Latest news with #BookToBillRatio
Yahoo
02-08-2025
- Business
- Yahoo
NFI Group Inc (NFYEF) Q2 2025 Earnings Call Highlights: Strong Demand and Financial Performance ...
New Orders: 822 equivalent units (EUs) with 95% firm orders. Total Backlog: 16,198 EUs worth USD 13.5 billion. Book-to-Bill Ratio: 119.9% on a last twelve months (LTM) basis. Option Backlog Conversion Rate: 74.9% on an LTM basis. Adjusted EBITDA: 19% year-over-year increase. Adjusted Net Earnings: $7.6 million improvement. Return on Invested Capital: 7.9% increase. Total Liquidity: $326.7 million. Net Loss: $160.8 million with a loss per share of $1.35. Adjusted Net Earnings: $10.7 million or $0.09 per share. Transit Deliveries: Down due to lower UK deliveries and seat supply disruption. Coach Deliveries: Down due to timing, with expectations of a strong second half. Average Selling Price (ASP) for Transit Buses: 27% year-over-year increase. Average Selling Price (ASP) for Coaches: 20% year-over-year increase. Low-Floor Cutaway Bus Deliveries: 197 EUs, up 30% year-over-year. Aftermarket Gross Margin: 26.4%, down year-over-year. Manufacturing Gross Margin: Increased from 8% to 10.6% year-over-year. Free Cash Flow: Positive with a strong increase. Revenue Guidance for 2025: $3.8 billion to $4.2 billion. Adjusted EBITDA Guidance for 2025: $320 million to $360 million. Warning! GuruFocus has detected 10 Warning Signs with NFYEF. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points NFI Group Inc (NFYEF) reported a 19% year-over-year increase in quarterly adjusted EBITDA, indicating strong financial performance. The company successfully completed the refinancing of its first and second lien debt, enhancing its financial stability. NFI Group Inc (NFYEF) recorded new orders of 822 equivalent units (EUs), with 95% being firm orders, showcasing strong demand. The total backlog now stands at 16,198 equivalent units worth USD 13.5 billion, providing significant future revenue visibility. The company has improved its supply chain health, reducing high-risk suppliers from 50 in 2022 to just one currently, enhancing operational efficiency. Negative Points NFI Group Inc (NFYEF) reported a quarterly net loss of $160.8 million, highlighting ongoing financial challenges. The company faced non-recurring and unusual expenses, including a $10.2 million restructuring provision and a $10 million non-cash goodwill impairment related to its UK operations. The UK market remains challenging due to competitive pressures from non-UK-based bus OEMs, impacting Alexander Dennis' performance. The company is still dealing with seat supply disruptions, which have affected production and delivery schedules. NFI Group Inc (NFYEF) faces potential cash flow timing impacts due to tariffs, as there may be delays in customer reimbursements for tariffs paid. Q & A Highlights Q: Can you provide more details on the supply chain, particularly regarding the seat supplier issues and overall supply chain health? A: Paul Soubry, President and CEO, explained that the seat supplier, which previously provided 60% of seats, now accounts for 30-35% due to diversification efforts. Overall supply chain health has improved significantly, with parts availability back to pre-COVID levels at 99.5-99.6%. The company has strengthened its sourcing and procurement teams to maintain this stability. Q: What are the expectations for leverage by year-end? A: Brian Dewsnup, CFO, stated that the current leverage is at 4.9%, including convertible debt. The company aims to reduce leverage to a target range of 1.5% to 2.5%, but this is expected to be achieved by 2026 rather than by the end of the current year. Q: How is the company addressing the tariff impacts, and what is the potential financial impact? A: Paul Soubry noted that tariffs, particularly indirect ones, are being managed by invoicing customers separately for tariff costs. The company is working with an accounting firm to ensure accurate calculations. The annualized tariff exposure is estimated at $40-60 million, with a potential short-term impact of $10-15 million, which is manageable given the company's liquidity. Q: What is the long-term vision for the UK market given the competitive landscape? A: Paul Soubry emphasized the importance of the UK market despite challenges. The company is undergoing a consultation process to rationalize facilities and improve competitiveness. The Scottish government is supportive, and future procurements may focus more on local job creation and economic benefits. Q: Can you elaborate on the guidance range for 2025 and what factors could influence the high and low ends of this range? A: Brian Dewsnup explained that the guidance range of $320 million to $360 million in adjusted EBITDA reflects uncertainties, particularly around the pace of seat supplier recovery and delivery schedules. The range accounts for potential variability in deliveries, especially in the fourth quarter, which is typically strong for private market orders. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-07-2025
- Business
- Yahoo
Booz Allen Hamilton Holding Corp (BAH) Q1 2026 Earnings Call Highlights: Strong Net Income ...
Gross Revenue: $2.9 billion, down roughly 1% year-over-year. Revenue Excluding Billable Expenses: Grew 2% year-over-year. Defense Revenue: Up 7% compared to the prior year period. Intel Revenue: Up 6% compared to the prior year period. Civil Business Revenue: Down 13% year-over-year. Book-to-Bill Ratio: 1.42 times for the quarter. Total Backlog: $38 billion, up 11% year-over-year. Adjusted EBITDA: $311 million, up 3% from the prior year period. Adjusted EBITDA Margin: 10.6%, up 30 basis points year-over-year. Net Income: $271 million, a 64% increase year-over-year. Adjusted Net Income: $184 million, up 2% versus the prior year. Diluted Earnings Per Share: $2.16, up 70% year-over-year. Adjusted Diluted Earnings Per Share: $1.48, up 7% year-over-year. Cash on Hand: $711 million. Net Debt: $3.3 billion. Net Leverage Ratio: 2.5 times adjusted EBITDA for the trailing 12 months. Free Cash Flow: $96 million. Share Repurchases: $154 million at an average price of $109.42 per share. Quarterly Dividend: $0.55 per share. Fiscal Year Free Cash Flow Outlook: Between $900 million and $1 billion. Warning! GuruFocus has detected 6 Warning Sign with FRA:0PN. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Booz Allen Hamilton Holding Corp (NYSE:BAH) achieved a strong quarterly book-to-bill ratio of 1.42 times, with a record backlog of $38 billion, indicating robust demand for their services. The company is focusing on strategic growth areas such as AI, cyber, and quantum technologies, which align with national priorities and offer significant long-term opportunities. Booz Allen Hamilton Holding Corp (NYSE:BAH) is actively restructuring and optimizing its civil business to align with current demand, positioning itself for future growth. The company has successfully deployed advanced technologies like the modular detachment kit and tactical assault kit, enhancing its defense capabilities and supporting warfighters. Booz Allen Hamilton Holding Corp (NYSE:BAH) is leveraging AI and automation to improve internal efficiencies and accelerate its transformation, which is expected to enhance shareholder value. Negative Points The company is experiencing a slowdown in funding, which is affecting the conversion of bookings to revenue and creating uncertainty in the short term. Revenue in the civil business declined by 13% year-over-year, reflecting challenges in this segment despite efforts to restructure and optimize. There is a noted decrease in funded backlog, indicating potential delays in contract execution and funding allocation. Headcount reductions were necessary in the civil business, highlighting the need to adapt to changing demand and optimize workforce alignment. The procurement environment remains slower than historical norms, impacting the speed at which new contracts are being finalized and executed. Q & A Highlights Q: Is there now a greater appreciation for Booz Allen's tech capabilities, and has the procurement environment improved? A: Horacio Rozanski, CEO, noted that the business has stabilized in a dynamic environment, with contracts being reviewed and tech holding out well. The procurement environment has improved but is still below historical speeds. Booz Allen is recognized for making tech work under extreme conditions, and there is optimism for future opportunities. Q: What is the interest from Silicon Valley tech providers in partnering with Booz Allen, and what are the implications of outcome-based contracts? A: Rozanski highlighted that Booz Allen has long partnered with commercial tech companies, including NVIDIA and AWS. These companies see Booz Allen as a key partner for making tech work in mission-critical environments. Outcome-based contracts are seen as positive trends for Booz Allen. Q: Can you comment on the funded backlog trend and its implications? A: Matthew Calderone, CFO, explained that while there is a decline in funded backlog due to slow funding, there is confidence in medium-term opportunities. The backlog is expected to increase as funding normalizes, driven by significant technology investments. Q: How is Booz Allen addressing headcount challenges and hiring for technical roles? A: Kristine Anderson, COO, stated that Booz Allen is comfortable with hiring, matching it to demand. The company is using advanced technology and AI to drive productivity and is confident in its ability to meet hiring needs, especially for technical roles. Q: What role could Booz Allen play in the Golden Dome initiative, and how quickly could this play out? A: Rozanski mentioned that Booz Allen is closely involved with Golden Dome, funded by the reconciliation package. The company can play various roles, including cyber and intel, and is participating in the procurement process as it ramps up. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
