Finning International Inc.

Thank you for standing by. This is the conference operator. Welcome to the Finning International and third quarter 2025 investor call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Analysts who wish to join the question queue may press star then one on their telephone keypad. If you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to David Primrose, Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Finning's third quarter earnings call. Joining me on today's call is Kevin Parks, our President and CEO. Following our remarks, we will open the line to questions. This call is being webcast on the Investor Relations section of Finning.com. We have also provided a set of slides on our website that we will reference and an audio file of this call and the accompanying slides will be archived. Before I turn it over to Kevin, I want to remind everyone that some of the statements provided during this call are forward-looking. Please refer to slides 9 and 10 for important disclosures about forward-looking information, as well as currency and specified financial measures, including non-GAAP financial measures. Please note that forward-looking information is subject to risks, uncertainties, and other factors as discussed in our annual information forum under key business risks and in our MD&A under risk factors and management and forward-looking information disclaimer. Please treat this information with caution as our actual results could differ materially from current expectations. In addition, unless otherwise noted, this presentation reflects the results of continuing operations only. Kevin, over to you.

Thank you, Dave, and good morning, everyone. Thank you for joining us today. We are really pleased with another strong quarter of results made possible by the relentless focus of our team. We are encouraged by the evolution of our business over the last few years, which along with the diversity and positive shifts in our end markets, have significantly improved product support growth and the resilience of our business. This in turn has driven expansion and reliability of our earnings capacity for the long term. While we continue to comment on our quarterly results, we operate our business with the long term in mind. So my remarks today will generally take a longer term perspective. As we've previously mentioned several times, there can often be quarter to quarter fluctuations across our operations, and we believe it is important to consider the long-term evolution of our business. Starting on slide two, I'll highlight the execution of our strategy with a perspective spanning several quarters instead of just one. I'll then turn it over to Dave, who will provide details on the results in the quarter consistent with our past calls. The strong momentum we have delivered continues with revenues for the last 12 months up 7%. Importantly, our product support revenue continued its steady growth trajectory up to $5.8 billion over the last 12 months, with growth across all regions. In Canada, product support revenues were up 7% on a trading 12-month basis, led by mining. In South America, product support revenues were up 6% in functional currency on a 12-month rolling basis, also led by strong mining activity levels. In the UK and Ireland, despite more challenging market conditions, product support revenues were up 2% in functional currency on a trailing 12-month basis on steady power segment activity. Maximizing product support remains our key value driver and our focus across our company. We also continue to improve our cost and capital efficiency with SG&A margin of 15% on a trailing 12-month basis. and our invested capital terms remain in line with the last quarter at 2.3 times. These metrics are a result of the execution of numerous initiatives across the company over the last several quarters, such as previously announced restructuring activities that are enabling additional operating leverage and improve our earnings capacity for the long term. We continue to challenge ourselves to be more and more resilient over time, while at the same time continuing to invest in growing our business, improving customer experience, and driving loyalty. From a sustainable growth perspective, we continue to see strong growth in our power systems business. Our trailing 12-month revenue from power systems was up 5% compared to the same period last year, with a 7% increase in product support revenue driven by solid activity levels in all regions. Our power systems backlog at the end of September remained robust at nearly $1 billion, up 23% from September 2024. This reflects a diverse mix of prime power packages, oil and gas related equipment orders, and data center standby packages to be delivered through 2027. Power systems deliveries during Q3 2025 nearly doubled from Q3 2024, higher across all regions as we continue to build equipment population in our territories. In Canada, we continue to see healthy demanding gas compression and oil and gas segments with a long-term potential for data center development in Alberta. In South America, power systems activities are steady, supported by data center growth in Chile and oil and gas activity in Argentina. And in the UK and Ireland, our power systems continues to be a strong revenue contributor amidst a slower construction market with higher activity levels in data center applications and industrial and marine applications. In the near term, we expect steady and dynamic growth in mining activity levels in South America and Canada. We're excited about a very constructive long-term outlook for mining driven by the demand for minerals. We are encouraged by the growing number of medium-term mine expansion opportunities. And as I previously said, every mine plant is unique and we do not control the near-term dynamics and timing of decisions and remain committed to partnering and working closely with our customers to meet their goals. Turning to construction. In Canada, we are seeing some signs of improvement in construction and certainly an encouraging narrative from the new government. In the UK and Ireland, the act of construction remains subdued And we are seeing some green shoots in quoting activity. As I said previously, our business does not follow a straight line, quarter to quarter, and we will continue to focus on the aspects of our business that are in our control, delivering value for our customers and operating with a sustainable growth mindset and greater resilience over time. And with that, I will hand it back to Dave, who will provide more detail on our results in the quarter, as well as provide more colour on the medium to long-term outlook. Over to you, Dave.