NFI Group Inc.

Please be advised that today's conference is being recorded. I would now like to turn the conference over to Stephen King, Vice President, Strategy and Investor Relations. Please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to our conference call. Joining me today are Paul Subri, President and Chief Executive Officer, and Brian Dusniff, Chief Financial Officer. On today's call, we will give an update on our quarterly results, highlighting the continued improvement in our overall margins and unit economics as we convert our strong backlog. We'll also provide an update on the non-recurring battery warranty that impacted the quarter and recap our outlook. This call is being recorded, and a replay will be made available shortly. We will be referring to a presentation that can be found in the financials and filing section of the NFI Group website. As we move through the slides via the webcast link, we will call out the slide number. On slide two, we provide our cautionary or forward-looking statements and note that certain financial measures referenced today are not recognized earnings measures and do not have standardized meanings described by International Financial Reporting Standards, or IFRS. We advise listeners to view our press releases and other public findings on CEDAR for more details. In the appendage of this presentation, we have provided a list of key terms and definitions that will be used on today's call. A reminder that NFI statements are presented in U.S. dollars, the company's reporting currency, and all amounts referred to are in U.S. dollars unless otherwise noted. Slides three and four provide a brief overview of our company. NFI is a global independent bus and motor coach mobility solutions provider. We offer a wide range of propulsion agnostic buses and coaches on proven platforms We hold leading market share positions in transit and coach markets. More detailed information is available on our website. Slide five provides some brief insight into NFI's product and geographic mix and other major milestones. I will now pass it over to Paul to provide an overview of NFI's results for the third quarter.

Thank you, Stephen. Good morning, everyone, and thank you for joining us this morning. I'll dive right into the Q3 results on slide seven, starting with demand. Despite the third quarter being seasonally slower, we secured 644 equivalent units in new orders, generating 108.5% LTM book-to-bill ratio and a strong 71.8% option conversion rate. This highlights the continued strength in market demand supported by government funding in both Canada and the United States. Our total backlog, which includes both the firm and option orders, now totals 15,606 equivalent units worth US dollars, $13.2 billion. In Q3, we delivered a 52% year-over-year increase in adjusted EBITDA and a 12.8 million improvement in free cash flow. Liquidity increased by 240.2 million, reaching 386 million at the end of the quarter. Total leverage, inclusive of all debt, improved to 4.28 times an improvement of one full term since the end of 2024. These improvements were largely driven by the continued conversion of our strong backlog into operating results, with increases in the average revenue and margin per delivered unit. While there were numerous positives, the quarter was negatively impacted by a warranty provision for an ongoing battery recall. On slide 8, we provide details of this provision. In September, we announced a recall affecting approximately 700 buses and coaches, primarily new flyer buses. The recall relates to batteries provided by our U.S.-based supplier Exaltion that was initiated due to the potential of a cell short circuit or cell fault, primarily during charging or at full state of charge. For context, we've provided an overview of the components of a battery system on this slide, starting with the cell all the way through to the battery enclosure. As safety is our top priority, Immediately after issuing the recall, we implemented operational guidelines and software updates to limit the state of charge and the speed of charging on the affected buses and motor coaches. This allows customers to continue operating their vehicles with the affected batteries still in use. We've now determined that ultimately we need to replace the batteries on these buses. The campaign is expected to take 18 to 24 months in total, beginning in the first half of the early part of 2026. and we will use a different battery supplier to replace those batteries. Our plan is for the replacement to be completed in the field, and we intend to leverage our service center network for this work. While we are still finalizing our approach, we do expect this work not to disrupt our production in 2026. Reflecting the expected replacement along with future potential costs to support other legacy Exalt batteries in the field, we booked a $229.9 million warranty provision in the third quarter. This reflects our best and conservative estimate of the total cost of the battery recall and related support. We are comfortable with the tentative term sheet that we entered into with Exalt and expect to finalize a definitive agreement for costs associated with the recall as we move through the fourth quarter. Exalt recently announced its decision to wind down their U.S. battery operations. This announcement does not change our expectation that we will achieve a satisfactory agreement on the recall cost that meets our needs and those of our customers. We do also not expect this wind down to have any impact on New Flyers production. We had previously moved most of our electric bus battery supply to an alternate U.S.-based supplier. We will use those different batteries on the buses going forward. We currently use the Exalt batteries on our fuel cell electric buses, and we expect all of the batteries needed for our 2026 production will be provided by Exalt before they wind down operations. The batteries on the fuel cell buses are different than the batteries on the electric buses. Long term, we'll be moving our fuel cell bus battery supply to an alternative provider. Recognition of the warranty provision for the battery recall impacted numerous financial metrics in the quarter. And given the non-recurring nature of this event and the ongoing negotiations on an agreement for related costs, we have normalized adjusted EBITDA and adjusted net earnings calculations. This morning, we will call it a few other areas where the recall had a meaningful impact. And on slide nine, we outlined some of these impacts. Without the battery recall, manufacturing segment gross margin would have been 10.2%, with a gross profit per equivalent unit of $66.3 thousand. a 58% improvement from the third quarter in 2024. Manufacturing net earnings would have been $26.7 million. Reported working capital of $248 million was positively impacted by the provision and would have been $464 million without it. The graph on the right bridges net loss to adjusted net earnings with the battery recall and the associated tax impact being the largest bridging items. This is our third straight quarter of positive adjusted net earnings I'll now turn the call over to Brian Dusnip, our Chief Financial Officer, to provide a supply chain update and discuss our financial results in more detail. Over to you, Brian.