Blue Bird Q1 Earnings Beat, Sales Falls Short of Expectations

Core Insights - Blue Bird Corporation (BLBD) reported earnings of 92 cents per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate of 83 cents, and slightly up from 91 cents in Q1 fiscal 2024 [1] - Net sales decreased by 1.2% year over year to $313.8 million, falling short of the Zacks Consensus Estimate of $355 million [1] Bus Segment Performance - Net revenues from the Bus segment were $288.1 million, missing the Zacks Consensus Estimate of $328 million, and contracted 1.8% year over year [2] - A total of 2,130 buses were sold, marginally up from 2,129 units in the same period last year [2] - Diesel bus sales increased by 50% year over year to $124.37 million, while alternative power bus sales decreased by 23.7% to $148.9 million [2] - Gross profit from the Bus segment was $47.2 million, down from $51.3 million in the previous year [2] - The order backlog stood at 4,400 units at the end of the quarter [2] Parts Segment Performance - Net revenues from the Parts segment rose by 6.2% year over year to $25.7 million, driven by price increases and improved product mix [3] - The segment's revenue fell short of the consensus estimate of $27.5 million [3] - Gross profit from the Parts segment increased to $13.1 million from $12.2 million in the prior year [3] Operating Expenses and Profitability - Selling, general and administrative (SG&A) expenses were $27.3 million, up from $25.6 million in Q1 fiscal 2024 [4] - Operating profit declined by 12.8% to $33 million [4] Financial Position - As of December 28, 2024, cash and cash equivalents were $136.1 million, an increase from $127.7 million as of September 28, 2024 [5] - Long-term debt decreased to $88 million from $90 million during the same period [5] - The company repurchased 243,245 shares for $10 million during the quarter, with $40 million remaining under its share repurchase authorization [5] Future Outlook - The company expects fiscal 2025 revenues to be in the range of $1.4 billion to $1.5 billion [6] - Adjusted EBITDA is projected between $185 million and $215 million, while free cash flow is anticipated to be between $40 million and $60 million [6] - Blue Bird reaffirmed its long-term revenue target of around $2 billion with an adjusted EBITDA margin of 15% [6]