NFI Group (NFI) Q2 2025 earnings summary

Executive summary

• Achieved strong year-over-year improvement in key financial metrics, including adjusted EBITDA up 19.2% and net earnings, supported by robust demand and a record $13.5 billion backlog.

• Successfully refinanced debt, increasing liquidity to $326.7 million and improving capital structure.

• Addressed supply chain challenges, notably seat supplier disruption, with new suppliers online and risk diversification.

• Announced restructuring and consultation for U.K. operations to address cost competitiveness amid increased competition from non-U.K. OEMs.

• Aftermarket segment experienced volume headwinds but remains a positive contributor.

Financial highlights

• Q2 2025 sales reached $868.2 million, up 2% year-over-year, with gross margin at 13.4%.

• Adjusted EBITDA rose to $70.8 million (8.2% ROS), up 19% year-over-year.

• Adjusted Net Earnings improved to $10.7 million ($0.09/share), up $7.6 million from Q2 2024.

• Free cash flow for Q2 was $15.7 million, compared to $1.1 million in Q2 2024.

• Net loss of $160.8 million due to $167.6 million in non-recurring items, including refinancing, asset impairments, and restructuring.

Outlook and guidance

• 2025 guidance reaffirmed: revenue of $3.8–$4.2 billion, adjusted EBITDA of $320–$360 million, and ROIC of 9–12%.

• ZEBS expected to comprise 35–40% of manufacturing sales.

• 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.

• Management expects improvements in revenue, gross profit, net earnings, adjusted EBITDA, free cash flow, and ROIC as backlog is executed.