Nfi Group Inc. · TSX:NFI
Nfi — Q1 2025 Earnings Presentation
37 slides from Nfi's earnings presentation, May 9, 2025
Slide 1: NFI Group Inc. 2025 Q1 Results
NFI Group Inc. 2025 Q1 Results May 9, 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 Provide wide range of A global independent propulsion agnostic 13 countries Have an NFI vehicle in service vehicles bus and coach mobility 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 2025 Q1 Revenue by Geography 60+ Models with various United Kingdom North propulsion offerings America and Europe (battery electric, 84% 15% hydrogen, hybrid, CNG, and diesel) Asia Pacific 265M+ 1% Electric service miles driven 2025 Q1 Revenue by Product Moto
Slide 6: 2025 Q1 Results
2025 Q1 Results
Slide 7: 2025 Q1 Financial Summary
2025 Q1 Financial Summary Strong 2025 Bid 2,523 139.3% 76% $624K 28,445 EUs in total new Quarterly Book-to- Option conversion Avg. sale price of new EUs in North Environment orders in 2025 Q1 Bill2 rate orders American Total Bid Universe +40.7% 11.2% +84.4% $6.5M 7.5% Improving YoY increase in Q1 Gr
Slide 8: NFI Group: High and Moderate Risk Suppliers
NFI Group: High and Moderate Risk Suppliers Currently only 2 High Risk Suppliers in NFI top 800 92 Significant reduction in high and moderate risk 76 suppliers from 2022 through Q1-2025 75 68 Supply chain performance overall continues to 58 60 58 improve with many problem suppliers resolved 50 50 50
Slide 9: New Flyer Seat Disruption Update
New Flyer Seat Disruption Update New Flyer Buses offline EUs Missing Seats1 NFI continues to navigate the seat supply disruption within its North American transit business. During the quarter saw some marginal increases linked to production with a decline post 181 quarter-end. 170 Action plan remain
Slide 10: 2025 Q1: Deliveries
2025 Q1: Deliveries Low-Floor Cutaway Transit Bus Motorcoach and Medium-Duty Bus 841 732 140 134 162 146 -13% -4% +11% YOY YOY YOY 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 Year-over-year decline driven by Marginal coach delivery decline Continuing strong momentum from UK transit driven by red
Slide 11: NFI Segment Quarterly Gross Margins
NFI Segment Quarterly Gross Margins 1 (includes Depreciation and Amortization) 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% 28.2% GM% 26.3% 25.5% 22.5% 11.2% 8.0% 7.5% Manufacturing 3.2% 7.0% 6.6% 7.0% 7.4% GM% 12.8% 3.7% 9.7
Slide 12: Adj. EBITDA Year-over-Year
Adj. EBITDA1 Year-over-Year Manufacturing Aftermarket Corporate $33 $38 $33 +1,610% -176% YOY -12% ($1) YOY YOY ($2) 2024 Q1 2025 Q1 ($4) 2024 Q1 2025 Q1 2024 Q1 2025 Q1 Manufacturing Adjusted EBITDA1 Aftermarket Adjusted EBITDA1 Corporate Adjusted EBITDA1 improved by ~$35 million, or decreased by ~
Slide 13: Q1 LTM Segment Adjusted EBITDA
Q1 LTM Segment Adjusted EBITDA 1 $M Manufacturing Aftermarket $135 $128 $120 $102 $99 $93 $68 ($24) +$112M ($21) +$141M Manufacturing Manufacturing improvement improvement ($133) 2021 2022 2023 2024 2025 Note: Corporate segment results are not included in the above. Corporate segment would need to b
Slide 14: Q1 2025 Net Earnings (Loss) and Adjusted Net Earnings (Loss)
Q1 2025 Net Earnings (Loss) and Adjusted Net Earnings (Loss) Net Earnings (Loss) ($M) Adjusted Net Earnings (Loss) ($M)1 2024 Q1 ($9.4) ($0.08) per share 2024 Q1 ($15.6) ($0.13) per share 2025 Q1 ($6.5) ($0.05) per share 2025 Q1 $2.9 $0.02 per share LTM 2024 Q1 ($99.8) ($0.98) per share LTM 2024 Q1
Slide 15: 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 $28.1 $15.5 $14.8 $11.7 $12.9 $9.9 $2.7 $1.1 $2.0 $0.6 $4.4 ($11.9) ($6.3) ($18.9) ($23.9) ($21.5) ($21.0) ($29.7) ($28
Slide 16: 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 1,032 990 962 929 819 813 858 832 796 $88 589 714 $88 $80 $77 $107 $84 $103 $71 $74 $59
Slide 17: New Credit Agreement Strengthens Balance Sheet
New Credit Agreement Strengthens Balance Sheet Total Leverage Ratio and Forward Covenant1 New $845 million First Lien Facility replaces existing first lien facilities Improved covenants, lower interest costs multi-currency borrowing capabilities 14.10x Additional credit enhancements, including an ac
Slide 18: Outlook
We Move People
Slide 19: Record New Orders in 2025 Q1
Record New Orders in 2025 Q1 Added 1,432 EUs of Firm Orders and 1,091 EUs of Options Sold out in North American public transit markets for 2025 and now sold well into 2026. Options now out to 2030 4,068 EU 2,523 EU 6,591 EU New Awards New Awards New Awards LTM 2024 Q2-2024 Q4 2025 Q1 Addition of sev
Slide 20: Quarterly Backlog: 2019 Q1 to 2025 Q1
Quarterly Backlog: 2019 Q1 to 2025 Q1 NFI Quarterly Backlog1 in EUs (2019 Q1 – 2025 Q1) Firm Option Total Dollar Value ($B) $16 $14 $12 10,291 $10 9,190 9,235 9,074 9,275 5,161 4,714 4,693 $8 7,281 4,610 6,518 6,497 5,604 5,574 7,011 6,691 5,308 4,352 $6 5,220 5,264 5,279 4,851 4,646 4,757 4,813 $4
Slide 21: 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 improved market dynamics; coach sales price primarily driven by increasing public demand Average Sales Price per EU of NFI Backlog1 $880.1 $865.8 $860.0 $844.3
Slide 22: 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 23: Book-to-Bill Recovery Continues Above 100%
Book-to-Bill Recovery Continues Above 100% Book-to-Bill1 and Option Conversion1 (2014 – Q1 2025) 2018-2019: Declines driven by ZEB order timing/trials 133.9% 128.2% Bid volume driving order increase 2020-2021 FAST Act expiry and impact of the pandemic 121.4% 115.1% 117.4% 111.4% 113.0% 105.6% 95.8%
Slide 24: 2025 Q1 Seasonality and Margin Enhancement
2025 Q1 Seasonality and Margin Enhancement Adjusted EBITDA1 by Quarter Gross Profit $ (excl. D&A) per Manufacturing EU $73,715 $68 $63 $59 $53 $42,335 $34 $19,364 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2023 Q1 2024 Q1 2025 Q1 Increased ZEB deliveries offset by lower UK deliveries and aftermarket vo
Slide 25: Reaffirms 2025 Guidance
Reaffirms 2025 Guidance Revenue ($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
Slide 26: Macro Environment – Tariffs and Funding
Macro Environment – Tariffs and Funding U.S. and Canadian Tariffs U.S. and Canadian Federal Funding Current Tariffs Being Incurred U.S. Executive Orders and Reviews Steel and aluminum Focus on electric vehicles and infrastructure Direct imports from outside of North America Contractual language as i
Slide 27: Recap
Recap Fiscal 2025 off to a solid start, achieved several milestones, navigating seat disruption Backlog of $13.6B, firm orders very strong for 2025 and 2026 Highest quarterly ZEB deliveries in company history – higher average sale price/margin Aftermarket strong contribution, some volume decline rel
Slide 28: Appendix
Appendix We Move People
Slide 29: 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 30: Non-IFRS Reconciliation: 2025 Q1
Non-IFRS Reconciliation: 2025 Q1 Reconciliation of IFRS to non-IFRS As of March 30, 2025 In '000 First Quarter Net Sales $ 841,420 Net Loss $ (6,486) % of net sales -0.8% Adjustment, Gross Restructuring and Other Corporate Initiatives $ 2,411 Derivative related $ 1,465 Foreign exchange loss/gain $ (
Slide 31: Non-IFRS Reconciliation: 2024 Q1
Non-IFRS Reconciliation: 2024 Q1 Reconciliation of IFRS to non-IFRS As of March 31, 2024 In '000 First Quarter Net Sales $ 722,749 Net Loss $ (9,414) % of net sales -1.3% Adjustment, Gross Restructuring and Other Corporate Initiatives $ 1,515 Derivative related $ (6,460) Foreign exchange loss/gain $
Slide 32: 2025 Q1: Income Statement, Cash Flow, Liquidity
2025 Q1: Income Statement, Cash Flow, Liquidity 2025 Q1 Performance 2025 Q1 Free Cash Flow1 & Liquidity1 2025 Q1 2024 Q1 Free Cash Flow1 ($M) Sales $841.4M $722.7M 2025 Q1 2024 Q1 7.5% 4.7% Adjusted EBITDA1 $62.7 $33.9 ROS ROS Interest Expense ($32.3) ($33.6) Current Income Tax ($12.5) ($5.0) Adjust
Slide 33: NFI Quarterly Adjusted EBITDA
NFI Quarterly Adjusted EBITDA NFI Segment Quarterly Adjusted EBITDA1 $M Manufacturing Aftermarket $36 $38 $35 $33 $33 $33 $32 $34$35 $34 $30 $30 $30 $25 $26 $25 $23 $21 $23 $22 $23 $18 $17 $11 $2 ($2) ($8) ($16) ($14) ($23) ($31) ($37) ($40) ($42) 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 2022
Slide 34: 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 35: 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 36: Credit Agreement Covenant Definitions
Credit Agreement Covenant Definitions TLR is calculated as aggregate indebtedness of the Company, not including the Company’s 5.0% convertible debentures and certain non-financial products, but including the First Lien Facility, senior unsecured and second lien indebtedness, less unrestricted cash a
Slide 37: A black and white logo
A black and white logo Description automatically generated A white x on a black background Description automatically generated