Blue Bird(US:BLBD)2025-11-24 21:32Sales 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].