Blue Bird 2025 Q2 Earnings Record Net Income Growth

Blue Bird (BLBD) reported its fiscal 2025 Q2 earnings on May 7th, 2025. The company achieved a milestone with record quarterly revenue and net income for the second quarter, underscoring its robust performance. Revenue rose by 3.7% year-over-year to $358.85 million, surpassing expectations. The company reaffirmed its full-year guidance for net revenue and aims for a record Adjusted EBITDA in fiscal 2025. Blue Bird's backlog of approximately 4,900 units reflects strong market demand and operational efficiency.

Revenue

Blue Bird's total revenue for Q2 2025 increased by 3.7% to $358.85 million, compared to $345.92 million in the same quarter of the previous year. The Bus segment was the primary contributor, generating $332.71 million, while the Parts segment added $26.14 million to the overall sales, reflecting steady growth across its core operations.

Earnings/Net Income

In fiscal 2025 Q2, Blue Bird's EPS rose slightly by 1.2% to $0.82, compared to $0.81 in the previous year. The company's net income reached $26.05 million, marking a modest 0.1% increase from the prior year's $26.02 million, setting a new 11-year high for fiscal Q2 net income. The EPS performance indicates stable profitability.

Post-Earnings Price Action Review

Over the past five years, the strategy of investing in Blue Bird shares following a quarter-over-quarter revenue increase has yielded moderate returns. However, this approach is associated with significant volatility and risk. The strategy's compound annual growth rate was 2.04%, resulting in a total return of 10.57%. Despite these returns, the low Sharpe ratio of 0.17 reflects limited risk-adjusted gains. Investors faced a maximum drawdown of -16.19% amidst a volatility rate of 11.94%, highlighting the critical need for effective risk management in employing this strategy.

CEO Commentary

"I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit," said John Wyskiel, President & CEO of Blue Bird Corporation. The company exceeded expectations through improved operations and strong market demand, reflected in a backlog of approximately 4,900 units. Unit sales increased slightly year-over-year, contributing to a revenue rise of $12.9 million driven by product mix and pricing. With 88% of unit sales from internal combustion engine buses, the firm reported a 14% Adjusted EBITDA margin, demonstrating solid earnings power in its core business.

Guidance

"We are reaffirming our full-year 2025 guidance for Net Revenue to $1.4-1.5 billion, Adjusted EBITDA to $190-210 million, and Adjusted Free Cash Flow to $60-80 million," stated Razvan Radulescu, CFO of Blue Bird Corporation. The company anticipates achieving an all-time record for Adjusted EBITDA in fiscal 2025 and maintains a long-term profit outlook towards an Adjusted EBITDA margin of over 15% on approximately $2 billion in revenue.

Additional News

Recently, Blue Bird Corporation announced all necessary regulatory approvals for its acquisition by Carlyle and SK Capital have been secured, with the merger expected to conclude shortly. Additionally, Blue Bird's Board of Directors has recommended shareholders tender their shares in the ongoing offer to ensure value creation, given potential loan agreement risks. Meanwhile, Blue Bird continues to lead in electric and low-emission school buses, enhancing its market position with a strong order backlog and expanding leadership in alternative-powered buses.