Cat Dealer Finning Raises Revenue 7.2 Percent in First Quarter
Finning, the world’s largest Caterpillar dealer, posted CDN $2.501 billion in first quarter 2025 net revenue, compared to $2.332 billion in the first quarter of 2024, a 7.2-percent increase. Equipment rental revenue was $72 million compared to $74 million in the year-ago quarter, a 2.7-percent decrease. New equipment sales jumped from $779 million in Q124 to $835 million this year, a 7.2-percent boost. Used equipment dropped from $136 million to $100 million, a 26.5-percent drop, while product support revenue increased from $1.297 billion to $1.441 billion, an 11.1-percent hike.
Equipment backlog was $2.8 billion at the end of the first quarter, an all-time company record. It was up 9 percent compared to December 31, 2024, primarily because of multiple large mining equipment orders in Canada.
“Our team delivered another excellent quarter,” said Kevin Parkes, president and CEO. “We are driving value through the execution of our investor day strategy with increasing impact. Over the last 12-month period, we have continued our growth with $10.3 billion of net revenue including 5-percent product support growth, demonstrated resilience by generating over $1.2 billion of free cash flow and reducing SG&A as a percentage of net revenue to 16.2 percent, while also sustainably growing our used and power businesses.
“Our strong start to 2025 comes at a very important time, with double digit product support growth and record backlog levels in Q1 being an excellent platform to demonstrate our improved resilience and earnings capacity in 2025. We won important business with data center customers in the U.K. and Ireland and mining customers in Canada, and our backlog now includes over 100 ultra class trucks across Canada and South America. We increased our inventory balances in Q1 to support our backlog as well as solid quoting activity in each region.
“Building upon our momentum from 2024, we have accelerated the delivery of our invested capital improvement plans, which resulted in the $450 million sale of 4Refuel and healthy first quarter free cash flow reflecting improved working capital velocity. We continue our strong commitment to returning capital to shareholders and our board approved an increase in our quarterly dividend by 10 percent, marking our 24th consecutive year of growth.
“We remain steadfast in our commitment to executing our strategy to maximize product support, drive full-cycle resilience and grow our used, rental and power businesses to improve our return on invested capital.”
