Blue Bird Reports Q1 2025 Results Beats Guidance, Reaffirms Outlook
Blue Bird Corporation (Nasdaq: BLBD), a leader in electric and low-emission school buses, has announced its fiscal 2025 first-quarter results. The company delivered robust financial performance, surpassing its guidance for the quarter and reaffirming its full-year outlook for 2025. Here’s an in-depth look at the highlights and key takeaways from the report.
First Quarter Highlights
- Unit Sales:
Blue Bird sold 2,130 units during the quarter, representing a marginal increase of one unit compared to the same period last year. Despite this, the company demonstrated strong operational efficiency and profitability. - Revenue:
Net sales for the quarter amounted to $313.9 million, a slight decrease of $3.8 million (1.2%) from the prior year. This decline was primarily driven by product mix changes, including lower volumes of electric vehicles (EVs), which typically carry higher price tags than internal combustion engine (ICE) buses. - Profitability Metrics:
- Net Income: Blue Bird reported net income of $28.7 million, up significantly from $2.6 million in the prior year.
- Diluted EPS: Earnings per share (EPS) stood at $0.86, a substantial improvement from $0.05 in the previous year.
- Non-GAAP Measures:
Adjusted EBITDA came in at $45.8 million, reflecting a modest decline of $1.9 million (or 4%) compared to the prior year. However, the adjusted EBITDA margin remained strong at 14.6%, underscoring the company’s ability to generate profits even amidst challenging market conditions.- Adjusted Net Income: Increased to $30.6 million, up $0.9 million from the prior year.
- Adjusted Diluted EPS: Rose to $0.92, a slight improvement of $0.01 over the prior year.
Leadership Perspective
Phil Horlock, President & CEO of Blue Bird Corporation, expressed pride in the team’s accomplishments, stating, “I am incredibly proud of our team’s achievements in delivering another outstanding result and near-record profit in the first quarter.” He highlighted several key areas where the company excelled:
- Operational Excellence:
Blue Bird continued to improve operations, streamline processes, and enhance productivity, contributing to the strong financial results. - Market Demand and Backlog:
Market demand for Blue Bird’s products remains robust, with nearly 4,400 units in the order backlog as of the end of the first quarter. This underscores the sustained interest in the company’s offerings, particularly its alternative-powered buses. - Electric Vehicle Leadership:
Blue Bird delivered over 130 electric-powered buses during the quarter, exceeding the plan communicated in November. The company also saw significant growth in EV orders, driven by federal programs like the EPA’s Clean School Bus Program and initiatives at the state and local levels. As of today, Blue Bird has approximately 1,000 EV buses either sold or in its firm order backlog, supporting its ambitious EV sales targets for 2025.
Horlock emphasized the strength of Blue Bird’s core business, noting that 94% of its first-quarter unit sales mix consisted of ICE buses. Despite this, the company achieved exceptional profitability, demonstrating the earnings power of its traditional product lines while paving the way for future growth in alternative-powered vehicles.
Financial Guidance
Based on its stellar Q1 performance, Blue Bird has reaffirmed its full-year financial guidance for fiscal 2025:
- Adjusted EBITDA: Targeted at $200 million, with a projected margin of 14%. If achieved, this would mark an all-time record for the company.
- Net Revenue: Expected to range between $1.4 billion and $1.5 billion.
- Adjusted Free Cash Flow: Anticipated to fall within $40 million to $60 million.
Razvan Radulescu, CFO of Blue Bird Corporation, expressed confidence in the company’s position, stating, “We are very pleased with the first-quarter results, which reflect the second-highest ever Q1 Adjusted EBITDA. Our business is in a very strong position, and we continue to deliver ahead of the plan we have been messaging.”
Looking further ahead, Blue Bird remains committed to achieving long-term profitability goals, targeting an Adjusted EBITDA margin of 15%+ on approximately $2 billion in revenues. This vision underscores the company’s focus on sustainable growth and leadership in the evolving school bus market.
Segment Performance
- Bus Sales:
Bus sales decreased by $5.3 million, reflecting a 1.9% drop in the average sales price per unit. This decline was largely attributable to shifts in customer preferences and product mix, including lower EV volumes. However, the company maintained steady unit sales, booking 2,130 units compared to 2,129 units in the prior year. - Parts Sales:
Parts sales experienced a notable uptick, increasing by $1.5 million (6.2%) compared to the first quarter of the previous year. This growth was driven by price increases due to ongoing inflationary pressures, higher fulfillment volumes, and variations in product and channel mix.
Commitment to Innovation and Sustainability
Blue Bird’s success in the first quarter is not just a testament to its operational capabilities but also its commitment to innovation and sustainability. The company continues to expand its leadership in alternative-powered school buses, aligning with global trends toward cleaner transportation solutions. By delivering over 130 electric-powered buses in Q1 and securing a strong pipeline of EV orders, Blue Bird is well-positioned to capitalize on growing demand for eco-friendly school buses.
Moreover, the company’s participation in federal and state-level clean energy programs highlights its proactive approach to addressing environmental challenges. These efforts not only bolster Blue Bird’s reputation as an industry leader but also contribute to its long-term growth prospects.
Blue Bird Corporation’s fiscal 2025 first-quarter results underscore the company’s resilience, operational excellence, and strategic foresight. With a solid foundation in its core ICE business and a clear path toward expanding its EV portfolio, Blue Bird is poised for sustained profitable growth. The reaffirmation of its full-year guidance and long-term outlook reflects management’s confidence in the company’s ability to navigate market dynamics and deliver value to shareholders.
As the demand for electric and low-emission school buses continues to rise, Blue Bird’s leadership position ensures it will remain at the forefront of this transformative shift in the transportation industry. Investors and stakeholders can look forward to a promising future as the company executes its strategic initiatives and drives innovation in the years to come.