Q1/26 Roughly in Line but Demand Outlook Improving; Dividend Bumped 7%

Research evidence excerpt

Q1/26 Roughly in Line but Demand Outlook Improving; Dividend Bumped 7%

May 12, 2026 | 19:20 ET~

Finning International Industrial Products

Devin Dodge, CFA Analyst

devin.dodge@bmo.com (416) 359-6774

FTT-TSX Rating Price: May-12 Target Total Rtn

Outperform $96.57 $96.00 0.0% Aryan Arora Associate

aryan1.arora@bmo.com (416) 716-1875

Legal Entity: BMO Nesbitt Burns Inc.

Q1/26 Roughly in Line but Demand Outlook

Improving; Dividend Bumped 7%

Bottom Line:

While Q1/26 results were broadly consistent with expectations, we believe there were

encouraging demand signals for product support and new equipment. The outlook for 110 2YR Price Volume Chart

mining & energy remains strong, construction appears to be improving and there are 100

emerging opportunities in the power sector. We expect FTT's Q1/26 update will be well- 90

received. 70 3

60 2

Key Points 50 1 40

Solid Q1/26 results. Adjusted EPS increased 7% y/y to $1.02, roughly in-line with 30 Nov May Nov May 0

expectations (BMOe: $0.98; consensus: $1.01). Adjusted EBIT was roughly flat y/y at LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

$204M (BMOe: $203M; consensus: $208M). Q1/26 results exclude severance costs of

$16M ($0.09/sh) in the South American division. The main variances to our forecast

were stronger performance in Canada and a lower tax rate. Alongside Q1 results, the

quarterly dividend was raised 7% to $0.325/sh, the 25th consecutive year of distribution

growth.

Strong demand fuels double-digit growth in Canada. Revenues increased 14% y/y

to $1.37B (BMOe: $1.24B), led by strong demand for new equipment (+23%), product

support (+13%) and rental (+20%). Adjusted EBIT increased 11% y/y to $112M (BMOe:

$106M) due to higher volumes across most lines of business. EBIT margin moderated