Q2 2024 Finning International Inc Earnings Call Transcript
Key Points
- Finning International Inc (FINGF) reported record EPS and free cash flow for Q2 2024, reflecting strong execution of strategic priorities.
- New equipment sales are up 12% year-to-date, with Canada leading at 19% growth.
- Used equipment revenues increased by 57% in Q2 2024 compared to Q2 2023, marking the third consecutive quarter of over 45% growth.
- Mining equipment order intake was very strong, with a 59% increase in mining backlog from the end of March.
- Power systems demand remains robust, particularly in oil and gas and backup power capacity, with orders extending into 2026.
- EBIT was down 5% year-over-year, mainly due to lower margins in used and rental equipment.
- Product support revenue showed only a modest increase of 0.4% compared to a very strong Q2 2023, with declines in Canada and the UK.
- Rental revenue decreased by 10% due to lower utilization and rates compared to last year.
- SG&A costs in Argentina included $13 million related to transactions for accessing US dollars, impacting overall profitability.
- Construction activity remains softer than last year, particularly affecting product support in Canada and the UK.
Thank you for standing by. This is the conference operator. Welcome to the Finning International Inc second quarter 2024 investor call and webcast. As a reminder, all participants are in a listen-only mode and the conference is being recorded. (Operator Instructions)
At this time, I'd like to turn the floor over to Greg Palaschuk, Executive Vice President and Chief Financial Officer. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Finning second quarter earnings call. Joining me today is Kevin Parkes, our President and CEO. Following our remarks, we will open the line to questions. This call is being webcast on the Investor Relations section of finning.com.
We've also provided a set of slides on our website that we will reference. An audio file of this call, and the accompanying slides will be archived.
Before I turn it over to Kevin, I want to remind everyone that some of the statements provided during this
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