NFI Group (NFI) Q2 2025 earnings summary

Executive summary

• Revenue grew 2.0% year-over-year to $868.2 million in Q2 2025, with gross margin up 14.6% and Adjusted EBITDA/EBITDANG up 19.2% to $70.8 million, driven by improved sales mix and higher ZEB deliveries.

• Net loss of $160.8 million, or $(1.35) per share, was driven by $167.6 million in non-recurring items, including asset impairments, restructuring, and refinancing costs.

• Backlog reached $13.5 billion (16,198 EUs), up 14.4% year-over-year, with 35.3% of units being zero-emission buses.

• Total liquidity increased to $326.7 million, up $198.8 million from Q1 2025, following major refinancing.

• CEO highlighted operational improvements, supply chain recovery, and confidence in achieving 2025 guidance.

Financial highlights

• Q2 2025 revenue: $868.2 million (+2.0% YoY); gross profit: $116.2 million (+14.6% YoY); Adjusted EBITDA/EBITDANG: $70.8 million (+19.2% YoY).

• Adjusted Net Earnings were $10.7 million ($0.09 per share), up $7.6 million year-over-year.

• Free Cash Flow was $15.7 million, up from $1.1 million in Q2 2024.

• ROIC increased to 7.9% from 3.5% year-over-year.

• Net cash used by operating activities was $69.6 million, compared to $29.7 million generated in Q2 2024.

Outlook and guidance

• 2025 guidance reaffirmed: revenue of $3.8–$4.2 billion, ZEBs at 35–40% of manufacturing sales, Adjusted EBITDA/EBITDANG of $320–$360 million, ROIC/ROICNG of 9–12%.

• Management expects improvements in revenue, gross profit, net earnings, Adjusted EBITDA, Free Cash Flow, and ROIC as backlog is executed and ZEB deliveries increase.

• Production slots sold well into 2026, with options extending to 2030.

• Guidance does not include material impact from tariffs or further U.S. policy changes.

• U.S. government funding for transit buses remains strong, supporting future order activity.