Ag Growth International Inc
TSX:AFN
Ag Growth International Inc
Ag Growth International, Inc. engages in the manufacture of agricultural equipment. The company is headquartered in Winnipeg, Manitoba. The company went IPO on 2004-05-18. The firm operates through three segments: Farm, Commercial and Technology. Its Farm segment includes the sale of grain, seed, and fertilizer handling equipment, aeration products, grain and fuel storage solutions, and grain management technologies. Its Commercial segment includes the sale of larger diameter grain storage bins, high-capacity grain handling equipment, seed and fertilizer storage and handling systems, feed handling and storage equipment, aeration products and food processing solutions. Its Technology segment offers monitoring, operation, measurement and blending controls, automation, hazard monitoring, embedded electronics, farm management, grain marketing and tools for agronomy, and enterprise resource planning for agriculture retailers and grain buyers.
Ag Growth International, Inc. engages in the manufacture of agricultural equipment. The company is headquartered in Winnipeg, Manitoba. The company went IPO on 2004-05-18. The firm operates through three segments: Farm, Commercial and Technology. Its Farm segment includes the sale of grain, seed, and fertilizer handling equipment, aeration products, grain and fuel storage solutions, and grain management technologies. Its Commercial segment includes the sale of larger diameter grain storage bins, high-capacity grain handling equipment, seed and fertilizer storage and handling systems, feed handling and storage equipment, aeration products and food processing solutions. Its Technology segment offers monitoring, operation, measurement and blending controls, automation, hazard monitoring, embedded electronics, farm management, grain marketing and tools for agronomy, and enterprise resource planning for agriculture retailers and grain buyers.
Revenue Growth: AGI delivered Q3 revenue of $389 million, up 9% year-over-year, in line with its strategy to achieve second-half growth.
Adjusted EBITDA: Adjusted EBITDA reached $71 million, increasing 4% year-over-year, though margin declined 100 basis points to 18.2% due to mix shift toward Commercial projects.
Brazil Accounting Delay: The company delayed its Q3 filing to address material weaknesses in internal controls related to Brazil operations, but has launched a comprehensive remediation plan.
Order Book: The order book stands at $667 million, up slightly year-over-year, with over 90% allocated to the Commercial segment, reflecting a strategic focus on large projects.
Cash Flow & Receivables: Working capital investment and receivables in Brazil remain high, but a new investment fund is expected to monetize 60%-80% of these and improve free cash flow in 2026.
Market Dynamics: North American farm markets remain challenged with high dealer inventories and no clear sign of a near-term recovery; Commercial and international segments continue to drive growth.
Efficiency Initiatives: Facility consolidations and a major ERP rollout are ongoing, expected to streamline costs and improve margins, especially in North America.
