Key Takeaways Blue Bird Corporation will buy Girardin Group's stake in Micro Bird for about $200 million.BLBD will unify North American operations and broaden its Type A, C and D bus lineup.Blue Bird plans to expand its shuttle bus market and add Steve Girardin to its board.Blue Bird Corporation (BLBD) , a leader in electric and low-emission school buses, has entered into an agreement to acquire Girardin Group’s stake in the 50/50 Micro Bird joint venture in order to gain full ownership of the business. The ...

Core Insights - Blue Bird Corporation (NASDAQ:BLBD) is gaining attention from multiple financial institutions, with several analysts raising their price targets and maintaining positive ratings following strong earnings reports [1][2][3]. Financial Performance - For the fiscal 2026 first quarter, Blue Bird reported net sales of $333.1 million and GAAP net income of $30.8 million, resulting in diluted EPS of $0.94 [4]. - The company achieved adjusted EBITDA of $50.1 million with a margin of 15%, and sold 2,135 buses during this period [4]. - Revenue increased by $19.2 million year-over-year, attributed to pricing changes and product mix, while bus sales rose by 6.8% due to higher average fares [4]. - Gross profit improved by $10.9 million to $71.2 million, driven by stronger sales that offset rising costs [4]. Analyst Ratings and Price Targets - BofA raised Blue Bird's price target to $65 from $62 while maintaining a Buy rating, citing strong earnings [1]. - Needham increased the price objective from $70 to $78, also keeping a Buy rating, highlighting flat revenues but a bottom-line beat and increased full-year EBITDA projections [2]. - Barclays raised its price objective to $55 from $50, maintaining an Overweight rating after the Q1 release, noting that sales and profits exceeded expectations and backlog growth [3]. Market Position and Strategic Insights - Blue Bird operates in the school bus manufacturing sector and has a significant order backlog, with over 850 electric buses on firm order [4]. - The company is noted for its strategic positioning following recent M&A activity in the North American specialty vehicle industry, which has contributed to a stronger margin profile [2].

Core Viewpoint - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of any affiliated organization [4].

Group 1 - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] - It highlights the role of financial analysis combined with narrative writing to provide insights into company performance and market understanding [1] Group 2 - There are no specific companies or financial data mentioned in the article, focusing instead on the general approach to analyzing businesses [1]

Core Viewpoint - The investment case for Blue Bird (BLBD) stock appears strong, with shares nearing an all-time high following fiscal first quarter earnings, while the valuation remains reasonable [1]. Group 1: Company Performance - Blue Bird's stock has reached near all-time highs after the release of fiscal first quarter earnings, indicating strong market performance [1]. Group 2: Market Environment - The external environment is described as volatile, which may impact the overall market conditions for companies like Blue Bird [1].

BLUE BIRD CORPORATION (NASDAQ: BLBD) Investor Presentation February 2026 1 Important Disclaimers Forward Looking Statements This presentation includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements include statements regarding guidance, se ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - Blue Bird (BLBD) reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.8 per share, and showing an increase from $0.92 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company posted revenues of $333.08 million for the quarter ended December 2025, which was 4.83% below the Zacks Consensus Estimate, but an increase from $313.87 million year-over-year [2] - Blue Bird shares have increased approximately 11.6% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $390 million, and for the current fiscal year, it is $4.21 on revenues of $1.57 billion [7] - The Zacks Industry Rank for Automotive - Domestic is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Blue Bird has a Zacks Rank of 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Blue Bird reported revenue of $333 million for Q1, which is 6% higher than the previous year, driven by pricing actions including tariffs [7][15] - Adjusted EBITDA for the quarter was $50 million, an increase of $4 million compared to last year, resulting in a margin of 15% [7][18] - Free cash flow reached a record $31 million, up $9 million from the prior year [7][16] - The liquidity position at the end of the quarter was a record $385 million, reflecting a $106 million increase year-over-year [20] Business Line Data and Key Metrics Changes - Bus segment net revenue was $308 million, up $20 million from the prior year, with average bus revenue per unit increasing by $9,000 to $144,000 [17] - EV sales in Q1 totaled 121 units, slightly down from the previous year, while the backlog included 855 EVs scheduled for delivery into 2027 [10][16] - Parts revenue remained strong at $25 million, supported by increased demand due to aging buses [17] Market Data and Key Metrics Changes - Order intake for Q1 was up 45% from the first quarter of 2025, resulting in a backlog of 3,400 units [4][8] - The market fundamentals remain strong, with an aging fleet and a heavy replacement cycle expected to drive demand for school buses [8][10] - The company anticipates a continued strong demand for EVs, supported by state funding and fleet mandates [10][79] Company Strategy and Development Direction - Blue Bird's strategy focuses on business continuity, profitable growth, margin expansion, and leveraging a strong balance sheet for strategic opportunities [26][28] - The company is investing in automation and Industry 4.0 initiatives to improve manufacturing efficiency and reduce costs [5][28] - The new assembly plant is scheduled to launch in 2028, which will enhance production capabilities and support future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order intake and a favorable market environment despite challenges from tariffs [3][12] - The company is maintaining its revenue guidance for fiscal 2026 in the range of $1.45 billion to $1.55 billion, with an adjusted EBITDA target of $225 million [21][22] - Management highlighted the importance of state funding and federal programs in supporting EV sales and overall market growth [10][79] Other Important Information - The company completed a $15 million share buyback during Q1, with plans for a new $100 million program [20] - The $80 million MESC contract with the DOE for the new plant remains intact, contributing to job creation and clean school bus production [11][12] Q&A Session Summary Question: Margin dynamics and pricing vs. efficiency - Management indicated that approximately two-thirds of margin improvement came from pricing and one-third from efficiency gains [33][34] Question: EV market share and diesel trends - Management confirmed a strong EV backlog and noted that diesel sales remained robust, with potential pre-buy activity due to upcoming emission regulations [40][41] Question: Capital allocation strategy - The company is focused on strategic growth opportunities and vertical integration, with a strong balance sheet enabling flexibility in capital allocation [51][52] Question: Automation impact on margins - Management stated that automation initiatives are expected to provide favorable returns and contribute positively to long-term margin improvements [56][57] Question: Market share outlook - Management noted that market share has normalized following supply issues faced by competitors, with no significant changes anticipated [62][63]

Financial Data and Key Metrics Changes - Blue Bird reported Q1 revenue of $333 million, a 6% increase from the previous year, driven by pricing actions including tariffs [7][13] - Adjusted EBITDA for the quarter was $50 million, $4 million higher than last year, reflecting a 15% margin [7][16] - Free cash flow reached a record $31 million, up $9 million from the prior year [14] - The company ended the quarter with a liquidity position of $385 million, a $106 million increase compared to a year ago [18] Business Line Data and Key Metrics Changes - Bus net revenue was $308 million, up $20 million year-over-year, with average bus revenue per unit increasing by $9,000 to $144,000 [15] - EV sales in Q1 totaled 121 units, representing 6% of unit volume, with a backlog of 855 EVs pushing into 2027 [9][14] - Parts sales remained strong at $25 million, supported by increased demand due to aging buses [15] Market Data and Key Metrics Changes - Order intake for Q1 was up 45% from the first quarter of 2025, resulting in a backlog of 3,400 units [4][14] - The market fundamentals remain strong, with an aging fleet leading to a heavy replacement cycle [8] - The company anticipates a continued strong demand for school buses, supported by state funding and fleet EV mandates [10][78] Company Strategy and Development Direction - Blue Bird's strategy focuses on long-term stability, profitable growth, margin expansion, and leveraging a strong balance sheet for strategic opportunities [26][27] - The company is investing in automation and Industry 4.0 initiatives to improve manufacturing efficiency and reduce costs [5][26] - The new assembly plant scheduled to launch in 2028 is a key part of the company's growth strategy [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order intake and a favorable market environment despite tariff volatility [3][19] - The company is maintaining its revenue guidance for fiscal 2026 in the range of $1.45 billion to $1.55 billion, with an adjusted EBITDA target of $225 million [19][20] - Management highlighted the importance of EVs in the school bus sector, with a projected 800 EV unit sales for fiscal 2026 [10][19] Other Important Information - The company confirmed that the $80 million mass contract with the DOE for the new plant remains intact [11] - Blue Bird's long-term target includes driving revenue to $1.8-$2 billion with EBITDA of $280-$320 million by 2029 and beyond [22][24] Q&A Session Summary Question: Margin dynamics and pricing impact - Management indicated that approximately two-thirds of margin improvement came from pricing, while one-third was due to efficiency gains [32] Question: EV market trends and backlog - Management confirmed a strong EV backlog, with over 1,000 units sold and in backlog, indicating robust demand despite infrastructure readiness issues [36] Question: Propane market trends - Management noted that propane remains a preferred option for school districts due to its total cost of operation and ease of infrastructure conversion [44] Question: Order trends and market share - Management reported a strong order intake, validating pricing stability and indicating a potential catch-up from previous quarters [48] Question: Capital allocation strategy - Management discussed a strong balance sheet and potential for strategic acquisitions, while also considering share buybacks and increased CapEx spending [58][59]