NFI Reports 2026 First Quarter Results

NFI Group reported first‑quarter 2026 results on May 7, 2026, showing revenue of $842 million, which was essentially flat year‑over‑year (YoY) as lower manufacturing deliveries were offset by higher‑margin units and aftermarket growth. Gross profit jumped 40.8 % to $132.3 million, driving a net profit of $11.5 million versus a net loss of $6.5 million in Q1 2025. Adjusted EBITDA rose 37.3 % to $86.1 million, and adjusted EPS reached $0.18 (up from $0.02). The company reaffirmed its full‑year 2026 guidance for revenue of $3.9‑$4.2 billion and Adjusted EBITDA of $370‑$410 million. The backlog remained at approximately $13 billion, and the book‑to‑bill ratio over the last twelve months was 120.8 %. Liquidity stood at $374.6 million, up $256.7 million YoY. Management noted that the North American battery recall campaign incurred only $2.5 million in direct cash outflows during the quarter and that tariffs on steel, aluminum and finished buses are being navigated.

This earnings release confirms that NFI is converting its high‑margin backlog into income, exactly as management projected when issuing 2026 guidance in March 2026. The large year‑over‑year improvements in gross profit and Adjusted EBITDA were expected after the record Q4 2025 results, and the reaffirmed guidance underscores that the recovery is progressing on plan. There are no new, unexpected positive developments that would materially alter the investment thesis – the margin gains, while strong, are the natural result of previously disclosed backlog composition. The recall cash outflow of $2.5 million is consistent with the earlier forecast of $70‑$90 million for 2026, so no negative surprise emerges. Tariff headwinds are acknowledged but have not yet derailed the outlook. Overall, the news is incrementally positive but entirely in line with the trajectory already priced in after the Q4 2025 and March 2026 guidance announcements; it therefore qualifies as routine.

NFI Group Inc. is one of the world’s largest independent bus and coach manufacturers, with subsidiaries including New Flyer (North America), Alexander Dennis (UK/Europe) and MCI (coaches). The company’s flagship projects centre on zero‑emission transit: it offers battery‑electric (Xcelsior CHARGE NG™) and fuel‑cell‑electric (Xcelsior CHARGE FC™) buses, and is the leading North American producer of hybrid and CNG buses. NFI holds a $13 billion backlog, heavily weighted toward ZEBs (zero‑emission buses), reflecting the global push for decarbonized public transit.