AGI Announces First Quarter 2026 Results & Progress On Brazilian Accounts Receivable Monetization

WINNIPEG, Manitoba--(BUSINESS WIRE)--Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we”, or “our”) today announced its financial results for the three-month period ending March 31, 2026.

First Quarter 2026 Highlights

• Revenue of $282 million and Adjusted EBITDA¹ of $25 million decreased year-over-year (“YOY”) by 2% and 19%, respectively.
• Adjusted EBITDA Margin %² of 8.9% declined by approximately 200 basis points YOY, primarily due to lower Commercial volumes, partially offset by corporate cost reductions.
• Farm segment revenue up 7% YOY due to higher sales across North America overall with Adjusted EBITDA roughly flat due to the impact of product mix on margins.
• Commercial segment revenue down 6% due to a soft market in North America and geopolitical and domestic policy impacts in India. Adjusted EBITDA down 44% due to lower overall volume and product mix.
• SG&A expenses, excluding transaction, transitional and other costs, ERP system transformation costs, and depreciation and amortization, were $9.7 million lower than Q1 2025 and improved as a percentage of revenue, largely due to recent corporate restructuring initiatives.
• Net debt leverage ratio² of 5.2x at March 31, 2026 compared to 4.7x at December 31, 2025 and 3.6x at March 31, 2025. An increase in net debt leverage in Q1 is expected and reflects the typical pattern of a first-quarter build in working capital levels.

Outlook

• Order book³ down 19% YOY to $589 million as of March 31, 2026, primarily due to the execution of several significant projects in our International Commercial segment, with a partial offset by some improvement in the Farm order book.
• The Farm segment order book improved YOY. Although encouraging, it remains below historic levels and market conditions remain challenging.
• Commercial segment order book was down YOY, driven by cautious customer behavior and fewer project awards in North America and internationally, with a partial offset from momentum in traditional equipment‑only project wins in Brazil.

Business Updates

• After quarter end, approximately $105 million related to long-term accounts receivable in Brazil was released from escrow. Of this amount, approximately $55 million has been received into AGI-controlled accounts, with the remaining balance in the final stages of administrative transfer, which is expected to be completed in May 2026. These proceeds will be applied towards the outstanding debt on our senior credit facilities. The net debt leverage ratio as at March 31, 2026 proforma the collection of the $105 million receivable would have been 4.7x.
• The Company continues to execute broad restructuring and simplification actions, with management now estimating annualized cost savings of at least $30 million compared to the previous target of at least $20 million. These savings are expected to be fully realized by the fourth quarter of 2026 when such actions are fully implemented. Non-recurring restructuring charges of $12 million were incurred in the first quarter.

“Our first quarter results reflect a continued challenging operating environment, with low Commercial volumes, particularly in North America and India, negatively impacting margins,” commented Paul Brisebois, Interim President and CEO of AGI. “We are responding with decisive actions to simplify the business, sharpen customer focus, and better align our cost structure to current demand levels, with annualized cost savings now expected to be at least $30 million. Following the quarter, approximately $105 million of long‑term receivables in Brazil were released from escrow with approximately $55 million already in AGI‑controlled accounts. This action is consistent with our focus on debt repayment and supports our efforts to strengthen AGI’s balance sheet, which remains a top priority.”

Order Book

The following table presents YOY changes in the Company’s order book^[1] as at March 31, 2026:

First Quarter Farm Segment Summary
Farm segment results improved YOY, with revenue up 7% to $102 million, as tariff-driven pre‑shipments into the U.S. in the prior-year period created an unusually weak comparable for Canada Farm and an unusually strong comparable for U.S. Farm. Accordingly, first quarter results, particularly in Canada, should not be viewed as evidence of a broad-based recovery in underlying demand. Overall, Farm segment revenue grew 10% across North America as a whole, which we view as an encouraging directional move regardless of the geographic split. Adjusted EBITDA was flat YOY, with margins compressing to 18.5% from 20.2% primarily due to a higher mix of lower‑margin storage equipment, partially offset by cost-saving initiatives.

First Quarter Commercial Segment Summary
Commercial segment revenue declined 6% year over year to $180 million, as soft conditions in North America persisted and international results were broadly flat with mixed regional performance. Brazil revenue increased as legacy large‑scale projects continued, while EMEA declined on a tough prior‑year comparison, and India faced pressure from the Iranian conflict, excess rice inventories, and policy uncertainty. Adjusted EBITDA fell from $24.5 million to $13.6 million, with margins compressing YOY from 12.8% to 7.6%, driven primarily by lower permanent material handling volumes in North America and market‑driven volume softness in India.

MD&A and Financial Statements
AGI's unaudited consolidated financial statements for the three-month ended March 31, 2026 ("consolidated financial statements") and management’s discussion and analysis (the “MD&A”) can be obtained electronically on SEDAR+ (www.sedarplus.ca) and on AGI's website (www.aggrowth.com).

Conference Call
AGI will hold a conference call on Thursday, May 7, 2026, at 8:00am ET to discuss its results for the three months ending March 31, 2026. To attend the event, please join using the AGI First Quarter Results webcast link. Alternatively, participants can dial-in using +1-833-821-0159 if calling from Canada or the U.S. and +1-647-846-2271 internationally.

A replay of the webcast will be made available on AGI’s website. In addition, an audio replay of the call will be available for seven days. To access the audio replay, please dial +1-855-669-9658 if calling from Canada or the U.S. and +1-412-317-0088 internationally. Please enter access code 5277759# for the audio replay.

AGI Company Profile
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.

Further information can be found in the disclosure documents filed by AGI with the securities regulatory authorities, available at www.sedarplus.ca and on AGI's website www.aggrowth.com.

NON-IFRS AND OTHER FINANCIAL MEASURES
This press release makes reference to certain specified financial measures, including non-IFRS financial measures, non-IFRS ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing our business performance and trends. These specified financial measures are not recognized measures under International Financial Reporting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement our financial information reported under IFRS by providing further understanding of our results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

We use non-IFRS financial measures, non-IFRS ratios and supplementary financial measures to provide supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS financial measures, non-IFRS ratios and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not to rely on any single financial measure or ratio.

We use these specified financial measures in addition to, and in conjunction with, results presented in accordance with IFRS. These specified financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our IFRS results and, in the case of non-IFRS financial measures, the accompanying reconciliations to the most directly comparable IFRS financial measures, may provide a more complete understanding of factors and trends affecting our business.

In this press release, we discuss the specified financial measures, including the reasons that we believe that these measures provide useful information regarding our financial condition, results of operations, cash flows and financial position, as applicable, and, to the extent material, the additional purposes, if any, for which these measures are used. Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures are contained in this press release.

The following is a list of non-IFRS financial measures, non-IFRS ratios and supplementary financial measures that are referenced throughout this press release:

“Adjusted EBITDA” is defined as profit (loss) before income taxes before finance costs, depreciation and amortization, share of associate’s net income (loss), gain or loss on foreign exchange, non-cash share-based compensation expenses (recovery), net gain or loss on financial instruments, transaction, transitional and other costs (recovery), Enterprise Resource Planning system transformation costs, net gain or loss on sale of long-lived assets, foreign exchange reclassification on disposal of foreign operation, accounts receivable reserve (recovery) for the conflict between Russia and Ukraine, and impairment charge (recovery). Adjusted EBITDA is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is profit (loss) before income taxes. Management believes Adjusted EBITDA is a useful measure to assess the performance and cash flow of the Company as it excludes the effects of interest, taxes, depreciation, amortization and expenses that management believes are not reflective of the Company’s underlying business performance. Management cautions investors that Adjusted EBITDA should not replace profit or loss as indicators of performance, or cash flows from operating, investing, and financing activities as a measure of the Company’s liquidity and cash flows. See “Profit (loss) before income taxes and Adjusted EBITDA” and “Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment” below for the reconciliation of Adjusted EBITDA to profit (loss) before income taxes for the relevant periods.

“Adjusted EBITDA Margin %” is defined as Adjusted EBITDA divided by revenue. Adjusted EBITDA Margin % is a non-IFRS ratio because one of its components, Adjusted EBITDA, is a non-IFRS financial measure. Management believes Adjusted EBITDA Margin % is a useful measure to assess the performance and cash flow of the Company.

“Order book” is defined as the total value of committed sales orders that have not yet been fulfilled that: (a) have a high certainty of being performed as a result of the existence of a purchase order, an executed contract or work order specifying job scope, value and timing; or (b) has been awarded to the Company or its divisions, as evidenced by an executed binding letter of intent or agreement, describing the general job scope, value and timing of such work, and where the finalization of a formal contract in respect of such work is reasonably assured. Order book is a supplementary financial measure.

“Revenue by Operating Segment” and “Revenue by Geography”: The revenue information presented under “Revenue by Operating Segment” and “Revenue by Geography” are supplementary financial measures used to present the Company’s revenue by segment and geography.

“Net Debt Leverage Ratio” is a non-IFRS ratio and is defined as net debt divided by Adjusted EBITDA for the last twelve-month (“LTM”) period. Net debt leverage ratio is a non-IFRS ratio because its components, net debt and Adjusted EBITDA, are non-IFRS financial measures. Management believes net debt leverage ratio is a useful measure to assess AGI’s leverage position.

“Net Debt” is a non-IFRS financial measure and its most directly comparable financial measure that is disclosed in our consolidated financial statements is long-term debt. Net debt is defined as the sum of long-term debt, convertible unsecured subordinated debentures, senior unsecured subordinated debentures, and lease liabilities less cash and cash equivalents. Management believes that net debt is a useful measure to evaluate AGI’s capital structure and to provide a measurement of AGI’s total indebtedness. See “Net Debt” below for a reconciliation of long-term debt to net debt for the relevant periods.

Profit (loss) before income taxes and Adjusted EBITDA

The following tables reconcile profit (loss) before income taxes to Adjusted EBITDA for the three-month periods ended March 31, 2026 and 2025, the LTM periods ended March 31, 2026 and 2025 and years ended December 31, 2025 and 2024.

Profit (loss) before income taxes and Adjusted EBITDA by Operating Segment

The following tables reconcile profit (loss) before income taxes to Adjusted EBITDA by operating segment for the applicable periods.

For More Information Contact:
Andrew Jacklin
Sr. Director, Investor Relations
+1-437-335-1630
investor-relations@aggrowth.com