Blue Bird(US:BLBD)2025-11-24 22:32Financial 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]