Nfi Group Inc. · TSX:NFI
Nfi — Q4 2024 Earnings Presentation
39 slides from Nfi's earnings presentation, Mar 14, 2025
Slide 1: NFI Group Inc. 2024 Q4 & Fiscal Year Results
NFI Group Inc. 2024 Q4 & Fiscal Year Results March 14, 2025
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this presentation are “forward looking statements,” which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are made as
Slide 3: A global independent bus and coach mobility solutions provider
Offer a mix of heavy-duty buses and coaches, and >100,000 Vehicles in Service medium-duty and cutaway buses A global independent Provide wide range of propulsion agnostic 13 countries Have an NFI vehicle in service bus and coach mobility vehicles solutions provider. Access to world class parts & aft
Slide 4: Our Values and Our Stakeholders Drive Our Decisions
Our Values and Our Stakeholders Drive Our Decisions Safety Quality Integrity The health and wellbeing We strive for We act with honesty, of our team members excellence in our transparency, and integrity, and the safety of our products, services, treating each other with respect products are our top
Slide 5: NFI Offers Propulsion Agnostic Solutions
NFI Offers Propulsion Agnostic Solutions Fiscal 2024 Revenue by Geography 60+ Models with various propulsion offerings United Kingdom (battery electric, North and Europe 20% hydrogen, hybrid, CNG, America and diesel) 79% 240M+ Asia Pacific 1% Electric service miles driven Fiscal 2024 Revenue by Prod
Slide 6: 2024 Q4 & Fiscal Year Results
2024 Q4 & Fiscal Year Results
Slide 7: 2024 Q4 and Fiscal Year Financial Summary
2024 Q4 and Fiscal Year Financial Summary Record New +55% 121.4% 76% $803K 9,489 Increase in new Book-to-Bill2 for Option conversion Avg. sale price of new EUs in total Orders in 2024 orders (Fiscal 2024 Fiscal 2024 rate for Fiscal orders in Fiscal 2024 new orders in vs. Fiscal 2023) 2024 2024 Impro
Slide 8: NFI Group: High and Moderate Risk Suppliers
NFI Group: High and Moderate Risk Suppliers Currently only 3 High Risk Suppliers in NFI top 750 92 Significant reduction in high and moderate risk suppliers from 2022 through 2024 76 75 68 Supply chain performance overall continues to improve with many problem suppliers resolved 60 58 58 and sustain
Slide 9: New Flyer Seat Disruption Impact
New Flyer Seat Disruption Impact New Flyer saw an increase in seat disruption during November and December. The number of New Flyer Buses offline EUs Missing Seats1 EU impacted units has lowered through proactive measures, including the following: Dedicated leaders and team members from NFI’s fabric
Slide 10: 2024 Q4: Deliveries
2024 Q4: Deliveries Low-Floor Cutaway Transit Bus Motorcoach and Medium-Duty Bus 923 835 202 165 180 102 -10% -11% +62% YOY YOY YOY 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 North American transit Coach sale decline driven by Highest delivery quarter ever deliveries continued to be public and
Slide 11: NFI Segment Quarterly Gross Margins
NFI Segment Quarterly Gross Margins (includes Depreciation and Amortization) 1 30.4% 30.4% 30.0% 30.3% 31.9% 31.9% 31.3% 31.5% 32.1% 30.1% Aftermarket 29.5% 26.9% 30.0% 28.6% 30.2% 28.5% 29.6% 28.4% GM% 26.3% 25.5% 22.5% 11.2% 8.0% 7.5% Manufacturing 3.2% 7.0% 6.6% 7.0% GM% 12.8% 3.7% 9.7% 8.2% 0.4%
Slide 12: Adj. EBITDA Year-over-Year
Adj. EBITDA1 Year-over-Year Manufacturing Aftermarket Corporate $35 $33 $30 +217% ($0) $11 +11% YOY +95% YOY YOY 2023 Q4 2024 Q4 2023 Q4 2024 Q4 ($2) 2023 Q4 2024 Q4 Corporate Adjusted EBITDA1 Manufacturing Adjusted EBITDA1 Aftermarket Adjusted EBITDA1 increased by ~$2 million, or 95%, year- improve
Slide 13: Fiscal (LTM) Segment Adjusted EBITDA
Fiscal (LTM) Segment Adjusted EBITDA1 $M Manufacturing Aftermarket $140 $120 $102 $99 $86 $84 $67 $52 +$107M +$126M ($42) Manufacturing Manufacturing improvement improvement ($149) 2020 2021 2022 2023 2024 Note: Corporate segment results are not included in the above. Corporate segment would need to
Slide 14: NFI Quarterly Adjusted EBITDA
NFI Quarterly Adjusted EBITDA NFI Segment Quarterly Adjusted EBITDA1 $M $54 Manufacturing Aftermarket $45 $36 $38 $32 $34 $35 $34 $35 $33 $30 $30 $30 $25 $26 $25 $23 $21 $23 $22 $23 $17 $17 $18 $17 $11 $2 ($2) ($8) ($16) ($14) ($23) ($31) ($40) ($37) ($42) 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 202
Slide 15: Q4 2024 Net Earnings (Loss) and Adjusted Net Earnings (Loss)
Q4 2024 Net Earnings (Loss) and Adjusted Net Earnings (Loss) Net Earnings (Loss) ($M) Adjusted Net Earnings (Loss) ($M)1 2023 Q4 ($2.3) ($0.02) per share 2023 Q4 ($5.9) ($0.05) per share 2024 Q4 $18.6 $0.16 per share 2024 Q4 $13.9 $0.12 per share Fiscal 2023 ($136.2) ($1.48) per share Fiscal 2023 ($
Slide 16: NFI Quarterly Free Cash Flow
NFI Quarterly Free Cash Flow Free Cash Flow and Free Cash Flow Plus the Change in Working Capital $M Free Cash Flow $120.8 Free Cash Flow with Change in Working Capital $76.6 $21.9 $15.5 $14.8 $11.7 $12.9 $9.9 $2.7 $1.1 $2.0 $0.6 ($11.9) ($6.3) ($18.9) ($23.9) ($21.5) ($21.0) ($29.7) ($28.9) ($30.8)
Slide 17: Increasing Production Rates
Increasing Production Rates Total NFI Inventory1 (Raw Materials, WIP and Finished Goods - $M) vs Quarterly Vehicle Line Entries 1,637 1,547 1,528 1,456 1,444 1,238 1,207 1,234 1,080 1,053 1,123 1,125 1,054 1,017 990 962 929 819 813 858 832 796 $88 589 714 $88 $80 $84 $77 $103 $71 $74 $59 $71 $97 $14
Slide 18: Leverage and Debt Maturities
Leverage and Debt Maturities Total Leverage Ratio and Forward Covenant1 Debt Maturities 2025 – 2028 ($M) Total capacity and current borrowings $856 14.10x 5.17x 4.75x 4.37x 4.25x 4.25x $250 3.75x $180 $0 $0 2023 Q4 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2024 2025 2026 2027 2028 Actual Futur
Slide 19: Outlook
We Move People
Slide 20: Record New Orders in Fiscal 2024
Record New Orders in Fiscal 2024 Added 4,655 EUs of Firm Orders and 4,834 EUs of Options Essentially sold out in North American public transit markets for 2025 and now sold well into 2026. Options now out to 2030 9,489 EU 7,585 EU 1,904 EU New Awards in New Awards New Awards Fiscal 2024 2024 Q1-2024
Slide 21: Quarterly Backlog: 2019 Q1 to 2024 Q4
Quarterly Backlog: 2019 Q1 to 2024 Q4 NFI Quarterly Backlog1 in EUs (2019 Q1 – 2024 Q4) Firm Option 9,190 9,235 9,074 9,275 7,281 6,518 6,497 5,604 5,161 4,714 4,693 5,574 7,011 5,308 4,610 6,691 5,220 4,851 4,352 5,264 5,279 4,646 4,757 4,813 5,593 5,370 5,516 5,860 4,313 4,224 4,082 4,400 3,662 4,
Slide 22: Backlog Average Sale Price/EU Continues to Increase
Backlog Average Sale Price/EU Continues to Increase Increasing transit sale prices driven by pricing improvements, increased number of ZEBs and competitive factors; coach sales price primarily driven by increasing public demand Average Sales Price per EU of NFI Backlog1 $880.1 $860.0 $844.3 $831.7 $
Slide 23: Canadian/US Public Market Bid Universe remain Strong
Canadian/US Public Market Bid Universe remain Strong Avg. timeline from bid release to production = 12 to 18 months Bids in Process Bids Submitted 5 Year Forecast New Awards (RHS) 35,000 6,000 30,000 5,000 25,000 4,000 20,000 3,000 15,000 2,000 10,000 1,000 5,000 - - 2018 2018 2018 2018 2019 2019 20
Slide 24: Book-to-Bill Recovery Continues Above 100%
Book-to-Bill Recovery Continues Above 100% Book-to-Bill1 and Option Conversion1 (2014 – 2024) 2018-2019: Declines driven by ZEB order timing/trials 133.9% Bid volume driving order increase 128.2% 2020-2021 FAST Act expiry and impact of the pandemic 121.4% 115.1% 113.0% 111.4% 105.6% Book-to-Bill1 an
Slide 25: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance Updating to a range to represent opportunities and risks in 2025 Key factors: Backlog and Order Book: Strong firm order visibility for Fiscal 2025 with improved margin expectations. New Flyer, MCI Public, ARBOC all in very good position Per Unit Economics: Improving per uni
Slide 26: Fiscal 2024 Seasonality and Margin Enhancement
Fiscal 2024 Seasonality and Margin Enhancement Adjusted EBITDA1 by Quarter 2024 Gross Profit $ (excl. D&A) per Manufacturing EU Estimated $68 Actual $59 $53 $54,366 $49,398 $34 $7,122 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2022 Q4 2023 Q4 2024 Q4 2025E ZEB sales mix and private market seasonality, drive in
Slide 27: Forward Guidance
Forward Guidance Revenue ($M) and Units Delivered (EUs)2 Adjusted EBITDA1,2 ($M) and Adjusted EBITDA as % of Revenue1,2 4,313 6,186 4,371 3,783 3,039 4,001 4,547 12.9% 10.4% 6.5% 7.0% (2.8%) 2.6% 6.8% $4,200 $326 $331 $360 $3,172 $3,122 $2,685 $3,800 $2,519 $2,419 $2,344 $158 $164 $214 $2,054 $320 $
Slide 28: Macro Environment – Tariffs and Funding
Macro Environment – Tariffs and Funding U.S. and Canadian Tariffs In advance of potential tariff implementation, moved inventory to the appropriate jurisdiction wherever possible Majority of production is linked to local content requirements – additional exposure on Canadian bus starts that move acr
Slide 29: Recap
Recap Significant growth in Fiscal 2024, while navigating seat disruption (improvement in H1 2025) Backlog of $12.8B, firm orders very strong for 2025 and 2026 Competitive dynamics in North America remain strong for the Company to capitalize Aftermarket delivered record year in 2024, provides solid
Slide 30: Appendix
Appendix We Move People
Slide 31: Board Enhancements add Depth and Expertise
Board Enhancements add Depth and Expertise Chan Galbato Maryse Saint Laurent Aziz Aghili Board Chair Independent Director Independent Director Most recently was the CEO of Cerberus Operations and With over 30 years of experience, Maryse is an With a distinguished 35 -year career, Aziz brings signifi
Slide 32: Non-IFRS Reconciliation: 2024 Q4
Non-IFRS Reconciliation: 2024 Q4 Reconciliation of IFRS to non-IFRS As of December 29, 2024 Third Fourth In '000 First Quarter Second Quarter Quarter Quarter Full Year Net Sales $ 722,749 $ 851,233 $ 711,344 $ 854,409 $ 3,139,735 Net Loss $ (9,414) $ 2,547 $ (14,993) $ 18,564 $ (3,296) % of net sale
Slide 33: Non-IFRS Reconciliation: 2023 Q4
Non-IFRS Reconciliation: 2023 Q4 Reconciliation of IFRS to non-IFRS As of December 31, 2023 Fourth In '000 First Quarter Second Quarter Third Quarter Quarter Full Year Net Sales $ 525,134 $ 660,292 $ 710,343 $ 789,462 $ 2,685,231 Net Loss $ (45,808) $ (48,101) $ (39,926) $ (2,329) $ (136,164) % of n
Slide 34: Transition to ZE Accelerating
Transition to ZE Accelerating Increasing demand for electric vehicles (battery- and fuel cell-electric) in NFI’s core markets, driven by government funding and the drive to zero-emission 2024 Q4: 26% of total deliveries ZEBs as % Annual Deliveries were ZEB EUs ZEB as % of Backlog1 30% 50% 23% 22% 23
Slide 35: 2024 Q4: Income Statement, Cash Flow, Liquidity
2024 Q4: Income Statement, Cash Flow, Liquidity 2024 Q4 Performance 2024 Q4 Free Cash Flow 1 & Liquidity1 2024 Q4 2023 Q4 Free Cash Flow1 ($M) Sales $837.0M $796.7M 2024 Q4 2023 Q4 8.1% 4.9% Adjusted EBITDA1 $67.9 $38.5 ROS ROS Interest Expense ($30.6) ($31.9) $67.9 Current Income Tax ($13.0) $15.9
Slide 36: Key Terms
Key Terms Buses manufactured by New Flyer and One equivalent unit (or “EU”) Alexander Dennis' single and double deck buses represents one production “slot”, being are classified as "transit buses". ARBOC one 30-foot, 35-foot, 40-foot, 45-foot manufactures body on-chassis or “cutaway” and heavy-duty
Slide 37: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation are “forward-looking statements”, which reflect the expectations of management regarding the Company’s future growth, financial performance, and liquidity and the Company’s strategic initiatives, plans, business prospects, and opport
Slide 38: Key Financial Definitions
Key Financial Definitions Non-IFRS Measures – see NON-IFRS AND OTHER FINANCIAL MEASURES section of the MD&A Dated March 13, 2025 Adjusted EBITDA: Earnings before interest, income tax, depreciation and amortization after adjusting for the effects of certain non-recurring, non-operating, and items occ
Slide 39: Slide 39