NFI provides update for the third quarter of 2025

Core Viewpoint - NFI Group Inc. has reported delivery delays in Q3 2025 due to a battery recall and other supply chain challenges, but anticipates significant volume growth and margin improvements in Q4 2025 as these issues are resolved [3][8]. Operational and Supply Chain Update - The company experienced delivery delays in Q3 2025, which are expected to negatively impact quarterly results, but anticipates that most delayed vehicles will be delivered in Q4 2025 [3][8]. - A recall was launched for certain zero-emission bus models due to potential battery faults, with interim safety measures provided to customers [4][5]. - NFI expects to record a warranty provision in Q3 2025 related to the recall, but its strong liquidity position of over $370 million will help manage this situation [5][6]. Delivery and Financial Performance - Some planned vehicle deliveries for Q3 have shifted to Q4, primarily from the firm backlog, with expectations of strong year-over-year improvements in delivery volumes and financial metrics in Q4 [8]. - NFI's backlog remains robust at $13.5 billion as of June 30, 2025, with strong market demand, particularly in the UK [8]. - The company is addressing seat supply challenges by diversifying sourcing from alternative suppliers, which will increase the proportion of seats from these suppliers in Q4 2025 [8]. Recall and Warranty Provision - The recall affects approximately 680 delivered buses and a small number of motor coaches, with 37 vehicles currently in production for planned delivery in 2025 [8]. - NFI is working with the battery supplier on a cost recovery plan for the warranty campaign related to the recall [5][8]. Upcoming Financial Results - NFI will release its Q3 2025 financial results on November 6, 2025, with a conference call scheduled for November 7, 2025, to discuss the results [9].