NFI Group (NFI) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 results, with revenue up 22.5% year-over-year and adjusted EBITDA up 78.7%, driven by strong backlog conversion, margin expansion, and operational execution; backlog closed at $13.0 billion.

• Net earnings for Q4 were $166.0 million, up $147.5 million year-over-year, with full-year net loss of $63.9 million due to non-recurring battery recall and settlement impacts.

• Leadership transition completed, with John Sapp appointed CEO, emphasizing operational excellence, supply chain readiness, and customer focus.

• Major milestones included $600 million second lien notes issuance, new Las Vegas facility, All Canadian Build launch, and a strategic seat supplier acquisition.

• Multi-year backlog valued at $13.0 billion positions the company for continued growth.

Financial highlights

• Q4 2025 revenue: $1,025.1 million (+22.5% YoY); adjusted EBITDA: $121.3 million (+78.7% YoY); gross margin: $174.4 million (+89.0% YoY).

• Adjusted net earnings for Q4: $59.6 million (+328.8% YoY); full-year adjusted net earnings: $85.4 million, up from ($3.4 million) in 2024.

• Net loss for 2025: ($142.1 million), mainly due to non-recurring battery recall and settlement items.

• Liquidity at year-end: $445.8 million, up $319 million year-over-year; free cash flow for 2025: $94.3 million (CAD).

• Total leverage improved to 3.49x by Q4 2025, down from 8.8x in Q4 2024.

Outlook and guidance

• 2026 revenue guidance: $3.9–$4.2 billion; adjusted EBITDA: $370–$410 million; capital expenditures: $50–$60 million.

• Management expects improvements in revenue, gross profit, adjusted EBITDA, free cash flow, and ROIC in 2026, supported by strong backlog and increased production.

• Backlog exceeds 15,300 EUs, with 41% firm orders and 59% options, providing strong production visibility into 2027.

• Option conversion ratio improved to 83.4% in 2025 from 76.3% in 2024.

• Guidance includes current tariffs but excludes potential future tariff impacts.