AI Corporation Unveils Q2 Results for 2025 and Affirms Full Year Projection
Ag Growth International Maintains Full-Year Adjusted EBITDA Outlook
Ag Growth International Inc. (AGI) has announced its second-quarter 2025 financial results, with revenue of $349 million, effectively flat year-over-year, and Adjusted EBITDA of $54 million, near the high end of its $50-$55 million guidance. The company maintains its full-year 2025 Adjusted EBITDA outlook of at least $225 million.
The Adjusted EBITDA margin for Q2 2025 was 15.6%, influenced by a segment mix with a higher proportion of Commercial segment revenue relative to Farm segment revenue. The Commercial segment showed strong growth, especially internationally in Brazil and EMEA, driven by long-term projects. In contrast, the Farm segment experienced softness due to weaker farmer demand and high dealer inventory, negatively impacting revenue and Adjusted EBITDA in that segment.
Order book up 4% year-over-year to $660 million as of June 30, 2025, supported by significant growth within international Commercial businesses. However, the Farm segment visibility to the second half of 2025 remains limited due to challenging market conditions.
Additional financial highlights include a net debt leverage ratio that increased to 3.9x as of June 30, 2025, compared to 3.6x in March 2025 and 3.1x in June 2024. Free cash flow for the last twelve months ending June 30, 2025, was $0.3 million, mostly due to temporary working capital requirements related to large projects in international Commercial.
After the quarter, significant international Commercial momentum continued with several notable order commitments secured across a mix of geographies with an aggregate value exceeding $100 million. An approximate $9 million reduction in professional fees was associated with the strategic review process conducted in 2024.
Management uses these non-IFRS financial measures to assess the performance and cash flow of the company, monitor operational efficiency, and evaluate capital structure. They caution 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.
[1] Source: AGI Press Release, Q2 2025 Financial Results [3] Source: AGI Investor Presentation, Q2 2025 [5] Source: AGI Supplemental Information, Q2 2025
- The strong growth in the Commercial segment, particularly in Brazil and EMEA, has been a driving force behind Ag Growth International's ongoing projects, setting a positive tone for future business endeavors.
- Despite the optimistic outlook for the Commercial segment, the Farm segment anticipates limited visibility due to ongoing challenging market conditions, which might impact its performance in the second half of 2025.
- The company's focus on expanding its international Commercial businesses has led to significant order commitments worth more than $100 million, indicating a bullish stance towards real-estate and investing opportunities in these regions.
