The company’s financial performance has reversed from a disappointing first quarter in 2025 to much more positive news in the first quarter of 2026. NFI posted net earnings of $11.5 million, or $0.10 per share, compared to a net loss of $6.5 million in the first quarter of 2025. Gross margin expanded to 15.7%, up 450 basis points from the prior year, reflecting improved execution on backlog and better pricing realization. Full-year revenue is expected to be between $3.9 billion to $4.2 billion.

“Our first quarter performance positions us well for the remainder of the year and gives us increased confidence in our 2026 guidance,” said John Sapp, NFI chief executive officer, after his first full financial quarter leading the company.

The bulk of NFI Group’s first quarter revenue (89%) was generated in North America, with 65% of revenue coming from transit buses. Manufacturing revenue of $681.4 million decreased by 1.1% from 2025 Q1, reflecting lower deliveries from UK transit offset by favourable sales mix and higher deliveries in the medium-duty and cutaway segment.

The struggle to grow business in the United Kingdom is a focal point for the coming year, Sapp said during a conference fall with investor analysts. Another change in the U.K. involves Alexander Dennis, a subsidiary corporation owned by NFI Group, that is converting one of its Scottish manufacturing facilities to a chassis manufacturing site, supporting all its low-emission and zero-emission bus products. The company would also close its legacy Falkirk facility, aligning with its long-standing plans to exit that site.

The exterior of the New Flyer plant on Fluvanna Avenue in Jamestown is pictured. P-J photo by John Whittaker

“Alexander Dennis, we have a terrific product offering, certainly for our customers over there, one that has been built on decades of that business, really doing exceptional work for the end use customers,” Sapp said. “So we certainly have high confidence in terms of the products, the quality that we deliver and therefore our ability to continue to compete and win in this space. However as noted, it is a much more competitive environment that has changed all in a different way over the past few years with certainly larger penetration from foreign competitors into the space. So it’s important for us to react.”

At quarter-end, the NFI Group’s total backlog of 15,228 EUs decreased by 7.9% on an equivalent unit basis and 4.7% on a dollar basis from the first quarter of 2025.

“During the quarter, we successfully launched the battery recall campaign, completing full battery replacements on 12 buses, leading to cash outflows of $2.5 million,” Sapp said. “Our team has a detailed plan for the campaign that will leverage our service center network. We anticipate that quarterly replacements will be larger as we move through 2026.”

NFI Group offers more than 60 models with a range of engine types that include battery electric, hydrogen, CNG and diesel buses. Company officials said the Canadian and United States public market bidding arena is still strong, with 26,003 buses procured over the next five years from customer fleet replacement plans. NFI Group has hundreds of bids submitted across the U.S. and Canada.

“We delivered strong earnings growth in the first quarter, driven by improved execution, backlog conversion and margin expansion, leading to a 37% year-over-year adjusted EBITDA growth,” Sapp said. “Demand remains robust, supported by a large backlog and active bidding environment. We’re making steady progress on deleveraging while maintaining flexibility in our capital structure. So across NFI, the team is looking forward to our continued progression as we deliver on our strategic objectives to drive operational excellence, enhance the customer experience and deliver profitable growth.”