Key facts
- AGI reported third quarter revenue of $340 million, down 13% from a year earlier.
- Adjusted EBITDA fell 45% to $39 million, with a margin of 11.5% versus 18.2%.
- AGI said net debt leverage was 6.1x at September 30, 2026, up from 5.2x in the second quarter.
- The Farm segment's revenue rose 19% to $159 million and Adjusted EBITDA rose 38% to $37.9 million.
- The Commercial segment's revenue fell 29% to $181 million and Adjusted EBITDA fell to $7.4 million from $49.7 million.
- AGI said its total order book was $432 million at September 30, 2026, down 35% from a year earlier.
Ag Growth International Inc. reported third quarter 2026 results for the three and nine months ended September 30, 2026, in a release dated November 11, 2026. Revenue was $340 million, down 13% from a year earlier, and Adjusted EBITDA was $39 million, down 45%, the Winnipeg-based company said. Adjusted EBITDA margin fell to 11.5% from 18.2%.
AGI said Adjusted EBITDA was reduced by $10.1 million from a $4.7 million increase in the cost to complete the remaining Brazil Long-Term Financed Projects and $5.4 million of bad debt expense in Brazil. The Farm segment's revenue rose 19% to $159 million and its Adjusted EBITDA rose 38% to $37.9 million, with margin improving to 23.8% from 20.5%. The Commercial segment's revenue fell 29% to $181 million and its Adjusted EBITDA fell to $7.4 million from $49.7 million, a margin of 4.1%; AGI said nearly half of that decline came from Brazil.
On its turnaround plan, AGI said net debt fell for a second consecutive quarter to $954.0 million from $976.7 million in the second quarter and $1,040.0 million in the first quarter. Free cash flow was $26.8 million, compared with negative $2.4 million in the third quarter of 2025. The company said it is on track for more than $30 million of annualized selling, general and administrative savings, and that year-to-date SG&A expenses excluding specified items fell $15.0 million, or $20.4 million excluding the Brazil bad debt expense.
AGI said debenture holders approved amendments to its $85.0 million Third Series senior subordinated unsecured debentures, and that it obtained covenant relief through the second quarter of 2027 and extended its senior credit facility maturity to March 2030. It said it expanded its surplus real estate sale pipeline to about $50 million and subleased a 44,000-square-foot Chicago area office. Net debt leverage was 6.1x at September 30, 2026, against 5.2x in the second quarter and 3.9x a year earlier.
The total order book was $432 million at September 30, 2026, down 35% from a year earlier; excluding Brazil Long-Term Financed Projects it was $422 million, down 17%. AGI said the Farm order book rose year on year, led by North America where it more than doubled. CEO Paul Brisebois said in the release that the quarter showed progress on cash generation, debt reduction and cost actions, while Commercial results remained below expectations. He said that excluding the Brazil projects and bad debt expenses, Adjusted EBITDA would have been approximately $49 million.