Earnings call transcript: Finning misses Q3 2026 profit view as stock falls

Finning International reported third-quarter profit that fell short of Wall Street expectations, despite revenue exceeding forecasts. The company's adjusted earnings per share (EPS) of CAD 1.20 were 4.8% below the projected CAD 1.26, while revenue stood at CAD 3.04 billion, surpassing the estimated CAD 2.98 billion. The stock price fell 8.37% to $87.22 in premarket trading, a decline of $7.97 from the previous close of $95.19.

Finning's revenue grew by 7% year-over-year to CAD 3.0 billion, and EBIT increased slightly to CAD 243 million. Gross profit margin fell from 21.7% to 21.5%, and EBIT margin decreased from 8.5% to 8.0%. Despite these challenges, the company posted a record equipment backlog of CAD 4.1 billion, marking a 42% increase from the prior year.

The strong demand in mining, construction, and power sectors across Canada, South America, and the U.K. and Ireland remained steady, underpinning Finning's long-term strategy. The company's growing installed base of machines and engines is expected to drive recurring product support revenue, seen as a core element of future resilience and value creation.