Blue Bird 2025 Q3 Earnings Record Net Income Growth of 27%

Blue Bird reported Q3 2025 earnings that exceeded expectations, with a significant boost in revenue and profits. The company raised its full-year guidance and announced a $100 million share repurchase program, signaling strong confidence in its future performance.

Revenue
Blue Bird's total revenue for Q3 2025 increased by 19.4% to $398.01 million, compared to $333.37 million in Q3 2024. This growth was driven by stronger bus unit bookings and a 5.4% rise in the average sales price per unit, largely due to strategic pricing and product mix adjustments. The bus segment contributed the bulk of the revenue, with $372.24 million, while parts sales added $25.77 million, reflecting a 1.7% increase year-over-year.

Earnings/Net Income
The company’s net income surged 27% year-over-year to $36.45 million, with earnings per share (EPS) rising 30.3% to $1.16. This marked a new 11-year record for Q3 net income. The EPS result underscores the company's effective cost management and pricing strategies, making the earnings performance robust and positive.

Price Action
Blue Bird's stock edged up 1.80% during the latest trading day but dipped 1.95% for the week and 1.87% month-to-date, reflecting mixed investor sentiment in the short term.

Post-Earnings Price Action Review
A strategy of buying Blue Bird stock following a positive earnings report and holding for 30 days proved highly effective, generating a 212.90% return. This significantly outperformed the benchmark return of 84.77%, with an excess return of 128.13%. The strategy also demonstrated strong risk control, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.44, indicating efficient returns relative to risk.

CEO Commentary
John Wyskiel, President & CEO, emphasized the company's record-breaking Q3 performance, driven by operational improvements, effective tariff navigation, and leadership in alternative-powered buses. He highlighted a strong backlog of 3,900 units and a milestone of 271 electric buses delivered this quarter, reinforcing Blue Bird’s commitment to clean energy solutions.

Guidance
Razvan Radulescu, CFO, raised fiscal 2025 guidance, forecasting adjusted EBITDA of $205–215 million and net revenue of approximately $1.45 billion. The company also set a long-term adjusted EBITDA margin target of 16% on $2 billion in revenue. Additionally, Blue Bird announced a new $100 million share repurchase program, underscoring its confidence in future cash flows and stock value.

Additional News
The company’s recent announcement of a $100 million share repurchase program highlights its commitment to returning value to shareholders. This initiative aligns with its raised financial guidance and reflects a long-term strategy of enhancing shareholder equity. Furthermore, Blue Bird’s leadership in electric school buses remains a strategic focus, with a record 271 units delivered in Q3. These actions underscore the company’s position as a key player in the transition to clean energy in the student transportation sector.