Ag Growth International Inc. today announced its financial results for the three-months ended Sept. 30, 2023.
Third Quarter 2023 Highlights
- Third quarter revenue of $297.2 million increased by 2% on a year-over-year basis.
- Adjusted EBITDA of $61.6 million increased by 11% year-over-year
- Adjusted EBITDA margin % increased by roughly 165 basis points to 20.6% from 19% year-over-year
Nine Months Year-To-Date 2023 Highlights
- Revenue of $831.5 million increased by 6% year-over-year
- Adjusted EBITDA of $160.2 million increased by 20% year-over-year
- Adjusted EBITDA margin % increased by roughly 230 basis points to 19.2% from 16.9% year-over-year
Revenue in the Farm segment for the third quarter came in at $164.8 million, up 3% year-over-year.
Farm segment revenue and Adjusted EBITDA grew by 3% and 22% year-over-year, respectively, continuing the favorable trends from the first half of the year. Growth in the Farm segment was supported by activity in international regions, with an all-time record result in Brazil. Demand in North America was stable with revenue in Canada driven by resilient portable equipment demand as well as higher U.S. revenues of permanent equipment.
Looking ahead, Farm segment demand continues to increase with the overall order book up 22% as significant strength in demand for portable equipment in Canada was offset by some softness in the U.S. and internationally. In the U.S. and internationally, a robust pipeline of potential projects provides optimism for the end of 2023 and early 2024 results.
Revenue in the Commercial segment for the third quarter came in at $132.5 million,falt year-over-year.
Commercial segment revenue was flat and Adjusted EBITDA increased by 6% year-over-year. Similar to the Farm segment, strength in international regions, particularly Brazil, helped to generate the result. In North America, the Commercial segment was able to generate strong results from grain-related project work, though these results were tempered by the ongoing turnaround of the Food platform.
Looking ahead, the overall Commercial segment order book decreased 4%, largely attributable to the ongoing reset within the Food platform, recent execution of large projects, and softness in the fertilizer market. However, the broader overall pipeline of grain handling and storage projects remains strong which, in addition to diversified and resilient overall business model, provides optimism for results heading into 2024.
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