Major Caterpillar dealer Finning International remains cautiously optimistic about mining and construction activity levels in key markets as a tariff tornado brings “a higher level of uncertainty, cost and complexity to operating for many businesses”.
TSX-listed Finning, which has seen its market value nearly double this year to circa-C$9.7 billion, reported a 14% year-on-year increase in September-quarter revenue to $2.8 billion, “with growth in all regions”.
“New equipment sales increased 12% to over $1 billion on strong power systems deliveries, while equipment backlog was $2.9 billion at September 30, 2025, which included strong order intake in Canada,” the company reported. The new equipment revenue number was a quarterly record.
Product support revenues increased 9% yoy to more than $1.5 billion, “driven by strong mining sector activity”.
Q3 2025 EBIT was up 25% yoy at $240 million.
Finning CEO Kevin Parkes said the direct impact of ongoing tariff-related announcements by the US, Canada and other countries had been limited and largely centred on the company’s Canadian operations. Indirect impact through reduced economic activity, changes to inflation and deferred, delayed or cancelled investment decisions across Finning’s customer base was “unknown and difficult to predict”.
“We have not seen major shifts in customer purchasing decisions, major supply chain changes or changes in the competitive dynamics in the markets we serve as a result of the global tariff landscape, however we remain cautious given the evolution of announcements over the past year,” Parkes said.
Finning said robust copper demand and pricing was producing broad-based quoting, tender and award activity for mining equipment, product support and technology solutions in Chile.
In Argentina, “we continue to take a low-risk approach, while at the same time we are 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 new rules and policies, some of which are helping drive large-scale investment. The recent midterm election results and reduction of currency controls adds an element of optimism for improving activity levels.”
Finning said the outlook for western Canada remained mixed but was improving.
“We are encouraged by announcements regarding the potential to accelerate resource development and infrastructure project activity, but we remain cautious with respect to the timing and magnitude of such potential activity,” it said.
In Europe, low GDP growth was expected to continue in the UK with construction demand to remain soft.
“We expect a growing contribution from power systems as we continue to execute our strategy. In power systems, quoting activity remains strong, driven by healthy demand for primary and backup power generation, particularly in the data centre market. We expect our product support business in the UK & Ireland to remain stable.”
