AGI Announces Third Quarter 2026 Results & Provides Turnaround Plan Update
Winnipeg, MB, November 11, 2026 – Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we”, or “our”) today announced its financial results for the three-and-nine-month periods ended September 30, 2026.
Turnaround Plan Update
- Net debt[1] declined for the second consecutive quarter to $954.0 million as of Q3 2026, from $976.7 million in Q2 2026, and $1,040.0 million in Q1 2026.
- Free cash flow[1] (“FCF”) was $26.8 million, compared with negative FCF of $(2.4) million in Q3 2025.
- On track to deliver greater than $30 million of annualized SG&A savings.
- Advanced business simplification initiatives, including facility closures and optimization, the sublease of the 44,000-square-foot Chicago area office, stronger Commercial business-process discipline, and expanded facility-level accountability.
- Debenture holders approved amendments to the $85.0 million Third Series senior subordinated unsecured debentures.
- Obtained covenant relief through Q2 2027 and extended the senior credit facility maturity to March 2030.
- Expanded surplus real estate sale pipeline to ~$50 million.
Third Quarter 2026 Highlights
- Revenue of $340 million and Adjusted EBITDA[1] of $39 million decreased YOY by 13% and 45%, respectively.
- Adjusted EBITDA was impacted by $10.1 million due to a $4.7 million increase in the cost-to-complete the remaining Brazil Long-Term Financed Projects, plus $5.4 million of bad debt expense in Brazil.
- Adjusted EBITDA Margin %[1] was 11.5%, compared with 18.2% in Q3 2025, primarily reflecting lower Commercial volumes and profitability in several key regions, partially offset by stronger Farm performance.
- Farm segment revenue[1] increased 19% YOY to $159 million and Adjusted EBITDA increased 38% to $37.9 million, with Adjusted EBITDA Margin % improving to 23.8% from 20.5%.
- Commercial segment revenue[1] decreased 29% YOY to $181 million and Adjusted EBITDA declined to $7.4 million from $49.7 million, with Adjusted EBITDA Margin % of 4.1%. Nearly half of the Adjusted EBITDA decline was attributable to Brazil.
- YTD SG&A expenses, excluding specified items, declined $15.0 million YOY, or $20.4 million excluding Q3 bad debt expense in Brazil.
- Net debt leverage ratio[1] was 6.1x at September 30, 2026, relative to 5.2x in Q2 2026 and 3.9x in Q3 2025.
Outlook
- Total order book[1] was $432 million at September 30, 2026, down 35% YOY. Excluding Brazil Long-Term Financed Projects, order book was $422 million, down 17% YOY.
- The Farm order book increased YOY, led by North America where it more than doubled, supported by stronger order intake, improving dealer inventory levels, and the October launch of the early order program.
- Commercial activity remains soft across most regions. Management remains focused on rebuilding the order book, improving project selection and execution, optimizing the operating footprint, and restoring facility-level accountability.
“Our third quarter results demonstrate meaningful progress in the areas we can control, including cash generation, debt reduction, structural cost actions and stronger Farm performance,” commented Paul Brisebois, President and CEO of AGI. “At the same time, Commercial results remain below our expectations as lower volumes, challenging market conditions and the planned wind-down of Brazil Long-Term Financed Projects weighed on performance. Importantly, excluding the impact of the Brazil Long-Term Financed Projects and bad debt expenses, Adjusted EBITDA would have been approximately $49 million, underscoring the underlying progress across the broader business. We are acting with urgency to simplify the business, restore local accountability, and improve execution. These actions are intended to create a stronger, more resilient AGI with improved earnings conversion as volumes recover.”
Notes:
- Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See “Non-IFRS and Other Financial Measures”.
- See “Definitions” for certain defined terms used herein.