Q: Can you comment on earnings
5i Research Answer:
Loss of 13c per share was better than expected (-16c). Revenue of $723M was 6% better than estimates. EBITDA of $34M was 27% better. Deliveries were up 42%, backlog is now at a record $11.7B. 2024 guidance was affirmed, with EBITDA at $240M+ and 2025 at $350M+. The quarter was good, and customer demand strong. Still, debt did not change in the quarter and remains high, and this, plus its cyclicality, would be our main concerns. The stock is down this year, but with the big backlog investors may start looking at NFI again. There are still challenges with inflation and labour, but working capital management has improved, which is key if the company wants to meet its production and growth targets.