NFI Group Faces $140.9 Million Loss Amid New U.S. Tariffs

URGENT UPDATE: NFI Group Inc., the Winnipeg-based bus manufacturer, has reported a staggering net loss of $140.9 million USD for the third quarter of 2023, a sharp decline from a loss of $15 million USD during the same period last year. This significant downturn translates to a net loss per share of $1.18 USD, compared to just 13 cents a year earlier.

In a press release, NFI Group highlighted that its revenue for the quarter surged to $879.9 million USD, marking a remarkable increase of 23.7% year-over-year from $711.3 million USD. Notably, revenue from NFI’s manufacturing segment alone rose by $164.2 million USD, or 29.4% compared to last year.

However, the company’s fortunes are being threatened by newly imposed tariffs. NFI Group has been impacted by existing tariffs on steel and aluminum imports in both the U.S. and Canada. Furthermore, a new 10% tariff on all bus and coach imports into the U.S. took effect on November 1, raising concerns about the potential long-term effects on demand for private motor coaches.

CEO Paul Soubry stated, “While we continue to view tariffs mainly as pass-through costs, we acknowledge that private motor coach demand could be adversely affected.” This statement underscores the urgent challenges facing the bus manufacturing sector as tariffs increase operational costs.

The implications of these tariffs extend beyond financial figures; they could delay critical infrastructure projects and e-bus deployments in cities across North America. As cities wait for the transition to electric buses, the new tariffs could significantly compound existing delays and hinder progress, leaving communities at a disadvantage in their efforts to modernize public transportation.

With the financial landscape shifting rapidly, industry analysts are closely monitoring NFI Group’s next moves. The company is expected to adapt its strategies in response to these economic pressures, and stakeholders are keen to see how this will affect their operations moving forward.

What’s Next: Investors and industry observers should stay alert for updates from NFI Group, particularly regarding how these tariffs will influence future revenue and operational strategies. As the situation develops, further announcements from the company will shed light on their approach to navigating these challenging market conditions.

Stay tuned for further updates on this developing story as NFI Group works to adapt to a rapidly changing economic environment.