Houston METRO Orders 100 CNG Buses from New Flyer in $93M Deal
Event summary
- Houston METRO awarded New Flyer a $93M order for 100 Xcelsior® 40-foot compressed natural gas (CNG) buses.
- The order was added to New Flyer’s firm backlog in Q2 2026.
- Funding comes from the FTA’s 2025-2026 Low- or No-Emission (Low-No) Program and Bus and Bus Facilities Projects.
- The buses will replace end-of-life vehicles and support METRO’s fleet modernization efforts.
- This extends a 30-year partnership between NFI and METRO.
The big picture
This order underscores the ongoing shift toward cleaner public transportation solutions, with CNG buses serving as a transitional technology before full zero-emission adoption. The deal also highlights the strategic importance of long-term partnerships in the transit bus manufacturing sector, where reliability and aftermarket support are key differentiators. With METRO serving over 76 million passenger trips annually, this order represents a significant step in modernizing one of North America’s largest transit systems.
What we're watching
- Execution Risk
- Whether NFI can deliver the buses on time amid potential supply chain disruptions.
- Regulatory Headwinds
- How changes in U.S. policy developments may impact funding availability for similar projects.
- Market Dynamics
- The pace at which other transit authorities adopt CNG or zero-emission buses.