Q3 2024 NFI Group Inc Earnings Call Transcript
Key Points
- NFI Group Inc (NFYEF) reported a 375% increase in quarterly adjusted EBITDA, contributing to a $161 million improvement on a last twelve months (LTM) basis.
- The company achieved its highest gross margin since Q1 2021, improving to 12.2%.
- NFI Group Inc (NFYEF) secured new orders of 1,050 equivalent units in the quarter, up 8.2% from the previous year, with a record backlog of USD12 billion.
- The aftermarket segment delivered exceptional performance with $153 million in revenue and $34 million of adjusted EBITDA, up 7% and 8% year-over-year respectively.
- The company has made significant progress in securing prepayments and embedding milestone payments in contracts, positively impacting liquidity and cash flows.
- NFI Group Inc (NFYEF) faced a significant disruption due to a North American seat supplier's non-performance, leading to a loss of approximately 79 equivalent units of planned third-quarter deliveries.
- Working capital remains elevated due to increased zero-emission bus production and higher input costs.
- The seat supply disruption is expected to continue for at least the remainder of 2024, with potential risks extending into 2025.
- The company had to slightly adjust its 2024 financial guidance due to the seat supplier disruption, now expecting adjusted EBITDA between $210 million to $240 million.
- The UK market is experiencing increased competition, particularly from foreign competitors, impacting NFI Group Inc (NFYEF)'s cost base.
Please wait, the conference will begin shortly.
Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the NFI 2024 Q3 financial results call. (Operator Instructions)
Thank you. I would now like to turn the call over to Stephen King. Thank you and please go ahead.
Thank you, Kate. Good morning, everyone and welcome to NFI Group's third quarter, 2024 results conference call. Joining me today are Paul Soubry, President and Chief Executive Officerl and Brian Dewsnup, Executive Vice President and Chief Financial Officer.
On today's call, we will give an update on our quarterly results highlighting year over year improvement across numerous financial metrics, the strong demand environment for our products and our record backlog. We will also provide an update on the operating environment and our near and long term outlook.
This call is being recorded and a replay will be made available shortly.
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