Blue Bird(BLBD) - 2025 Q3 - Quarterly Results

Fiscal 2025 Third Quarter Financial Results This report details Blue Bird's record-breaking Q3 FY2025 financial results, including executive highlights, updated FY2025 guidance, comprehensive financial performance analysis, and supplementary information Executive Summary & Highlights Blue Bird achieved record Q3 FY2025 revenue and profit, exceeding guidance with $398 million net sales and $58.5 million Adjusted EBITDA, alongside a new $100 million share buy-back program Key Financial Metrics | Metric | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | Unit Sales | 2,467 units | 6,892 units | | Revenue (GAAP) | $398.0M | $1,070.7M | | Net Income (GAAP) | $36.5M | $91.2M | | Diluted EPS (GAAP) | $1.12 | $2.76 | | Adjusted EBITDA | $58.5M | $153.4M | | Adjusted Diluted EPS | $1.19 | $3.05 | - The company achieved a new all-time quarterly record for revenue and profit, driven by improved operations and leadership in alternative-powered buses[3] - Blue Bird delivered a record 271 electric-powered buses in Q3 and has a total of 1,200 EV buses either sold or in its firm order backlog[4] FY2025 Guidance and Long-Term Outlook The company raised FY2025 guidance to $1.45 billion Net Revenue and $205-$215 million Adjusted EBITDA, while increasing its long-term Adjusted EBITDA margin target to 16%+ FY2025 Financial Guidance | FY2025 Guidance | Value | | :--- | :--- | | Net Revenue | ~$1.45 Billion | | Adjusted EBITDA | $205M - $215M | | Adjusted Free Cash Flow | $90M - $100M | - The company announced a new $100 million share repurchase program, signaling confidence in its profitable growth plans[6] - Long-term profit outlook has been raised, targeting an Adjusted EBITDA margin of 16%+ on approximately $2 billion in revenue[6] Financial Performance Analysis The company demonstrated significant year-over-year financial growth in Q3 and YTD FY2025, driven by increased bus unit sales, favorable product mix, and effective pricing strategies Fiscal 2025 Third Quarter Results Q3 FY2025 net sales grew 19.4% to $398.0 million, with gross profit increasing by $16.6 million and Adjusted EBITDA rising by $10.2 million to $58.5 million Q3 FY2025 Financial Performance | Q3 FY2025 Metric | Value | Change vs. Q3 FY2024 | | :--- | :--- | :--- | | Net Sales | $398.0M | +$64.6M (+19.4%) | | Gross Profit | $85.9M | +$16.6M | | Net Income | $36.5M | +$7.7M | | Adjusted EBITDA | $58.5M | +$10.2M | - Bus sales increased by 20.8%, reflecting a 14.7% increase in unit bookings (2,467 units vs. 2,151) and a 5.4% increase in average sales price per unit[7] - The increase in net sales was primarily due to higher bus unit bookings, product mix changes, and price increases intended to mitigate the impact of tariffs[6] Year-to-Date Fiscal 2025 Results YTD FY2025 net sales increased 7.4% to $1,070.7 million, with gross profit growing by $20.5 million and Adjusted EBITDA rising by $11.8 million to $153.4 million YTD FY2025 Financial Performance | YTD FY2025 Metric | Value | Change vs. YTD FY2024 | | :--- | :--- | :--- | | Net Sales | $1,070.7M | +$73.8M (+7.4%) | | Gross Profit | $217.1M | +$20.5M | | Net Income | $91.2M | +$10.3M | | Adjusted EBITDA | $153.4M | +$11.8M | - Bus sales for the nine-month period increased 8.0%, with 6,892 units booked compared to 6,534 in the prior year period[14] - The increase in selling, general and administrative expenses was partly due to share-based compensation related to the retirement of the former President and CEO[17] Financial Statements The unaudited consolidated financial statements as of June 28, 2025, show total assets at $575.5 million, cash at $173.1 million, and stockholders' equity at $221.8 million, with $111.1 million cash from operations Condensed Consolidated Balance Sheets As of June 28, 2025, total assets reached $575.5 million, cash and cash equivalents increased to $173.1 million, and total stockholders' equity grew to $221.8 million Condensed Consolidated Balance Sheets (in millions) | Balance Sheet Item | June 28, 2025 | September 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $173.1M | $127.7M | | Total current assets | $360.7M | $323.4M | | Total assets | $575.5M | $524.9M | | Total current liabilities | $228.6M | $236.0M | | Total liabilities | $353.6M | $365.3M | | Total stockholders' equity | $221.8M | $159.6M | Condensed Consolidated Statements of Operations For the nine months ended June 28, 2025, net sales reached $1,070.7 million, resulting in $91.2 million net income and $2.76 diluted EPS Condensed Consolidated Statements of Operations (in millions, except per share data) | Income Statement (Nine Months Ended) | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Net sales | $1,070.7M | $996.9M | | Gross profit | $217.1M | $196.6M | | Operating profit | $116.8M | $113.8M | | Net income | $91.2M | $80.9M | | Diluted earnings per share | $2.76 | $2.43 | Condensed Consolidated Statements of Cash Flows For the nine months ended June 28, 2025, operating activities generated $111.1 million cash, with $19.1 million used in investing and $46.7 million in financing, ending with $173.1 million cash Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow (Nine Months Ended) | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $111.1M | $55.8M | | Net cash used in investing activities | ($19.1M) | ($10.1M) | | Net cash used in financing activities | ($46.7M) | ($36.2M) | | Change in cash and cash equivalents | $45.4M | $9.4M | | Cash and cash equivalents at end of period | $173.1M | $88.4M | Reconciliation of Non-GAAP Financial Measures This section details reconciliations of GAAP to non-GAAP measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Free Cash Flow, for Q3 and YTD FY2025 Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA (in thousands) | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | Net income | $36,455 | $91,223 | | Adjustments (Interest, Tax, D&A, etc.) | $22,024 | $62,215 | | Adjusted EBITDA | $58,479 | $153,438 | Reconciliation to Adjusted Diluted EPS | Reconciliation to Adjusted Diluted EPS | Three Months Ended June 28, 2025 | Nine Months Ended June 28, 2025 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $1.12 | $2.76 | | One-time charge adjustments, net of tax | $0.07 | $0.29 | | Adjusted Diluted EPS (Non-GAAP) | $1.19 | $3.05 | - Adjusted Free Cash Flow for the nine months ended June 28, 2025, was $92.9 million, a substantial increase from $48.7 million in the prior year period[45] Supplementary Information This section provides investor conference call details, a company overview, definitions of non-GAAP financial measures, and forward-looking statement disclaimers - The company will host a conference call and webcast to discuss its third quarter 2025 results[20][23] - Blue Bird leads in low- and zero-emission school buses, with over 20,000 propane, natural gas, and electric buses in operation[22] - The report includes non-GAAP measures like Adjusted EBITDA and Free Cash Flow, which management uses for performance evaluation, incentive compensation, and covenant compliance[24]