Blue Bird 2025 Q4 Earnings Net Income Surges 48% as Revenue Jumps 16.9%

Blue Bird (BLBD) delivered robust Q4 2025 results, surpassing expectations with 16.9% revenue growth to $409.37 million and 49.8% EPS expansion to $1.14. The company reaffirmed FY2026 guidance for $1.5 billion revenue and $220 million adjusted EBITDA, signaling confidence in its operational execution and EV market position despite tariff uncertainties.

Revenue

The Bus segment drove the increase, contributing $384 million, while the Parts segment added to the total. Revenue surged 16.9% year-over-year, reflecting higher unit sales, pricing discipline, and demand for alternative-powered vehicles.

Earnings/Net Income

Blue Bird’s EPS rose 49.8% to $1.14, with net income climbing 48.0% to $36.50 million, marking an 11-year high for Q4. The EPS and net income growth underscore Blue Bird’s strong operational performance and pricing discipline.

Post-Earnings Price Action Review

The strategy of buying Blue Bird shares after a revenue decline quarter-over-quarter and holding for 30 days delivered a 419.03% return, far outperforming the benchmark’s 69.21%. With a Sharpe ratio of 1.26 and zero maximum drawdown, the strategy demonstrated exceptional risk-adjusted returns. Volatility of 58.72% was well compensated by outsized gains, highlighting its appeal for investors seeking high-reward opportunities.

CEO Commentary

CEO John Wyskiel highlighted “operational execution” and pricing discipline, noting 901 EVs sold in 2025 and a rebound in backlog to 4,000 units. Strategic priorities include automation investments at the new Fort Valley plant and leveraging the “aging fleet replacement cycle” for long-term growth.

Guidance

Blue Bird maintained FY2026 guidance for 9,500 units and $1.5 billion revenue, with adjusted EBITDA of $220 million. The CFO emphasized cautious optimism amid “material cost pressures” but expects EBITDA margins to stay near 15%. Capital allocation includes $100 million in share repurchases and $200 million in manufacturing CapEx.

Additional News

Blue Bird announced a new commercial chassis product set for late 2026, signaling expansion beyond school buses. The company also reiterated $100 million in share repurchases over two years and $200 million in manufacturing automation investments. These moves underscore its focus on diversification and cost efficiency, positioning it to capitalize on EV demand and industry tailwinds.

Key Non-Earnings Updates (3 Weeks Post-Report):

1. Commercial Chassis Launch:

   Blue Bird plans to introduce a new commercial chassis product by year-end 2026, expanding its market beyond school buses.

2. Share Repurchase Program:

   The board approved a $100 million share buyback over two years, reflecting confidence in undervalued equity.

3. Automation Investments:

   The company announced $200 million in manufacturing automation at its Fort Valley plant to enhance efficiency and competitiveness.

These developments highlight Blue Bird’s strategic focus on innovation, capital efficiency, and market diversification to sustain growth amid industry challenges.