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 [7][20][21] - Total revenue for Fiscal 2025 reached $1.48 billion, an increase of $133 million compared to the prior year [7][19] - Adjusted net income for the fourth quarter was $43.4 million, a 68% improvement year-over-year [17] Business Line Data and Key Metrics Changes - The company sold 9,409 buses in Fiscal 2025, with an average bus revenue per unit of $146,000, up $8,000 from the previous year [7][19] - Electric vehicle (EV) sales totaled 901 units for the year, marking a 30% increase compared to the previous year [7][19] - Parts revenue for the year remained flat at $103 million, indicating strong demand due to an aging fleet [19] Market Data and Key Metrics Changes - The backlog at the end of Q4 was 3,100 units, which included 680 EVs, but has since increased to nearly 4,000 units [8][16] - Year-over-year selling prices for buses increased by almost $8,300 per unit, reflecting pricing actions and tariff recovery [9] - The company maintains a strong position in the alternative powered vehicles segment, with all powered buses representing 56% of mixed unit sales for the year [9] Company Strategy and Development Direction - Blue Bird is focusing on long-term manufacturing strategies, including automation and production efficiency improvements [4][6] - The company plans to invest in projects with clear returns and aims to maintain a disciplined pricing strategy [5][6] - The outlook for EVs remains optimistic, with expectations of stable demand supported by government funding programs [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff volatility and maintaining margin-neutral outcomes [7] - The company anticipates a heavy replacement cycle in the school bus market, driven by an aging fleet and pent-up demand [9] - Management remains cautious about the impact of tariffs and material costs but expects strong demand to continue [24] Other Important Information - Blue Bird ended the year with $229 million in cash and a liquidity of $371 million, reflecting a strong financial position [22][23] - The company has repurchased $40 million worth of shares during the year and plans to continue returning value to shareholders [23][30] Q&A Session Summary Question: Importance of federal EV bus program for Fiscal 2026 guidance - Management indicated that Fiscal 2026 guidance does not rely on rounds four and five of the federal EV program, with a strong backlog supporting the outlook [39][41] Question: Order season and demand outlook - Management acknowledged that while the order season typically picks up after the Christmas break, they are confident in the underlying demand fundamentals [43][45] Question: Commercial chassis project details - Management confirmed that prototypes are being tested and received positively by customers, indicating potential for market entry [47][48] Question: EV backlog and state incentive programs - Management noted that New Jersey's updated incentive program reflects a trend of increasing state-level funding for EVs, which is expected to continue [70][72] Question: Pricing dynamics and guidance for first half versus second half - Management explained that pricing stability and the new price increase will impact the second half of the fiscal year, with a ramp expected in production [60][80]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $359 million, which is $13 million higher than the previous year [12][23] - Adjusted EBITDA reached $49 million, representing a 14% margin, which is 6.5% better compared to the same quarter last year [11][12] - Adjusted free cash flow for the quarter was $19 million, a decrease of $35 million year-over-year primarily due to a tax carryforward benefit in 2024 [14][23] - The company ended the quarter with $131 million in cash and reduced debt by approximately $5 million over the last year [29] Business Line Data and Key Metrics Changes - The company sold 2,295 buses in Q2, with EV sales reaching a record of 265 units, which is 26% higher than last year [12][25] - Parts sales totaled $26 million in Q2, flat compared to Q1 but a small reduction of $2 million compared to the prior year [25] - The average selling price for buses increased by approximately 3%, from $141,000 to $145,000 per unit [15][25] Market Data and Key Metrics Changes - The company ended the quarter with a backlog of nearly 5,000 units, representing over six months of production [8][14] - The mix of alternative power vehicles represented 57% of unit sales in Q2, significantly higher than the typical 10% to 15% mix for major competitors [15] Company Strategy and Development Direction - The company is focused on improving operational efficiency and investing in new product development, including a new commercial chassis scheduled to launch in 2026 [20][41] - The company aims to maintain its leadership position in the alternative power segment while also strengthening its core internal combustion engine (ICE) business [10][13] - The company is navigating tariff impacts by implementing price increases and prioritizing ICE buses over EVs until the tariff situation stabilizes [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full-year guidance despite tariff challenges, highlighting strong market demand for school buses [6][19] - The company anticipates continued strong demand for EVs, with a forecast of 800 to 1,000 EV unit sales for the full year [16][36] - Management noted that the Clean School Bus program remains a bipartisan initiative, which is expected to continue benefiting the company [48] Other Important Information - The company has executed $40 million in share repurchases over the last nine months, with an additional $20 million remaining in the current program [29] - The company is optimistic about the future of the Clean School Bus program, with funding for rounds two and three flowing to customers [17][39] Q&A Session Summary Question: Margin improvements and long-term targets - Management indicated it is early in the new CEO's tenure to speculate on margin improvements, but operational expertise may contribute positively [53][54] Question: EV pricing expectations - Current tariffs are hindering the company's ability to reduce EV prices as planned, but there is optimism for future price reductions once the tariff situation clarifies [58][59] Question: Dealer network response to pricing - The company has not faced significant pushback from dealers regarding price increases, and competitors are also implementing similar pricing actions [69][73] Question: Clean School Bus program funding - Management confirmed that rounds two and three of funding are flowing, and there is optimism for round four, although it is still in the early stages [75][106]

Financial Data and Key Metrics Changes - The company achieved record quarterly revenue of $359 million, which is $13 million higher than the previous year [11][22] - Adjusted EBITDA reached $49 million, representing a 14% margin, which is 6.5% better than the same quarter last year [10][12] - Adjusted free cash flow for the quarter was $19 million, a decrease of $35 million year-over-year primarily due to a tax carryforward benefit in 2024 [13][22] - The company ended the quarter with $131 million in cash and reduced debt by approximately $5 million over the last year [27] Business Line Data and Key Metrics Changes - The company sold 2,295 buses in Q2, with EV sales reaching 265 units, which is a 26% increase compared to last year [11][24] - Parts sales totaled $26 million, flat compared to Q1 but a slight decrease of $2 million from the prior year [24] - The average selling price for buses increased by approximately 3%, from $141,000 to $145,000 per unit [24] Market Data and Key Metrics Changes - The company ended the quarter with a backlog of nearly 5,000 units, including over 700 EVs, representing approximately $770 million in revenue [13][23] - Alternative power vehicles accounted for 57% of unit sales in Q2, significantly higher than the typical 10% to 15% mix for major competitors [14] Company Strategy and Development Direction - The company is focused on maintaining its lead in the alternative power vehicle segment and is reinvesting in operations and product development [9][10] - The introduction of a new commercial chassis is planned for 2026, with strong interest from various sectors [18][19] - The company aims to position itself as a strong long-term investment, with a target of achieving $200 million in adjusted EBITDA for the year [33][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by tariffs and maintaining operational stability [10][28] - The company is optimistic about the continuation of the Clean School Bus program, which is seen as a bipartisan initiative [45] - There is a cautious outlook on bookings, with a projected revenue increase of 8% from the previous fiscal year [43] Other Important Information - The company has implemented a 2% price increase on all units sold and an additional 2% increase on new orders due to tariff impacts [32] - The company is working closely with dealers and customers to manage the effects of tariffs and pricing adjustments [67][70] Q&A Session Summary Question: Margin improvements and long-term targets - Management indicated it is early to speculate on margin improvements but emphasized a strong operational background that could support future enhancements [50][52] Question: EV pricing expectations - Current tariffs are hindering the goal of reducing EV prices, with a pause in the journey to improve total cost of ownership [54][55] Question: Impact of tariffs on guidance - The company noted that while EVs face headwinds, the outlook for ICE and propane buses has improved, allowing for a stable overall guidance [56][58] Question: Dealer network response to pricing - The dealer network is collaborating closely with the company to navigate tariff challenges, and similar pricing actions have been observed across competitors [66][71] Question: Clean School Bus program funding - Funding for the Clean School Bus program remains balanced between state and federal sources, with optimism for future rounds [72][74] Question: Interest in propane and gasoline buses - The company is uniquely positioned in the alternative power segment, with strong interest in propane solutions amid EV tariff concerns [75][93] Question: Commercial chassis development - Initial customer feedback indicates greater interest in propane, with the company well-positioned to meet market demand [92][94]