AGI Reports Record Q4 2024 Results, Projects Lower 2025 Earnings Amid Farm Sector Weakness

Ag Growth International Inc. (AGI) announced record fourth quarter results for 2024 while warning of continued weakness in North American farm markets through at least the first half of 2025.

The Winnipeg-based agricultural equipment manufacturer reported Q4 2024 Adjusted EBITDA of $78 million, up 7% year-over-year, on relatively flat revenue of $381 million. The company's international Commercial segment showed particular strength, with revenue increasing 30% compared to Q4 2023.

"Accelerating success in our international Commercial strategy was a key contributor to our fourth quarter results," said Paul Householder, President and CEO of AGI. "Heading into 2025, we see continued strength in the Commercial segment, driven by a record-level order book."

However, AGI provided more cautious guidance for 2025, projecting full-year Adjusted EBITDA of at least $225 million, down from $265 million in 2024. First quarter 2025 Adjusted EBITDA is expected to be between $25-30 million.

The company cited weak farmer sentiment in the U.S. market, driven by low commodity prices and declining farm income levels. This has particularly impacted AGI's Farm segment, where Q4 revenue declined 29% year-over-year to $134 million.

Adding to near-term challenges, AGI noted that recently imposed U.S. tariffs on Canadian imports could affect approximately 10% of its total revenue in 2025. The company is exploring mitigation strategies including inventory management and manufacturing alternatives.

Despite domestic headwinds, AGI's international business reached record levels in 2024, contributing $525 million or 37% of total revenue. The company reported particular success in South America, specifically Brazil, where it secured several large-scale projects.

AGI maintained its quarterly dividend at $0.15 per share, payable April 15, 2025 to shareholders of record as of March 31, 2025.