11:54 AM EST, 11/10/2025 (MT Newswires) -- NFI Group's ( NFYEF ) third-quarter operating results were better than feared, notes Stifel Canada. Production stayed on track in the fourth-quarter, but results were overshadowed by the US$229 million battery warranty provision.

NFI will execute its battery recall on the 700 impacted buses at its service centers to avoid disrupting factory production, using a "plug-and-play" battery solution from American Battery Systems (ABS). Analyst Daryl Young understands that NFI will be purchasing the batteries from ABS and recouping from XALT (unclear if XALT will provide a lump sum upfront payment on the settlement or staggered payout over the duration of the recall work).

Management conveyed confidence that the liability for the faulty batteries resides with XALT, but the two parties have yet to sign a definitive agreement to handle the claim, Young writes. Since disclosing the warranty issue September 26th, the stock has shed ~C$500 million of market cap.

NFI Group ( NFYEF ) is rated Buy with a C$23 price target.

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