NFI Group Inc (NFYEF) AI Stock Analysis

NFI Group Inc

(Other OTC:NFYEF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Backlog and GuidanceHigher guidance and a large backlog provide multi-year revenue visibility, while active bids and forecast demand support continued order opportunities. This reduces reliance on any single quarter and indicates sustained public-transit demand.

Negative Factors

Elevated LeverageNFI remains dependent on a debt-heavy capital structure, which limits flexibility if bus demand, production or cash conversion weakens. Interest and refinancing needs could constrain investment and leave less protection against operating setbacks.

NFI Group Inc (NFYEF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.91B
Dividend Yield: ―
Average Volume (3M): 25.64K
Price to Earnings (P/E): 36.7
Beta (1Y): 0.69
Revenue Growth: 15.92%
EPS Growth: ―
Country: US
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:Aug 05, 2026(Q2-2026)|% Change Since:-1.47%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentPositive

The call conveyed substantial operational and financial progress: double-digit revenue and unit growth, a 47% increase in adjusted EBITDA, a return to net earnings, record aftermarket results, stronger liquidity and a reduced leverage ratio. Management also raised full-year guidance and completed financing actions to improve the debt profile. Remaining challenges include sizable inventory/WIP, tariff and receivable timing risk, a battery recall cash impact, restructuring costs at ADL, and seasonal/competitive headwinds that could moderate sequential performance in the near term. On balance, the positives are material and clearly outweigh the listed challenges.

Positive Updates

Strong Revenue and Unit Growth

Revenue increased 18.6% year-over-year to approximately $1.03 billion, driven by total deliveries of 1,232 equivalent units, a 14.5% YoY increase.

Negative Updates

Working Capital and Inventory Dynamics

Company unwound some Q1 inventory in Q2 benefiting cash, but inventory and WIP remain sizable and management expects to invest in working capital in Q3 to prepare for a seasonally busier Q4.

Company Guidance

NFI raised its 2026 guidance to revenue of $4.0–4.2 billion, adjusted EBITDA of $385–415 million (implying 15%–24% growth vs. 2025) and cash CapEx of $55–65 million; this outlook is supported by a strong Q2 (1,232 equivalent units, +14.5% YoY; revenue ~$1.03B, +18.6%; adjusted EBITDA $104M, +47%; net earnings $17.4M vs. a $160.8M loss LY; operating cash flow $159.1M; free cash flow $20.7M) and a backlog of 14,483 EUs (~$12.5B, 6,271 firm / 8,212 options), with active North American public bids at 6,195 EUs and a five‑year demand forecast of 26,000 EUs. Management cautioned Q3 will likely see a modest sequential decline due to seasonal factory shutdowns and planned working‑capital build for a stronger Q4, noted liquidity of ~$520M and total leverage of 2.81x (target 1.5x–2.5x into 2027), and said the guidance incorporates current known U.S. and Canadian tariffs (including proposed Section 338) but not any future trade changes.

NFI Group Inc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

NFYEF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:LNR	83Outperform	CAD 5.22B	7.70	10.96%	1.34%	9.32%	227.52%
TSE:XTC	74Outperform	CAD 316.77M	13.00	6.04%	4.97%	0.52%	5.03%
TSE:WPK	72Outperform	CAD 2.59B	13.70	10.23%	0.45%	3.27%	2.08%
TSE:MRE	65Neutral	CAD 661.96M	5.53	7.89%	2.11%	-2.65%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSE:DOO	53Neutral	CAD 6.08B	56.18	20.51%	1.13%	19.87%	―

* Consumer Cyclical Sector Average

Performance Comparison

NFYEF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
NFYEF	NFI Group	17.55	7.46	73.97%
TSE:XTC	Exco Technologies Limited	8.45	2.24	36.05%
TSE:LNR	Linamar Corp.	88.50	13.14	17.44%
TSE:MRE	Martinrea International Inc.	9.46	-0.58	-5.81%
TSE:DOO	Brp Inc	85.39	-1.31	-1.52%
TSE:WPK	Winpak Limited	44.11	2.84	6.88%

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