NFI Group’s Q1 2025 Results: Charging Ahead in the Zero-Emission Race

NFI Group Inc. (NFYEF) delivered a robust first quarter of 2025, showcasing its dominance in the global shift to zero-emission mobility. With record revenue growth, a strengthened balance sheet, and accelerating adoption of electric buses, the company is positioning itself as a leader in the clean transportation revolution. Let’s dive into the key takeaways from its Q1 earnings call and what they mean for investors.

Revenue Soars, Backlog Hits New Heights

NFI’s Q1 revenue jumped 16.4% year-over-year to $841.4 million, fueled by strong demand across its manufacturing and aftermarket segments. The company also reported a record backlog of $13.7 billion, a 3.5% increase from 2024, signaling ample future revenue visibility. This growth isn’t just about quantity—it’s about the quality of the products driving it.

Zero-Emission Buses Lead the Charge

The real star of NFI’s Q1 performance was its zero-emission bus (ZEB) penetration, which hit 33.9% of all EU deliveries. This milestone underscores the company’s ability to capitalize on Europe’s aggressive green policies, where diesel bans and subsidies for clean transit are accelerating. Globally, NFI’s electric buses have now racked up over 220 million electric service miles, proving their reliability in diverse environments.

Liquidity Bolstered by Strategic Financing

To fuel its expansion, NFI secured a new $845 million first lien senior credit facility in early May. This not only improves liquidity but also provides flexibility to invest in R&D, supply chain resilience, and geographic expansion. With interest rates still elevated, the timing of this move reflects management’s proactive risk management—a positive sign for long-term stability.

Supply Chain Hurdles, But Momentum Remains

Despite ongoing seat shortages in North American transit markets—a recurring issue—the company reaffirmed its full-year 2025 guidance:
- Revenue: $3.8–$4.2 billion
- Adjusted EBITDA: $320–$360 million
- ZEB Sales: 35–40% of manufacturing sales
- ROIC: 9–12%

This confidence is backed by strong aftermarket sales and a diversified product portfolio, including propulsion-agnostic vehicles that cater to both electric and alternative fuel markets.

Why Investors Should Take Note

NFI’s Q1 results highlight a company thriving in two key megatrends: the electrification of transportation and the need for modernized public transit infrastructure. With governments worldwide pouring trillions into green initiatives, NFI’s ZEB leadership and deep ties to transit agencies position it to capture market share.

The $13.7 billion backlog alone suggests NFI is insulated from near-term demand fluctuations, while its credit facility shores up financial flexibility. Even with supply chain challenges, the company’s ability to maintain guidance underscores operational discipline.

Conclusion: A Strong Foundation for Growth

NFI Group’s Q1 2025 results are a clear win for investors. The company is executing on its strategy to dominate the zero-emission bus market, with Europe’s adoption rates and North America’s infrastructure spending creating a tailwind. Key metrics like the 33.9% ZEB penetration in the EU and $13.7 billion backlog are not just numbers—they’re proof of NFI’s ability to convert long-term trends into profitable growth.

While challenges like seat shortages linger, the company’s reaffirmed guidance and strengthened balance sheet suggest these are manageable bumps in the road. For investors looking to bet on the green transportation revolution, NFI’s Q1 performance reinforces its status as a top-tier play.

As the world transitions to cleaner mobility, NFI Group isn’t just keeping pace—it’s leading the charge.