News
Timothy A. Price
- January 17, 2024
NFI Group, a leading bus and coach maker, is set to see a return to net profit this year and reduce its debt leverage measures. The company's backlog has experienced a significant increase of 22% since the end of the third quarter of 2023, reaching a value of nearly $8 billion.
President and Chief Executive Paul Soubry expressed confidence in the company's performance, noting that measures to address supply disruptions and boost manufacturing production resulted in a 19% rise in deliveries compared to 2022. This improvement also led to a reduction in work-in-progress inventory.
During the final quarter of last year, NFI delivered 1,227 equivalent units, marking a 19% increase compared to the same period in the previous year. For the full-year, deliveries reached a total of 4,001 units, reflecting a significant 32% rise. The company is optimistic about its financial performance, with projected revenue and adjusted earnings before interest, taxes, depreciation, and amortization expected to surpass mid-range targets for 2023, which range between $2.7 billion and $2.8 billion and $45 million to $65 million, respectively. In 2022, NFI reported an adjusted loss before interest, taxes, and depreciation of $59 million and revenue of $2.05 billion.
Looking ahead to the new year, NFI maintains its revenue guidance of $3.2 billion to $3.6 billion. However, the company has narrowed its adjusted Ebitda guidance range to $24 million to $280 million from the previous estimate of $250 million to $300 million.
Despite expecting a significant increase in deliveries and strong performance in its aftermarket segment in 2024, NFI acknowledges that the delivery of remaining legacy inflation-impacted contracts may offset some growth. Additionally, labor inefficiencies during the manufacturing ramp-up process could impact operations.
Nonetheless, NFI remains confident in its long-term prospects. The company aims to achieve approximately $4 billion in revenue by 2025, with adjusted Ebitda surpassing $350 million.
Our Latest News
U.S. Postal Service Announces Bold Environmental Initiatives
The U.S. Postal Service unveils initiatives to reduce emissions, increase sustainability, and achieve cost savings. Plans include using more electric vehicles,...
Woodbois Share Price Falls Amidst Government Instability in Gabon
Woodbois shares fall as military coup in Gabon disrupts operations. Production suspended at Mouila facilities during national election.
Elevance Health Reports Strong Third Quarter Results
Elevance Health reports $1.29 billion profit and $42.85 billion revenue in Q3, exceeding expectations due to growth in premium revenue and membership.