FTT: Headline Q1 Adj. EBIT below consensus on elevated LTIP; Underlying Adj. EBIT ahead

研报英文原文证据摘录

FTT: Headline Q1 Adj. EBIT below consensus on elevated LTIP; Underlying Adj. EBIT ahead

EQUITY RESEARCH QUICK TAKE

RBC Dominion Securities Inc.

Sabahat Khan (Analyst)

Arthur Nagorny, CFA (Analyst)

Bhaven Shah (AVP)

Padraig Murphy (Associate)

May 12, 2026

Finning International Inc.

Headline Q1 Adj. EBIT below consensus on elevated LTIP; Underlying Adj. EBIT ahead

TSX: FTT | CAD 96.57 | Outperform | Price Target CAD 104.00

Sentiment: Positive

Initial take – Finning reported headline Q1 revenue/Adjusted EBIT below consensus estimates (Adjusted EPS modestly ahead),

though this reflected a ~$15MM LTIP drag from the strong Q1 share price performance (similar to Q4 results; EBIT was ahead

of consensus ex. LTIP, with EPS even further ahead). Notably, Product Support revenue growth continues to be strong at +6%

YoY (indicating healthy equipment utilization, in our view), while New Equipment sales were -4% (partly on mining lumpiness

and timing). Looking ahead, we continue to believe Finning is well-positioned to continue delivering strong results through the

remainder of 2026 and beyond, supported by the record backlog ($3.8B; +$0.7B QoQ and +$1.0B YoY, supported by a large win

in Argentina) and directionally supportive commentary from the company (improved at the margin in Canada).

Results details – Consolidated revenue was $2,501MM (+2.1% YoY) vs. RBC/consensus of $2,490/2,525MM, reflecting +6% YoY

growth in Product Support (growth noted across all market sectors) and +11% growth in Rental (Canada was a standout on

improving construction and power & energy market conditions), partially offset by a 4% decline in New Equipment (lower mining

deliveries in South America, which tend to be lumpy, and UK&I on timing shift to Q2, partially offset by growth across all sectors