NFI Group Inc (9NF) AI Stock Analysis

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NFI Group Inc

(Frankfurt:9NF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong Transit Backlog and DemandA large, increasingly firm backlog provides meaningful revenue visibility and supports production planning over the next several quarters. Strong replacement demand from aging transit fleets and sustained order activity also reinforce NFI’s market position and growth prospects.

Negative Factors

Elevated LeverageLeverage above the stated target range reduces financial flexibility and leaves less capacity to absorb weaker demand, execution setbacks, or higher operating costs. Deleveraging therefore remains important before NFI can consistently prioritize broader capital returns.

NFI Group Inc (9NF) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.91B
Dividend Yield: ―
Average Volume (3M): 163
Price to Earnings (P/E): 10.4
Beta (1Y): -0.04
Revenue Growth: 8.33%
EPS Growth: ―
Country: Germany
Employees: 9,000
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Manufacturers

NFI Group Inc Business Overview & Revenue Model

Company Description

NFI Group Inc., a prominent manufacturer and seller of buses, operates globally across North America, the United Kingdom, Europe, and the Asia Pacific region. Headquartered in Winnipeg, Canada, the company was established in 1930, adopting its curren...

NFI Group Inc Earnings Call Summary

Earnings Call Date:Nov 05, 2026(Q3-2026)|% Change Since:-9.52%|Next Earnings Date:Mar 04, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. NFI reported profitable growth, record LTM adjusted EBITDA, improved manufacturing economics, stronger aftermarket performance, better production linearity, higher liquidity, robust transit demand, and an increase in the low end of 2026 adjusted EBITDA guidance. These strengths outweighed challenges related to the battery recall, uneven zero-emission adoption, UK competition, softer cutaway demand, elevated leverage, higher taxes, and temporary funding uncertainty.

Positive Updates

Strong Revenue and Adjusted EBITDA Growth

Third-quarter revenue increased 14.5% to approximately $1 billion, while adjusted EBITDA grew 34.3% to $109 million. Adjusted EBITDA growth outpaced revenue growth.

Negative Updates

Battery Recall Progress and Impairment

NFI replaced batteries on 122 buses during the third quarter and another 39 in October, bringing total completions to 161 buses, or approximately 23% of the 700 buses expected to be completed by the end of fiscal 2027. Net earnings were approximately breakeven after a $33.8 million noncash impairment related to battery cells received under the 2025 battery settlement.

Company Guidance

NFI increased the low end of its 2026 adjusted EBITDA range to $395 million while maintaining the high end at $415 million, maintained revenue guidance of $4 billion to $4.2 billion, with fourth quarter sales mix possibly placing revenue closer to the lower end of the range, and kept cash capital expenditure guidance unchanged at $55 million to $65 million. The guidance assumes continued backlog conversion, expected fourth quarter vehicle deliveries, private coach and aftermarket activity, and effective management of known tariff impacts, while delivery timing, customer acceptance, supply chain performance, and product mix remain important variables. NFI continues to see its adjusted effective tax rate at 31% and is targeting leverage of 1.5x to 2.5x; for 2027, aftermarket is expected to be low to mid single digit growth, ADL is expected to see growth, albeit subtle, and battery cells are expected to be sold over the next 12 to 18 months, with an expectation of impact before the 2028 to 30 time frame.

NFI Group Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:9NF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:XTC	74Outperform	CAD 301.77M	12.48	6.04%	5.18%	0.52%	5.03%
TSE:WPK	72Outperform	CAD 2.67B	13.90	10.23%	0.44%	3.27%	2.08%
TSE:LNR	69Neutral	CAD 5.07B	7.74	10.39%	1.37%	15.63%	172.82%
TSE:MRE	65Neutral	CAD 667.56M	5.78	7.89%	2.02%	-2.65%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSE:DOO	49Neutral	CAD 6.66B	61.39	20.51%	1.03%	19.87%	―

* Consumer Cyclical Sector Average

Performance Comparison

DE:9NF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:9NF	NFI Group	15.20	6.90	83.13%
TSE:XTC	Exco Technologies Limited	8.11	2.03	33.41%
TSE:LNR	Linamar Corp.	86.56	8.07	10.29%
TSE:MRE	Martinrea International Inc.	9.88	-0.18	-1.82%
TSE:DOO	Brp Inc	93.32	4.33	4.87%
TSE:WPK	Winpak Limited	45.75	2.59	5.99%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

NFI Group Inc AI Stock Analysis