Ag Growth International Inc. · TSX:AFN
Ag Growth International — Q2 2025 Earnings Presentation
30 slides from Ag Growth International's earnings presentation, Aug 1, 2025
Slide 1: Earnings Call
EARNINGS CA PAUL / HOUSEHOLDER RUDYK L
Slide 2: CEO Commentary
AGI= CEO COMMENTARY
Slide 3: Topics for Today’s Review
TOPICS FOR TODAY’S REVIEW SECOND COMMERCIAL FARM ORDER BOOK SAFETY QUARTER SEGMENT SEGMENT & OVERVIEW UPDATE UPDATE OUTLOOK 3
Slide 4: Safety Is a Top Priority
SAFETY IS A TOP PRIORITY
Slide 5: Q2 2025 Results
Q2 2025 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $352 $349 19.3% 15.6% $68 $54 Q2/24 Q2/25 Q2/24 Q2/25 Q2/24 Q2/25 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Source: Company reports 5
Slide 6: Q2 2025 Themes
Q2 2025 THEMES • Q2 revenue stabilizing year-over-year • Commercial segment strength offset by ongoing Farm segment market challenges • Anticipate a return to revenue growth in H2 2025 • International Commercial continues to meaningfully accelerate • Strong order book, supported by International Com
Slide 7: Q2 2025 Commercial Results
Q2 2025 COMMERCIAL RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN 16.6% $222 14.8% $157 $37 $23 Q2/24 Q2/25 Q2/24 Q2/25 Q2/24 Q2/25 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Revenue by segment is
Slide 8: Commercial Segment Commentary
COMMERCIAL SEGMENT COMMENTARY • Increased capabilities leading to large scale projects internationally • Expanding margins, in part due to large & comprehensive projects • Strong order book in international regions and N.A. Commercial • Quoting pipeline strong & active • Our differentiated strategy
Slide 9: Brazilian Market Dynamics
BRAZILIAN MARKET DYNAMICS Driving factors behind the strong Brazilian market activity: 1. 1 Value-added processing capacity investments • Corn ethanol, soybean crushing, fertilizer blending, feed milling, food processing 2 Significant grain handling & movement needs 2. • Improvement in both capacity
Slide 10: Q2 2025 Farm Results
Q2 2025 FARM RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $194 27.4% 23.1% $127 $53 $29 Q2/24 Q2/25 Q2/24 Q2/25 Q2/24 Q2/25 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Revenue by segment is a supp
Slide 11: Farm Segment Commentary
FARM SEGMENT COMMENTARY • Challenging conditions in N.A Farm persist • Limited visibility to the second half of 2025 • Focus on what is in our control: optimize costs • Tariffs and trade regulations add complexity and uncertainty to a Farm market recovery • Harvest a possible catalyst to prompt dema
Slide 12: Order Book
ORDER BOOK CAD, millions • Total order book growth of +4% year-over-year +4% $660 • Commercial order book +15% year-over-year $632 • Commercial accounts for >85% of the total order book • Brazil the primary driver in International Commercial • Farm order intake remains slow due to soft market condit
Slide 13: Tariffs
TARIFFS • Tariff policies continue to evolve and is an area we monitor closely with several tactical adjustments made over recent months including negotiations with steel suppliers in the U.S. and Canada as well as pricing actions • Based on current policies and regulations, we estimate a relatively
Slide 14: Outlook
OUTLOOK • Reiterate full-year 2025 Adjusted EBITDA of at least $225 million • Commercial segment visibility for the second half of 2025 revenues is strong, supported by a healthy order book • Farm segment visibility to the second half of 2025 remains limited due to challenging market conditions Note
Slide 15: CFO Commentary
AGI= CFO COMMENTARY
Slide 16: Topics for Today’s Review
TOPICS FOR TODAY’S REVIEW SECOND BALANCE CAPITAL QUARTER CASH FLOW SHEET ALLOCATION RESULTS 16
Slide 17: Q2 2025 Results
Q2 2025 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $352 $349 19.3% 15.6% $68 $54 Q2/24 Q2/25 Q2/24 Q2/25 Q2/24 Q2/25 Adjusted EBITDA is a non-IFRS measure. Adjusted EBITDA Margin % is non-IFRS ratio. See "Non-IFRS and Other Financial Measures". Source: Company reports 17
Slide 18: Balance Sheet Discipline
BALANCE SHEET DISCIPLINE • Net debt leverage ratio driven Net Debt Leverage Ratio by temporary increase in working capital requirements 7.0x for Commercial segment 6.0x 5.0x 3.9x • Monetizing receivables 4.0x expected to reduce working 3.0x capital and improve balance 2.0x sheet metrics by year end
Slide 19: Free Cash Flow Focus
FREE CASH FLOW FOCUS $111 $111 • Across 2025, Free Cash Flow will be leveraged to support growth $88 $79 opportunities in Commercial $73 $65 $50 $49 $50 • Strategic temporary investment in $$41 $34 $36 working capital to support large- scale projects, notably in Brazil $8 $9 $4 $0.3 • Monetizing rec
Slide 20: Near-Term Capital Allocation Priorities
NEAR-TERM CAPITAL ALLOCATION PRIORITIES • Operational improvements (ERP implementation) • Working capital investment to support Commercial growth • Temporary step-up in working High capital investment required Priority • Routine capital investments (maintenance capex & intangibles) for strategic int
Slide 21: Paul VI Householder Rudyk
PAUL VI HOUSEHOLDER RUDYK
Slide 22: Forward-Looking Information (1/3)
FORWARD-LOOKING INFORMATION (1/3) This webcast presentation contains forward-looking statements and information (collectively, "forward-looking information") within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance
Slide 23: Forward-Looking Information (2/3)
FORWARD-LOOKING INFORMATION (2/3) Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information, including: the risk that (i) the tariffs that are currently in ef
Slide 24: Forward-Looking Information (3/3)
FORWARD-LOOKING INFORMATION (3/3) These and other risks and uncertainties are described under "Risks and Uncertainties" in our most recently filed interim and annual MD&A and in our most recently filed Annual Information Form, all of which are available under the Company's profile on SEDAR+ [www.sed
Slide 25: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION PRESENTATION OF FINANCIAL INFORMATION All financial information of AGI included in this presentation is reported in Canadian dollars and (except for forward-looking financial information) has been derived from audited and unaudited historical financial statement
Slide 26: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization) is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is profit (loss) before incom
Slide 27: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA – Farm Segment - The following table reconciles profit (loss) before income Adjusted EBITDA – Commercial Segment - The following table reconciles profit (loss) before taxes to Adjusted EBITDA for the Farm segment for each of the periods presented
Slide 28: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Adjusted EBITDA Margin % is a non-IFRS ratio and is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA margin % is a non-IFRS ratio because one of its components, Adjusted EBITDA, is a non- IFRS financial measure. Management believes Adjusted EBITDA
Slide 29: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Net Working Capital is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is Total Current Assets. Net Working Capital is defined as Total Current Assets less cash and cash e
Slide 30: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION Order book is a supplementary financial measure and is defined as the total value of committed sales orders that have not yet been fulfilled that: (a) have a high certainty of being performed as a result of the existence of a purchase order, an executed contract
Ag Growth International — Q2 2025 Earnings Presentation on 6ix