Workflow
School Buses
icon
Search documents
Blue Bird(BLBD) - 2026 Q1 - Earnings Call Transcript
2026-02-04 22:32
Financial Data and Key Metrics Changes - Blue Bird reported revenue of $333 million for Q1, which is 6% higher than the previous year, driven by pricing actions including tariffs [7][15] - Adjusted EBITDA for the quarter was $50 million, an increase of $4 million compared to last year, resulting in a margin of 15% [7][18] - Free cash flow reached a record $31 million, up $9 million from the prior year [7][16] - The liquidity position at the end of the quarter was a record $385 million, reflecting a $106 million increase year-over-year [20] Business Line Data and Key Metrics Changes - Bus segment net revenue was $308 million, up $20 million from the prior year, with average bus revenue per unit increasing by $9,000 to $144,000 [17] - EV sales in Q1 totaled 121 units, slightly down from the previous year, while the backlog included 855 EVs scheduled for delivery into 2027 [10][16] - Parts revenue remained strong at $25 million, supported by increased demand due to aging buses [17] Market Data and Key Metrics Changes - Order intake for Q1 was up 45% from the first quarter of 2025, resulting in a backlog of 3,400 units [4][8] - The market fundamentals remain strong, with an aging fleet and a heavy replacement cycle expected to drive demand for school buses [8][10] - The company anticipates a continued strong demand for EVs, supported by state funding and fleet mandates [10][79] Company Strategy and Development Direction - Blue Bird's strategy focuses on business continuity, profitable growth, margin expansion, and leveraging a strong balance sheet for strategic opportunities [26][28] - The company is investing in automation and Industry 4.0 initiatives to improve manufacturing efficiency and reduce costs [5][28] - The new assembly plant is scheduled to launch in 2028, which will enhance production capabilities and support future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order intake and a favorable market environment despite challenges from tariffs [3][12] - The company is maintaining its revenue guidance for fiscal 2026 in the range of $1.45 billion to $1.55 billion, with an adjusted EBITDA target of $225 million [21][22] - Management highlighted the importance of state funding and federal programs in supporting EV sales and overall market growth [10][79] Other Important Information - The company completed a $15 million share buyback during Q1, with plans for a new $100 million program [20] - The $80 million MESC contract with the DOE for the new plant remains intact, contributing to job creation and clean school bus production [11][12] Q&A Session Summary Question: Margin dynamics and pricing vs. efficiency - Management indicated that approximately two-thirds of margin improvement came from pricing and one-third from efficiency gains [33][34] Question: EV market share and diesel trends - Management confirmed a strong EV backlog and noted that diesel sales remained robust, with potential pre-buy activity due to upcoming emission regulations [40][41] Question: Capital allocation strategy - The company is focused on strategic growth opportunities and vertical integration, with a strong balance sheet enabling flexibility in capital allocation [51][52] Question: Automation impact on margins - Management stated that automation initiatives are expected to provide favorable returns and contribute positively to long-term margin improvements [56][57] Question: Market share outlook - Management noted that market share has normalized following supply issues faced by competitors, with no significant changes anticipated [62][63]
Blue Bird(BLBD) - 2026 Q1 - Earnings Call Transcript
2026-02-04 22:32
Financial Data and Key Metrics Changes - Blue Bird reported Q1 revenue of $333 million, a 6% increase from the previous year, driven by pricing actions including tariffs [7][13] - Adjusted EBITDA for the quarter was $50 million, $4 million higher than last year, reflecting a 15% margin [7][16] - Free cash flow reached a record $31 million, up $9 million from the prior year [14] - The company ended the quarter with a liquidity position of $385 million, a $106 million increase compared to a year ago [18] Business Line Data and Key Metrics Changes - Bus net revenue was $308 million, up $20 million year-over-year, with average bus revenue per unit increasing by $9,000 to $144,000 [15] - EV sales in Q1 totaled 121 units, representing 6% of unit volume, with a backlog of 855 EVs pushing into 2027 [9][14] - Parts sales remained strong at $25 million, supported by increased demand due to aging buses [15] Market Data and Key Metrics Changes - Order intake for Q1 was up 45% from the first quarter of 2025, resulting in a backlog of 3,400 units [4][14] - The market fundamentals remain strong, with an aging fleet leading to a heavy replacement cycle [8] - The company anticipates a continued strong demand for school buses, supported by state funding and fleet EV mandates [10][78] Company Strategy and Development Direction - Blue Bird's strategy focuses on long-term stability, profitable growth, margin expansion, and leveraging a strong balance sheet for strategic opportunities [26][27] - The company is investing in automation and Industry 4.0 initiatives to improve manufacturing efficiency and reduce costs [5][26] - The new assembly plant scheduled to launch in 2028 is a key part of the company's growth strategy [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order intake and a favorable market environment despite tariff volatility [3][19] - The company is maintaining its revenue guidance for fiscal 2026 in the range of $1.45 billion to $1.55 billion, with an adjusted EBITDA target of $225 million [19][20] - Management highlighted the importance of EVs in the school bus sector, with a projected 800 EV unit sales for fiscal 2026 [10][19] Other Important Information - The company confirmed that the $80 million mass contract with the DOE for the new plant remains intact [11] - Blue Bird's long-term target includes driving revenue to $1.8-$2 billion with EBITDA of $280-$320 million by 2029 and beyond [22][24] Q&A Session Summary Question: Margin dynamics and pricing impact - Management indicated that approximately two-thirds of margin improvement came from pricing, while one-third was due to efficiency gains [32] Question: EV market trends and backlog - Management confirmed a strong EV backlog, with over 1,000 units sold and in backlog, indicating robust demand despite infrastructure readiness issues [36] Question: Propane market trends - Management noted that propane remains a preferred option for school districts due to its total cost of operation and ease of infrastructure conversion [44] Question: Order trends and market share - Management reported a strong order intake, validating pricing stability and indicating a potential catch-up from previous quarters [48] Question: Capital allocation strategy - Management discussed a strong balance sheet and potential for strategic acquisitions, while also considering share buybacks and increased CapEx spending [58][59]
Former Blue Bird CEO to Retire From Board
Businesswire· 2025-12-29 21:02
Core Viewpoint - Blue Bird Corporation announced the immediate resignation of Phil Horlock from its Board of Directors, marking a significant leadership change for the company [1] Company Summary - Phil Horlock served as President & CEO of Blue Bird for over 12 years, during which he led the company through transformative growth and operational excellence [1] - The company is recognized as a leader in electric and clean-emission school buses, indicating its commitment to sustainability and innovation in the transportation sector [1]
Blue Bird(BLBD) - 2025 Q4 - Earnings Call Transcript
2025-11-24 22:32
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]
Blue Bird(BLBD) - 2025 Q4 - Earnings Call Transcript
2025-11-24 22:32
Financial Data and Key Metrics Changes - Blue Bird achieved record sales and Adjusted EBITDA for fiscal 2025, with Adjusted EBITDA at $221 million, representing 15% of revenue, which is $38 million higher than the previous year [7][20][34] - Total revenue for fiscal 2025 reached $1.48 billion, an increase of $133 million compared to the prior year [7][20] - Free cash flow for the year was $153 million, marking a significant achievement [8][22] 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, representing a 30% increase year-over-year [7][19] - Parts revenue remained stable at $103 million, reflecting strong demand due to an aging fleet [19] Market Data and Key Metrics Changes - The backlog at the end of fiscal 2025 was 3,100 units, which is expected to increase to nearly 4,000 units, including 850 EVs [4][16] - Year-over-year selling prices for buses increased by approximately $8,300 per unit, driven by pricing actions and tariff recovery [9][19] - The company noted that the fleet is aging, leading to a heavy replacement cycle and pent-up demand in the market [8][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 aims to maintain its leadership in alternative powered vehicles, particularly in the EV segment, with a strong outlook for future demand [5][10] - Investment in projects with clear returns is a priority, with plans to enhance manufacturing capabilities and product offerings [6][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff volatility and maintaining margin-neutral outcomes [7][11] - The outlook for EVs remains optimistic, supported by government funding programs and stable demand [10][34] - The company anticipates a strong demand driven by an aging fleet and stable pricing, despite some headwinds from tariffs and material costs [22][23] Other Important Information - Blue Bird's liquidity reached a record $371 million, with $229 million in cash at year-end [22] - The company plans to invest up to $200 million in manufacturing capabilities over the next two years while also returning value to shareholders through stock buybacks [28][29] 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 federal funding rounds four and five, with a strong backlog supporting the outlook for 750 EV sales [37][39] Question: Order season and demand outlook - Management acknowledged strong fundamentals and a stable demand outlook, with confidence in production capabilities to meet potential increases in demand [41][42] Question: Commercial chassis project details - Prototypes are undergoing testing, and initial customer feedback has been positive, indicating a favorable market reception [44][45] Question: EV backlog and state incentive programs - Management confirmed an increase in EV backlog and noted that state-level funding programs are becoming increasingly significant drivers of demand [65][68] Question: Competitive dynamics in the school bus market - Management stated it is too early to assess any significant competitive shifts in the market, with no meaningful changes observed so far [83][88]
Blue Bird: Hitting Accelerator On Profitable Growth Despite Policy, Tariff Bumps (BLBD)
Seeking Alpha· 2025-09-29 18:26
Core Viewpoint - Blue Bird Corporation (NASDAQ: BLBD) is positioned to benefit significantly from the EPA's $5 billion Clean School Bus program due to its leadership in alternative fuel school buses [1] Company Analysis - Blue Bird Corporation has been recognized for its market leadership in the production of alternative fuel school buses, which aligns with current environmental initiatives [1] - The company is seen as an undervalued investment opportunity, particularly in the context of increasing demand for eco-friendly transportation solutions [1] Industry Context - The EPA's Clean School Bus program represents a substantial financial commitment of $5 billion aimed at promoting cleaner school transportation options [1] - The shift towards alternative fuel vehicles in the school bus sector is indicative of broader trends in environmental sustainability and regulatory support for green technologies [1]
Blue Bird is viewed favorably at BTIG amid a strong school bus replacement cycle (BLBD:NASDAQ)
Seeking Alpha· 2025-09-16 17:42
Core Viewpoint - BTIG maintains a bullish outlook on Blue Bird Corporation (NASDAQ:BLBD) due to the aging North American school bus fleet, which averages around 11 years [3] Company Summary - Blue Bird Corporation is positioned to benefit from the aging school bus market in North America, indicating potential growth opportunities [3]
Blue Bird (BLBD) Earnings Call Presentation
2025-07-02 12:21
Financial Performance and Guidance - Blue Bird confirms FY25 revenue guidance of $1425 million to $1475 million[45] - The company anticipates an adjusted EBITDA of approximately $200 million with a margin of ~14% for FY25[45, 47] - Q2 FY25 adjusted EBITDA reached $49 million with a 14% margin, marking a $3 million increase compared to Q2 FY24[66, 67, 69] - Adjusted free cash flow for Q2 FY25 was $19 million[66, 69] Industry and Market Position - The school bus industry is expected to reach approximately 31,000 units in FY25[22] - Over 47% of school buses in service are 10 years or older, supporting replacement demand[24] - Blue Bird holds a leading market position in alternative power and electric school buses, with over 60% of sales being non-diesel[31, 34] Strategic Initiatives - Blue Bird is expanding its total addressable market (TAM) through the introduction of an EV commercial chassis offering[15, 40] - The company is focused on reducing structural costs through Lean Transformation initiatives[15] - Blue Bird was awarded an $80 million grant by the DOE for a new plant to support profitable growth plans for 12,000+ units[50, 52]
Blue Bird(BLBD) - 2025 Q2 - Earnings Call Transcript
2025-05-07 21:32
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]
Blue Bird Looks Quite Cheap Even After Factoring In Policy Uncertainties
Seeking Alpha· 2025-05-03 12:14
Group 1 - Blue Bird Corporation (BLBD) has lost most of its gains from May 2024 due to uncertainty surrounding a key industry tailwind for electric vehicle (EV) school buses [1] - The company operates in a sector that is influenced by various factors, including market demand for EVs and regulatory support for electric school buses [1] Group 2 - The investment focus is on value-oriented opportunities, particularly in sectors such as chemicals, homebuilders, building materials, industrials, and metals & mining [1] - The investment strategy emphasizes acquiring stocks that are undervalued and have potential catalysts within a time frame of one quarter to two years [1]