Ag Growth International Inc. · TSX:AFN
Ag Growth International — Q1 2025 Earnings Presentation
30 slides from Ag Growth International's earnings presentation, 2025
Slide 1: Q1 2025 Earnings Webcast
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 FIRST COMMERCIAL FARM ORDER BOOK, SAFETY QUARTER SEGMENT SEGMENT OUTLOOK & OVERVIEW UPDATE UPDATE GUIDANCE 3
Slide 4: 2025 Safety Week
REPORT IT. | FIX IT. AGIZ SAFETY WEEK 2025
Slide 5: Q1 2025 Results
Q1 2025 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $315 $287 15.9% 10.9% $50 $31 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q125 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: Q1 2025 Themes
Q1 2025 THEMES • Commercial segment strength offset by anticipated Farm segment market challenges • International Commercial continues to meaningfully accelerate • Segment mix and tariff costs are key variables of margin performance • Strong order book, supported by International Commercial, support
Slide 7: Q1 2025 Commercial Results
Q1 2025 COMMERCIAL RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $192 12.8% 10.5% $126 $24 $13 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25 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 several large turn-key projects in International Commercial • Expanding margins, in part due to large turn-key projects • Strong Commercial segment order book in international regions as well as North American Commercial • Diversifica
Slide 9: Q1 2025 Farm Results
Q1 2025 FARM RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $189 23.8% 20.2% $95 $45 $19 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q1/25 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 suppl
Slide 10: Farm Segment Commentary
FARM SEGMENT COMMENTARY • Challenging conditions in North American Farm persist • Expected to last through at least the first half of 2025 with limited visibility to the second half of 2025 • Progressing through the growing season towards harvest is a potential catalyst to stir demand • Focus on wha
Slide 11: Order Book
ORDER BOOK CAD, millions +5% $725 • Commercial order book +26% year-over-year $692 • Commercial accounts for >80% of the total order book • International Commercial - several project wins • Brazil order book >200% growth • Farm order book up approximately +25% sequentially • Diversified and resilien
Slide 12: Tariffs
TARIFFS • Current tariff policies exempt USMCA-compliant products which includes AGI’s Canadian-made equipment, though some products are subject to tariffs on Canadian-made steel derivatives • Based on current policies and regulations, we estimate a relatively minor direct cost impact to AGI in 2025
Slide 13: Outlook
OUTLOOK 2025 Outlook • Reiterate full-year 2025 Adjusted EBITDA of at least $225 million • Second quarter 2025 Adjusted EBITDA in the range of $50 - $55 million Note: Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS and Other Financial Measures". Note: Adjusted EBITDA for the year ended December
Slide 14: Mid-Cycle Adjusted EBITDA Potential
MID-CYCLE ADJUSTED EBITDA POTENTIAL CAD, millions + $20 ~ $325 + $35 3 + $45 2 ~ $225 1 2025F Adj EBITDA Farm Segment Rebound Commercial Segment Growth Operational Excellence Mid-Cycle Adj EBITDA Potential 1 Assumes rebound to mid-point of 2023 results and 2025 forecast 2 Assumes high-single digit g
Slide 15: CFO Commentary
AGI= CFO COMMENTARY
Slide 16: Topics for Today's Review
TOPICS FOR TODAY’S REVIEW FIRST BALANCE CAPITAL CASH FLOW QUARTER SHEET ALLOCAITON RESULTS 16
Slide 17: Q1 2025 Results
Q1 2025 RESULTS CAD, millions REVENUE ADJUSTED EBITDA ADJ. EBITDA MARGIN $315 $287 15.9% 10.9% $50 $31 Q1/24 Q1/25 Q1/24 Q1/25 Q1/24 Q125 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 • Monetizing receivables 3.6x 4.0x expected to reduce working 3.0x capital and improve cash 2.0x flow; potential timing in Q3
Slide 19: Clear Focus on Driving Strong Free Cash Flow
CLEAR FOCUS ON DRIVING STRONG FREE CASH FLOW $111 $111 • On an LTM basis, FCF generation has stepped up to a new level of $88 performance over recent years $79 $73 $65 • Combination of expanding $50 $49 $50 $41 margins, working capital focus, $34 $36 capex discipline $8 $9 $4 • Management aligned to
Slide 20: Near-Term Capital Allocation Priorities
NEAR-TERM CAPITAL ALLOCATION PRIORITIES • Operational improvements (ERP implementation) High • Working capital investment to support Commercial growth • Temporary step-up in working Priority capital investment required • Routine capital investments (maintenance capex & intangibles) for strategic int
Slide 21: Questions
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 — Q1 2025 Earnings Presentation on 6ix