Blue Bird Corporation ((BLBD)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Blue Bird Corporation painted a largely positive picture, highlighting the company’s strong performance in sales, adjusted EBITDA, and electric vehicle (EV) growth. Despite facing challenges with tariff uncertainties and government policies, the overall sentiment was optimistic, driven by significant achievements and a promising outlook.
Record Sales and Adjusted EBITDA
Blue Bird Corporation reported record sales and adjusted EBITDA for Fiscal Year 2025, with adjusted EBITDA reaching $221 million. This represents a $38 million improvement from the previous year, underscoring the company’s robust financial health and operational efficiency.
Strong EV Sales Performance
The company sold 901 electric vehicles in 2025, marking a 28% increase from the previous year and representing 9.6% of total volume. This strong performance reflects Blue Bird’s commitment to the EV market and its promising long-term outlook in this segment.
Increased Revenue and Free Cash Flow
Blue Bird’s revenue soared to $1.48 billion, $133 million more than the previous year. The company also achieved an impressive free cash flow of $153 million, highlighting its effective cash management and operational success.
Improved Backlog and Pricing Stability
The backlog increased to nearly 4,000 units, including 850 EVs, thanks to disciplined pricing strategies that maintained higher bus prices than the previous year. This stability is crucial for sustaining long-term profitability.
Positive Manufacturing Developments
Blue Bird’s strong operational execution and the initiation of scope development for a new factory are set to enhance its long-term competitiveness, signaling a strategic focus on manufacturing improvements.
Impact of Tariff Uncertainty
Tariff-related pricing uncertainties initially reduced the backlog to 3,100 units by the end of the fourth quarter. However, the situation has since improved, indicating the company’s resilience in navigating external challenges.
Challenges with Government Policies
The company continues to face challenges with government policies related to tariffs and EVs, which have impacted order intake and pricing strategies. Addressing these issues remains a priority for Blue Bird.
Forward-Looking Guidance
Blue Bird’s forward-looking guidance remains optimistic, with expectations to deliver approximately 750 EV units in fiscal 2026, potentially reaching 1,000 units. The company’s strong financial position and strategic investments in manufacturing and product development are expected to drive long-term growth.
In conclusion, Blue Bird Corporation’s earnings call highlighted a positive sentiment, driven by record-breaking financial results and a promising outlook in the EV market. Despite challenges with tariffs and government policies, the company’s strategic focus on manufacturing and disciplined pricing strategies underscore its potential for sustained growth.