Canada's NFI Group misses Q4 revenue estimates

NFI

11/03/2026 21:46

Corrects to "$" from "C$" in Outlook section to indicate the figures are in USD

Overview

Canada bus maker's fiscal Q4 revenue rose 22.5% yr/yr but missed analyst expectations

Adjusted EPS for fiscal Q4 beat analyst expectations, driven by margin expansion and backlog conversion

Quarter benefited from battery settlement and higher-margin deliveries

Outlook

NFI sees 2026 revenue between $3.9 bln and $4.2 bln

Company expects 2026 adjusted EBITDA of $370 mln to $410 mln

NFI says tariff changes, supply chain issues and funding could impact 2026 results

Result Drivers

HIGHER DELIVERIES AND PRODUCT MIX - Co said increased deliveries and a favorable product mix, including more heavy-duty transit and zero-emission buses, drove manufacturing revenue and margin gains

BATTERY SETTLEMENT - Net earnings benefited from a $114.5 mln after-tax recovery related to a battery settlement

TARIFF IMPACTS - Aftermarket margins were negatively affected by tariffs, despite increased parts sales

Company press release: ID:nGNX4THFfp

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$1.03 bln
$1.07 bln (6 Analysts)
Q4 Adjusted EPS
Beat
$0.50
$0.29 (5 Analysts)
Q4 EPS
$1.39
Q4 Adjusted Net Income
$59.6 mln
Q4 Net Income
$166 mln
Q4 Adjusted EBITDA
$121.3 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy"

Wall Street's median 12-month price target for NFI Group Inc is C$22.00, about 38.5% above its March 11 closing price of C$15.89

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)