Strong New Equipment Sales Fuel Growth in Q2 2026 for Finning International Inc.
Finning International Inc. achieved a major milestone in the second quarter of 2026. The company reported a record revenue of $3.1 billion. Its quarterly revenue for the first time surpassed the $3 billion threshold. This was thanks to robust sales of new equipment across all regions. Ongoing growth in product support services contributed as well. The performance highlights the company's strong market position. It also shows the successful execution of its business strategy.
The demand for new equipment was especially notable in the mining and power & energy sectors. These two industries drove increased activity across North America, South America, and the UK & Ireland. The growth in South America was particularly significant, with a 35% rise in new equipment sales, mainly due to higher construction and mining deliveries in Chile. This underscores the region’s growing economic momentum and the company’s ability to capitalize on it.
Revenue Growth and EBIT Performance
For the quarter, Finning recorded an EBIT of $249 million, which represents a 16% increase compared to the same period in 2025. However, the EBIT margin for Q2 2026 slightly decreased to 8.0%, down from 8.3% in Q2 2025. The company saw a strong performance in its South American operations, where the adjusted EBIT margin reached 9.7%. In comparison, the EBIT margin remained stable at 8.3% in Canada but was lower at 6.2% in the UK & Ireland.
Product support revenue saw a 11% growth in Q2 2026, driven by increased demand across all sectors. This growth continued a trend that has lasted for nine consecutive quarters of year-over-year improvement. Canada experienced particularly strong results in this area, with product support revenue increasing by 19%. This reflects the ongoing demand for after-sales services in the region and the company’s ability to meet it effectively.
Despite the rise in new equipment sales and product support, the EBIT margin dipped to 8.0% in Q2 2026 compared to 8.3% in Q2 2025. The SG&A margin remained at 13.3%, which included a $21 million expenditure related to the company’s long-term incentive plan (LTIP). This increase in LTIP costs is attributed to the appreciation in the company’s share price, a reflection of investor confidence and strong performance.
Finning also reported an improved adjusted return on invested capital (ROIC) of 19.0%. This marks a 30 basis point increase compared to the same period in 2025. Free cash flow for the quarter was limited to a $15 million inflow. The company demonstrated sound balance sheet management. Finning maintained a net debt to adjusted EBITDA ratio of 1.6 times. This shows it has kept its financial leverage in check. This is despite the investments made to support its growing operations.
Backlog and Future Performance Indicators
At the end of June 2026, Finning reported a record equipment backlog of $3.8 billion. This backlog is 22% higher than at the beginning of the year. It was driven by a significant increase in orders. Particularly in the mining and power & energy sectors. The growing demand from these industries highlights the company's ability. It shows the ability to attract and retain customers across all key markets.
The backlog is seen as a strong indicator of future performance, as it reflects the company’s ability to secure and manage a large volume of orders. Combined with the continued growth in product support and new equipment sales, the backlog suggests that Finning is well-positioned for sustained success in the months and years ahead. Management attributes this positive outlook to the strong customer demand and the company’s disciplined approach to execution and operations.
Leadership Insights and Future Outlook
Kevin Parkes, President and CEO of Finning, commented on the company's performance. He stated, “We delivered another quarter of strong growth and operational performance.” Strong customer activity and a record backlog position them well for the future. He added, “We remain focused on maximizing product support.” Enhancing full-cycle resilience is also a priority. Expanding used equipment, rental, and power & energy businesses is important too. His remarks highlight the company’s confidence in its strategic direction. They also highlight the capabilities of its workforce.
Looking ahead, Finning remains optimistic about its ability to maintain strong growth while balancing expansion with disciplined cost and capital management. The company aims to further capitalize on the momentum generated during the second quarter and continue delivering value to its shareholders through a combination of operational excellence and market leadership.
By leveraging its record backlog, expanding product support services, and investing in key growth areas such as used equipment and rental services, Finning is positioning itself to remain a dominant player in the industries it serves. With a strong foundation and clear strategic direction, the company is well-equipped to navigate the challenges and opportunities of the evolving market landscape.