NFI Group Inc.

Good morning, and thank you for standing by. Welcome to the NFI 2026 Second Quarter Fiscal Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To answer your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Stephen King. Please go ahead.

Thank you, Lisa. Good morning, everyone, and welcome to our Q2 conference call. Joining me today are John Sapp, President and Chief Executive Officer, and Brian Dewsnup, Chief Financial Officer. On today's call, we will recap the quarter, which included continued operational recovery, strong year-over-year earnings growth, margin expansion, meaningful cash generation, and further progress in our deleveraging strategy. John will provide an overview of business performance, demand, strategic priorities and our outlook, including an increase to our 2026 guidance ranges. Brian will walk us through financial results, cash flow, liquidity and capital structure updates. 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 prescribed by International Financial Reporting Standards, or IFRS. We advise listeners to view our press releases and other public filings on CDAR for more details. 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 noticed. Slides three to five provide a brief overview of our company. A quick reminder for new listeners that NFI is a bus and motor coach manufacturer and total mobility solutions provider. We offer a wide range of buses and coaches on proven platforms and are North America's largest bus and coach provider. We hold market-leading positions and offer the industry's strongest aftermarket network. I'll now pass it over to John.

Morning, everyone, and thank you for joining us today. I'm picking you up on slide seven. The second quarter represented another important step forward for NFI and showcased the strength of our backlog and aftermarket business, which delivered a record quarter. During the quarter, we delivered 1,232 equivalent units, a 14.5% year-over-year increase. Revenue increased 18.6% to approximately $1.03 billion and adjusted EBITDA increased 47% to $104 million. Also significant to highlight that net earnings were $17.4 million compared to a net loss of $160.8 million in the prior year. A couple of key themes to what drove our strong second quarter. First, we saw continued improvement in our unit economics from the conversion of backlog supported by higher overhead absorption as we increased production rates. Another bright spot was our aftermarket business that holds strategic value by supporting customers throughout the full life cycle of their fleets. Aftermarket's offering of parts, training, service, field support remains a key differentiator for NFI. Operating performance translated into improved liquidity, ending at $520 million and a reduction in leverage to 2.8 times. Brian will get into details, but working capital was a big contributor in the quarter as we were able to unwind some inventory carried over from Q1 of 26 and also saw strong receivable collections. This improvement came even as we had some extended receivable balances associated with tariff recovery and as we had cash outflows of 7.2 million associated with the battery recall campaign. We completed full battery replacements on 37 buses in the quarter, bringing the total up to 49 since the launch of the campaign. Moving to slide eight, we highlight the quarterly and LTM deliveries by product lines. Transit bus deliveries increased 22% in the quarter to 911 EUs, primarily driven by higher North American production and sales, and somewhat offset by lower UK deliveries. On an LTM basis, transit deliveries increased by 4% to 3,099 EUs. Motorcoach deliveries increased 7.6% to 142 EUs, supported by higher public motorcoach volumes. On an LTM basis, motorcoach deliveries increased 11.1% to 682 EUs, reflecting higher public and private motorcoach deliveries over the period. Medium duty and low floor cutaway deliveries were 179 EUs, a decrease of 9.1% compared to the prior year quarter following several quarters of elevated demand and record level activity. The LTM number reflects this outperformance with an increase of 13.6%. I'll now pass it over to Brian to go through the second quarter results before we get into a detailed look at our outlook.