AGI Announces Second Quarter 2026 Results & Provides Business Update

This section is Partnership Content suppliedThe content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire Article contentSign In or Create an AccountEmail AddressContinueor View more offersArticle contentWINNIPEG, Manitoba — Ag Growth International Inc.

(TSX: AFN) (“AGI”, the “Company”, “we”, or “our”) today announced its financial results for the three-month period ending June 30, 2026.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.

Article content Business UpdateArticle contentThe Board of Directors established a Strategic Review Committee comprised of independent directors Gary Anderson (Chair), George Armoyan, and Mick MacBean to oversee a formal review of strategic alternatives available to the Company.On track to exceed our $30 million annualized cost savings target with much of the savings being structural.Expected monetization of at least $20 million from unused facility and asset sales in H2 2026.

Initiated a low capex U.S. facility consolidation to grow storage & handling volumes in the U.

S. market; capex will be more than covered by H2 2026 unused facility and asset sales that are part of the consolidation effort.Appointed Haaris Uddin as CFO effective August 4, 2026; Interim CFO Nicolle Parker will return to her previous role as Senior Vice President of Finance & Information Systems to support.

Article contentArticle content Second Quarter 2026 HighlightsArticle contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.

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Browse here.Article contentRevenue of $323 million and Adjusted EBITDA1 of $43 million decreased year-over-year (“YOY”) by 7% and 20%, respectively.Monetized $106 million of long-term accounts receivable in Q2 2026.

Free cash flow1 of positive $63 million in the quarter, relative to negative $22 million in Q2 2025 due to the monetization of long-term receivables in Brazil.Adjusted EBITDA Margin %2 of 13.4% declined by 217 basis points YOY, primarily reflecting lower Commercial sales volumes, partially offset by Farm performance and cost containment actions.

Farm segment revenue increased 10% YOY supported by improved North American demand, with modest margin improvement helping to drive a 12% YOY increase in segment Adjusted EBITDA.Commercial segment revenue declined 17% YOY given continued softness in North America and lower international sales that reflect the impact of geopolitical events in the Black Sea and Middle East regions as well as a strong 2025 comparative period in EMEA3.SG&A expenses decreased by $3.

3 million YOY, excluding the impact of a $9.0 million reversal in Q2 2025 of fees previously accrued in connection with a strategic review process conducted in 2024. Operational SG&A4 expenses were $8.

8 million lower in Q2 2026 than Q2 2025 and $18.5 million lower in H1 2026 than H1 2025, largely due to recent corporate restructuring initiatives.Net debt leverage ratio2 was 5.

2x at June 30, 2026, effectively flat quarter-over-quarter, with the benefit of long-term receivable monetization proceeds offsetting softer trailing Adjusted EBITDA.Article content OutlookArticle contentOrder book5 down 22% YOY to $516 million as of June 30, 2026, primarily due to softer customer purchasing patterns in the Commercial segment, notably in North America and EMEA, as well as the absence of new large-scale comprehensive project contributions in Brazil, with a partial offset by improvement in the Farm order book.Taken together, the combination of a still-guarded Farm recovery, continued Commercial softness, and the strategy shift in Brazil are expected to weigh on second-half and full-year results relative to the prior year.

Article content“Our second quarter results reflected the divergence we’ve been navigating all year – early signs of stabilization in North American Farm, offset by continued softness in Commercial across several markets,” commented Paul Brisebois, President and CEO of AGI. “We remain focused on execution and what we can control: simplifying the business, tightening execution, and delivering on structural cost savings. These are permanent changes to how we operate, which means the earnings power of this business improves meaningfully as volumes recover.

We are confident that AGI is well-positioned for a strong rebound as market conditions eventually turn.”Article contentArticle content_______________________________________ 1 Non-IFRS financial measure. See “No