Core Insights - NFI Group Inc. reported significant improvements in deliveries, revenue, free cash flow, adjusted EBITDA, and liquidity, with a total backlog of $13.2 billion [1][5][15]. Financial Performance - Deliveries reached 1,114 equivalent units (EUs), a 12.1% increase from 994 EUs in Q3 2024 [3][5]. - Revenue for Q3 2025 was $879.9 million, representing a 23.7% year-over-year increase from $711.3 million in Q3 2024 [3][5]. - The company recorded a net loss of $140.9 million, compared to a net loss of $15.0 million in Q3 2024, primarily due to warranty provisions related to a battery recall [3][5]. - Adjusted EBITDA increased by 52.1% year-over-year to $80.9 million [3][5]. - Free cash flow was $14.8 million, up from $2.0 million in Q3 2024 [3][5]. Operational Highlights - The backlog increased by 7.0% year-over-year, with 5,774 firm EUs and 9,832 EUs as options, indicating strong future demand [5][15]. - The company’s liquidity improved significantly to $386.0 million, a 169.0% increase from Q3 2024 [5][15]. - Return on Invested Capital (ROIC) rose to 9.1%, up from 5.3% in Q3 2024 [5][15]. Market and Strategic Outlook - NFI's strategy focuses on providing a broad range of propulsion-agnostic buses and coaches, positioning the company well to meet diverse customer needs [15][16]. - The company anticipates continued revenue and margin growth, expecting to achieve its highest quarterly adjusted EBITDA performance in Q4 2025 [15][21]. - Management has narrowed its 2025 guidance, reflecting year-to-date performance and expected fourth-quarter results [19][20]. Challenges and Risks - The company initiated a voluntary recall affecting approximately 700 battery-electric buses, leading to a warranty provision of $229.9 million for full battery replacements [7][8]. - Tariff impacts on imports of steel and aluminum are being actively managed, with a new 10% tariff on buses and coaches expected to affect pricing [24][25].

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]

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]

Core Insights - NFI Group Inc. has secured a second order from Metrolinx for 97 additional 45-foot D45 CRT diesel commuter coaches, expanding its partnership and reinforcing its leadership in North America's commuter coach sector [2][3] - The total commitment from Metrolinx now stands at 177 MCI coaches, aimed at enhancing transportation in the Greater Toronto and Hamilton Area [3] - MCI's coaches are recognized for their safety, durability, and passenger experience, supporting Metrolinx's goals of improving regional transit access and rider satisfaction [4] Company Overview - NFI Group Inc. is a leader in propulsion-agnostic bus and coach mobility solutions, offering a wide range of sustainable drive systems including zero-emission electric, natural gas, electric hybrid, and clean diesel [5][6] - The company operates under various brands, including New Flyer, MCI, and Alexander Dennis Limited, and supports an installed base of over 100,000 buses and coaches globally [6] - MCI is recognized as North America's public and private market motor coach leader, providing a range of products including luxury and zero-emission coaches, along with maintenance and training services [8]

Core Insights - NFI Group Inc. reported a record backlog of $13.7 billion and significant improvements in revenue, adjusted EBITDA, and return on invested capital (ROIC) for Q1 2025, reaffirming its guidance for 2025 [1][4][20] Financial Performance - Deliveries for Q1 2025 totaled 1,028 equivalent units (EUs), a decrease of 9% year-over-year, while total deliveries over the last twelve months (LTM) increased by 3% to 4,448 EUs [3] - Revenue reached $841.4 million, reflecting a 16% increase compared to Q1 2024, with a gross margin of $94.0 million, up 36.3% year-over-year [3][6] - The company reported a net loss of $6.5 million, an improvement of 31% from the previous year, with adjusted net earnings of $2.9 million, a 119% increase year-over-year [3][6] - Adjusted EBITDA for Q1 2025 was $62.7 million, an increase of 84% year-over-year, while free cash flow improved to $4.4 million, a 121% increase [3][6] Operational Highlights - The company achieved the highest zero-emission bus deliveries in its history, with 33.9% of total deliveries being battery- and fuel cell-electric buses [4][6] - NFI added over 2,500 EUs to its backlog during the quarter, indicating strong demand in North American markets [4][6] - The total liquidity position at the end of Q1 2025 was $127.9 million, with a new $845 million credit agreement entered into in May 2025 to support liquidity growth [6][13] Market Outlook - Management anticipates improvements in revenue, gross profit, net earnings, adjusted EBITDA, free cash flow, and ROIC as the company executes its backlog and increases production of buses and coaches [14][20] - The company is well-positioned to meet growing demand for low and zero-emission buses and coaches, supported by its broad offering of propulsion-agnostic solutions [15][19] - NFI's UK and international business has faced slower demand compared to North America, prompting a review of production and overhead costs [16] Challenges and Responses - NFI continues to navigate seat supply disruptions affecting its North American transit business, maintaining lower production rates and working closely with suppliers to recover [17][18] - The company has seen improvements in overall supplier health, with a significant decline in high-risk suppliers, although challenges remain in seat supply performance [19] - NFI is taking actions to mitigate the impacts of U.S. and Canadian tariffs, leveraging localized production and regionalized service networks [21][22]