Core Insights - Blue Bird (BLBD) reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.77 per share a year ago, resulting in an earnings surprise of +36.08% [1] - The company achieved revenues of $409.37 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.73% and up from $350.21 million year-over-year [2] - Blue Bird shares have increased approximately 39.3% since the beginning of the year, outperforming the S&P 500's gain of 12.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $350 million, while for the current fiscal year, the estimate is $4.15 on revenues of $1.57 billion [7] - The estimate revisions trend for Blue Bird was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Automotive - Domestic industry, to which Blue Bird belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, REV Group (REVG), is expected to report quarterly earnings of $0.78 per share, reflecting a year-over-year change of +52.9% with revenues projected at $647.12 million, up 8.2% from the previous year [9]

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]

Core Points - The Blue Bird School Bus Foundation is focused on investing in the education, health, and safety of children in Georgia [1] - The Foundation hosted its second community empowerment event this year [1] - A total of $60,000 was awarded to eleven local area nonprofit organizations [1] Summary by Category Community Engagement - The Foundation continues to engage with the local community through empowerment events [1] - The recent event marks the second of its kind this year [1] Financial Contributions - The Foundation awarded $60,000 to support local nonprofit organizations [1] - Eleven organizations received funding, including the Boys and Girls Clubs of the Chattahoochee Valley and Ronald McDonald House Charities [1]

Blue Bird, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $358.85 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 7.99%. This compares to year-ago revenues of $345.92 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on t ...