Finning reports $9.5 billion in net revenue for 16 percent increase through 2023

Finning has reported strong results for the full year of 2023 thanks to a significant increase in net revenue and earnings per share. The company is expecting continued growth moving into 2024.

Finning wrapped up 2023 with a full-year increase of 16 percent in net revenue compared to the full year of 2022, reaching $9.543 billion. Revenue from new equipment reached $3.262 billion, a 17 percent rise, while used equipment was up 11 percent to $392 million, and product support grew by $5.378 billion, a 17 percent increase. 

Adjusted earnings per share for the full year of 2023 rose by 20 percent to $3.91. 

In the fourth quarter of 2023, net revenue rose by 1 percent, to $2.403 billion. Canadian operations saw net revenue rise by 7 percent year-over-year, driven by higher new and used equipment sales. Canadian new equipment sales were up 22 percent, with strong deliveries across all sectors. Used equipment sales increased by 34 percent, with strong sales across retail and wholesale channels. 

Outlook for Canadian operations is positive. While completion of major pipelines has slowed some construction activities in the near-term, it creates additional capacity for petroleum products to move, and Finning expects to see added activity in the energy sector moving forward. Mining and energy customers are expected to increase spending with investments to renew, maintain, and rebuild aging fleets. Federal and provincial governments are expected to continue commitments to infrastructure development and support activity in the construction sector. Growing demand for reliable, efficient, and sustainable electric power solutions will create opportunities for the power systems business.

"2023 was a strong year for Finning. We achieved 17 percent growth in product support revenue, 31 percent growth in power systems revenue, and 20 percent adjusted return on invested capital resulting in record earnings per share. We also ended the year with positive free cash flow, a strong balance sheet, and a solid equipment backlog," said Kevin Parkes, Finning president and CEO. "As we look ahead, 2024 will be a year of execution, where we are focused on growing our business in a moderating growth environment through driving product support, building full-cycle resilience by unlocking invested capital, and delivering sustainable growth in used, rental, and power systems."

Finning announced that Harold Kvisle will step down from his role as Chair of the Board of Directors following Finning's 2024 annual meeting of shareholders on May 7, 2024. Independent director James Carter will succeed Kvisle as Board Chair, effective upon his re-election at that meeting, while the Board identifies a longer-term Board Chair by Finning's 2025 annual meeting.