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AGI Announces Third Quarter 2026 Results & Provides Turnaround Plan Update

  • Ag Growth International Inc. reported net debt of $954.0 million as of Q3 2026, declining for the second consecutive quarter from $976.7 million in Q2 2026.
  • Free cash flow for the third quarter was positive $26.8 million, a significant improvement from a negative $2.4 million in Q3 2025.
  • The Company is on track to deliver over $30 million in annualized SG&A savings through business simplification initiatives, facility closures, and office subleasing.
  • Debenture holders approved amendments to $85.0 million in senior subordinated debentures, while the Company obtained covenant relief through Q2 2027 and extended its senior credit facility maturity to March 2030.
  • Total revenue for Q3 2026 decreased 13% year-over-year to $340 million, while Adjusted EBITDA dropped 45% to $39 million.
  • Adjusted EBITDA was negatively impacted by a $4.7 million increase in costs to complete remaining Brazil Long-Term Financed Projects and $5.4 million in bad debt expense in Brazil.
  • The Farm segment revenue increased 19% year-over-year to $159 million with Adjusted EBITDA rising 38% to $37.9 million and margins improving to 23.8%.
  • The Commercial segment revenue fell 29% year-over-year to $181 million, with Adjusted EBITDA declining to $7.4 million from $49.7 million in the prior year period.
  • The total order book stood at $432 million at September 30, 2026, down 35% year-over-year, though the Farm order book more than doubled in North America.
  • Net debt leverage ratio increased to 6.1x at September 30, 2026, compared to 5.2x in Q2 2026 and 3.9x in Q3 2025.
  • The Company expanded its surplus real estate sale pipeline to approximately $50 million as part of its financial turnaround strategy.
  • Management indicated that excluding Brazil-related costs and bad debt, Adjusted EBITDA would have been approximately $49 million, highlighting underlying business progress.
  • A conference call to discuss these results is scheduled for November 12, 2026, at 8:00 am ET.