NFI Reports Record Fourth Quarter and Full Year 2025 Results

Core Insights - NFI Group Inc. reported strong financial performance for Fiscal 2025, achieving record revenue and profitability improvements, with a closing backlog of $13.0 billion [1][4][5] Financial Performance - In Q4 2025, NFI delivered 1,233 equivalent units (EUs), a 4.5% increase from Q4 2024 [3][4] - Revenue for Q4 2025 was $1,025.1 million, up 22.5% year-over-year, while Fiscal 2025 revenue reached $3,614.6 million, a 15.7% increase from Fiscal 2024 [3][4] - Net earnings for Q4 2025 were $166.0 million, a significant increase of $147.5 million compared to Q4 2024 [3][4] - Adjusted EBITDA for Q4 2025 was $121.3 million, reflecting a 78.7% year-over-year increase [3][4] - The company generated $118.6 million in net cash from operating activities in Q4 2025, compared to $17.5 million in Q4 2024 [3][4] Backlog and Orders - NFI's backlog at the end of 2025 was approximately $13.0 billion, consisting of 6,344 firm EUs and 8,981 EUs in options, representing a 1.3% increase year-over-year [4][13] - The company received orders for 5,051 EUs on a last twelve months (LTM) basis, indicating strong customer demand [19] Market Outlook - Management anticipates revenue growth and earnings expansion in 2026, with guidance for revenue between $3.9 billion and $4.2 billion and Adjusted EBITDA between $370 million and $410 million [4][17] - The North American public bid universe remains strong, with active bids for 7,120 EUs and a five-year forecasted demand of approximately 25,000 EUs [19] Operational Improvements - The company has seen improvements in supplier health, with a significant decline in moderate and high-risk suppliers [19] - NFI's Return on Invested Capital (ROIC) increased to 11.3% in Q4 2025, up from 6.4% in Q4 2024, driven by higher deliveries and improved margins [4][18]