Blue Bird (BLBD) 7 Aug 24 2024 Q3 Earnings call transcript

In a recent earnings call, Blue Bird Corporation, a leading manufacturer of school buses, shared its financial results for the fiscal 2024 third quarter, highlighting a significant milestone with an all-time record profit for a quarter. Blue Bird's momentum, driven by a strong team performance and strategic initiatives, has surpassed previous profit records, positioning the company for continued success.

Record-Breaking Profits and Market Demand

Blue Bird's third-quarter profit, which is an all-time record for any quarter in the company's history, is a testament to the company's robust financial health and strong market demand. The company achieved an adjusted EBITDA margin of 14.5%, marking a significant improvement of over 4 percentage points compared to the previous year. This accomplishment comes after breaking profit records for the second quarter and underscores the company's commitment to sustainable growth.

Strategic Initiatives and Market Leadership

Blue Bird's success can be attributed to its strategic initiatives, including a focus on improving every aspect of its business. The company's market demand for school buses remains strong, with a quarter-end backlog of firm orders for Blue Bird buses standing at over 5,200 units. This strong backlog, coupled with a 10% increase in net orders for Blue Bird buses year-to-date, endorses the industry's endorsement of Blue Bird's buses and their competitive edge.

Electric Vehicles and Sustainability

Blue Bird's commitment to sustainability is evident in its electric bus division. The company delivered over 200 electric buses in the third quarter, representing nearly 40% of its unit sales for the quarter. This achievement, combined with a record backlog of EV buses, positions Blue Bird as a key player in the transition to electric buses. The company's strategic investments in electric bus technology and its leadership position in the alternative-powered vehicle market are expected to drive future growth.

Looking Ahead

Blue Bird's outlook for the future is promising, with a focus on innovation, efficiency, and sustainability. The company is investing in its facilities and manufacturing processes to enhance productivity and improve margins. Blue Bird's strategic partnerships and collaborations, such as the $80 million grant from the Department of Energy, are set to expand its production capacity and further solidify its market leadership.

Conclusion

Blue Bird's fiscal 2024 third-quarter earnings call underscores the company's financial strength and strategic foresight. With a focus on market demand, innovation, and sustainability, Blue Bird is well-positioned for continued growth and success. As the company looks ahead to the future, its commitment to delivering high-quality, sustainable transportation solutions is expected to drive its success in the competitive school bus market.