NFI Group (NFI) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a significant operational recovery with strong year-over-year growth in deliveries, revenue, earnings, margins, and cash generation, supported by record aftermarket results and improved liquidity.

• Manufacturing performance improved, driven by increased North American production and sales, while the aftermarket segment benefited from FIFA World Cup activity and lifecycle support.

• Net earnings reached $17.4 million, reversing a prior year net loss of $160.8 million, with adjusted EBITDA up 46.9% to $104 million.

• Liquidity improved to $520 million, leverage reduced to 2.81x, and the balance sheet was strengthened through refinancing and new debt issuance.

• Updated 2026 guidance reflects expectations for continued growth in revenue and adjusted EBITDA, supported by a robust backlog and favorable funding.

Financial highlights

• Q2 2026 revenue rose 18.6% year-over-year to $1,029.5 million, with adjusted EBITDA up 46.9% to $104 million.

• Gross margin increased 32.1% to $153.5 million (14.9% of revenue), and manufacturing gross margin rose to $98.2 million (11.5%).

• Aftermarket gross margin reached $55.3 million (31.4% of revenue), with record revenue of $176.2 million and adjusted EBITDA up 38.6% to $42.3 million.

• Net cash from operating activities was $159.1 million, up $228.7 million year-over-year; free cash flow improved to $20.7 million.

• ROIC increased to 13.6%, up 570 basis points from Q2 2025.

Outlook and guidance

• 2026 revenue guidance raised to $4.0–$4.2 billion, with adjusted EBITDA of $385–$415 million, reflecting 15–24% growth.

• Cash CapEx guidance set at $55–$65 million to support new products and facilities.

• Q3 expected to be seasonally slower, with Q4 anticipated as the strongest period due to higher delivery activity.

• Multi-year backlog and strong public funding in North America and the UK support continued growth.

• Guidance includes known tariffs as of August 6, 2026, but excludes potential future tariff impacts.