’s performance signals improving industrial activity, though some caution valuations appear full.
Read the full transcript below:
ROGER: Shares of Finning International are getting a boost today after the company beat profit and net revenue estimates in the third quarter. The Canadian industrial equipment dealer’s CEO says the company benefited from demand in the mining and power systems industries, while the construction market continues to face challenges. Here to break it down for us is Maxim Sytchev, managing director of industrial products at National Bank Financial. Maxim, thanks very much for joining us.
MAXIM: My pleasure.
ROGER: What did they get right this quarter?
MAXIM: It’s really a combination of top-line growth and SG&A cost savings compounding into a much stronger margin profile. But it’s mainly about top-line acceleration around product support — data centre demand remains quite strong, and backlog in that business is up significantly.
So, when you combine all those metrics — new and used sales up a lot, product support acceleration, good SG&A support — that’s why EBITDA came in north of $330 million, where the Street was at $310 million. EPS came in at $1.17 versus Street at $1.02. So, a very strong performance by the management team.
ROGER: Should we be surprised by this, or does it just tie in with how the mining sector has been going?
MAXIM: You obviously need support from the end markets. Copper right now is at about $5 a pound, which is an excellent price to commission both brownfield expansions and greenfield projects. Chile has been on the upswing, and Argentina is less structurally challenged, which is good to see.
Canada, which makes up about 55 per cent of the business, is also feeling much better right now. From a geographical perspective, everything is humming. Even the U.K., which historically has been a more tactical market without as much 24/7 mining activity, is seeing growth — largely from data centres. So, across most geographies, there’s growth to be had, and Finning is definitely capturing it.
ROGER: You mentioned South America — 17 per cent growth there. Can they maintain that and expand into other areas?
MAXIM: To be honest, there was a bit of a one-off dynamic with used equipment being up almost 100 per cent in both Canada and Chile. That’s not likely repeatable because it came from a specific large fleet disposition that moved from rental to used status.
That said, Finning’s growth curve will likely resemble Caterpillar’s, which recently projected five to seven per cent CAGR growth through 2030. Assuming no major dislocation in copper, WTI or broader macro conditions, that’s roughly the top-line growth we can expect from Finning as well. That supports current investor expectations.
ROGER: Canada accounts for 55 per cent of sales. Do you see that changing, or will growth be global from here?
MAXIM: From a Caterpillar dealership perspective, you have a geographic monopoly — so Finning will largely stick to its existing regions. All verticals and geographies are growing at roughly similar percentages. Product support, which makes up about 55 per cent of the business, is a steadier revenue stream that comes in regardless of commodity swings, which is excellent.
We expect the geographic mix to stay relatively flat, though Argentina could be a potential surprise if the Milei government pushes through the reforms being discussed. Argentina currently represents about three per cent of the top line, so even doubling that would be meaningful for that region. But Canada and Chile will remain the core revenue drivers.
ROGER: We’ve got about a minute left — any potential headwinds?
MAXIM: It’s still a cyclical market. Copper and WTI are volatile — copper can move nearly $1 a month and WTI by about $20 within that time frame. The market is currently pricing in a “no recession” scenario through 2030, which might be a bit optimistic. So, investors are effectively buying peak EPS generation at normalized multiples. We’d look for a slightly better entry point.
ROGER: We’ll have to leave it there. Maxim, thank you very much for joining us.
MAXIM: My pleasure.
ROGER: That’s Maxim Sytchev, managing director of industrial products at National Bank Financial.
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This BNN Bloomberg summary and transcript of the Nov. 12, 2025 interview with Maxim Sytchev are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
