Ag Growth International (TSE:AFN) Releases Earnings Results

Ag Growth International (TSE:AFN) issued its earnings results on Wednesday. The company reported C($2.62) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$395.77 million during the quarter. Ag Growth International had a negative return on equity of 3.11% and a negative net margin of 0.66%.

Here are the key takeaways from Ag Growth International’s conference call:

• Fourth-quarter results showed revenue up modestly but a sharp margin decline — Q4 revenue CAD 396M while adjusted EBITDA fell ~38% to CAD 48M and margin compressed ~830 bps to 12.2%.
• Management launched a broad restructuring — executive team cut from 17 to 8, North American consolidation, and targeted annualized SG&A savings of at least CAD 20M, plus ~CAD 20M of cash avoidance from terminating the ERP implementation.
• Execution problems on traditional Brazil projects (cost overruns, warranty/remediation charges and bad-debt write-offs) materially pressured Commercial margins and prompted a halt to new financed turnkey projects, creating a near-term revenue gap of ~CAD 183M from 2025 large projects.
• Cash and leverage remain strained — 2025 free cash flow was about CAD -111M (largely tied to Brazil projects) and net leverage ended at 4.7x; management expects to monetize receivables (targeting ~CAD 80–100M in H1) and has extended its senior facility to 2030.
• Order book declined ~26% to CAD 543M, but the Farm segment showed pockets of improvement (U.S. portables and better early-order activity) giving cautious optimism for 2026 while visibility remains limited.

Ag Growth International Stock Performance

Shares of AFN stock opened at C$16.89 on Thursday. The company has a market capitalization of C$317.68 million, a price-to-earnings ratio of -35.19, a P/E/G ratio of 1.30 and a beta of 0.52. Ag Growth International has a 1-year low of C$13.60 and a 1-year high of C$44.84. The company has a current ratio of 1.70, a quick ratio of 0.84 and a debt-to-equity ratio of 307.12. The stock’s fifty day simple moving average is C$27.98 and its 200-day simple moving average is C$29.15.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on AFN. ATB Cormark Capital Markets set a C$36.00 price target on Ag Growth International and gave the company an “outperform” rating in a research report on Wednesday. TD Securities set a C$41.00 price objective on Ag Growth International and gave the stock a “buy” rating in a report on Tuesday, January 13th. Raymond James Financial lowered shares of Ag Growth International from an “outperform” rating to a “market perform” rating and reduced their price objective for the company from C$52.00 to C$30.00 in a research note on Wednesday. Royal Bank Of Canada raised their target price on shares of Ag Growth International from C$25.00 to C$30.00 and gave the stock a “sector perform” rating in a report on Tuesday, January 13th. Finally, National Bank Financial downgraded shares of Ag Growth International from an “outperform” rating to a “sector perform” rating and dropped their target price for the stock from C$39.00 to C$24.00 in a research report on Wednesday. Three investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of C$33.63.

About Ag Growth International

Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. The company operates mainly in Portable handling, permanent handling, storage and conditioning, livestock, and manufacturing sectors. Some of its brands are batco, wheatheart, westfield, storm, rem, hi roller, union iron, hsi, tramco, ptm, vis, nuvision, twister, grain guard, airlanco, westeel, frame, and entringer.