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 [6][18][33] - Total revenue for Fiscal 2025 reached $1.48 billion, an increase of $133 million compared to the prior year [6][18] - The company sold 9,409 buses in 2025, with an average bus revenue per unit of $146,000, up $8,000 from the previous year [6][17] Business Line Data and Key Metrics Changes - Bus net revenue for the year was $1.377 billion, an increase of $134 million or 11% year-over-year [12][18] - Electric vehicle (EV) sales totaled 901 units, a 30% increase from the previous year, representing 9.6% of total volume [6][17] - Parts revenue remained flat at $103 million, maintaining strong demand due to an aging fleet [17][18] Market Data and Key Metrics Changes - The backlog at the end of Q4 was 3,100 units, including 680 EVs, but has since increased to nearly 4,000 units, with over 850 EVs [7][14] - Year-over-year selling prices for buses increased by nearly $8,300 per unit, reflecting pricing actions and tariff recovery [8][12] - The company noted that the fleet is aging, leading to a heavy replacement cycle and pent-up demand in the market [8][22] Company Strategy and Development Direction - Blue Bird is focusing on long-term manufacturing strategies, including automation and production efficiency improvements [4][5] - The company plans to invest in projects with clear returns and is optimistic about the EV market, particularly in the school bus sector [5][9] - The strategy includes maintaining pricing discipline and managing tariff impacts to achieve margin-neutral outcomes [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff volatility and highlighted a strong outlook for EVs, supported by state mandates and funding programs [9][22] - The company anticipates a significant increase in EV sales in the second half of Fiscal 2026, similar to the previous year [22][23] - Management remains cautious about the operating environment due to unpredictable tariffs and material costs but maintains a positive long-term outlook [21][22] Other Important Information - Blue Bird ended the year with $229 million in cash and a record liquidity of $371 million [20][21] - The company repurchased $40 million worth of shares during the year and plans to continue returning value to shareholders [20][28] - The upcoming commercial chassis products are expected to contribute to growth, with positive early feedback from customers [40][41] Q&A Session Summary Question: Importance of federal EV bus program for Fiscal 2026 guidance - Management indicated that the Fiscal 2026 guidance does not rely on rounds four and five of the federal EV program, with a strong backlog supporting the outlook [35][36] Question: Order season and demand outlook - Management acknowledged a conservative stance until post-holiday orders are received, but noted strong fundamentals supporting demand [38][39] Question: Commercial chassis project details - The commercial chassis prototypes are undergoing testing, with positive initial reactions from customers [40][41] Question: EV backlog and state incentive programs - Management confirmed an increase in EV backlog and noted that state-level funding programs are becoming more significant drivers of demand [48][49] Question: Competitive dynamics in the school bus market - Management stated it is too early to determine any significant competitive shifts in the school bus market due to tariffs affecting other segments [53][54]