VANCOUVER, British Columbia, May 12, 2026 (GLOBE NEWSWIRE) -- Finning International Inc. (TSX: FTT) (“Finning”, the “Company”, “we”, “our” or “us”) reported first 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 Q1 2025 results unless indicated otherwise.

• Revenue of $2.5 billion was up 2%, led by product support growth in Canada.
• Product support revenue increased 6% with growth across all market sectors. Q1 2026 was the 8th quarter in a row of year-over-year product support growth.
• SG&A ⁽²⁾ margin ⁽³⁾ was 16.0% and included $15 million of LTIP ⁽²⁾ expense due to strong first quarter share price performance.
• EBIT ⁽²⁾ was $188 million and Adjusted EBIT ⁽⁴⁾⁽⁵⁾ was $204 million, which excluded the impact of $16 million severance costs in South America for headcount reductions related to changes in our organizational structure aimed at simplification and consolidation while strengthening service resiliency.
• Adjusted EBIT margin ⁽³⁾⁽⁵⁾ was 8.2%, down 20 basis points from Q1 2025 EBIT margin ⁽³⁾. Adjusted EBIT margin was 11.1% in South America, 8.1% in Canada, and 5.1% in the UK & Ireland.
• Adjusted EPS ^(2)(3)(5) of $1.02 was up 7% from Q1 2025 EPS of $0.95. LTIP expense had a $0.09 impact on Adjusted EPS in Q1 2026 compared to a $0.04 impact on Q1 2025 EPS.
• Adjusted ROIC ⁽²⁾ from continuing operations ⁽³⁾⁽⁵⁾ was 18.7%.
• Free cash flow from continuing operations ⁽⁴⁾ was a use of cash of $310 million, driven primarily by higher payments for inventory. Net debt to Adjusted EBITDA ^(2)(3)(5) at March 31, 2026 was 1.6 times.
• Equipment backlog ⁽³⁾ reached a record level of $3.8 billion at March 31, 2026, up 20% from December 31, 2025, driven by order intake outpacing deliveries across all regions, particularly in mining and construction.
• In February, our South America operation received a large equipment order from Glencore for the reinitiation of its Alumbrera copper mine in Argentina. This includes the supply of more than 20 large Caterpillar mining trucks along with ancillary equipment and technology support, for delivery expected from Q4 2026 through 2028.

“Our business continues to grow entering 2026 and I would like to extend my gratitude to our employees for their diligent execution of our strategy and unwavering dedication to providing exceptional service to our customers. We are pleased with another quarter of strong product support revenue led by double digit growth in Canada, disciplined cost and capital management, and proactive capture of growth opportunities in the power & energy and rental markets. Through the combination of supportive business activity and our team’s thoughtful execution, we achieved $1.02 in adjusted earnings per share this quarter, which marked a record for Q1. Meanwhile, our equipment backlog reached $3.8 billion at the end of March, bolstered by our recent strategically important equipment orders from mining customers in Argentina and Canada,” said Kevin Parkes, President and CEO.

“Our UK and Ireland business consistently demonstrates resilience and as our South America business navigates a moderated growth environment over the near term, we are proud to see our Canada business carrying forward the baton of growth with refreshed business momentum across all market sectors while carefully managing cost and capital levels to support this accelerated growth.”

“Our board approved an increase in our quarterly dividend by 7.4% to $0.325 per share, marking our 25^th consecutive year of growth. This increase is well-supported by our transformed earnings capacity and demonstrates our strong commitment to returning capital to shareholders. Looking ahead, we remain confident in our strategy and focused on execution to maximize product support, strengthen full-cycle resilience and prudently grow our used, rental and power & energy businesses,” concluded Mr. Parkes.

Q1 2026 FINANCIAL SUMMARY

QUARTERLY KEY PERFORMANCE MEASURES FROM CONTINUING OPERATIONS

Q1 2026 HIGHLIGHTS BY OPERATION
All comparisons are to Q1 2025 results unless indicated otherwise. All numbers, except 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

• Revenue decreased 8%. New equipment sales decreased 26% primarily due to lower mining deliveries. In addition, Q1 2025 had a large delivery of equipment to a construction customer, which did not repeat.
• Product support revenue was up 2% from higher construction activity and mining rebuilds in Chile.
• Adjusted EBIT was down 4% from Q1 2025 EBIT. Adjusted EBIT margin of 11.1% was up 50 basis points from Q1 2025 EBIT margin, primarily driven by higher mix of product support revenue partially offset by higher SG&A%.
• Adjusted ROIC from continuing operations was 23.4%.
  
  

Canada Operations

• Revenue increased 14%, including a 23% increase in new equipment with strong sales across all market sectors led by construction on higher market share and activity levels.
• Rental revenue was up 20% on improving construction and power and energy market conditions, while Used equipment revenue was down 21% from fewer conversions of rental equipment with purchase options.
• Product support revenue was up 13%, primarily reflecting strong demand from mining customers and increased rebuild activities.
• EBIT increased 11%. EBIT margin of 8.1% was down 30 basis points primarily due to lower product support margins on strong volume growth, partially offset by improved SG&A margin.
• Adjusted ROIC from continuing operations was 18.2%, up 230 basis points on improved invested capital turns and trailing-twelve-month profitability.
  
  

UK & Ireland Operations

• Revenue decreased 4%, driven by a 6% decrease in new equipment sales due to shifts in timing of backlog deliveries into Q2. Product support revenue was comparable.
• EBIT was up 4%. EBIT margin of 5.1% was up 40 basis points, primarily driven by higher new equipment margins and a higher proportion of product support revenue.
• Adjusted ROIC from continuing operations was 19.3%, up 240 basis points primarily reflecting the optimization of pension assets.
  
  

Corporate and Other Items

• EBIT loss for Corporate was $16 million, compared to an EBIT loss of $11 million in Q1 2025 primarily driven by higher LTIP expense.
• The Board of Directors has approved a 7.4% increase in the quarterly dividend to $0.325 per share from $0.3025 per share, payable on June 11, 2026, to shareholders of record on May 28, 2026. This dividend will be considered an eligible dividend for Canadian income tax purposes.
• In Q1 2026, we repurchased 0.3 million shares at an average cost of $88.77 per share, representing approximately 0.25% of our public float.
  
  

Renewal of Share Repurchase Program

We have received approval from the Toronto Stock Exchange ("TSX") to renew our normal course issuer bid ("NCIB") to purchase for cancellation up to 12,800,000 of our common shares, representing approximately 9.8% of the public float of 130,407,594 common shares as at May 1, 2026. As at May 1, 2026, Finning had a total of 130,564,565 common shares issued and outstanding.

The NCIB, which will begin on May 15, 2026 and end no later than May 14, 2027, will be conducted through the facilities of the TSX or other Canadian alternative trading systems, if eligible, and will conform to their rules and regulations.

Our Board of Directors believes that, from time to time, the purchase by Finning of its common shares represents a desirable use of its available cash to increase shareholder value.

The average daily trading volume of our common shares over the six-month period ending April 30, 2026, as calculated in accordance with TSX rules, was 444,918 common shares. Consequently, under TSX rules, we will be allowed to purchase daily, through the facilities of the TSX, a maximum of 111,229 common shares representing 25% of such average daily trading volume, subject to certain exceptions for block purchases. All shares purchased pursuant to the normal course issuer bid will be cancelled.

Purchases under the normal course issuer bid will be made by means of open market transactions or such other means as the TSX may permit. The price to be paid by us for any common share will be the market price at the time of acquisition, plus brokerage fees.

In connection with the NCIB, we will enter into an automatic share purchase plan ("ASPP") with a designated broker. The ASPP will allow for the purchase of shares under the NCIB at times when we would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout restrictions.

The ASPP will provide a set of standard instructions to the designated broker to make purchases under the NCIB in accordance with the limits and other terms set out in the ASPP. The designated broker will determine the timing of these purchases in its sole discretion based on purchasing parameters set by us and subject to the rules of the TSX, applicable securities laws, and the terms of the ASPP. The ASPP has been pre-cleared by the TSX and will be implemented as of May 15, 2026. All purchases made under the ASPP will be included in computing the number of shares purchased and cancelled by us under the NCIB. Outside of pre-determined blackout periods, shares may be purchased under the NCIB based on management's discretion, in compliance with TSX rules, and applicable securities laws.

Under the current NCIB, which expires on May 14, 2026, we obtained approval to purchase up to 13,300,000 common shares. As of May 1, 2026, we purchased and cancelled 4,272,928 common shares under the current NCIB on the open market through the facilities of the TSX and other alternative Canadian trading systems at a volume weighted average price paid of $60.50 per common share (excluding commissions and taxes).

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 Argentina, we are carefully positioning our business to capture opportunities, particularly in the oil & gas and mining sectors. We are seeing an increase in quoting activity for equipment and encouraged by our recent equipment order with Glencore’s Alumbrera copper mine. 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 renew, maintain and rebuild aging equipment. In the power & energy sector, activity remains steady in the oil and gas market, with longer-term potential in the data centre market where we have started active discussions with numerous customers on primary and back-up power generation opportunities. We are leveraging the expertise of our UK and Ireland operations with over a decade of experience in the data centre space, to become a trusted and value-add partner to our customers.

Construction sector activity is showing 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. We are also continuing to implement structural changes and overhead reductions to drive productivity improvements.

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 evolving global trade dynamics, 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 grow prudently 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 Q1 2026 results, please visit our website at https://www.finning.com/en_CA/company/investors.html

Q1 2026 INVESTOR CALL

We will hold an investor call on May 13, 2026, at 10:00 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 

https://www.finning.com 

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:

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

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

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

     ^(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:

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

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

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:

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:

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:

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⁾   We sold our interests in ComTech ⁽²⁾ and 4Refuel ⁽²⁾ on May 15, 2025 and June 30, 2025, respectively. The results of operations of ComTech and 4Refuel up to their respective sale dates have been restated as discontinued operations. Effective Q2 2025, the comparative figures have been restated to exclude the results of discontinued operations. For more information on the impact to the financial statements, please refer to Note 3 of our Annual Financial Statements ⁽²⁾.

⁽²⁾   4Refuel Holdings Limited, Midnight Holding Inc., and their respective affiliates (collectively “4Refuel”); Audited annual consolidated financial statements (Annual Financial Statements); 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); Long-term Incentive Plan (LTIP); 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, the following: our belief that our South American business is navigating a moderated growth environment over the near term; our belief that our Canada business is carrying forward the baton of growth with refreshed business momentum across all market sectors while carefully managing cost and capital levels to support this accelerated growth; our continued confidence in our strategy and focus on execution to maximize product support, strengthen full-cycle resilience and prudently grow our used, rental and power & energy businesses; our expectation to deliver under the Glencore large equipment order from Q4 2026 through 2028 (assumes the Alumbrera mine restart is on schedule and no supply chain disruption); 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 a broad-based level of quoting, tender and award activity for mining equipment, product support and technology solutions; our expectation in the near term of some moderation in product support activity levels as customers adjust their mine plans and existing equipment fleets; although the demand for skilled labour remains high, our expectation of a more stabilized labour environment through 2028 as we have 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 & gas and mining sectors; our continued monitoring of rules and policies, some of which help drive large-scale investment; an expected increase in quoting activity for equipment; 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 outlook for Western Canada being positive; our expectation of strong activity levels in our mining business as customers renew, maintain and rebuild aging equipment; our belief that in the power & energy sector, activity remains steady in the oil and gas market, with longer-term potential in the data centre market where we have started active discussions with numerous customers on primary and back-up power generation opportunities; our expectation to be able 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 is showing 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; our continued focus on building our resilience by managing our cost and invested capital levels; and our continued implementation of structural changes and overhead reductions to drive productivity improvements; 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, as well as backup power generation, particularly in the data centre market); our expectation of our product support business to remain stable; for global trade and geopolitical risk: our continued monitoring of the evolving 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 expectation of remaining cautious and actively evaluating mitigation strategies and contingency measures to address these potential risks; and overall: our expectation to continue to execute our strategy in 2026 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; our expectation to renew our NCIB and statements regarding the potential repurchase of shares under our NCIB including our belief that the purchase by Finning of its common shares under our NCIB represents a desirable use of its available cash to increase shareholder value; our expectation that we will enter into an ASPP and the expected terms thereof; 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 above; 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, and economic and market conditions in the regions where we operate; perspectives of investments in the 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 continuing to maintain customer service; our ability to manage cost pressures as growth in revenue occurs; 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 that are acceptable will be dependent upon prevailing market conditions, as well as 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 with our customers; 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 including with respect to environmental protection, environmental disclosures 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, geo-political events, acts of terrorism, social unrest or similar disruptions; the availability of insurance at commercially reasonable rates and whether the amount of insurance coverage will be adequate to cover all liability or loss that we incur; the potential of warranty claims being greater than we anticipate; the integrity, reliability and availability of, and benefits from, information technology and the data processed by that technology; 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 get a better understanding of 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 a number of 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 be able to 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 be able to 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 the level of 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 will continue to grow; that supply chain and inflationary challenges will not materially impact large project deliveries in our equipment backlog; our ability to successfully execute our plans and intentions, including our strategic priorities; our ability to attract and retain skilled staff; market competition will remain at similar levels; the products and technology offered by our competitors will be as expected; identified opportunities for growth will result in revenue; that we have sufficient liquidity to meet operational needs, commitments and obligations; consistent and stable legislation in the various countries in which we operate; no disruptive changes in the technology environment; our current good relationship with Caterpillar, our customers and 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; sustainment of oil prices; that maximizing product support growth will positively affect our strategic priorities going forward; quoting activity for requests for proposals for equipment and product support is reflective of opportunities; and, market recoveries in the regions that we operate. Some of the assumptions, risks, and other factors, which 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 operation.

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 way we present known risks affecting our business.