Financial Data and Key Metrics Changes - Blue Bird achieved record sales and adjusted EBITDA for Fiscal 2025, with adjusted EBITDA of $221 million, representing 15% of revenue, which is $38 million higher than the previous year [6][18][33] - Total revenue for Fiscal 2025 reached $1.48 billion, an increase of $133 million compared to the prior year [6][18] - The company sold 9,409 buses in 2025, with an average bus revenue per unit of $146,000, up $8,000 from the previous year [6][17] Business Line Data and Key Metrics Changes - Bus net revenue for the year was $1.377 billion, an increase of $134 million or 11% year-over-year [12][18] - Electric vehicle (EV) sales totaled 901 units, a 30% increase from the previous year, representing 9.6% of total volume [6][17] - Parts revenue remained flat at $103 million, maintaining strong demand due to an aging fleet [17][18] Market Data and Key Metrics Changes - The backlog at the end of Q4 was 3,100 units, including 680 EVs, but has since increased to nearly 4,000 units, with over 850 EVs [7][14] - Year-over-year selling prices for buses increased by nearly $8,300 per unit, reflecting pricing actions and tariff recovery [8][12] - The company noted that the fleet is aging, leading to a heavy replacement cycle and pent-up demand in the market [8][22] Company Strategy and Development Direction - Blue Bird is focusing on long-term manufacturing strategies, including automation and production efficiency improvements [4][5] - The company plans to invest in projects with clear returns and is optimistic about the EV market, particularly in the school bus sector [5][9] - The strategy includes maintaining pricing discipline and managing tariff impacts to achieve margin-neutral outcomes [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff volatility and highlighted a strong outlook for EVs, supported by state mandates and funding programs [9][22] - The company anticipates a significant increase in EV sales in the second half of Fiscal 2026, similar to the previous year [22][23] - Management remains cautious about the operating environment due to unpredictable tariffs and material costs but maintains a positive long-term outlook [21][22] Other Important Information - Blue Bird ended the year with $229 million in cash and a record liquidity of $371 million [20][21] - The company repurchased $40 million worth of shares during the year and plans to continue returning value to shareholders [20][28] - The upcoming commercial chassis products are expected to contribute to growth, with positive early feedback from customers [40][41] Q&A Session Summary Question: Importance of federal EV bus program for Fiscal 2026 guidance - Management indicated that the Fiscal 2026 guidance does not rely on rounds four and five of the federal EV program, with a strong backlog supporting the outlook [35][36] Question: Order season and demand outlook - Management acknowledged a conservative stance until post-holiday orders are received, but noted strong fundamentals supporting demand [38][39] Question: Commercial chassis project details - The commercial chassis prototypes are undergoing testing, with positive initial reactions from customers [40][41] Question: EV backlog and state incentive programs - Management confirmed an increase in EV backlog and noted that state-level funding programs are becoming more significant drivers of demand [48][49] Question: Competitive dynamics in the school bus market - Management stated it is too early to determine any significant competitive shifts in the school bus market due to tariffs affecting other segments [53][54]

Sales and Market Performance - In fiscal 2025, the company sold 9,409 buses globally, with approximately 92.6% sold through distributors and dealers[37]. - The company has delivered its 2,000th electric school bus in fiscal 2024, indicating strong demand for electric vehicle offerings[32]. - The U.S. and Canadian school bus industry is projected to achieve approximately 31,000 unit sales in 2025, reflecting a 30.8% increase compared to 2024[48]. - In fiscal 2025, the company sold 9,409 Type C and Type D buses, with Type C buses accounting for 82% of unit sales[71]. - The company sold 5,275 alternative powered buses in fiscal 2025, maintaining a market leadership position with approximately 64% of all alternative powered school buses sold from fiscal 2015 through fiscal 2025[66]. - The company experienced a 28.0% increase in sales of Type C and Type D electric vehicles in fiscal 2025, with 901 units sold[67]. - New bus orders remained robust, with a backlog of approximately 4,800 units as of September 28, 2024, despite selling 9,000 units in fiscal 2024[211]. Financial Performance and Investments - Parts sales represented 7.0% of the company's net sales in fiscal 2025, highlighting the importance of the Parts segment[44]. - The company received an approximate $80 million grant from the U.S. Department of Energy to convert a manufacturing site for diesel powered motorhomes into a facility for all powertrains, including electric[41]. - The company has updated its plans to increase investment in a new manufacturing facility to expand production capabilities for electric and low-emission vehicles[41]. - The company has received approximately $965 million in funding from the EPA's Clean School Bus Program in October 2022, with over 2,300 zero- and low-emission school buses ordered[57]. - The cumulative total return of the company's stock increased to 481 by September 27, 2025, compared to 100 at the start of the period on October 3, 2020[199]. Supply Chain and Production Challenges - The company has faced significant supplier shortages due to ongoing supply chain disruptions since the latter half of fiscal 2021, impacting production processes for certain units scheduled for delivery[79]. - The school bus industry has been operating below its historical long-term average of approximately 30,500 unit sales per year due to supply chain constraints since the pandemic[54]. - Supply chain disruptions continued into fiscal 2025, impacting the number and mix of school buses produced and sold, but management's actions allowed for consistent production to fulfill sales orders[210]. - The company continues to monitor supplier operations to ensure sufficient parts and supplies for production needs[213]. - The company has experienced significant supply chain constraints starting in the second half of fiscal 2021, which adversely impacted operations and results due to higher purchasing costs and manufacturing inefficiencies[208]. Safety and Compliance - The company is implementing industry-first safety features, including three-point seat belts for all student passengers starting in fiscal 2025[29]. - Compliance with various legal, environmental, health, and safety requirements adds to manufacturing costs, and failure to comply could lead to substantial regulatory costs[85]. - The company has invested in a safety and health department staffed with trained medical personnel to prioritize employee safety[102]. Employee and Labor Relations - The company employs 2,012 employees, with 2,008 being full-time as of September 27, 2025[103]. - A three-year collective bargaining agreement was executed with the United Steel Workers Union covering more than 1,580 employees as of September 27, 2025[104]. - The company has made significant investments in talent development, recognizing that employee growth is essential for continued success[100]. Risks and Regulatory Environment - The ongoing supply chain disruptions due to geopolitical conflicts, particularly the Russia-Ukraine war, have led to increased costs for critical components and limited access to inventory, impacting the company's ability to fulfill orders[113]. - Economic conditions significantly influence demand for school buses, with potential reductions in orders if municipal budgets deteriorate or housing prices decline[115]. - The company faces risks of product liability claims and recalls, which could lead to significant costs and adversely affect financial condition and cash flows[135]. - Recent trade policies and tariffs have increased costs for components sourced from Canada, China, and Mexico, potentially impacting pricing strategies and sales volumes[125]. Manufacturing and Operational Efficiency - The company launched a state-of-the-art 60,000 square foot paint facility in July 2019, designed to enhance manufacturing efficiency and environmental sustainability[33]. - The company operates a fabrication plant and an integrated chassis manufacturing and body assembly plant in Fort Valley, Georgia, with approximately 1.5 million square feet of owned facilities[82]. - The company is expanding its manufacturing capabilities in Fort Valley, Georgia, to support the production of electric and low-emission vehicles, backed by an $80 million grant from the DOE[63]. Cybersecurity and Risk Management - The company has a cybersecurity program in place, but there is no assurance it will prevent all threats or that insurance will cover all costs related to incidents[169]. - The cybersecurity risk management program includes regular vulnerability scans, penetration tests, and a Business Continuity Plan to identify potential threats and impacts[181]. - The Audit Committee oversees the implementation of the cybersecurity risk management program and receives quarterly updates on strategic objectives and key risks[185]. Shareholder and Stock Information - The company does not currently intend to pay cash dividends on its common stock, relying on appreciation for stockholder returns[170]. - The company has authorized a share repurchase program for up to $60 million of outstanding shares, expiring January 31, 2026, and a second program for up to $100 million, expiring January 1, 2028[200][201]. - As of September 27, 2025, the company repurchased a total of 12,387 shares at an average price of $43.01 per share, with a total approximate dollar value of shares that may yet be purchased under the plans amounting to $110.6 million[204].

FY2025 Financial Performance - Blue Bird achieved record annual sales of $1.48 billion and an Adjusted EBITDA of $221 million, representing a 15% margin[60] - The company's Adjusted Free Cash Flow for FY2025 was $153 million, an increase of $54 million compared to FY2024[20] - Net sales for FY2025 increased by $133 million compared to FY2024, reaching $1.48 billion[20] - Blue Bird's full-year unit sales reached 9,409, an increase of 409 units compared to the previous year[20] - The average selling price (ASP) increased by $8,300 per unit[20] Q4 2025 Financial Performance - Q4 2025 net sales reached $409 million, a $59 million increase compared to Q4 2024[25] - Adjusted EBITDA for Q4 2025 was $68 million, a $27 million increase compared to Q4 2024[25] Alternative Power and EV - Alternative power sales accounted for 56% of the sales mix[20] - The company booked 901 EV units in FY2025[20] - Blue Bird has a firm order backlog of 680 EVs[20] FY2026 Guidance - Blue Bird confirms FY2026 guidance with revenue of approximately $1.5 billion and an Adjusted EBITDA of approximately $220 million, maintaining a ~15% margin[42]

Financial Performance - Net sales for fiscal 2025 reached $1,480.1 million, an increase of $132.9 million or 9.9% compared to fiscal 2024[13] - Adjusted EBITDA for fiscal 2025 was $221.3 million, reflecting an increase of $38.4 million compared to the prior year, with a margin of 15%[19] - Net income for fiscal 2025 was $127.7 million, an increase of $22.2 million from the previous year[17] - Adjusted net income for fiscal 2025 was $144.1 million, up $28.8 million compared to fiscal 2024[18] - Gross profit for fiscal 2025 was $303.5 million, an increase of $47.4 million from the prior year[16] - For Q4 fiscal 2025, net sales were $409.4 million, up $59.2 million or 16.9% from Q4 fiscal 2024[6] - Net income for the twelve months ended September 27, 2025, was $127.720 million, an increase of 20.9% from $105.547 million in 2024[38] - Adjusted EBITDA for the twelve months ended September 27, 2025, reached $221,336,000, up 21% from $182,909,000 in the previous year, with an adjusted EBITDA margin of 15.0%[42] Sales and Production - The company sold 9,409 buses in fiscal 2025, an increase of 409 units or 4.5% from the previous year[14] - The company delivered a record 901 electric-powered buses in fiscal 2025, with a backlog of approximately 680 EV buses[4] - The average sales price per bus increased by 6.0% in fiscal 2025, contributing to the overall revenue growth[14] - Net sales for the three months ended September 27, 2025, were $409.365 million, an increase of 16.8% compared to $350.212 million for the same period in 2024[38] Earnings and Cash Flow - Basic earnings per share for the three months ended September 27, 2025, were $1.15, up from $0.76 in the same period of 2024, marking a 51.3% increase[38] - Adjusted diluted earnings per share for the twelve months ended September 27, 2025, was $4.38, compared to $3.46 in the previous year, marking a 27% increase[49] - Free cash flow for the three months ended September 27, 2025, was $60,461,000, representing a 20% increase from $50,226,000 in the same quarter of 2024[45] - Net cash provided by operating activities for the twelve months ended September 27, 2025, was $176,214,000, significantly higher than $111,112,000 in the previous year[45] Assets and Liabilities - Total current assets increased to $411.628 million as of September 27, 2025, from $323.379 million a year earlier, reflecting a growth of 27.3%[36] - Total liabilities increased to $369.840 million as of September 27, 2025, compared to $365.330 million in 2024, indicating a rise of 1.4%[36] - Cash and cash equivalents at the end of the fiscal year were $229.313 million, up from $127.687 million in 2024, representing an increase of 79.5%[40] Guidance and Future Outlook - The company reaffirmed its 2026 revenue guidance at approximately $1.5 billion and adjusted EBITDA guidance of $220 million[5] Other Financial Metrics - Operating profit for the three months ended September 27, 2025, was $50.344 million, compared to $25.579 million for the same period in 2024, representing a growth of 96.9%[38] - The company reported a Clean Bus Solutions impairment of $7,394,000 for the three months ended September 27, 2025[42] - Share-based compensation expense for the twelve months ended September 27, 2025, totaled $14,785,000, compared to $8,609,000 in the previous year[42] - Interest expense for the three months ended September 27, 2025, was $(74,000), a decrease from $1,118,000 in the same period of 2024[42]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Group 1: Stock Performance - Blue Bird's stock (BLBD) decreased by 2.29% to $50.00, underperforming the S&P 500's daily loss of 0.92% [1] - Over the past month, Blue Bird's stock has dropped by 5.63%, contrasting with the Auto-Tires-Trucks sector's loss of 1.9% and the S&P 500's gain of 1.48% [1] Group 2: Upcoming Earnings - Blue Bird is set to release its earnings report on November 24, 2025, with an expected EPS of $0.97, reflecting a 25.97% increase year-over-year [2] - The consensus estimate for revenue is projected at $380 million, indicating an 8.51% increase compared to the same quarter last year [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are projected at $4.04 per share, representing a 16.76% increase from the prior year, while revenue is expected to remain flat at $1.45 billion [3] Group 4: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Blue Bird are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism [4] - The Zacks Rank system currently rates Blue Bird at 3 (Hold), with no changes in the consensus EPS estimate over the past month [6] Group 5: Valuation Metrics - Blue Bird has a Forward P/E ratio of 12.32, which is lower than the industry's Forward P/E of 13.17, suggesting a valuation discount [6] - The company holds a PEG ratio of 1.34, significantly lower than the Automotive - Domestic industry's average PEG ratio of 2.68 [7] Group 6: Industry Context - The Automotive - Domestic industry, which includes Blue Bird, ranks in the bottom 40% of all industries according to the Zacks Industry Rank, which assesses the strength of industry groups [8]

Core Viewpoint - Blue Bird Corporation, a leader in electric and cleaner-emission school buses, is set to release its fiscal 2025 fourth quarter and full year results on November 24, 2025 [1] Company Information - The audio webcast will feature Blue Bird executives John Wyskiel, President and CEO, and Razvan Radulescu, CFO, discussing the results [1] - The webcast is scheduled for 4:30 PM ET on November 24, 2025 [1] - A slide presentation will be available to support the webcast [1]

Core Insights - Blue Bird Corporation celebrates the opening of a new 15,000 square-foot dealership by Central States Bus Sales in Prattville, Alabama, which will enhance service capabilities for school bus customers in the state [1][2][3] - The new facility is expected to create approximately 20 new jobs in the local community, including various roles such as administrative, sales, and service technician positions [5][6] Company Overview - Blue Bird Corporation is recognized as a leader in electric and low-emission school buses, with a commitment to providing safe and reliable transportation solutions [1][6] - The company has sold over 25,000 propane, natural gas, and electric-powered buses, reinforcing its position as a clean transportation leader in the industry [7][8] Dealership Details - Central States Bus Sales has been an authorized dealer for Blue Bird for 50 years and is the largest Blue Bird dealer in North America, now operating in six central states [3][10] - The new Prattville facility features eight vehicle service bays, a full parts warehouse, and certified staff to support sales, service, maintenance, and repair for Blue Bird and Micro Bird customers [4][6] Financial Insights - Blue Bird customers have reported varying fuel costs for different types of buses, with diesel buses costing 79 cents per mile, propane buses at 52 cents, and electric buses at just 19 cents per mile in energy costs [6]

Core Points - The Blue Bird School Bus Foundation is focused on investing in the education, health, and safety of children in Georgia [1] - The Foundation hosted its second community empowerment event this year [1] - A total of $60,000 was awarded to eleven local area nonprofit organizations [1] Summary by Category Community Engagement - The Foundation continues to engage with the local community through empowerment events [1] - The recent event marks the second of its kind this year [1] Financial Contributions - The Foundation awarded $60,000 to support local nonprofit organizations [1] - Eleven organizations received funding, including the Boys and Girls Clubs of the Chattahoochee Valley and Ronald McDonald House Charities [1]

Core Points - Guilford County Schools has introduced 10 new Blue Bird Vision Propane school buses, which will operate on clean propane autogas, aiming to lower fuel and maintenance costs while reducing emissions [1][2][3] Group 1: Environmental Impact - The new propane buses are designed to significantly reduce harmful emissions, including a 95% reduction in nitrogen oxides compared to diesel buses, contributing to a healthier environment for students and the community [5][6] - Propane autogas is recognized as a cleaner alternative, with near-zero emissions that eliminate particulate matter and reduce smog-producing emissions [5][6] Group 2: Cost Efficiency - The district anticipates annual savings of up to $3,700 per propane-powered bus due to lower fuel and maintenance costs compared to diesel-powered buses [6] - The investment in propane buses is supported by the lower infrastructure costs associated with propane autogas fueling compared to other energy sources [4] Group 3: Technical Specifications - Each of the new 2025 Blue Bird Vision Propane buses is equipped with a 7.3L V8 Ford engine and ROUSH CleanTech propane fuel system, providing equivalent horsepower and torque to traditional gas and diesel buses [3][4] - Blue Bird Corporation is noted as the only U.S.-owned and operated school bus manufacturer, with over 22,000 propane school buses in operation across North America [6]