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.
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