NFI Group Secures $56 Million Bus Order Extension from Southern Nevada

Event summary

  • NFI Group subsidiary New Flyer received an order for 50 low-emission buses from the Regional Transportation Commission of Southern Nevada (RTC).
  • The order, valued at approximately $56 million, exercises existing options within two five-year contracts.
  • The buses are Xcelsior® CNG models, with 19 being sixty-foot and 31 being forty-foot.
  • The order is supported by local and Federal Transit Administration funds and adheres to Buy America requirements.
  • This extends a partnership spanning over three decades, with New Flyer having delivered over 900 buses to RTC to date.

The big picture

This order demonstrates continued demand for CNG buses, particularly in regions like Southern Nevada seeking to balance emissions reduction with operational practicality. While CNG offers a transitional solution, the broader industry is shifting towards full electrification, creating a potential long-term headwind for NFI's CNG bus business. The $56 million order provides near-term revenue certainty but highlights the need for NFI to aggressively pursue and secure zero-emission bus contracts to maintain market share.

What we're watching

Contract Dynamics
The frequency with which RTC exercises these options will indicate the agency’s long-term commitment to CNG buses and New Flyer's position as a preferred supplier.
Buy America
Continued adherence to Buy America requirements may constrain NFI’s sourcing flexibility and potentially impact margins, especially given ongoing global supply chain challenges.
Emission Standards
The increasing stringency of emission regulations could accelerate the transition to zero-emission bus technologies, potentially diminishing the long-term demand for CNG buses like those ordered.