NFI Announces Second Quarter Results

Core Insights - NFI Group Inc. reported improvements in revenue, gross margin, adjusted EBITDA, and liquidity, with a total backlog of $13.5 billion [1][5][6] Financial Performance - Deliveries in Q2 2025 were 1,076 equivalent units (EUs), down from 1,246 EUs in Q2 2024 [3] - Revenue for Q2 2025 was $868.2 million, a 2.0% increase year-over-year [5] - Gross profit increased to $116.2 million, reflecting a 14.6% rise from Q2 2024, with a gross margin of 13.4% [5] - The net loss for Q2 2025 was $160.8 million, compared to a net profit of $2.5 million in Q2 2024 [5][16] - Adjusted EBITDA rose to $70.8 million, a 19.2% increase year-over-year [5] - Total liquidity improved to $326.7 million, up $198.8 million from Q1 2025 [5] Operational Highlights - The company completed refinancing activities, including a new $700 million revolving credit facility and a $600 million second lien secured notes offering [6][11] - The total backlog increased by 14.4% year-over-year, with 35.3% of the backlog consisting of zero-emission buses (ZEBs) [5][12] - The return on invested capital (ROIC) improved to 7.9%, up from 3.5% in Q2 2024 [5][16] Market Outlook - Management anticipates continued improvements in revenue, gross profit, net earnings, adjusted EBITDA, free cash flow, and ROIC as the company executes its backlog and increases production [13][14] - The company expects to maintain its financial guidance for fiscal 2025, projecting revenue between $3.8 billion and $4.2 billion [15] Challenges and Strategic Actions - NFI is addressing challenges related to tariffs on imports of steel and aluminum, actively engaging with suppliers and customers to manage pricing impacts [19][20] - The company is implementing targeted cost reduction actions in the UK to enhance its competitive position while promoting domestic bus manufacturing [4][12]