WINNIPEG, MANITOBA, CANADA — AGI saw earnings and revenues drop in the third quarter ended Sept. 30 but secured several large and new deals in the quarter that are expected to boost Commercial results into 2025.
Revenue for the quarter dropped 13% year over year to C$357 million ($257.7 million). Adjusted EBITDA was down 19% to C$68.5 million.
The company’s order book is up 36% year over year to C$665 million as of Sept. 30, a record level exiting the third quarter, according to the company. It includes several new contracts in Brazil with a combined value of C$105 million.
“These contracts highlight the broadening of our capabilities and offerings in Brazil, which includes a full scope of engineering, design, equipment supply and installation services,” AGI said.
Challenging market conditions in the US Farm business was offset by momentum in the Commercial segment, said Paul Householder, president and chief executive officer of AGI.
“In 2023, our emerging market and product transfer strategies began to take hold, with activity picking-up noticeably toward the end of the year,” he said. “We are encouraged to see that trend accelerate throughout 2024, including in the third quarter where we secured several new and large deals. The extremely strong order book and robust pipeline are powerful indicators that the favorable Commercial segment results anticipated in the fourth quarter will continue into 2025. With improvement actions well progressed across our US Farm business and exciting Commercial segment growth, we are well positioned as an industry leader with significant long-term growth potential.”
Adjusted EBITDA for the Commercial segment dropped 10% to C$30.8 million. Activity across international markets remains robust with EMEA and APAC helping to stabilize overall third-quarter performance, AGI said.
“Overall, we are encouraged to see sustained increases in activity within our international markets, with meaningful contributions across all regions and direct support from our product transfer and emerging market growth initiatives,” AGI said.