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]

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 [6][12] - Adjusted EBITDA for the quarter was $50 million, $4 million higher than last year, reflecting a 15% margin [12][16] - Free cash flow reached a record $31 million, up $9 million from the prior year [13][18] - 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 - The company sold 2,135 buses in Q1, with bus net revenue at $308 million, up $20 million year-over-year [14][15] - EV sales accounted for 121 units, representing 6% of unit volume, with a backlog of 855 EVs pushing into 2027 [8][14] - Parts sales totaled $25 million for the quarter, remaining strong due to increased demand from 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][6] - The average selling price for buses increased by nearly $8,800 per unit year-over-year, influenced by tariff recovery [7][15] - The market fundamentals remain strong, with an aging fleet and a heavy replacement cycle anticipated [7][10] Company Strategy and Development Direction - Blue Bird aims to maintain its leadership in the All Power segment, focusing on EVs and propane buses as part of its long-term strategy [4][5] - The company is investing in automation and manufacturing efficiencies to improve cost structures and margins [5][26] - The new assembly plant scheduled to launch in 2028 is a key part of the company's strategy to enhance production capabilities and support growth [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 for school buses [7][10] - The company is navigating tariff volatility effectively, aiming for a margin-neutral outcome [5][10] - The outlook for EVs remains positive, with expectations of 800 EV unit sales for fiscal 2026 [8][19] Other Important Information - The company confirmed a $80 million contract with the DOE for funding towards the new plant, which will create 400 jobs [10] - Blue Bird's long-term revenue target is projected to reach $2 billion, with adjusted EBITDA of $320 million by 2029 and beyond [21][22] 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 [30] Question: EV market share and diesel trends - The company reported a strong EV backlog and noted that diesel sales remained robust, with potential pre-buy activity due to upcoming emission regulations [36][38] Question: Propane market trends - Management highlighted that propane remains a preferred option for school districts due to its total cost of operation and ease of infrastructure conversion [42] 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 [48][56] Question: Automation impact on margins - Management confirmed that ongoing automation initiatives are expected to provide favorable returns and support margin improvements over the long term [52][53]

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]

FY2025 Financial Performance - Blue Bird achieved record annual sales of $1.48 billion and an Adjusted EBITDA of $221 million, representing a 15% margin[60] - The company's Adjusted Free Cash Flow for FY2025 was $153 million, an increase of $54 million compared to FY2024[20] - Net sales for FY2025 increased by $133 million compared to FY2024, reaching $1.48 billion[20] - Blue Bird's full-year unit sales reached 9,409, an increase of 409 units compared to the previous year[20] - The average selling price (ASP) increased by $8,300 per unit[20] Q4 2025 Financial Performance - Q4 2025 net sales reached $409 million, a $59 million increase compared to Q4 2024[25] - Adjusted EBITDA for Q4 2025 was $68 million, a $27 million increase compared to Q4 2024[25] Alternative Power and EV - Alternative power sales accounted for 56% of the sales mix[20] - The company booked 901 EV units in FY2025[20] - Blue Bird has a firm order backlog of 680 EVs[20] FY2026 Guidance - Blue Bird confirms FY2026 guidance with revenue of approximately $1.5 billion and an Adjusted EBITDA of approximately $220 million, maintaining a ~15% margin[42]

Financial Performance Highlights - Blue Bird's Q3 FY2025 net sales reached $398 million, a $65 million increase compared to Q3 FY2024[20, 25] - The company's Adjusted EBITDA for Q3 FY2025 was $58 million, up $10 million from Q3 FY2024[20, 25] - Adjusted Free Cash Flow for Q3 FY2025 was $52 million, a $56 million increase compared to Q3 FY2024[20, 25] - Blue Bird is raising its full-year FY2025 Adjusted EBITDA guidance to $210 million and expects ~14.5% margin[36, 37] - The company's Q3 Adjusted EBITDA margin was 14.7%, a 20 bps increase compared to Q3 FY2024[21, 27] Business Operations and Backlog - The company sold 2,467 units in Q3 FY2025, an increase of 316 units compared to Q3 FY2024[20, 25] - Blue Bird has a strong backlog of approximately 3,900 units, valued at around $618 million[20, 27] - The company has approximately $174 million in firm orders for electric vehicles (EVs) in its backlog[20] - Alternative power sales accounted for 61% of the sales mix[20] Future Outlook and Capital Allocation - Blue Bird anticipates approximately $1.5 billion in revenue for FY2026, with an Adjusted EBITDA of around $220 million, representing a margin of approximately 14.5%[39] - The company has initiated a new share repurchase program of up to $100 million over two years[32, 34, 52]