NFI Group (NFI) Q2 2026 earnings summary

Executive summary

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

• Manufacturing performance improved, especially in North America, with increased production and sales.

• Balance sheet strengthened through enhanced liquidity, reduced leverage, and successful financing activities.

• Updated 2026 guidance reflects expectations for continued growth in adjusted EBITDA and revenue, supported by backlog execution.

• Navigating ongoing headwinds from global trade, tariffs, UK market demand, and supply chain dynamics.

Financial highlights

• Q2 2026 revenue rose 18.6% to $1,029.5 million; adjusted EBITDA increased 46.9% to $104 million; net earnings reached $17.4 million, reversing a prior year loss.

• Manufacturing gross margin rose to $98.2 million (11.5% of revenue); overall gross margin was $153.5 million (14.9% of revenue), up 32% year-over-year.

• Aftermarket gross margin increased to $55.3 million (31.4% of revenue); aftermarket 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.

• Liquidity ended at $520 million, up $193 million year-over-year.

Outlook and guidance

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

• Cash CapEx guidance for 2026 is $55–$65 million for investments in new products and facilities.

• Q3 expected to be seasonally slower, with Q4 anticipated to be the strongest quarter.

• Multi-year backlog visibility and strong demand in North America and UK support confidence in continued production and earnings growth.

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