By Dean Seal
Finning International notched higher first-quarter sales thanks to strong construction activity and product support demand in Canada, offsetting weaker results out of South America.
The Canada-based dealer for Caterpillar products posted net income from continuing operations of 121 million Canadian dollars ($88.3 million), or 93 Canadian cents per share, compared with C$128 million, or C$0.95 a share, in the same quarter a year earlier.
Adjusted per-share earnings were C$1.02 a share, 1 cent higher than analysts polled by FactSet expected.
Revenue ticked up 2% to C$2.5 billion, missing analyst forecasts for $2.52 billion, according to FactSet.
The small gain was driven by strong demand in Canada for product support, which saw a 6% revenue increase across all markets to C$1.53 billion.
That offset a 4% slump to C$800 million in new equipment sales overall, including a 26% drop in South America due to lower mining deliveries. The company said it recorded $16 million in severance costs in its South American business following job cuts there.
New equipment sales in Canada were stronger, rising 23% as construction activity levels rose.
Finning's equipment backlog climbed to a record C$3.8 billion by the end of the quarter, up 20% from three months earlier. Order intake is outpacing deliveries across all region, particularly for mining and construction equipment, the company said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
May 12, 2026 18:04 ET (22:04 GMT)
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