The CEO of Canadian Caterpillar dealer Finning International says a record equipment order backlog at the end of 2025 has given the company a solid platform for 2026 and “for future product support opportunities”, with 2025 product support revenues of circa-C$6 billion a new high.
Total Finning revenue for 2025 was $10.59 billion, up 7% year-on-year.
CEO Kevin Parkes said new equipment revenues reached a record $3.9 billion, buoyed by mining and power & energy business in its Canadian, South American and European markets. Backlog reached $3.1 billion at the end of December.
“Our mining and power & energy end markets remain robust, despite relatively low oil and gas prices, and we are optimistic that the market for construction equipment will start to improve in 2026 as the political environment and economic outlook for infrastructure development improves across our regions,” Parkes said.
“Our earnings capacity has been significantly transformed, and we are more resilient in all market conditions. Product support revenue is approaching $6 billion annually while reducing SG&A margin to 15% in 2025.”
Finning FY2025 EBIT of $835 million was up 6% yoy.
Q4 revenue was up 6% yoy at $2.7 billion, with growth in western Canada, Latin America and the UK and Ireland. Product support revenue climbed 8% yoy to $1.5 billion “with continued strong mining activity”.
Parkes said a positive business outlook in Chile was underpinned by growing global demand for copper, strong copper prices, capital deployment into large-scale brownfield expansions and customer confidence to invest in brownfield and 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 activity levels as customers adjust their mine plans and existing equipment fleets. We also continue to expect some challenges in the labour market as the demand for skilled labour remains high.
“In Argentina we are carefully positioning our business to capture opportunities, particularly in the oil and gas and mining sectors. The operating environment remains dynamic and we continue to closely monitor the government’s rules and policies, some of which are helping drive large-scale investment.”
Parkes said Finning was encouraged by announcements indicating resource development and infrastructure projects in Canada’s west could be accelerated, “but we remain cautious with respect to the timing and magnitude of such potential activity”.
“We expect steady activity levels in our mining business as customers renew, maintain and rebuild aging equipment,” he said.
