AGI Announces Second Quarter 2025 Results and Reiterates Full Year Outlook

WINNIPEG, Manitoba–(BUSINESS WIRE)–Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we”, or “our”) today announced its financial results for the three-month period ending June 30, 2025 and reiterated its previously stated outlook for full year 2025 Adjusted EBITDA.

Second Quarter 2025 Highlights

• Revenue of $349 million was effectively flat year-over-year (“YOY”)
• Adjusted EBITDA¹ of $54 million, towards the high-end of the $50-$55 million outlook provided by AGI
• Adjusted EBITDA margin %² of 15.6% was impacted by a segment mix with a higher weighting of Commercial segment revenue relative to Farm segment revenue
• Free cash flow¹ of $0.3 million on a last twelve months (“LTM”) basis ending June 30, 2025, mostly due to temporary working capital requirements related to large projects in international Commercial
• Net debt leverage ratio² of 3.9x at June 30, 2025 vs 3.6x at March 31, 2025 and 3.1x at June 30, 2024
• An approximate $9 million reduction in professional fees associated with the strategic review process conducted in 2024

Outlook

• Adjusted EBITDA guidance for the full year 2025 remains consistent with expectations for at least $225 million¹
• Commercial segment visibility for the second half of 2025 is strong, supported by a healthy order book
• Farm segment visibility to the second half of 2025 remains limited due to challenging market conditions
• Based on current tariff policies and regulations, we estimate a relatively minor direct cost impact to AGI in 2025, and it has been factored into our outlook
• Order book³ up 4% YOY to $660 million as of June 30, 2025, supported by significant growth within our international Commercial businesses
• After the quarter, significant international Commercial momentum continued with several notable order commitments secured across a mix of geographies with an aggregate value exceeding $100 million

“Our second quarter results reflect the continued strength of our international Commercial business, particularly in Brazil and EMEA⁴,” said Paul Householder, President and CEO of AGI. “While the North American Farm market remains soft, our diversification strategy and execution of long-term projects internationally have enabled us to deliver second quarter results towards the high-end of expectations. Our expanded capabilities that enable us to take on larger and more comprehensive projects has elevated enthusiasm about the potential of our international Commercial segment. Overall, with year-over-year revenue stabilizing in the second quarter, and significant strength in our Commercial order book, we anticipate returning to top-line growth in the second half of 2025. The outlook for the full year remains consistent though it has been updated to reflect additional strength in Commercial offset by continued softness in Farm, netting-out to unchanged full year Adjusted EBITDA guidance levels.”

“Amid the exciting opportunities in our international Commercial segment, we remain cognizant of the balance sheet and working capital implications,” said Jim Rudyk, CFO of AGI. “We are advancing structures to monetize receivables connected to our international Commercial projects which we expect to meaningfully reduce our working capital position and our net debt leverage ratio by year end. We are progressing through the usual process and steps to set up these kinds of arrangements and are targeting to finalize them in the third quarter. We’d like to thank all our partners for the support and cooperation to help make these significant projects a reality.”

SUMMARY OF SECOND QUARTER 2025 RESULTS

Order book

The following table presents YOY changes in the Company’s order book^[1] as at June 30, 2025:

Second Quarter Farm Segment Summary

As anticipated, challenging conditions persisted across our Farm segment. U.S. and Canada, in particular, continue to face soft farmer demand given commodity prices below long-term averages as well as elevated dealer channel inventory levels which have yet to fully decline. These factors are compounded by shifting tariff policies and government subsidy uncertainty which create additional cautiousness across the entire farm equipment sector. Overall, Adjusted EBITDA Margin % remains compressed in the Farm segment relative to last year primarily due to lower volumes and, to a lesser extent, tariffs. Looking ahead, we anticipate near-term uncertainty for the North American Farm market to remain into the second half of 2025.

Second Quarter Commercial Segment Summary

Several long-term projects in our international regions in addition to stable U.S. activity drove strong growth across the Commercial segment. Brazil continues to successfully progress several large and comprehensive projects won in the second half of 2024 and the first half of 2025. The scale of the projects we are winning and the overall momentum in our international Commercial business highlight the broadening of our differentiated capabilities. Enabled by our product transfer program, we are able to deliver on nearly every aspect of these projects including a full scope of engineering, design, equipment supply, and installation services. Several notable projects won in the second quarter, in addition to a highly active quoting pipeline, create a solid outlook for continued momentum in our Commercial segment for the second half of the year and into early 2026.

MD&A and Financial Statements

AGI’s unaudited interim condensed consolidated financial statements (“consolidated financial statements”) and management’s discussion and analysis (the “MD&A”) for the three- and six-month periods ended June 30, 2025 can be obtained electronically on SEDAR+ (www.sedarplus.ca) and on AGI’s website (www.aggrowth.com).

Conference Call

AGI will hold a conference call on Friday, August 1, 2025, at 8:00am ET to discuss its results for the three- and six-months ending June 30, 2025. To attend the event, please join using the AGI Second Quarter Results webcast link. Alternatively, participants can dial-in using +1-833-821-0159 if calling from Canada or the U.S. and +1-647-846-2271 internationally.

A replay of the webcast will be made available on AGI’s website. In addition, an audio replay of the call will be available for seven days. To access the audio replay, please dial +1-855-669-9658 if calling from Canada or the U.S. and +1-412-317-0088 internationally. Please enter access code 1863266# for the audio replay.

AGI Company Profile

AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.

Further information can be found in the disclosure documents filed by AGI with the securities regulatory authorities, available at www.sedarplus.ca and on AGI’s website www.aggrowth.com.

NON-IFRS AND OTHER FINANCIAL MEASURES

This press release makes reference to certain specified financial measures, including non-IFRS financial measures, non-IFRS ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing our business performance and trends. These specified financial measures are not recognized measures under International Financial Reporting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement our financial information reported under IFRS by providing further understanding of our results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

We use the following (i) non-IFRS financial measures: “adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”)”, “free cash flow” and “net debt”; (ii) non-IFRS ratios: “Adjusted EBITDA margin %” and “net debt leverage ratio”; and (iii) supplementary financial measures: “order book”, “revenue by operating segment” and “revenue by geography”; to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS financial measures, non-IFRS ratios and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure or ratio.

We use these specified financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These specified financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our IFRS results and, in the case of non-IFRS financial measures, the accompanying reconciliations to the most directly comparable IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business.

In this press release, we discuss the specified financial measures, including the reasons that we believe that these measures provide useful information regarding our financial condition, results of operations, cash flows and financial position, as applicable, and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures are contained in this press release.

The following is a list of non-IFRS financial measures, non-IFRS ratios and supplementary financial measures that are referenced throughout this press release:

“Adjusted EBITDA” is defined as income (loss) before income taxes before finance costs, depreciation and amortization, share of associate’s net income (loss), gain or loss on foreign exchange, non-cash share-based compensation expenses, net gain or loss on financial instruments, transaction, transitional and other costs (recovery), Enterprise Resource Planning system transformation costs, net gain or loss on sale of long-lived assets, equipment rework and remediation, accounts receivable reserve (recovery) for the conflict between Russia and Ukraine, and impairment charge (recovery). Adjusted EBITDA 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 income taxes. Management believes Adjusted EBITDA is a useful measure to assess the performance and cash flow of the Company as it excludes the effects of interest, taxes, depreciation, amortization and expenses that management believes are not reflective of the Company’s underlying business performance. Management cautions investors that Adjusted EBITDA should not replace profit or loss as indicators of performance, or cash flows from operating, investing, and financing activities as a measure of the Company’s liquidity and cash flows. See “Profit (loss) before income taxes and Adjusted EBITDA” and “Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment” below for the reconciliation of Adjusted EBITDA to profit (loss) before income taxes for the relevant periods. Adjusted EBITDA guidance is a forward-looking non-IFRS financial measure. We do not provide a reconciliation of such forward-looking measure to the most directly comparable financial measure calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine without unreasonable efforts. Guidance for Adjusted EBITDA is calculated in the same manner as described above for historical Adjusted EBITDA, as applicable.

“Adjusted EBITDA margin %” 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 margin % is a useful measure to assess the performance and cash flow of the Company.

“Free cash flow” is defined as cash provided (used) by operating activities less acquisition of property, plant and equipment and less development and purchase of intangible assets. Free cash flow is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is cash provided (used) by operating activities. Management believes that free cash flow provides useful information about the Company’s ability to generate available cash that can be used to fund ongoing and prospective strategic initiatives, reduce debt, or pursue other initiatives to enhance shareholder value after investing in capital expenditures that are required to maintain and grow the Company. Management uses free cash flow to help monitor the operational efficiency and financial flexibility of the Company. See “Free Cash Flow” below for a reconciliation of free cash flow to cash provided (used) by operating activities for the relevant periods.

“Order book” 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 or work order specifying job scope, value and timing; or (b) has been awarded to the Company or its divisions, as evidenced by an executed binding letter of intent or agreement, describing the general job scope, value and timing of such work, and where the finalization of a formal contract in respect of such work is reasonably assured. Order book is a supplementary financial measure.

“Revenue by Operating Segment” and “Revenue by Geography”: The revenue information presented under “Revenue by Operating Segment” and “Revenue by Geography” are supplementary financial measures used to present the Company’s revenue by segment and geography.

“Net Debt Leverage Ratio” is a non-IFRS ratio and is defined as net debt divided by Adjusted EBITDA for the last twelve-month (“LTM”) period. Net debt leverage ratio is a non-IFRS ratio because its components, net debt and Adjusted EBITDA, are non-IFRS financial measures. Management believes net debt leverage ratio is a useful measure to assess AGI’s leverage position.

“Net Debt” is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is long-term debt. Net debt is defined as the sum of long-term debt, convertible unsecured subordinated debentures, senior unsecured subordinated debentures, and lease liabilities less cash and cash equivalents. Management believes that net debt is a useful measure to evaluate AGI’s capital structure and to provide a measurement of AGI’s total indebtedness. See “Net Debt” below for a reconciliation of long-term debt to net debt for the relevant periods.

Profit (loss) before income taxes and Adjusted EBITDA

The following table reconciles profit (loss) before income taxes to Adjusted EBITDA.

Contacts

For More Information Contact:

Andrew Jacklin

Sr. Director, Investor Relations

+1-437-335-1630

[email protected]

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