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 CORPORATION (NASDAQ: BLBD) FY2025 Fourth Quarter & Full Year Results Earnings Conference Call November 24, 2025 Agenda | Introductions & | Mark Benfield | | --- | --- | | Forward-Looking Statements | Executive Director, Investor Relations | | Key Results and Highlights | John Wyskiel | | | President & CEO | | Financial Results | Razvan Radulescu | | | CFO | | Outlook | John Wyskiel | | | President & CEO | | Q&A | Group | This presentation includes forward-looking statements, including statements r ...

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]