Core Viewpoint - Blue Bird (BLBD) reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing a slight increase from $0.91 per share a year ago, indicating a positive earnings surprise of 10.84% [1][2] Financial Performance - The company posted revenues of $313.87 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 11.59% and decreased from $317.66 million year-over-year [2] - Over the last four quarters, Blue Bird has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Blue Bird shares have declined approximately 6.4% since the beginning of the year, contrasting with the S&P 500's gain of 2.7% [3] - The current Zacks Rank for Blue Bird is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $390 million, while the estimate for the current fiscal year is $3.88 on revenues of $1.5 billion [7] - The trend of estimate revisions for Blue Bird is mixed, which could change following the recent earnings report [6] Industry Context - The Automotive - Domestic industry, to which Blue Bird belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges ahead [8]

PART I [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) For the first quarter of fiscal 2025, Blue Bird Corporation reported net sales of $313.9 million, a slight decrease from the prior-year period, while net income increased to $28.7 million, with basic EPS rising to $0.89 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 28, 2024, total assets increased slightly to $535.2 million, driven by higher cash and inventories, while total liabilities decreased and stockholders' equity grew to $179.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 28, 2024 | Sep 28, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $136,119 | $127,687 | | Inventories | $163,120 | $127,798 | | Total current assets | $330,858 | $323,379 | | Total assets | $535,222 | $524,894 | | **Liabilities & Equity** | | | | Total current liabilities | $229,427 | $235,973 | | Long-term debt | $88,828 | $89,994 | | Total liabilities | $355,517 | $365,330 | | Total stockholders' equity | $179,705 | $159,564 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended December 28, 2024, net sales decreased by 1.2% to $313.9 million, but net income increased by 9.8% to $28.7 million, or $0.86 per diluted share, supported by lower interest expense and higher other income Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 FY2025 (ended Dec 28, 2024) | Q1 FY2024 (ended Dec 30, 2023) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $313,872 | $317,660 | (1.2%) | | Gross profit | $60,317 | $63,558 | (5.1%) | | Operating profit | $33,042 | $37,956 | (12.9%) | | Net income | $28,722 | $26,150 | 9.8% | | Diluted earnings per share | $0.86 | $0.81 | 6.2% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of fiscal 2025, net cash provided by operating activities significantly improved to $26.4 million, while cash used in investing and financing activities increased, resulting in an overall increase of $8.4 million in cash and cash equivalents Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q1 FY2025 (ended Dec 28, 2024) | Q1 FY2024 (ended Dec 30, 2023) | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,410 | $217 | | Net cash used in investing activities | $(5,094) | $(2,904) | | Net cash (used in) provided by financing activities | $(12,884) | $995 | | **Change in cash and cash equivalents** | **$8,432** | **$(1,692)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business, accounting policies, and financial statement components, highlighting the impact of supply chain constraints, segment performance, and a new share repurchase program - Global supply chain constraints continued to result in higher purchasing and freight costs, but pricing actions and manufacturing improvements have allowed the company to report **gross margins exceeding pre-pandemic levels**[28](index=28&type=chunk) Revenue by Product Category (in thousands) | Product Category | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Diesel buses | $124,372 | $84,998 | | Alternative power buses | $148,922 | $195,329 | | Parts | $25,091 | $23,636 | | **Total Net Sales** | **$313,872** | **$317,660** | Segment Net Sales and Gross Profit (in thousands) | Segment | Net Sales Q1 FY2025 | Gross Profit Q1 FY2025 | Net Sales Q1 FY2024 | Gross Profit Q1 FY2024 | | :--- | :--- | :--- | :--- | :--- | | Bus | $288,147 | $47,172 | $293,437 | $51,294 | | Parts | $25,725 | $13,145 | $24,223 | $12,264 | | **Total** | **$313,872** | **$60,317** | **$317,660** | **$63,558** | - On January 31, 2024, the Board authorized a $60 million share repurchase program, under which the company repurchased **243,450 shares for $10.0 million** during the quarter ended December 28, 2024[74](index=74&type=chunk)[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management reports a 1.2% decrease in Q1 FY2025 net sales to $313.9 million, attributed to changes in bus product and customer mix, while maintaining strong gross margins and robust liquidity with a strong backlog - Supply chain disruptions continued in Q1 FY2025, but ongoing improvements in manufacturing and pricing actions allowed the company to report **gross profit and margins materially consistent with fiscal 2024**[90](index=90&type=chunk) - The company's order backlog remained **strong at approximately 4,400 units** as of December 28, 2024, despite selling over 2,100 units in the quarter, indicating robust demand[91](index=91&type=chunk) Consolidated Results of Operations (in thousands) | Metric | Q1 FY2025 | Q1 FY2024 | | :--- | :--- | :--- | | Net sales | $313,872 | $317,660 | | Gross profit | $60,317 | $63,558 | | Operating profit | $33,042 | $37,956 | | Net income | $28,722 | $26,150 | | Adjusted EBITDA | $45,753 | $47,604 | | Adjusted EBITDA margin | 14.6% | 15.0% | - Other income increased by **$4.1 million**, primarily due to the sale of certain state emissions credits for approximately **$2.6 million** and the absence of **$1.2 million in stockholder transaction costs** incurred in the prior-year period[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company states that there have been no material changes to its interest rate, commodity, or currency risks as previously disclosed in its fiscal 2024 Form 10-K - There have been **no material changes** to the company's market risks, including interest rate, commodity, or currency risks, since the last annual report[153](index=153&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 28, 2024, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of the end of the period[155](index=155&type=chunk) - **No changes occurred** during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[156](index=156&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in legal proceedings in the ordinary course of business but does not believe the outcome of any pending cases will have a material adverse effect on its financial condition, liquidity, or results of operations - Management does **not expect pending legal proceedings to have a material adverse effect** on the company's financial statements[159](index=159&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors.) The company highlights key risks, including the potential negative impact of changes in trade policies and tariffs on production costs and sales, and the adverse effect of changes in government grants and incentives for clean fuel technologies - **Potential changes in trade policies and tariffs could increase component costs**, which may not be fully passed on to customers, potentially reducing sales and profitability[161](index=161&type=chunk) - **Sales of alternative-powered buses are dependent on government programs and incentives**; changes in these policies could negatively impact customer demand and the company's sales mix[162](index=162&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company details its share repurchase program, authorized for up to $60 million, under which it repurchased 243,450 shares for approximately $10.0 million during the quarter ended December 28, 2024 Share Repurchase Activity (Q1 FY2025) | Period by fiscal month | Total shares repurchased | Average price paid per share ($) | Approx. dollar value remaining under program (in millions) | | :--- | :--- | :--- | :--- | | Sep 29 - Oct 26, 2024 | — | — | $50.1 | | Oct 27 - Nov 23, 2024 | — | — | $50.1 | | Nov 24 - Dec 28, 2024 | 243,450 | $41.22 | $40.0 | | **Total** | **243,450** | | | [Other Information](index=31&type=section&id=Item%205.%20Other%20Information.) The company reports that during the first quarter of fiscal 2025, none of its directors or officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - **No directors or officers adopted or terminated a Rule 10b5-1 trading plan** or other non-Rule 10b5-1 trading arrangement during the quarter[169](index=169&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q report, including corporate governance documents, warrant forms, officer certifications, and XBRL data files - The report **includes several exhibits, such as CEO/CFO certifications (31.1, 31.2, 32.1) and XBRL data files**, filed in accordance with SEC requirements[170](index=170&type=chunk)

Financial Performance - Net sales for Q1 FY2025 were $313.9 million, a decrease of $3.8 million or 1.2% from the previous year[6] - GAAP net income increased to $28.7 million, up by $2.6 million compared to the same period last year, driven by $2.6 million in emission credits[8] - Adjusted EBITDA for Q1 FY2025 was $45.8 million, a decrease of $1.9 million from the prior year, resulting in a 14.6% margin[10] - Gross profit for Q1 FY2025 was $60.3 million, down by $3.2 million from the previous year[7] - Operating profit decreased to $33,042 from $37,956, reflecting a decline of 12.5% year-over-year[28] - Net income increased to $28,722, up 9.8% from $26,150 in the prior year[28] - Basic earnings per share rose to $0.89, compared to $0.81 for the same period last year, representing a growth of 9.9%[28] - Adjusted EBITDA for the three months ended December 28, 2024, was $45,753, a decrease of 3.7% from $47,604 in the prior year[32] Sales and Production - The company sold 2,130 buses in Q1 FY2025, consistent with the previous year, with a backlog of nearly 4,400 units[3][4] - Parts sales increased by $1.5 million or 6.2% due to price increases and higher fulfillment volumes[6] - Approximately 1,000 electric-powered buses are either sold or in the order backlog, supporting the EV sales target for 2025[4] - The average sales price per unit decreased by 1.9%, primarily due to changes in customer and product mix[6] Guidance and Future Outlook - The company reaffirmed its full-year 2025 guidance for net revenue between $1.4 billion and $1.5 billion, and adjusted EBITDA of $185 million to $215 million[5] - The company aims for a long-term adjusted EBITDA margin of over 15% on approximately $2 billion in revenues[6] Assets and Cash Flow - Total current assets increased to $330,858, up from $323,379, marking a growth of 2.4%[27] - Total assets reached $535,222, an increase of 1.3% from $524,894[27] - Cash and cash equivalents at the end of the period were $136,119, up from $127,687, indicating a growth of 6.3%[30] - Free cash flow improved to $21,816, compared to a negative $2,687 in the same period last year[35]

Earnings and Financial Performance - Blue Bird Corporation (BLBD) is set to release fiscal Q1 2025 results on Feb 5, with a Zacks Consensus Estimate of 83 cents per share on revenues of $355 million [1] - The Q1 2025 earnings estimate has remained unchanged over the past 60 days, indicating an 8.8% year-over-year contraction, while revenue is expected to grow 11.8% year-over-year [2] - For fiscal 2025, the Zacks Consensus Estimate for revenues is $1.5 billion, implying an 11% year-over-year increase, with earnings projected at $3.88 per share, suggesting a 12% uptick [4] - The company expects net revenues between $1.4 billion and $1.5 billion for fiscal 2025, compared to $1.35 billion in fiscal 2024, with adjusted EBITDA ranging from $190 million to $210 million [7][8] Business and Market Position - Blue Bird's Q1 results are expected to reflect robust demand for school buses, with over 4,800 units in its order backlog at the end of Q4 2024, including around 630 electric school buses [6] - The company is a pioneer in alternative fuel and electric-powered school buses, with over 90% of U S school buses still running on diesel, indicating significant growth potential for cleaner alternatives [14] - Blue Bird has successfully enhanced operations, increased production efficiency, and driven new order growth, solidifying its leadership in alternative-powered buses [14] Stock Performance and Valuation - Over the past six months, Blue Bird's shares have declined 27%, underperforming the industry, sector, S&P 500, and other EV players like Tesla and Rivian [9] - The company is trading at a forward 12-month sales multiple of 0.81, higher than its 5-year median but lower than the industry's 2.44, with a Value Score of A [12] Financial Health and Risk Factors - Blue Bird has a strong balance sheet with $127 million in cash against $90 million in long-term debt, and a disciplined approach to cost management [16] - The company's dependence on subsidies and grants presents a potential risk, as reduced government support could impact growth, particularly given the political uncertainty around EV policies [15]

The most recent trading session ended with Blue Bird (BLBD) standing at $38.07, reflecting a +1.52% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 1.46%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq decreased by 3.07%.Shares of the school bus maker witnessed a loss of 4.92% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 8.85% and underperforming the ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 24th:The Greenbrier Companies (GBX) : This leading supplier of transportation equipment and services to the railroad and related industries carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.Greenbrier has a PEG ratio of 0.98 compared with 2.02 for the industry. The company possesses a Growth Score  of A.Blue ...

Blue Bird Corp. (BLBD) — one of the leading school bus manufacturers in the United States — is enjoying a solid run on the bourses. Over the past year, the stock has rallied more than 55%, outperforming the auto sector and the S&P 500.Apart from its diesel-powered buses, Blue Bird is actively focused on innovative automotive technologies, including alternative fuels like propane and gasoline, as well as electric-powered buses. The company has greatly benefited from the U.S. government’s push to transition m ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 22nd:The Greenbrier Companies (GBX) : This leading supplier of transportation equipment and services to the railroad and related industries carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.Greenbrier has a PEG ratio of 0.97 compared with 1.98 for the industry. The company possesses a Growth Score  of A.Blue ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, January 20th:The Greenbrier Companies (GBX) : This leading supplier of transportation equipment and services to the railroad and related industries carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.5% over the last 60 days.Greenbrier has a PEG ratio of 0.97 compared with 1.98 for the industry. The company possesses a Growth Score  of A.Blue ...

The Zacks Domestic Auto industry’s prospects are promising. The U.S. auto market is poised for another year of growth, building on its steady recovery since 2022. New car sales are expected to rise to 16.3 million units in 2025, marking the third consecutive year of gains, driven by improving affordability, robust demand for hybrids and aggressive promotional incentives. The electric vehicle (EV) segment continues to gain traction, fueled by growing consumer interest and an expanding model lineup, though po ...