NFI Group Reports Robust Q2 Earnings and Financial Strength

NFI Group's Impressive Financial Results for the Second Quarter

In the latest financial report, NFI Group Inc. (TSX:NFI) has unveiled its solid performance for the second quarter of 2025. The company, renowned for its innovative bus and coach solutions, highlighted significant improvements across key financial metrics, marking a period of strategic growth and increased liquidity.

Key Highlights from Q2 Financial Performance

NFI's announcement revealed several noteworthy achievements:

Deliveries and Revenue Increases

The company delivered 1,076 equivalent units (EUs), with 30.9% incorporating battery and fuel cell-electric buses (referred to as zero-emission buses or ZEBs). Revenue climbed to $868.2 million, which represents a 2.0% increase compared to the previous year.

Gross Profit and Adjusted EBITDA Growth

NFI's gross profit reached $116.2 million, showing a robust 14.6% increase year-over-year, resulting in a margin percentage of 13.4%. Additionally, the Adjusted EBITDA for the quarter stood at $70.8 million, reflecting a year-over-year growth of 19.2%. This strong performance underscores NFI’s operational efficiency and market adaptation.

Understanding the Financial Backdrop

Despite a reported net loss of $160.8 million, predominantly influenced by non-recurring items totaling $167.6 million, the adjusted net earnings amounted to $10.7 million, translating to $0.09 per share. The company's ability to navigate through these challenges speaks volumes about its long-term strategy and intent.

Strategic Developments and Future Outlook

During the second quarter, NFI focused on improving its balance sheet, which included refinements to financial covenants, enhancements to liquidity, and the establishment of a new revolving credit facility worth $700 million. These efforts culminated in a notable liquidity increase of $198.8 million compared to the first quarter of 2025.

CEO Insights

Paul Soubry, President and CEO, spoke candidly about NFI’s journey: "Completing our refinancing places us in a robust position to handle our multi-year backlog with enhanced cash flow generation and reduced leverage. We are actively engaging with our supply chain partners to address challenges and encouraging domestic manufacturing initiatives to enhance efficiency and reduce costs."

Market and Supply Chain Readiness

NFI anticipates further improvements in its financial metrics as it ramps up production and responds to the growing demand for its diverse offerings. The company received new orders amounting to 6,299 EUs and is focusing on leveraging federal funding opportunities that emerged recently.

Refinancing and Debt Management Actions

The completion of the refinancing ventures has substantially improved NFI’s financial landscape, which includes the establishment of a new $700 million revolving credit facility. This strategic move not only boosts liquidity but fortifies the company’s capital structure for future growth.

Prepared for Future Challenges and Opportunities

NFI remains focused on navigating the dynamic landscape of tariffs and market demands. The company is determined to adjust its pricing strategies in response to ongoing changes in the supply chain and inflationary pressures. With a resilient operational framework and a proactive approach to market engagement, NFI positions itself for sustained success moving forward.

Frequently Asked Questions

What were NFI's total deliveries in Q2 2025?

NFI delivered 1,076 equivalent units (EUs) during Q2 2025.

How much revenue did NFI generate in Q2 2025?

The company generated $868.2 million in revenue for the second quarter of 2025.

What is NFI's Adjusted EBITDA for Q2 2025?

NFI's Adjusted EBITDA stood at $70.8 million, an increase of 19.2% from the previous year.

How did NFI's financial refinancing impact its liquidity?

The refinancing increased NFI's total liquidity by $198.8 million compared to Q1 2025.

What is NFI's future outlook in terms of production and market demand?

NFI expects to see continued demand growth and increased production, particularly for zero-emission buses, as market conditions improve.

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