This long-time favorite presents an exceptional value opportunity at current levels. The stock trades at an attractive valuation while remaining positioned for sustainable growth across multiple end markets.
Finning’s record $3.0 billion equipment backlog provides unprecedented revenue visibility. That number represents nearly 1.2 years of current quarterly revenue and reflects strong demand from Canada’s mining sector and global power systems markets. In fact, the backlog grew 6% from March to June 2025 alone, indicating accelerating order momentum despite challenging market conditions.
Even better, the Finning’s geographic diversification across Canada’s resource sector, South America’s mining expansion, and the U.K.'s infrastructure and data center growth markets provides multiple growth vectors while reducing single-market dependency risk. With Canadian mining companies increasing capital expenditure budgets and South American operations maintaining strong profit margin, this pick is well-positioned to benefit from the ongoing commodity super-cycle.
The stock trades at just 15.5 times the company’s forward earnings forecast, a significant discount to industrial peers despite delivering superior operational metrics and having a more defensive business model through its high-margin product support revenue. This remains a top pick for the long run.
FINNING INTERNATIONAL INC. (Toronto symbol FTT) sells and services Caterpillar-brand heavy equipment in Western Canada but also South America, the U.K. and Ireland. Its main customers are in the oil and gas, mining, forestry products and construction industries.
Finning has now completed the previously announced sale of its on-site refuelling business 4ReFuel business for $400 million. Note—it paid $241 million for this business in 2019.
In a separate transaction, Finning and its partners have sold their holdings in Compression Technology Corporation (ComTech). That firm provides mobile refuelling of compressed natural gas. Finning received roughly $22 million for its 54.5% stake.
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The proceeds will help the company with its new plan to buy back up to 10% of its shares by May 14, 2026.
Record backlog bodes well for Finning’s future success
Excluding the sale of those businesses above, the company’s revenue in the three months ended June 30, 2025, gained 0.4%, to $2.61 billion from $2.60 billion a year earlier. However, that missed the consensus forecast of $2.73 billion as lower demand for used equipment offset higher revenue from product support and rentals (new equipment demand was flat).
Finning’s earnings before unusual items rose 4.1%, to $1.01 a share from $0.97. That also missed the $1.09 consensus estimate.
Despite the uncertainty caused by tariffs, demand for new equipment remains strong, particularly from Canadian mining firms. Finning’s backlog as of June 30, 2025, was a record $3.0 billion, up from $2.6 billion at the end of 2024.
The stock, which hit recently a new all-time high of $61.85, trades at an attractive 15.5 times the $3.88 a share that Finning will probably earn in 2025.
Moreover, the company raised your quarterly dividend by 10.0% with the June 2025 payment. Investors now receive $0.3025 a share instead of $0.275. The new annual rate of $1.21 yields 2.0%.
Recommendation in The Successful Investor: Finning International Inc. is a buy.
