World Cup purchases boost NFI Group revenues
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A strong second quarter – in part due to World Cup-related sales – boosted NFI Group revenues by 18.6% in the second quarter of the 2026 financial year.
The company recently announced that deliveries in the second quarter increased 14.5% to 1,232 equivalent units and along with revenues that reached $1.03 billion. Gross profit, adjusted EBITDA and net earnings all improved significantly, company officials said, supported by stronger margins in both manufacturing and aftermarket operations.
John Sapp, NFI Group chairman and CEO, said the company's strong second quarter was the result of a continued recovery in the manufacturing sector overall in North America. For NFI Group, that was driven by higher North American production, improved vehicle economics and stronger backlog conversion. NFI Group's aftermarket segment delivered a record quarter, Sapp said. Activity was further supported by increased activity supported by FIFA World Cup purchases.
"Relative to the World Cup, in the aftermarket specifics of your question, we were obviously prepared as we came into the year that there could be some lift, but we weren’t sure exactly how that would play through in terms of the transit agencies," Sapp said during a recent conference call with investor analysts. "The end result was obviously something that was favorable for us in terms of Q2. I think relative to the full year then, what will be close watch for us is to see how that plays through, because our expectation, of course, is that key transit agencies that had that World Cup impact, we may see some reduction in terms of their needs in the second half as they bought ahead, if you will."
Net earnings were reported at $17.4 million, an increase of $178.2 million year-over-year, with net cash generated by operating activities of $159.1 million, an improvement of $228.7 million from the second quarter of 2025. The New Flyer plant in Jamestown is part of NFI Group's manufacturing division. Manufacturing revenue of $853.3 million increased by 19.8% from the second quarter of 2025, reflecting higher deliveries in North American transit and motorcoach, with conversion of backlog and positive sales mix, offset by lower deliveries in the medium-duty and cutaway segment.
NFI is subject to tariffs on imports of steel and aluminum in the U.S. and Canada, and tariffs on imports of other goods from various international jurisdictions. NFI has also seen updates to pricing from its suppliers reflecting the impacts of tariffs on input components its suppliers source and import into the U.S., and expects pricing increases for certain components sourced from Canadian suppliers under the recent 50% tariffs announced by the U.S. Administration. The company's motorcoaches are also subject to a 10% tariff on all imports of motorcoaches into the United States from any jurisdiction. This impacts private motorcoaches that are manufactured in Winnipeg, and motorcoach shells that are started in Winnipeg and completed in the U.S. NFI has continued to actively engage with its customers to discuss the pricing impacts of all known tariffs on buses and motorcoaches and has been negotiating and charging surcharges to reflect the costs of those tariffs.
"Tariff structures continue to evolve, we’ve continued to actively engage with customers to discuss pricing impacts and have been negotiating and updating pricing to reflect tariff costs where applicable," Sapp said. "Our view remains that tariff exposure is manageable, supported by our localized manufacturing footprint, contractual structures, pricing actions, and aftermarket distribution capabilities. Our guidance includes the impact of current and known U.S. and Canadian tariffs, including the proposed Section 338 tariffs announced in July, but does not reflect potential future tariff or trade policy changes. With respect to IEPA and refunds, this remains a developing situation. We’re actively monitoring it and working with advisors and government partners. Our intent is to do what is right for customers and to meet any contractual obligations required within respect to refunds."
NFI Group is updating its financial guidance for the rest of the year with additional revenue and earnings growth driven by execution of NFI's backlog, increases in manufacturing production and deliveries of North
American buses, and from growth in NFI's aftermarket business. Revenues for the full 2026 financial year are projected to be between $4 billion and $4.2 billion.
"We’re pleased with what we’re able to do here from a guidance standpoint. We’ve got a lot of work to do here yet in the second half," Sapp said.