Ag Growth International, Inc. (AGI) announced its financial results for the three- and nine-month periods ended Sept. 30, 2022.
AGI continued its strong performance in the third quarter with another record for sales and Adjusted EBITDA, which increased 28% and 65%. “Our all-time record quarterly results for sales continue to highlight the strength and growth of AGI,” commented Paul Householder, President and CEO of AGI.
In the farm segment, which includes grain, seed, and fertilizer handling equipment, aeration products, grain and fuel storage solutions, and more, sales increased by 20%. In particular, sales of portable grain handling equipment remain robust as rising crop sizes and low dealer inventories combined to create solid demand. Looking ahead, AGI anticipates Farm Segment’s Q4 performance to be in line with Q4 2021.
The commercial segment, which includes, among other things, larger diameter grain storage bins, high-capacity grain handling equipment, seed and fertilizer storage and handling systems, sales increased by 40% for the quarter. Overall, the Commercial segment is seeing continued demand with backlogs up 6% YOY in Q3.
The record third quarter results in sales and reflect their significant market share in North American portable grain handling equipment, the strength in Commercial capabilities and product offerings as well as the continued growth in various international regions. The strategy of product, geographic, and customer diversification provided AGI with stability and resilience during the trade wars of 2019, the COVID crisis in 2020, the extreme supply chain environment in 2021, and the inflationary pressure and Russia-Ukraine conflict in 2022. Their focus on achieving operational excellence and creating value for customers has led to various efficiency improvements, particularly in the North America Commercial segment, resulting in sales growth and margin expansion. AGI expects the momentum and success from these efforts to carry across the organization more broadly and to further support our results going forward.
Their pipelines remain robust and they are continuing to see strong interest from customers across all segments and regions as they continue to invest in critical infrastructure equipment and solutions. They now expect full year 2022 Adjusted EBITDA of at least $228 million which represents another very strong year, driven primarily by organic growth. Their ability to capture the ongoing demand for agriculture equipment, infrastructure and solutions have positioned them to cap off another record year in sales and Adjusted EBITDA with good momentum heading into 2023.
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