Earnings
NFI Reports Record Fourth Quarter and Full Year 2025 Results
NFI · Price
Executive Summary
- NFI Group reported a record Q4 2025 and full‑year fiscal 2025, delivering $1.025 bn of revenue (up 22.5% YoY) and net earnings of $166 m (up $147.5 m YoY).
- Adjusted EBITDA surged 78.7% YoY to $121.3 m; free cash flow turned positive at $32.9 m, driven largely by a $166 m battery‑settlement recovery.
- The company provided FY 2026 guidance: revenue $3.9–$4.2 bn and Adjusted EBITDA $370–$410 m, underpinned by a $13 bn backlog and expected higher‑margin unit conversions.
Key Details
- Deliveries: 1,233 equivalent units (EUs) in Q4 2025; 27.4% were battery‑ or fuel‑cell electric buses (ZEBs).
- Revenue: $1,025.1 m for Q4 2025 vs. $837.0 m in Q4 2024 (+22.5%). Fiscal 2025 revenue $3,614.6 m vs. $3,122.3 m FY 2024.
- Gross Margin: $174.4 m (up 89% YoY), reflecting higher‑margin backlog deliveries.
- Net Earnings: $166.0 m ($1.39 per share) versus $18.6 m in Q4 2024; FY 2025 net loss of $(142.1) m turned to a profit due to settlement recovery.
- Adjusted Net Earnings: $59.6 m for Q4 2025 (up 328.8% YoY); Adjusted EPS $0.50.
- Adjusted EBITDA: $121.3 m Q4 2025 (+78.7% YoY); FY 2025 $335.7 m vs. $214.4 m FY 2024.
- Free Cash Flow: $32.9 m Q4 2025 (vs. $0.6 m Q4 2024). FY 2025 $67.8 m vs. $(17.8) m FY 2024.
- Liquidity: $445.8 m cash at quarter‑end, a $319.0 m increase driven by the battery settlement.
- Backlog: Approx. $13.0 bn (6,344 firm EUs + 8,981 option EUs), up 1.3% YoY on an EU basis; LTM book‑to‑bill ratio 151.8%.
- ROIC: Rose to 11.3% from 6.4% in Q4 2024.
Segment Highlights
- Manufacturing: Revenue $871.7 m (+28.2% YoY); net earnings $177.2 m (+$161.4 m YoY) boosted by the $114.5 m after‑tax recovery from the battery settlement; Adjusted EBITDA $94.1 m (+$58.9 m YoY).
- Aftermarket: Revenue $153.4 m (−2.3% YoY); net earnings $27.3 m (+$0.1 m YoY); Adjusted EBITDA $32.4 m (−1.1% YoY) impacted by tariff‑related cost pressures.
Battery Settlement
- Master settlement with XALT Energy resulted in other income of $166 m, representing ~72% recovery of the $229 m liability provision recorded in Q3 2025.
- Settlement proceeds support the 2026 battery recall campaign and strengthen NFI’s supply‑chain assets.
FY 2026 Guidance (Material – Positive)
| Metric | Guidance |
|---|---|
| Revenue | $3,900 M – $4,200 M |
| Adjusted EBITDA | $370 M – $410 M |
| Cash Capital Expenditures | $50 M – $60 M |
Guidance assumes current known U.S. and Canadian tariffs; future tariff changes could materially affect results.
Tariff Environment
- 2025‑26 exposure to new 10% import tariffs on buses/coaches (U.S.) and global 10% tariff (Feb 2026).
- Company is negotiating surcharge recoveries with customers; acknowledges potential adverse impact on cash flow and order sizes.
Conference Call
- Date: March 12, 2026 at 8:30 a.m. ET.
- Webcast link provided; phone registration required for dial‑in.
Notable Quotes
“Our record fourth quarter and full year results reflect the contribution of NFI team members across our business… supporting our continued focus on deleveraging and growing liquidity.” – John Sapp, President & CEO
“Given our performance in 2025, we have set 2026 guidance ranges with confidence… I’m excited about the path in front of us and believe we are extremely well‑positioned to deliver significant shareholder value.” – John Sapp
Materiality Assessment: Material – Positive (significant earnings improvement, large settlement recovery, forward‑looking FY 2026 guidance).
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