NFI's Alexander Dennis hosts launch of Scotland's Pathway to Zero Emission Buses » 08:4508/1008/10/22
NFI Group subsidiary…
NFI Group subsidiary Alexander Dennis hosted the launch of Scotland's Pathway to Zero Emission Buses in Larbert on behalf of the Scottish Government. Scotland's Pathway to Zero Emission Buses is the result of the work done by the Scottish Government-led Bus Decarbonisation Taskforce, of which Alexander Dennis is a member alongside key industry stakeholders, bus operators, technology partners and financiers. Alexander Dennis is pursuing an aggressive new product development agenda for zero emission buses, including new battery-electric and hydrogen fuel cell-electric models. The agenda includes an exciting new product aligning to the pathway's plans to increase the supply of smaller zero-emission buses. The investment in engineering further underpins the company's commitment to domestic manufacturing.
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NFI Group price target raised to C$14.50 from C$13.50 at TD Securities » 12:4108/0508/05/22
TD Securities analyst…
TD Securities analyst Daryl Young raised the firm's price target on NFI Group to C$14.50 from C$13.50 and keeps a Hold rating on the shares.
NFI Group price target raised to C$17 from C$14 at National Bank » 11:5608/0408/04/22
National Bank analyst…
National Bank analyst Cameron Doerksen raised the firm's price target on NFI Group to C$17 from C$14 and keeps a Sector Perform rating on the shares.
NFI Group price target raised to C$8.50 from C$6 at Stifel » 11:3908/0408/04/22
Stifel analyst Maggie…
Stifel analyst Maggie MacDougall raised the firm's price target on NFI Group to C$8.50 from C$6 and keeps a Sell rating on the shares.
NFI Group reaffirms Fiscal 2025 longer-term targets » 07:5208/0308/03/22
Management also reaffirms…
Management also reaffirms its Fiscal 2025 longer-term targets, originally announced in January 2021, to deliver $3.9 billion to $4.1 billion in revenue, Adjusted EBITDA of $400 million to $450 million, with approximately 40% of vehicle sales coming from zero-emission vehicles, and ROIC of higher than 12%. These targets are driven by several factors and expectations, including the recovery of supply chains and other COVID-19-related impacts, a higher percentage of ZEB sales (which provide a higher revenue and dollar margin benefit), the mitigation of inflationary pressures, end markets recovery to pre-pandemic levels, realization of NFI Forward initiatives driving volume leverage, growth of cutaway and medium-duty products, aftermarket expansion, and continuous improvement initiatives.
NFI Group raises 2022 capex guidance to $35M-$45M » 07:5108/0308/03/22
On April 29, 2022, NFI…
On April 29, 2022, NFI announced that it was lowering its financial guidance for Fiscal 2022 due to shortages of critical microprocessor modules expected to result in lower-than-planned deliveries in the second and third quarters of 2022. It is also important to note that NFI does not anticipate receiving any Canadian or UK government wage subsidy support in 2022, compared to the $56 million of wage subsidy grants received during Fiscal 2021. NFI confirms its 2022 lowered financial guidance for revenue, ZEBs as a percentage of manufacturing sales, Adjusted EBITDA and expected seasonality, with negative Adjusted EBITDA in the third quarter and positive Adjusted EBITDA in the fourth quarter. The Company is updating its guidance for cash capital expenditures and has increased the range to $35 million to $45 million, in response to investments by the Company in electric innovation projects for its ADL business in international markets and other EV growth projects in North America. NFI expects a significant ramp-up in both production and deliveries in 2023 that are expected to drive revenue and Adjusted EBITDA growth. This is supported by NFI's firm and option backlog, recent bid activity, and continuing growth in government investments in transportation.
NFI Group sees 'significant' revenue, adjusted EBITDA growth from 2023-2025 » 07:5008/0308/03/22
In response to a specific…
In response to a specific microprocessor shortage impacting NFI's North American manufacturing business, as detailed in the Company's 2022 Q1 financial results, NFI has been building and holding a number of vehicles in inventory. This has grown inventory by $57 million on a temporary basis. NFI continues to have detailed discussions with the microprocessor supplier and fully expects to receive the required modules to meet NFI's latest guidance. Delivery of these vehicles is expected to occur in the third and fourth quarters of 2022. Some deliveries may, however, occur in the first quarter of 2023 due to the complexity of customer delivery acceptance processes. In addition, NFI continues to work with other suppliers and microprocessor sources to assist in production recovery plans and future sourcing alternatives. Significant progress has been made on a new alternative microprocessor module that will be installed in some vehicles, helping to lower the risk of future supply disruptions. Given NFI's expectations that supply impacts continue to be temporary and based on the strong signs of market recovery in all of NFI's end markets, any cost and capital reductions will be balanced with the ability to continue to secure new orders, invest in new product development, and deliver on existing customer orders. NFI is experiencing significantly increased inflation with respect to supplier pricing and wages, and through raw material commodities purchased directly by NFI. The majority of the impacts from inflation are expected to be seen in 2022 results due to legacy firm order contracts, and these impacts are reflected in NFI's financial guidance. Newer contracts are being priced to reflect current input costs and future options contracts generally have clauses where a government purchase price index will be applied. For contracts where NFI has significant inflation exposure, the Company is seeking price increases and surcharges through negotiations with customers and surcharge letters. The Company has experienced success with these efforts and expects they will help offset some of the margin pressure facing the Company. NFI's financial guidance reflects the adverse impacts of inflation, with improved margins anticipated in 2023. While these issues are anticipated to be near-term headwinds, NFI's longer-term outlook remains strong based on its backlog and broader market conditions. NFI has received significant new orders over the past twelve months that support the Company's plan to increase headcount, and ramp-up production late in 2022 and into 2023. The Company anticipates that it will be able to source the labor required to drive higher production and volume deliveries in 2023. These new orders, combined with existing backlog, other recent bid activity, and continuing growth in government investments in transportation, are expected to drive significant revenue and Adjusted EBITDA growth for NFI from 2023 to 2025.
NFI Group expects to achieve $67M Adjusted EBITDA savings target by end of 2022 » 07:4808/0308/03/22
In 2022 Q2, NFI Forward…
In 2022 Q2, NFI Forward realized Adjusted EBITDA savings of approximately $15 million and $1 million of additional Free Cash Flow savings. The Company expects to achieve its target of $67 million in Adjusted EBITDA savings by the end of Fiscal 2022, a year ahead of the original plan. With the majority of the original projects completed, the Company has implemented a series of additional projects called "NFI Forward 2.0", that are expected to generate additional annualized Adjusted EBITDA savings in 2023 and beyond. NFI Forward 2.0 includes the integration of its Delaware parts distribution facility into its existing NFI Parts footprint during the third quarter of 2022, and a plan to close the MCI coach manufacturing facility in Pembina, North Dakota, by the end of 2022. NFI Forward 2.0 will be smaller in scale and financial impact when compared to the original NFI Forward initiatives. In total, the Company believes NFI Forward 2.0 will generate $5 million to $8 million in annual savings from one-time capital investments of $8 million to $10 million.
NFI Group reports Q2 adjusted EPS (64c) vs. 12c last year » 07:4608/0308/03/22
Reports Q2 revenue $398M,…
Reports Q2 revenue $398M, down 32%. Reports 562 EUs delivered. "We are seeing significant positive momentum in our order book, with record bid activity within our North American business contributing to significant new orders, especially for zero-emission buses. Similar to the first quarter of 2022, our ability to meet demand has been hampered by supply chain constraints. Our manufacturing segment results reflect the impacts of lower deliveries as we had a temporary build-up of work-in-progress inventory delaying deliveries until later in the year. Our customers continue to be extremely understanding and supportive through these difficult periods, working with us on price increases that reflect inflation, and schedule changes based on supply availability," said Paul Soubry, President and Chief Executive Officer, NFI. "We were pleased to complete amendments to our credit facilities in July and thank our banking partners for their continued support. These amendments position us for success as we move into a period of recovery and the return of volume deliveries. 2022 has presented a number of challenges, but our future is brighter than ever, as we expect to capitalize on our growing backlog, order book momentum, strong win rates, and the investments made in our products and operations to deliver on our targets," Soubry concluded.
NFI Group announces return of president, CEO Soubry » 07:3007/2807/28/22
NFI Group announced that…
NFI Group announced that NFI President and Chief Executive Officer, CEO, Paul Soubry will return to his role, effective August 2, 2022, following a temporary medical leave. On May 3, 2022, it was announced that Paul would be taking an immediate temporary medical leave of absence after being diagnosed with an aortic aneurysm, and that NFI's Board of Directors had appointed Brian Dewsnup, President of NFI Parts, to be acting President and Chief Executive Officer of NFI Group during Paul's absence. Soubry has been cleared by his doctor to return to work. Under the guidance of his healthcare team, Soubry has taken active steps to address his health, and a plan is in place going forward to ensure his continued wellbeing.