AGI Announces Second Quarter 2026 Results & Provides Business Update

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, 2026.

Business Update

• The Board of Directors established a Strategic Review Committee comprised of independent directors Gary Anderson (Chair), George Armoyan, and Mick MacBean to oversee a formal review of strategic alternatives available to the Company.
• On track to exceed our $30 million annualized cost savings target with much of the savings being structural.
• Expected monetization of at least $20 million from unused facility and asset sales in H2 2026.
• Initiated a low capex U.S. facility consolidation to grow storage & handling volumes in the U.S. market; capex will be more than covered by H2 2026 unused facility and asset sales that are part of the consolidation effort.
• Appointed Haaris Uddin as CFO effective August 4, 2026; Interim CFO Nicolle Parker will return to her previous role as Senior Vice President of Finance & Information Systems to support.

Second Quarter 2026 Highlights

• Revenue of $323 million and Adjusted EBITDA¹ of $43 million decreased year-over-year (“YOY”) by 7% and 20%, respectively.
• Monetized $106 million of long-term accounts receivable in Q2 2026.
• Free cash flow¹ of positive $63 million in the quarter, relative to negative $22 million in Q2 2025 due to the monetization of long-term receivables in Brazil.
• Adjusted EBITDA Margin %² of 13.4% declined by 217 basis points YOY, primarily reflecting lower Commercial sales volumes, partially offset by Farm performance and cost containment actions.
• Farm segment revenue increased 10% YOY supported by improved North American demand, with modest margin improvement helping to drive a 12% YOY increase in segment Adjusted EBITDA.
• Commercial segment revenue declined 17% YOY given continued softness in North America and lower international sales that reflect the impact of geopolitical events in the Black Sea and Middle East regions as well as a strong 2025 comparative period in EMEA³.
• SG&A expenses decreased by $3.3 million YOY, excluding the impact of a $9.0 million reversal in Q2 2025 of fees previously accrued in connection with a strategic review process conducted in 2024.
  • Operational SG&A⁴ expenses were $8.8 million lower in Q2 2026 than Q2 2025 and $18.5 million lower in H1 2026 than H1 2025, largely due to recent corporate restructuring initiatives.
• Net debt leverage ratio² was 5.2x at June 30, 2026, effectively flat quarter-over-quarter, with the benefit of long-term receivable monetization proceeds offsetting softer trailing Adjusted EBITDA.

Outlook

• Order book⁵ down 22% YOY to $516 million as of June 30, 2026, primarily due to softer customer purchasing patterns in the Commercial segment, notably in North America and EMEA, as well as the absence of new large-scale comprehensive project contributions in Brazil, with a partial offset by improvement in the Farm order book.
• Taken together, the combination of a still-guarded Farm recovery, continued Commercial softness, and the strategy shift in Brazil are expected to weigh on second-half and full-year results relative to the prior year.

“Our second quarter results reflected the divergence we’ve been navigating all year – early signs of stabilization in North American Farm, offset by continued softness in Commercial across several markets,” commented Paul Brisebois, President and CEO of AGI. “We remain focused on execution and what we can control: simplifying the business, tightening execution, and delivering on structural cost savings. These are permanent changes to how we operate, which means the earnings power of this business improves meaningfully as volumes recover. We are confident that AGI is well-positioned for a strong rebound as market conditions eventually turn.”

SUMMARY OF SECOND QUARTER 2026 RESULTS

Order Book

The following table presents YOY changes in the Company’s order book^[1] as at June 30, 2026.

Second Quarter Farm Segment Summary

Farm segment results improved year-over-year, with revenue up 10% to $140 million as higher North American sales were partially offset by softer international demand. North America reflected an incremental improvement in demand conditions. While difficult market conditions are showing early signs of stabilization, cautious spending persists as commodity prices remain low relative to historic levels. Adjusted EBITDA increased by 12%, with margins expanding modestly to 23.6% from 23.1%, driven by higher volumes and cost savings initiatives.

Second Quarter Commercial Segment Summary

Commercial segment revenue declined 17% year-over-year to $184 million, with North America down 19% and international down 17%, reflecting continued softness across most markets – particularly EMEA, where prior period’s results included several large project wins from late 2024 and the first half of 2025. In addition, revenue in EMEA and Asia Pacific continue to be impacted by geopolitical events in the Black Sea and Middle East regions. North American weakness was concentrated in permanent material handling and food equipment as customers remained cautious on investment decisions, while internationally, South America was a relative bright spot with legacy large-scale Brazil projects and incremental LATAM growth. Adjusted EBITDA fell to $19.4 million from $36.8 million, with margins compressing 602 basis points to 10.6% from 16.6%. The compression was driven primarily by lower North American volumes and reduced profitability in EMEA and Asia Pacific, partially offset by South America results and cost-containment actions.

MD&A and Financial Statements

AGI’s unaudited consolidated financial statements for the three and six-month periods ended June 30, 2026 (“consolidated financial statements”) and management’s discussion and analysis (the “MD&A”) 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 Thursday, July 30, 2026, at 8:00am ET to discuss its results for the three and six-month periods ending June 30, 2026. 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 3655413# 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 non-IFRS financial measures, non-IFRS ratios and supplementary financial measures 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 profit (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 (recovery), 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, 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 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 by (used in) 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 by (used in) 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 by (used in) 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 tables reconcile profit (loss) before income taxes to Adjusted EBITDA for the three-month periods ended June 30, 2026 and 2025, and the LTM periods ended June 30, 2026 and 2025.

Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment

The following tables reconcile profit (loss) before income taxes to Adjusted EBITDA by operating segment for the applicable periods.

Contacts

For More Information Contact:
Andrew Jacklin

Sr. Director, Investor Relations

+1-437-335-1630

[email protected]

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