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][7] Financial Performance - Deliveries for Q2 2025 were 1,076 equivalent units (EUs), down from 1,246 EUs in Q2 2024 [3] - Revenue reached $868.2 million, a 2.0% increase year-over-year [5] - Gross profit was $116.2 million, reflecting a 14.6% increase from Q2 2024, with a gross margin of 13.4% [5] - The net loss was $160.8 million, compared to a net income of $2.5 million in Q2 2024, primarily due to non-recurring items totaling $167.6 million [5][17] - Adjusted EBITDA was $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 backlog increased by 14.4% year-over-year, totaling $13.5 billion, with zero-emission buses (ZEBs) representing 35.3% of the total backlog [5][12] - The return on invested capital (ROIC) increased to 7.9%, up from 3.5% in Q2 2024 [5][17] - The company completed a refinancing that included a new $700 million revolving credit facility and $600 million in second lien secured notes, enhancing financial flexibility [7][8] 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 [14][15] - The strategy focuses on providing a broad range of propulsion-agnostic buses and coaches, positioning the company to meet diverse customer demands [15] Financial Guidance - NFI's financial guidance for Fiscal 2025 remains unchanged, projecting revenue between $3.8 billion and $4.2 billion, with adjusted EBITDA expected to be between $320 million and $360 million [16]