AGI Announces Third Quarter 2025 Results & Conference Call

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 September 30, 2025.

Third Quarter 2025 Highlights

• Revenue of $389 million increased by 9% year-over-year (“YOY”)
• Adjusted EBITDA¹ of $71 million, an increase of 4% YOY
• Adjusted EBITDA Margin %² of 18.2% was ~100 basis points lower versus prior year, primarily owing to the higher mix of Commercial segment revenue
• Net debt leverage ratio² of 3.9x at Sept 30, 2025 vs 3.9x at June 30, 2025 and 3.1x at Sept 30, 2024
• Free cash flow (“FCF”)¹ generation was impacted by temporary working capital requirements related to large projects in international Commercial
• Established an investment vehicle in Brazil to monetize financing receivables provided by AGI to relieve working capital, improve FCF, and enable delivery of large-scale projects to strategic customers

Filing Delay

• Disclosures on the nature and background of our third quarter filing delay are available in our management’s discussion and analysis for the three-and-nine-month periods ended September 30, 2025 which can be obtained electronically on SEDAR+ and on AGI’s website.

Outlook

• Expectations for Q4 2025 are for lower Adjusted EBITDA sequentially and versus prior year due to challenging market conditions, negative mix, and notably higher SG&A costs relative to prior year
• Commercial segment order book provides visibility across the first half of 2026
• Farm segment visibility into early 2026 remains limited due to challenging market conditions which are expected to persist
• Order book³ up 1% YOY to $667 million as of Sept 30, 2025, supported by significant growth within our international Commercial businesses, specifically Brazil and the broader LATAM region

“Our third quarter results reflect both the realities of our markets and the strength of our strategy,” said Paul Householder, President and CEO of AGI. “Our focus on product transfers, emerging markets, and growth platforms across our international regions has enabled us to deliver a solid third quarter amid varied regional market conditions. The strategic initiatives we set-in-motion over the last several years are working and delivering value in terms of business resilience and measurable international growth. Our active quoting pipeline provides potential for AGI to continue to deliver favourable performance within our Commercial segment.”

“The previously announced investment vehicle in Brazil will provide a meaningful near-term benefit to our cash flow and leverage metrics in addition to serving as an innovative, market leading tool to help sustain the pace of new project wins,” said Jim Rudyk, CFO of AGI. “We have begun monetizing some of our financing receivables connected to large-scale projects in Brazil. This is expected to continue into early 2026 which will help lower our debt and leverage ratios. The size, scope, and number of new projects in the quoting pipeline is notable across several areas of our Commercial business, particularly in Brazil. Our experience, capabilities, and differentiated financing tools all create a compelling setup for us to grow market share and serve as a trusted advisor on our customers most important projects.”

SUMMARY OF THIRD QUARTER 2025 RESULTS

Order Book

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

Third Quarter Farm Segment Summary

Farm segment revenue declined overall in the quarter, though regional trends varied. Brazil showed sequential improvement with higher revenue and an increase in order book. U.S. revenue was down slightly YOY, marking progress versus prior quarters, and early signs of order book stabilization emerged, though still below historical norms. Canada, following a strong 2024, now mirrors U.S. market conditions, resulting in a more pronounced YOY impact. Persistent headwinds including low commodity prices, tariff uncertainty, and subsidy concerns have continued to pressure farmer income and demand. Dealer inventories for portable equipment trended favorably but remain above historic levels. Lower volumes and product mix kept Adjusted EBITDA margins compressed. Near-term uncertainty in North America is expected to persist through 2025 and into early 2026.

Third Quarter Commercial Segment Summary

The Commercial segment delivered strong YOY revenue growth, driven by large project execution across international markets. Brazil remains a key growth engine, supported by high demand for large-scale projects and our ability to deliver comprehensive solutions through expanded local capabilities and product transfers. EMEA (Europe, Middle East, and Africa) sustained momentum as our business development focus and overall emerging markets strategy continues to progress. Additionally, our Commercial business in the U.S. progressed several projects won in late 2024 and the first half of 2025, delivering stable performance within the quarter. Supported by volume gains and cost containment initiatives, Adjusted EBITDA margins expanded to 19.5% from 17.9% YOY. Our differentiated strategy and full solution capabilities continue to drive favorable results.

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-nine-month periods ended Sept 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, January 9, 2026, at 8:00am ET to discuss its results for the three-months ending September 30, 2025. To attend the event, please join using the AGI Third 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 2797782# 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 profit (loss) before income taxes before finance costs, depreciation and amortization, share of associate’s net profit (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 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.

“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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