CANADA — Canadian agricultural equipment supplier AGI is jubilant following a successful third quarter where it reported a record 28% rise in sales to US$296.6 million while adjusted EBITDA increased 65% to US$56.3 million.
US Farm, Canada Farm, North America Commercial as well as Brazil and India were some of the major drivers of growth delivering US$22.4 million increase in adjusted EBITDA on a consolidated basis.
This, the company said, was complemented by a notable improvement in gross margin driven by operational efficiencies, sales mix favoring portable grain handling equipment in the Farm segment, increased volume within the Commercial segment, and the benefit of lower steel prices.
“Our all-time record quarterly results for sales and adjusted EBITDA continue to highlight the strength and growth of AGI,” said Paul Householder, president and chief executive officer of AGI.
“Taking over CEO responsibilities during a time with significant momentum across our global Farm and Commercial businesses, including many opportunities for further growth, is an ideal setup to drive continued success.”
Sales of portable grain handling equipment remain robust as rising crop sizes and low dealer inventories combined to create solid demand.
Farm segment sales and adjusted EBITDA increased 20% and 52% with strong results from Canada, the United States, Asia Pacific, and South America.
Commercial segment sales and adjusted EBITDA increased 40% and 97% with significant growth in North America, Europe, Middle East and Africa, South America, and Asia Pacific markets.
The Brazil region continues to experience significant growth in both sales and adjusted EBITDA achieving 30% and 67% year-over-year increases in the third quarter.
Looking ahead, AGI anticipates the momentum in the Commercial segment to continue into the fourth quarter.
The company further noted that its pipelines remain robust and it is continuing to see strong interest from customers across all segments and regions as they continue to invest in critical infrastructure equipment and solutions.
A key focus remains on securing components on a timely and cost-effective basis amid supply chain disruptions that have been challenging.
Given the strong performance in Q3 and a pipeline of orders transitioning into Q4, AGI is confident of another record year and has subsequently raised its full-year 2022 adjusted EBITDA to at least US$168.25 million.
Earlier, AGI appointed finance expert Rohit Bhardwaj and company CEO Paul Householder to the company’s board of directors.
Bhardwaj has more than 25 years of business experience in publicly traded international organizations across multiple industries. He is currently the chief financial officer of Chemtrade Logistics Income Fund.
Householder, who joined AGI in 2019, was promoted to president and chief executive officer of AGI in September 2022. Prior to AGI, Householder spent 28 years at Air Products and Chemicals, Inc., an industrial gas company, where he progressed through several senior positions.
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