WINNIPEG, MANITOBA, CANADA —AGI saw record sales and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter ended Sept. 30, with significant growth in commercial results.

Sales increased 28% to C$402 million while adjusted EBITDA increased 65% to C$76.3 million.

On a consolidated basis, the C$30 million increase in adjusted EBITDA was led by a significant increase in sales across all segments with notable contributions from US Farm, Canada Farm, North America Commercial as well as Brazil and India. This was complemented by a notable improvement in gross margin driven by operational efficiencies, sales mix favoring portable grain handling equipment in the Farm segment, increased volume within the Commercial segment, and the benefit of lower steel prices.

“Our all-time record quarterly results for sales and adjusted EBITDA continue to highlight the strength and growth of AGI,” said Paul Householder, president and chief executive officer of AGI. “Taking over CEO responsibilities during a time with significant momentum across our global Farm and Commercial businesses, including many opportunities for further growth, is an ideal setup to drive continued success. Our backlog provides solid visibility into the fourth quarter and the start of 2023. We’ve increased our full year adjusted EBITDA guidance for 2022 to at least $228 million, which represents another record year in sales and adjusted EBITDA for AGI, meaningful growth over 2021, and a strong setup for 2023.”

Farm segment sales and adjusted EBITDA increased 20% and 52% with strong results from Canada, the United States, Asia Pacific, and South America. In particular, sales of portable grain handling equipment remain robust as rising crop sizes and low dealer inventories combined to create solid demand.

Commercial segment sales and adjusted EBITDA increased 40% and 97% with significant growth in North America, Europe, Middle East and Africa, South America, and Asia Pacific markets. The Brazil region continues to experience significant growth in both sales and adjusted EBITDA achieving 30% and 67% year-over-year increases in the third quarter.

The Digital segment sales increased 9% in the quarter as a result of continued demand and strong order intake. Adjusted EBITDA was a loss of C$4 million, which compared with a gain of C$0.3 million in the same quarter a year ago. The loss primarily was due to the increase of subscription sales in proportion to retail sales as a new subscription program was introduced late in the fourth quarter of 2021.

AGI said its pipelines remain robust and it is continuing to see strong interest from customers across all segments and regions as they continue to invest in critical infrastructure equipment and solutions.

Full year 2022 adjusted EBITDA of at least C$228 million is expected, which represents another very strong year, driven primarily by organic growth.

“Our ability to capture the ongoing demand of agriculture equipment, infrastructure and solutions has positioned us to cap off another record year in sales and adjusted EBITDA with good momentum heading into 2023,” AGI said.

Key contributors to the growth of the Commercial segment included the Food platform, which continues to grow in response to strong customer demand. Sales increased 61% year over year.

Looking ahead, AGI anticipates the momentum in the Commercial segment to continue into the fourth quarter. A key focus remains on securing components on a timely and cost-effective basis amid supply chain disruptions that have been challenging. Many of AGI’s Commercial segment contracts include provisions to pass along some or all of the key raw material cost increases and open sales quotes are continuously reviewed and updated for changes in market conditions.

Overall, the Commercial segment is seeing continued demand with backlogs up 6% year over year.