The NFI Group has published its official results from Q3 2025, which state overall improvements in deliveries, revenue, free cash flow, adjusted EBITDA and liquidity.
With a current backlog of 13.2 billion USD; the company has delivered 1,114 equivalent units (‘EUs’), with 27.6% being made up of battery- and fuel cell-electric buses.
The company has generated a revenue of 879.9 million USD, an increase of 23.7% year-over-year, with a gross loss of 114.3 million USD, which it states would have been a Gross Profit of 115.6 million USD (with a gross margin of 13.1%). However, a voluntary battery recall during the quarter led to an overall net loss during the period of 140.9 million USD, with loss per share at 1.18 USD.
Adjusted net earnings for the quarter stand at 12.1 million, with adjusted net earnings per share of 0.10 USD. Net cash generated by operating activities sits at 83.9 million USD, which has, according to the company, been positively impacted by the working capital benefits from battery recall provision charges, advance customer payments and decreases in both interest and finance costs.
ROIC has increased to 9.1%, which is up from 5.3% year-over-year (Q3 2024), with an adjusted EBITDA of 80.9 million USD, an increase of 52.1% year-over-year.
Finally, NFI has stated a liquidity of 386 million USD, an overall increase of 169% over Q3 2024.
President and Chief Executive Officer, NFI, Paul Soubry, said:The third quarter saw improvements in delivery performance with improved revenue and expanded margins per unit delivered as we converted our stronger backlog into results. These operational gains translated into significant growth in Adjusted EBITDA and Free Cash Flow reinforcing our continued focus on deleveraging and growing liquidity.
These positives were partially offset by warranty charges related to a battery recall and associated support costs. We are in detailed discussions with the supplier who provides those systems and expect to reach an agreement on recall costs as we move through the fourth quarter.
We continued to drive performance enhancements to our supply chain, including a joint venture investment to take over the assets of American Seating. We feel this joint venture will stabilise and enhance operations, ensuring more consistent supply for their customers, including NFI, and the millions of riders who use those seats every day.
Our aftermarket business remained a strong contributor, even as quarterly margins were impacted by lower contribution from retrofit programs. We see opportunities for improved performance in that segment as it executes on several growth-related initiatives and fully reflect tariff impacts within its pricing models. The tariff environment continues to evolve, with a new tariff coming into effect on November 1st. We are working closely with suppliers and customers to ensure our pricing reflects these latest developments and continue to view tariffs primarily as pass-through costs, although private motor coach demand may be impacted.
Given our year-to-date performance we’ve narrowed our 2025 guidance ranges and remain confident in our ability to deliver strong revenue and margin growth in the fourth quarter. We expect this momentum will result in NFI recording it’s highest quarterly Adjusted EBITDA performance in Company history.
The report is available to view in full on NFI’s website, here.
