NFI Begins Sale Process for Some XALT Cells Once Planned for 2027 Bus Batteries

NFI Group says it has begun a process to sell some battery-cell inventory it received in its 2025 settlement with XALT Energy. In unaudited third-quarter results released November 5, the electric-bus manufacturer also reported a US$33.8 million impairment associated with that inventory. The development is notable because NFI's December 2025 settlement announcement had described a different intended use for the acquired cells: having a U.S. supplier package them for a new electric-bus battery offering in 2027.¹²

Taken together, the two issuer statements indicate a change in the disclosed intended use of at least some settlement-acquired cells—from a planned bus-battery product toward a sale process. They do not establish that NFI has abandoned its entire 2027 battery plan, sold all the cells, or canceled bus deliveries.¹²

What changed between the two disclosures

Date and document	NFI's disclosed plan or action	What it establishes
December 16, 2025 — XALT settlement announcement	NFI planned to have a U.S.-based supplier package the new cells it acquired through the settlement into a 2027 electric-bus battery offering.2	A forward-looking product plan, not evidence that batteries had been built or delivered.
November 5, 2026 — Q3 results	NFI said it had begun a process to sell certain acquired cells, and recorded a $33.8 million inventory impairment.1	An announced sale process and accounting charge, not proof of a completed sale or proceeds.

NFI's chief executive said the company expects to monetize the affected inventory over 12 to 18 months. That is a forecast. Neither the number of cells being marketed nor their proportion of the original transferred inventory was established in the reviewed results. The disclosures also do not resolve whether the company intends to proceed with a 2027 battery offering using different inventory or sourcing.¹²

Why the $33.8 million cannot be added to the recall figures

The $33.8 million is a reported inventory impairment, an accounting reduction in the value assigned to the cells. It is not a reported $33.8 million cash expenditure on bus repairs or demonstrated proceeds from selling the cells.¹

The same November results separately present roughly $35.2 million of third-quarter battery-recall and settlement-related costs, with a $35.218 million quarterly non-IFRS reconciliation item. Those figures appear within the issuer's related disclosure and should not be summed with the $33.8 million impairment to produce an invented combined cost. The precise accounting allocation would require reconciliation against the full interim financial notes; the reviewed release does not support an additive calculation.¹

The settlement traces back to a 2025 recall. NFI said at the time that approximately 700 battery-electric buses and coaches, primarily New Flyer vehicles, were affected and recorded a $229.9 million provision for expected replacement and related support costs. Those figures are historical company-reported estimates, not a newly announced November 2026 recall. NFI's December 2025 agreement with XALT explicitly resolved the parties' disputes without an admission of fault, wrongdoing or liability by either party.³²

For operators and fleet buyers, the new information concerns the planned disposition and reported valuation of one source of battery inventory. The public statements reviewed here do not establish revised delivery schedules, battery-replacement timelines for individual fleets, a buyer for the cells, or a final decision on the previously proposed 2027 offering.¹²

Sources

Footnotes

1. NFI Reports Third Quarter 2026 Results — NFI Group Inc., original unaudited issuer results distributed November 5, 2026. https://www.globenewswire.com/news-release/2026/11/05/3397206/0/en/nfi-reports-third-quarter-2026-results.html. Establishes certain XALT-settlement battery-cell inventory being prepared for sale, CEO's expected monetization period, associated $33.8 million impairment, and reported Q3 recall/settlement figures. It does not establish completed inventory sales, cash proceeds, or cancellation of the 2027 product plan. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

2. NFI Announces Battery Recall Agreement with XALT — NFI Group Inc., December 16, 2025. https://www.nfigroup.com/news-releases/news-release-details/nfi-announces-battery-recall-agreement-xalt/. Establishes the acquired new-cell inventory, NFI's forward-looking U.S. supplier-packaging plan for a 2027 electric-bus battery offering, and the settlement's express no-admission-of-fault language. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

3. NFI Announces Third Quarter Results — NFI Group Inc., November 6, 2025. https://www.nfigroup.com/news-releases/news-release-details/nfi-announces-third-quarter-results. Provides the issuer's original historical recall scope, estimated 700 affected electric buses/coaches and $229.9 million provision, not proof of current repair status or culpability. ↩