NFI Group (NFI) Q1 2026 earnings summary

Executive summary

• Achieved strong year-over-year improvements in net earnings, adjusted EBITDA, and gross margin in Q1 2026, driven by robust demand, backlog conversion, and operational execution.

• Delivered 978 equivalent units, with nearly 20% being zero-emission battery or fuel cell buses.

• Maintained a healthy and stable backlog valued at $13.0B, with a book-to-bill ratio of 120.8% and strong bid activity supporting future growth.

• Strategic priorities include operational excellence, market leadership, profitable growth, and resilient solutions, with 2026 guidance reaffirmed.

• Key events included leadership changes, cost reduction initiatives, and the opening of a new manufacturing facility.

Financial highlights

• Q1 2026 revenue was $842.0M, flat year-over-year, with adjusted EBITDA up 37.3% to $86.1M and net earnings up $18.0M to $11.5M.

• Gross margin improved by 450 bps to 15.7%, with gross profit up 40.8% to $132.3M.

• Free cash flow at $17.5M, up from $4.4M in Q1 2025, despite higher CapEx and working capital investments.

• Liquidity increased to $374.6M, up $246.7M year-over-year; working capital days improved to 41.

• ROIC increased to 12.3% from 7.5% in Q1 2025.

Outlook and guidance

• 2026 guidance reaffirmed: revenue of $3.9–$4.2B, adjusted EBITDA of $370M–$410M, and capital expenditures of $50M–$60M.

• Expect continued margin expansion, profitable growth, and ongoing deleveraging through 2026–2027.

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

• Focus remains on backlog conversion, UK orderbook improvement, and aftermarket growth.

• Market demand remains strong, supported by public transit funding and fleet renewal needs.