Turning your Tax-Free Savings Account (TFSA) into a steady, tax-free income stream is a goal many Canadians share. With the 2025 contribution limit at $7,000, there’s a clear opportunity to build momentum by investing in stocks that offer both growth and future income potential. But where should you put that $7,000 to really make it work for you? One overlooked but increasingly attractive stock is NFI Group (TSX:NFI), a Canadian company that builds buses — specifically, low- and zero-emission buses that are shaping the future of public transportation.
About NFI stock
Let’s start with the basics. NFI is based in Winnipeg and is one of North America’s largest bus manufacturers. It supplies electric and hybrid buses to cities across Canada, the United States, and beyond. This puts it in the middle of one of the biggest transitions happening today: the shift from diesel-powered transit fleets to clean, electric options. Municipalities are under growing pressure to cut emissions and replace outdated fleets. NFI is helping make that happen, and it’s starting to show up in the company’s results.
In its latest earnings report for the first quarter of 2025, NFI reported revenue of US$841.4 million, up 16.4% from the same quarter last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at US$62.7 million, a jump of more than 84% year over year. Those are encouraging signs for a company that has spent the past few years dealing with pandemic disruptions, global supply chain snarls, and higher interest costs.
But what’s really impressive isn’t just the revenue, it’s the order backlog. NFI currently has a record backlog of US$13.7 billion, representing more than 16,500 equivalent units. Even more important, over half of those units are for zero-emission buses. That means the company has a pipeline of projects lined up for years to come, much of it in green transportation.
More growth to come
So, what does this mean for investors? At the time of writing, NFI stock trades at about $15.58 per share, with a market cap of around $1.85 billion. That’s still far below its highs from 2018 and 2019, when it traded over $50. The drop came with tangible reasons: declining margins, supply issues, and a suspended dividend. But the company has spent the past two years restructuring and reducing costs. It’s now focused on execution and delivering on its massive order book.
Investing $7,000 in NFI today is ultimately a bet on the green transformation of transit. It’s also a bet that this Canadian company can successfully deliver on the orders it’s already won and turn them into long-term profits. It won’t happen overnight, but few truly rewarding investments ever do. What you get in return is the possibility of serious upside without the tax burden that comes with holding stocks in a non-registered account.
If you’re looking to build your TFSA into a cash-creating machine, you don’t have to chase risky, speculative names. NFI offers exposure to infrastructure spending, electric vehicles, and green energy, all while trading at a reasonable valuation. It’s a company on the rebound, with contracts in hand and a path to profitability in sight. That’s the kind of setup that can quietly double your money while you sleep.
