BLBD

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at heavy transportation equipment stocks, starting with Blue Bird (NASDAQ:BLBD). Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings. The 12 heavy transportation equipment stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 8.6% above. While some heavy transportation equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results. With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts. Blue Bird reported revenues of $517.2 million, up 29.9% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance meeting analysts’ expectations. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.7% since reporting and currently trades at $64.08. Read why we think that Blue Bird is one of the best heavy transportation equipment stocks, our full report is free. With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods. Wabash reported revenues of $417.2 million, down 9.1% year on year, outperforming analysts’ expectations by 3.6%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.4% since reporting. It currently trades at $12.73. Is now the time to buy Wabash? Access our full analysis of the earnings results here, it’s free. Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services. Greenbrier reported revenues of $576.5 million, down 31.6% year on year, falling short of analysts’ expectations by 5.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations significantly. Greenbrier delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 4.4% since the results and currently trades at $45.78. Read our full analysis of Greenbrier’s results here. Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry. Oshkosh reported revenues of $2.92 billion, up 6.7% year on year. This result beat analysts’ expectations by 3.3%. Overall, it was a very strong quarter as it also logged full-year revenue guidance beating analysts’ expectations and a beat of analysts’ EPS estimates. The stock is flat since reporting and currently trades at $153.94. Read our full, actionable report on Oshkosh here, it’s free. Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies. Federal Signal reported revenues of $670.2 million, up 18.7% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also produced full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. The stock is up 12.8% since reporting and currently trades at $126.14. Read our full, actionable report on Federal Signal here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Blue Bird's second quarter showed strong top-line momentum, with revenue growth driven by higher bus sales volumes and consolidation of the Micro Bird joint venture. However, the market responded negatively, reflecting concerns about profit margins and the company’s ability to translate sales growth into bottom-line results. Management attributed the quarter’s performance to execution in its core operations, disciplined pricing, and continued leadership in alternative powertrains. CEO John Wyskiel highlighted a strengthened backlog and expanded presence in electric vehicles, while acknowledging the impact of tariffs and integration of Micro Bird. Is now the time to buy BLBD? Find out in our full research report (it’s free). Revenue: $517.2 million vs analyst estimates of $498.1 million (29.9% year-on-year growth, 3.8% beat) Adjusted EPS: $1.28 vs analyst expectations of $1.30 (1.6% miss) Adjusted EBITDA: $71.38 million vs analyst estimates of $65.8 million (13.8% margin, 8.5% beat) The company reconfirmed its revenue guidance for the full year of $1.75 billion at the midpoint EBITDA guidance for the full year is $247 million at the midpoint, in line with analyst expectations Operating Margin: 12.1%, in line with the same quarter last year Sales Volumes rose 42.9% year on year (14.7% in the same quarter last year) Market Capitalization: $2.10 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eric Stine (Craig-Hallum) questioned whether the Ford chassis deal replaces Blue Bird’s previous growth plans or complements them. CEO John Wyskiel replied that this is now the company’s primary path forward, citing the scale and partnership benefits with Ford. Michael Shlisky (D.A. Davidson) asked about the conservative volume outlook for the new chassis business. CFO Razvan Radulescu explained that projections are intentionally cautious given the cyclicality of RV and delivery markets, but there is potential for higher volumes. Christopher Pierce (Needham) inquired about the impact of finished goods inventory on reported sales and future revenue. Radulescu clarified that higher inventory levels delayed revenue recognition, but orders and backlog remain stable heading into the next quarter. Pierce (Needham) also asked about the low-cost entry into the chassis market and risk mitigation. Radulescu confirmed the $7 million asset purchase and emphasized the risk-sharing nature of the collaboration with Ford. Ben Summers (U.S. Bancorp) sought details on synergies and technology transfer from the Ford partnership. Wyskiel pointed to opportunities for applying new chassis and electronics architectures across Blue Bird’s bus and specialty vehicle lines. In the coming quarters, key areas to monitor include (1) execution and ramp-up progress in the new Ford commercial chassis segment, (2) the pace of integration and margin recovery following the Micro Bird acquisition, and (3) order trends in the core school bus market amid evolving funding conditions and replacement cycles. Additional attention will be paid to automation initiatives and their impact on cost structure. Blue Bird currently trades at $66.20, down from $76.93 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, August 5, 2026 at 4:30 p.m. ET Head of Investor Relations - Mark Benfield President and CEO - John Wyskiel CFO - Razvan Radulescu Operator: Ladies and gentlemen, thank you for joining us, and welcome to Blue Bird's Fiscal 2026 Third Quarter Earnings. [Operator Instructions] I will now hand the conference over to Mark Benfield, Blue Bird's Head of Investor Relations. Mark, please go ahead. Mark Benfield: Thank you, and welcome to Blue Bird's Fiscal 2026 Third Quarter Earnings Conference Call. The audio for our call is webcast live on blue-bird.com under the Investor Relations tab. You can access the supporting slides on our website by clicking on the Presentations box on the IR landing page. Our comments today include forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters we have noted on the following two slides and in our filings with the SEC. Blue Bird disclaims any obligation to update the information in this call. This afternoon, you will hear from Blue Bird's President and CEO, John Wyskiel; and CFO, Razvan Radulescu, and we'll take some questions. Let's get started. John? John Wyskiel: Thanks, Mark. Good afternoon, everyone, and thanks for joining us today. It's an exciting day today as we are going to share our strong fiscal 2026 third quarter financial results and the continued significant progress we've made with our long-term strategy, including a very special announcement we made late this afternoon. Results for Q3 were once again very strong, and the Blue Bird team delivered outstanding sales and adjusted EBITDA, beating guidance for the 15th consecutive quarter. Razvan will take you through the details of our financial results shortly, but let's turn to Slide 6, where I will talk to some of the key takeaways for the quarter. First, Blue Bird beat guidance on all metrics for the quarter. Again, we continue to manage the volatility associated with the administration's policy on tariffs well. Backlog for the quarter ended at 4,900 units, inclusive of Micro Bird and just under 3,600 units for Type C and D. Operationally, metrics are pointing in the right direction, and the team has been able to execute on a day-to-day basis while simultaneously working on our long-term strategy. In terms of pricing, we remain extremely disciplined. Bus prices remained higher than the previous year and in the previous quarter. As I continue to communicate, this process is just how we manage the business. In the Alt-Power segment, our dominance continues. Our EV backlog is just under 800 units, and we have a strong EV order book into 2027. Alt-Power is a segment we created over 15 years ago. We were pioneers in EV. Our propane powertrains have the lowest total cost of operation, and our gas variant continues to be a market leader. With increased diesel prices at the pump, we believe Alt-Power is a great long-term play, and we continue to maintain our lead position. And finally, we continue to manage the impact of the administration's executive orders and tariff volatility. We are fortunate to be well positioned to navigate this situation to a margin-neutral outcome. As I've said on every earnings call, it is our objective to position this business to be a strong long-term investment. Let's turn the page and take a closer look at the financial and key business highlights for the quarter on Slide 7. We sold 3,525 buses in Q3 and recorded revenue of $517 million, $119 million above last year. On the EV side, we sold over 350 electric vehicles, 10% of unit volume, and our long-term outlook for EVs remains optimistic. Adjusted EBITDA for the quarter came in at $71 million, $13 million stronger than last year, and adjusted free cash flow came in at $28 million. Razvan will talk more about this and our outlook later in this call. Turning to the right side of the page, I'll touch on a few points. As discussed earlier, our backlog finished at a solid 4,900 units combined. As you know, backlog is a function of orders and production. Orders for the industry were up 7% on a trailing 12-month basis and Blue Bird's order intake was up 9% for the same period. We feel good about our position in the school bus market. I continue to reiterate that the overall market fundamentals are still strong. The fleet is aging. We are coming into a heavy replacement cycle, and there's been industry supply issues in the last few years, leaving pent-up demand. The midterm horizon continues to look very good for school bus volumes. Year-over-year selling prices for buses was up almost $10,000. But of course, this also includes increased tariff recovery as part of our margin-neutral tariff strategy. With tariffs excluded, pricing was still up year-over-year, and parts sales totaled $25.5 million for the quarter. Alt-powered Blue Bird buses represented a strong 54% unit sales mix for the quarter. Our powertrain strategy is a differentiator in the market and allows us to maintain stronger margins. For the quarter, we had 355 EVs booked and 776 EVs in our order backlog pushing into 2027. Again, we remain optimistic on EVs in the school bus sector. EVs are a perfect fit for school buses when you look at the duty cycle, available charging intervals, range and the proven health benefits for our children. Rounds two and three of the EPA Clean School Bus program remained intact with funds flowing to our end customers. And the EPA has invited comments for 2026 funding, solidifying rounds four and five for the program, consistent with what we have been communicating. We should understand very soon how and when the EPA will administer these funds. Overall, when we look at state funding and fleet EV mandates, we believe this market will remain relevant. In the quarter, we closed on the Micro Bird transaction. This transaction brings us consolidated revenue with the Type A school bus and future growth in the commercial shuttle bus segment. It also brings us technology with the EcoTuned integrated EV platform. This transaction represents our strategic commitment to growth outside of the school bus segment and putting the balance sheet to work. But finally, I have another exciting item to report. We made a very big move in the chassis market. Let's turn to Slide 8, where I will talk about the exciting news we released earlier today, our expanded collaboration into the Class 5-6 chassis market with Ford Motor Company and our asset purchase of Detroit Chassis LLC's Detroit Assembly plant. Under the agreement, Blue Bird will assume design, manufacturing and sales responsibility for the next-generation F-53/F-59 commercial strip chassis. Additionally, Ford will supply to us its medium-duty next-generation Ford powertrain as part of this agreement. Finally, Ford and Blue Bird intend to collaborate on the seamless customer transfer of fleet, RV and Specialty Body manufacturers. This collaboration with Ford will run through the end of 2033 with the extension opportunity into 2036. As part of this significant market entry, Blue Bird will also acquire Detroit Assembly plant assets of Detroit Chassis LLC, the current contract assembler for the F-53/F-59 chassis. Detroit Chassis brings workforce, leadership, equipment, while Blue Bird brings the overall design and business enterprise expertise to support this overall arrangement. The purchase is anticipated to close in calendar Q1 2027, shortly after the current chassis ends production, and production of our new chassis is expected to start in calendar Q1 2028. For Blue Bird, this arrangement and transaction focuses on the strategic value proposition of growth, technology and collaboration. First, it expands Blue Bird's total addressable market by $1.4 billion in a largely two-player market in both commercial delivery and RV segments. Also, the Ford-powered gas chassis is a competitive and dominant offering in this space. The collaboration will propel our market position in the strip chassis segment. Second, this new chassis design will have considerable technical read across into our new bus design. We also see that this chassis design will be scalable and facilitate expansion into other product offerings. This technical approach will support even further growth down the road. Lastly, a collaborative approach with Ford will support an orderly transition with customers, enabling ease of entry into the market and mitigating risk. Overall, this is a very exciting announcement and is an important part of our strategy for the company. And as I said earlier, it brings tremendous opportunity for growth, technology and collaboration. It positions us to be a growing player in the Specialty Vehicle market. It has certainly been another busy quarter with strong results and a very exciting announcement. So, I'd now like to hand it over to Razvan to walk through our fiscal '26 third quarter financial results as well as our full year updated guidance in more detail. Razvan? Razvan Radulescu: Thanks, John, and good afternoon. It's my pleasure to share with you the financial highlights from Blue Bird's fiscal 2026 third quarter and year-to-date record results. The quarter end is based on a close date of June 27, 2026, whereas the prior year was based on a close date of June 28, 2025. We will file the 10-Q today, August 5, after market closing. Our 10-Q includes additional material and disclosures regarding our business and financial performance. We encourage you to read the 10-Q and the important disclosures that it contains. The appendix attached to today's presentation includes reconciliations of differences between GAAP and non-GAAP measures mentioned on this call as well as other important disclaimers. Slide 10 is a summary of the fiscal '26 third quarter and year-to-date record financial results. Please note that fiscal '26 Q3 is the first quarter in which we are consolidating the Micro Bird results, following our acquisition of the remaining 50% of the joint venture, which transaction closed on April 1, 2026. It was a strong operating quarter for our company, a great continuation after the first half of the fiscal year, and we beat our consolidated guidance provided in the last earnings call on all metrics. In fact, we delivered the best Q3 profit ever for Blue Bird with $71 million in adjusted EBITDA. The team pushed hard and continued doing a fantastic job and generated 3,525 unit sales volume, which includes 1,235 Micro Bird units. The Blue Bird unit sales were 7% below prior year level, driven by a relatively large number of GSA and fleet units in finished goods. As a result, Q3 consolidated net revenue of $517 million was only $119 million higher than prior year, which Micro Bird consolidation contributed approximately $123 million. Adjusted EBITDA was a Q3 record $71 million, $13 million higher than prior year, and it includes the consolidation effect of Micro Bird of $8 million. The adjusted free cash flow was a solid Q3 of $28 million and $24 million lower than the prior year, driven by a seasonal increase in working capital and finished goods inventory for GSA and fleet. Our liquidity position at the end of this quarter was strong at $259 million, and this is after the Micro Bird acquisition and paying down all the debt at close. The year-to-date results, including the consolidated Q3 for Micro Bird are equally impressive, while units sold of 7,808 buses were above prior year by 916 units. The revenue grew 12% to $1.2 billion with record adjusted EBITDA of $172 million or $19 million above prior year. Free cash flow was also very strong at $100 million or $7 million above prior year's level. Moving on to Slide 11. Our backlog continues to be solid at approximately 4,900 units, including approximately 1,300 Micro Bird units and a total of approximately 800 EVs. Many of the EVs are already scheduled to be built and delivered in fiscal year '27. Let's break now the Q3 revenue of $517 million into three components. First, the Blue Bird bus net revenue was $369 million, down 1% versus prior year due to higher finished goods inventory for GSA fleet. However, our average Blue Bird bus revenue per unit increased by $10,000. Blue Bird EV sales in Q3 were 300 units or 29 units higher than last year. Second, parts revenue for the quarter was almost flat at a strong $25 million. Third, this quarter, we are consolidating Micro Bird revenue for the first time, and they contributed $123 million to our results with 55 EV units sold. Gross margin for the quarter was a strong 20% or 160 basis points lower than last year due to Micro Bird consolidation, which drove 180 basis points reduction. Adjusted EBITDA of $71 million was higher compared with prior year by $13 million, of which the Micro Bird consolidation impact was $8 million. Adjusted EBITDA in percentage was mathematically compressed year-over-year due to the consolidation of 100% of the Micro Bird revenue in Q3, while adding only 50% incremental adjusted EBITDA after the joint venture acquisition. Excluding the Micro Bird consolidation effect, the percentage actually went up from 14.7% to a record Q3 of 16.1%. Iin fiscal '26 Q3 adjusted net income was a record Q3 at $45 million or $6 million higher than last year, with half of the delta coming from the Micro Bird consolidation. Adjusted diluted earnings per share of $1.28 was up $0.09 versus the prior year. Slide 12 shows the walk from fiscal '25 Q3 adjusted EBITDA, the fiscal '26 Q3 results before and after the Micro Bird consolidation. Starting on the left at $58.5 million, the impact of the bulk segment gross profit in total was $0.7 million, split between volume and pricing effects, net of material cost increases of $6.2 million and year-over-year healthcare cost increases, lower overhead absorption and higher freight and costs totaling negative $5.5 million. The bulk segment gross profit was almost flat as well as our fixed cost and other income, other expenses. However, the Micro Bird results improved year-over-year, shown here in the previous 50% joint venture format. The above-mentioned developments drive our pre-consolidation record fiscal '26 Q3 adjusted EBITDA results of $63.6 million or 16.1%. The Micro Bird 50% joint venture consolidation added an additional $7.8 million for a total reported adjusted EBITDA of $71.4 million or 13.8%. Moving on to Slide 13. We ended the quarter with $117 million in cash and reduced our debt by $5 million over the last year. This is after completing the Micro Bird acquisition during this quarter and paying down all the debt at close. Despite this, our liquidity remains strong at $259 million at the end of fiscal '26 Q3. The operating cash flow was solid for Q3 at $31 million, driven by great operational execution and margins, partially offset by increases in working capital and finished goods inventory for GSA and fleet. On Slide 14, we want to share with you our updated fiscal '26 forecast. Looking at our record Q3 results, we have beaten again our guidance this past quarter, so we had a very strong fiscal year-to-date. We continue to forecast a strong Q4 at approximately 14% adjusted EBITDA margins despite a small reduction in units sold versus the previous forecast. We are guiding total year revenue to the same midpoint and with a range of $1.74 billion to $1.76 billion. And given our beat in Q3, we are raising our guidance for adjusted EBITDA to $247 million or approximately 14% with a range of $245 million to $250. Moving to Slide 15. In summary, we are forecasting an improvement year-over-year to a new record with revenue up to approximately $1.75 billion, adjusted EBITDA in the range of $245 million to $250 million or 14% and adjusted free cash flow of $125 million to $135 million, in line with our typical target of approximately 50% of adjusted EBITDA. And after accounting for the extraordinary CapEx of up to $5 million as our 50% fiscal '26 portion of the new plant investment funded by a reconfirmed DOE MESC grant, which is currently proceeding with the permitting phase. Moving on to Slide 16. We wanted to remind you of our medium- and long-term outlook after the Micro Bird acquisition. Medium-term outlook was a $275 million adjusted EBITDA or 13.5%. Our long-term target was to generate EBITDA of $325 million to $375-plus million or 14% to 15% plus. Moving on to Slide 17. As John mentioned before, we announced earlier today that we have expanded our collaboration with Ford into the commercial strip chassis gas-powered segment. Starting in 2028, the next generation of the F-53/F-59 chassis will be designed, manufactured and commercialized by Blue Bird with Ford powertrain. This expands our addressable market into the core of the last-mile delivery segment as well as Class A RV segment. It represents an investment in 2027 of approximately $90 million for Blue Bird, of which $50 million is CapEx. The manufacturing will begin in early 2028 in the current Detroit assembly plant of Detroit Chassis LLC, which Blue Bird will acquire in 2027 in an asset deal after the end of production of the existing F-53/F-59 products. This new segment is expected to grow for us to a level of approximately 10,000 units in 2030 and generate longer-term adjusted EBITDA of $100 million plus or 14% to 15%. This collaboration replaces in the first step our previous planned entry into this segment with a 10x higher potential. We are very excited about this opportunity as a further step on our profitable growth strategy. Moving on to Slide 18, you can see our updated medium- and long-term outlook post Fort collaboration expansion. Starting with the short-term outlook, the pro forma results for 2026 and '27, including a full year of Micro Bird consolidation, indicate approximately $2 billion in revenue and approximately $260 million of adjusted EBITDA or 13%. This is before the noncapitalized portion of the Blue Bird chassis investment from the expanded collaboration as well as exciting new product investments currently in the early stages of planning. We will provide full year and quarterly guidance for fiscal '27 in the next earnings call. In terms of capital allocation, we intend to refinance and expand our credit facility by the end of calendar year 2026 and maintain a leverage ratio under 2x adjusted EBITDA. And we continue to be opportunistic in share buybacks with approximately $90 million remaining on the existing program. Moving to the right in time, what used to be our low-end long-term target of $2.3 billion in revenue moved now closer into midterm with $300-plus million in adjusted EBITDA. The long-term outlook is raised now to approximately $3 billion in revenue and $400 million to $500 million plus in adjusted EBITDA or 14.5% to 15% plus. Now this is what we call profitable growth. We continue to be incredibly excited about Blue Bird's future. And now I will turn it back over to John. John Wyskiel: Thank you, Razvan. Let's move on to Slide 20. I want to take this opportunity to remind everyone of our long-term strategy, which consists of four elements and positions the company for the future. First, as an almost 100-year-old company, business continuity and long-term stability is a core element. This includes investing and updating our manufacturing facilities and products. A great example is our new assembly plant, which is planned to start production in late calendar year 2028 and our commitment to a highly competitive new bus design. Infrastructure and competitive products are an essential part of our plan. The next element is the theme that has been consistent in the last few years, profitable growth. Of course, the school bus market is projected to grow over the next few years, and our new plant will allow us to capitalize on that. But for Blue Bird, it also means expanding our total addressable market by entering new adjacencies. The Blue Bird commercial strip chassis we announced today, and the Micro Bird Buy America shuttle bus are great examples. Margin expansion is the next element. This area focuses on advancing competitiveness and cost reduction. For Blue Bird, this means continuing our Industry 3.0 automation initiative. But as well, the new plant will allow for further factory of the future opportunities, including Industry 4.0 initiatives. And the last area is putting the balance sheet to work. The Micro Bird acquisition and the Detroit Chassis asset purchase are great examples of this and support our safe and accretive approach in this area. And even after these transactions, Blue Bird continues to have a pristine balance sheet, strong liquidity and solid cash flows. This will allow us to continue to be strategically opportunistic. Overall, we have a balanced strategy that positions the company for the future and delivers value to our shareholders. Let's turn to Slide 21. The fundamentals for the school bus segment remains strong, as shown on the left side of the page. We are moving into the replacement cycle for the high-volume period between 2017 and 2019. We know there is pent-up demand remaining from the COVID period, and there are still over 250,000 buses over 10 years old. And funding remains stable for this market. All of this contributes to a strong ACT outlook of approximately 6% CAGR over the next several years. But with the addition of Micro Bird earlier this year, we now get the consolidation benefit of Type A school bus and the growth associated with entering the Buy America commercial shuttle bus market, as shown on the right side of the page. But adding today's big announcement for the commercial strip chassis market, these combined moves increase our total addressable market by 150% on units and over 85% on dollars from just 1 year ago. These transactions represent our commitment to our strategy as we reshape Blue Bird from a pioneer in the school bus industry to a growing player in the Specialty Vehicle market. I'll wrap it up on Slide 22. This great company and iconic brand is almost 100 years old. It has stood the test of time and is positioned for the future. We delivered outstanding results again in the third quarter of 2026. We continue to demonstrate credibility by delivering on our targets. We are excited about the Micro Bird acquisition made earlier this year and extremely excited about the Ford collaboration in Detroit Chassis LLC asset acquisition announced today. These are significant components of our long-term strategy and will position us to be a growing player in the Specialty Vehicle market. And looking ahead, our strategy, discipline and demonstrated execution will set this company up for the future and deliver value to our shareholders. As always, I want to thank our employees, our dealer network, our supply partners and of course, our investors. All are critical for our success. I remain excited about Blue Bird, and we continue to deliver great results and make significant progress in our longer-term strategy. This company is a great American story with such a rich history and an exciting future ahead. Thank you. So that concludes our formal presentation for today, and I'd like to now hand it back to our moderator for the Q&A session. Operator: [Operator Instructions] The first question comes from the line of Eric Stine with Craig-Hallum. Eric Stine: So, I would love to start with the Ford agreement. It certainly makes a lot of sense what you're doing. But I just want to make sure I understand it. So, did you say that this kind of becomes your primary path forward? Or should we view this in addition to the fact that you've got excess chassis capacity in Ford Valley and that you're kind of going on two paths? John Wyskiel: Eric, it's John Wyskiel. Yes, for sure, it's our primary path. There's a lot of engineering work here to get through. And this one, we look at this as a real solid agreement as we get to break into a market and catapult into it with cooperation with Ford. So, we're excited. Eric Stine: Got it. And then in terms of that excess chassis capacity that you have, is there something that you're, and maybe this is TBD, but that you're thinking about that, that can be utilized for because I know that, that has long been viewed as kind of an unrealized asset that could be put to work. John Wyskiel: Yes, we'll see down the road. I mean, right now, there's no immediate need with what we've done with Detroit Chassis, of course, purchasing their assets. Down the road, I mean, there's some geography that could come into play. But again, it's not the immediate play we'll make. Eric Stine: Okay. Just on a follow-up, so it starts in fiscal '28. And I know that you talked about in fiscal '30 that you're thinking 10,000 units, a little under half the addressable market. Should we think about that as a bit of a ramp from the start to that 10,000? Or I guess you just talked about thinking you may hit the ground running. Razvan Radulescu: So, Eric, this is Razvan. So, the SOP is in the middle of is call '28, thereabout. So, 2028 is a partial year of the ramp-up. And then 2029, we also consider it as a ramp-up year. But as you know us, we are conservative. So, to the extent that we can accelerate the path to 10,000, we will. But at this point, we want to show a ramp to the 10,000 level, and there is upside potential longer term above this 10,000 for sure. John Wyskiel: Yes. And just another comment, Eric. I think you know this is largely a two-player market. So, we view that favorably, obviously, coming into the space. And the F-53/F-59 was hugely successful in this marketplace. So, us having the opportunity to take it over, we think, is a great opportunity. Operator: The next question comes from the line of Michael Shlisky with D.A. Davidson. Michael Shlisky: Congratulations. To follow up on those last question or two there about the Ford's strict chassis production. Over the last 10 years, they've actually averaged over 15,000 a year. And you're only saying 12,000 that maybe would be a full production in your slide here. I guess, is that just being conservative? Or have you heard of any fleet that switched over, for example, Amazon going to the EV that they work on with Rivian or other folks just not using as many as they did? Or is this just, we'll see how it goes, but 12,000 is at least a large step of the way to full production. Razvan Radulescu: Mark, this is Razvan. Yes, we are conservative. So, there is room for higher numbers. But at this point, we want to have a conservative business case also for entering into the market, and we have to execute on it, grow it. And as you know, also, there is some cyclicality into this market when you look at the RV business that can have its ups and downs. And then also based on the large fleet acquisitions on the last mile delivery, you can also have some cyclicality. So, look at this as our base case with upside potential from here. Michael Shlisky: Okay. Great. You also mentioned that they'll be ramping their production in the first part, very early 2027, it sounds like. Over the last bunch of quarters, they did a ton of these vehicles. The ramp up like 5x what they were making at the trough of the cycle. But once the deal is completed, I'm guessing that between now and then they're going to build a ton more of these and they can sell off them during the time when they stop making them and you're starting to ramp up, if I'm wrong, but correct me there. But I guess once they stop producing them, who will be in charge of selling that inventory down through the 2028, 2029 ramp-up of the new model? And are you as part of the purchase price or part of the purchase buying all that inventory? Or is that going to be all still held by Ford until they're down to zero? John Wyskiel: Yes. No, Mike, I'll clarify a couple of points. So, the current F-53/F-59 will be managed by Ford Motor Company. So, they'll handle all of that. They're going to work with Detroit on the build-out. They'll have the inventory. They'll manage everything. We won't be involved with any of that part of the transaction. Where we step in is with the new design with the new engine that will come out. The new engine comes out, of course, next year, and the chassis will come out with the new engine in 2028. So, we're stepping in post Ford exiting, and Ford will have all the responsibility with the current design. Michael Shlisky: So just so I'm clear, the next-gen product will it be roughly the same dimensions, just a different engine and roughly the same layout. So, you have to do a lot of collaboration with the outfitters? And then also, will you be able to do propane in this facility that comes from the Ford ROUSH system as well? John Wyskiel: Yes, great question. So, first part of the question, yes, similar dimensions, obviously, the same space, Class 5-6. So I don't anticipate any changes there. For sure, there won't be any changes there. There will be, of course, some integration changes with this because you have to accommodate the new engine. It's got a wider bank for water cooled jackets, et cetera. So, there'll be things that we'll do, obviously, to accommodate the new powertrain and there'll be a level of carryover as well of the current chassis. And then as far as propane, initially, we're going to get into gas. I mean that's the whole announcement really is working with Ford with, and of course, the acquisition of Detroit putting in the gas chassis or redesigning and launching the new gas chassis. Down the road, we'll see what we do with propane. But for sure, there's an opportunity there. We have a great history with ROUSH. And then as well, ROUSH and Ford and Blue Bird have worked together on the current propane. So, for sure, it's a great opportunity down the road. Operator: The next question comes from the line of Chris Pierce with Needham. Christopher Pierce: Can we just shift back to the school bus market for a second? I guess I just want to understand, what are you hearing from distributors or distributors hearing from customers as you enter the fourth quarter, given where gas prices they are with, I think you've quoted Blue Bird units down 7% in the third quarter. But I want to make sure that it was the school bus also. Razvan Radulescu: Yes. Chris, this is Razvan. So, the year-over-year volumes were down, and this is because we had a relatively high number of finished goods inventory. So, in Q3, we'll build a large number of GSA and fleet units, and this will take a longer time until they are revenue recognized. So, we build the units, but they will be rev rec during Q4. And also, we will build some more of this in Q4, which will play into fiscal '27. So that's the 7% year-over-year explanation. In terms of the general backlog, our backlog is fairly stable. We are solid into Q4 right now. And obviously, we are taking order for next year at this point. Christopher Pierce: Okay. Perfect. And then I think in the press release, I don't see a price paid for the transaction. I think you referenced an asset swap on the call. I don't want to think about dilution. Razvan Radulescu: It's in the 8-K, the asset acquisition, it's $7 million with cash. There is no dilution. Christopher Pierce: Okay. So, you acquired the manufacturing facility for $7 million. Razvan Radulescu: Yes. John Wyskiel: Assets. Razvan Radulescu: Yes, inventory. There is no other exchange with Ford directly in terms of the entering the segment. The collaboration act not an M&A percentage. John Wyskiel: But to your point, Chris, it is a pretty low-cost entry into the space. Razvan Radulescu: In terms of M&A it's a $90 million investment. Christopher Pierce: Correct. Understood. So, under $100 million at this point in time, it looks like for something that could generate $70 million in adjusted EBITDA in 2030 based on Slide #17. Okay. And then can you just last for me, just kind of talk about it being a two-player market, kind of like how should we think about, is it similar to the school bus market where you've got sort of a very warm handoff to customer orders? And like I'm just kind of thinking what could go wrong or what, I'm not thinking about some sort of a known unknown where this doesn't just sort of become, I'm assuming the end customer doesn't technically care what chassis they have. They just want their vehicles. So, I just want to make sure I'm thinking about the market correctly. John Wyskiel: Yes. I mean, look, it's a two-player market, I think you know Ford's history in this space. They've been very successful with the gas chassis. And on the RV side, in particular, I think they practically own the market in this space. So, the carryover, we think, is a great opportunity. Now the other part of this agreement is we will work with Ford Pro on continuity of the customer base. So that's with the fleets, the body builders, the RV manufacturers, all of that. Ford and Blue Bird will work hand-in-hand. And we think that mitigates risk. We also think it gives us a great opportunity coming into the market and not having a lag. So, we think from our perspective, it's a lot of risk mitigated and really, I think, should catapult us into this space pretty well. Christopher Pierce: And that was actually trying to kind of squeeze your way in with your own chassis. Is that fair to say like this is a pivot? John Wyskiel: Apologies, we got a fire alarm went on. We got a little bit of noise in the background. Even the fire alarms are excited about this transaction. But no, we were working on our chassis, but simultaneously, we were working with Ford on this opportunity. And when things started to heat up and got a lot closer, of course, we took the Ford path to bring this to market. Razvan Radulescu: Chris, as I said in my remarks, this is a 10x bigger opportunity to enter the segment. So, we had to pivot, take this one, and then we will come back to the propane and also EV later on as the market develops that way as well. Operator: The next question comes from the line of Ben Summers with U.S. Bancorp. Unknown Analyst: So just curious, kind of you guys mentioned some read-across or read-throughs to the bus market. Just kind of curious on where you see that and potentially any more color on the synergies you potentially expect with the New Ford collaboration. John Wyskiel: Yes, for sure. I'll talk a little bit about that. Look, I think one of the areas for sure that will be an opportunity to read across will be the EE architecture. And then you also get things like ADAS that will read across. And there's likely going to be legislation in the school bus market down the road in the near future for ADAS as well. So, we see those things as read across. Additionally, we see in terms of the scalability, some real opportunities there. We're in a position right now, we're redesigning next-generation bus. We're redesigning or designing this current chassis. And I think that brings almost like building blocks of opportunities down the road that we could scale this thing into other vehicle opportunities or other body opportunities. So, lots of, I think lots of exciting things down the road. First step is launch, of course. We'll be able to get this gas chassis to market, but good things to come down the road for sure. Unknown Analyst: Super helpful. And then back to the school bus market. So, I think in the past, you guys have said something around like 3,000 to 4,000 units in the backlog is kind of that sweet spot. I know if we net out the Micro Bird units in the backlog, that's kind of where we sit today. So, I am kind of curious about how we think about that target backlog range now with Micro Bird integrated into the platform. Razvan Radulescu: Yes. So definitely, we have to look at both of them combined. For Micro Bird, the backlog between 1,000 to 1,500 units, it's something that we like to see. But their backlog is a lot more seasonal than our bus backlog has been for the last couple of years. So, as we work together, we will determine the desired levels of backlog based on seasonality. Right now, for the Type C and D, our backlog is fairly stable. It's around 3,500 units or so. And we'd like to keep it that way. For us, the lower end is about 3,000, which is the point where it could get a bit more challenging to work with the supply chain on lead times. But you have to remember, we worked pre-COVID with 1,500 units backlog or under 2,000. So, it can be done. It's just a matter of setting the appropriate supply chain expectations right as well. So overall, we feel good about our backlog, and we are executing now on Q4 and working to bring this fiscal year to a strong end. Operator: The next question comes from the line of Mike Shlisky with D.A. Davidson. Michael Shlisky: You can't get enough of this announcement, which we really appreciate. Well, there's two topics here. There's Ford and there's also the core Blue Bird. And I want to ask and ask a couple of questions here about the core Blue Bird business. I guess, first, a little bit more about the $10,000 average ASP increase in the core, in the Blue Bird C&D business. How much of that without being calc, how much of that was mix of EV? How much of it was just inflation? How much of it was features and other things? Just a little more detail there. Razvan Radulescu: Yes. The majority is year-over-year price increases. There are some increased tariff recovery elements in that, and there is also a bit of EV mix. So those are the three main elements. So, we're not going to split them out in more details right now. Michael Shlisky: Okay. Fair enough. And then I know it's only August here and orders don't even really heat up for well over a quarter, if not more than that. Any thoughts on what you're hearing from your major dealers or large school districts about their plans to buy buses in the coming school year? John Wyskiel: Yes. I mean we're coming into our business planning process now. So, we're looking at the order book for next year. But look, a couple of things remain the same. The fundamentals are all there. If you have an aging fleet over 250,000 of these buses are greater than 10 years old. We're coming into a replacement cycle. The average volume between 2017 and '19 was 36,000 units a year. Those buses are coming up for replacement. Then during the COVID period, there was pent-up demand. So, I think from our perspective, when we look at that, we have great fundamentals there and the funding is still there as well from property taxes. So overall, I think coming into the business plan and as we start to prepare for next year, we believe things should be fairly solid coming into the next season. Operator: There are no further questions at this time. I will now turn the call back to John Wyskiel for closing remarks. John Wyskiel: Thanks, Percy, and thanks to each of you for joining us on the call today. Just a quick announcement before I wrap up. Earlier today, we were notified by the Georgia Chamber of Commerce that Blue Bird's Vision Electric School Bus won the 2026 Coolest Thing Made in Georgia contest. The Coolest Thing Made in Georgia contest is a program designed to celebrate and showcase the great State of Georgia's outstanding innovation and craftsmanship. Blue Bird is a pioneer and a leader in EV space. And I think this award is a recognition of the amazing work and success of the team. So, congratulations to the entire Blue Bird team. So back to the wrap-up. Blue Bird has delivered great results for Q3 2026, meeting expectations and raising our guidance. We also continue to deliver exciting announcements on new opportunities like the Micro Bird acquisition and the Ford commercial strip chassis collaboration announced today. With the fundamentals of the industry and the key elements of our strategy, I remain enthusiastic for Blue Bird and its future, and we look forward to updating you on our progress next quarter. Should you have any follow-up questions, please do not hesitate to contact our Head of Investor Relations, Mark Benfield. Blue Bird continues to be stronger than ever and has an amazing future ahead as we wrap up or as we approach rather a 100-year anniversary next year. Thanks again from all of us at Blue Bird and have a great evening. Operator: This concludes today's call. Thank you for attending. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Blue Bird. The Motley Fool has a disclosure policy. Blue Bird (BLBD) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Blue Bird (BLBD) is back in focus after reporting third quarter 2026 results alongside a new collaboration with Ford Motor Company and raised full year guidance, giving investors fresh data to assess the stock. See our latest analysis for Blue Bird. Despite the strong quarterly update and expanded Ford collaboration, Blue Bird’s share price has recently pulled back, with a 1-day share price return decline of 14.19% and a 30-day share price return decline of 17.07%, while the year-to-date share price return of 41.17% and 3-year total shareholder return of 229.72% still point to strong longer term momentum. If this kind of sharp move has you thinking about what else might be setting up for a shift, it could be a good time to scan 36 power grid technology and infrastructure stocks For Blue Bird, a sharp pullback following strong earnings and the Ford collaboration raises a basic question. Are investors reassessing the business, or has sentiment simply swung ahead of the valuation reset coming next? On the latest numbers, Blue Bird’s fair value in the most followed narrative sits at $94, versus a last close of $66.01, which puts a spotlight on its long term setup rather than the latest price swing. Read the complete narrative. Curious what sits behind that replacement cycle argument. The popular narrative leans on higher future revenue, firm margins, and a specific profit multiple to reach that $94 fair value. The full story joins those assumptions with a clear discount rate to bridge today’s share price to that long range view. Result: Fair Value of $94 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Blue Bird narrative still hinges on school districts maintaining funding and on Blue Bird keeping pace with rapid alternative fuel and EV technology shifts. Find out about the key risks to this Blue Bird narrative. With mixed sentiment around Blue Bird’s pullback and long term narrative, it makes sense to move quickly and check the underlying numbers yourself. To see how the positives and concerns balance out in one place, review the 4 key rewards and 2 important warning signs. If Blue Bird has you thinking harder about opportunities, do not stop here. Fresh ideas often show up first in the data, not the headlines. Target income-focused opportunities by checking out 8 dividend fortresses that could help support a steady stream of cash returns. Hunt for potential value setups through 49 high quality undervalued stocks that already pair stronger fundamentals with pricing that has yet to catch up. Spot early-stage potential in screener containing 19 high quality undiscovered gems before these stocks gain wider attention and tighter pricing. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BLBD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: Q3 consolidated net revenue of $517 million, up $119 million year-over-year, including approximately $123 million from Micro Bird consolidation. Adjusted EBITDA: Record Q3 of $71 million, up $13 million year-over-year, with a 13.8% margin. Adjusted Net Income: Record Q3 of $45 million, up $6 million year-over-year. Adjusted Diluted EPS: $1.28, up $0.09 versus prior year. Unit Sales: 3,525 buses sold in Q3, including 1,235 Micro Bird units and over 350 electric vehicles. Backlog: Approximately 4,900 units, including about 1,300 Micro Bird units and 800 EVs. Gross Margin: 20% for the quarter, down 160 basis points year-over-year due to Micro Bird consolidation. Adjusted Free Cash Flow: $28 million in Q3, down $24 million year-over-year due to seasonal working capital increases. Liquidity: Strong at $259 million at quarter end. Fiscal 2026 Guidance: Revenue of $1.74 billion to $1.76 billion; Adjusted EBITDA raised to $245 million to $250 million; adjusted free cash flow of $125 million to $135 million. Warning! GuruFocus has detected 3 Warning Sign with ZVIA. Is BLBD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Blue Bird Corp (NASDAQ:BLBD) beat guidance on all metrics for the 15th consecutive quarter, delivering record Q3 Adjusted EBITDA of $71 million. The company announced a major expansion with Ford Motor Company to design, manufacture, and sell the next-generation F-53/F-59 commercial strip chassis, expanding its total addressable market by $1.4 billion. Blue Bird Corp (NASDAQ:BLBD) continues to dominate the alternative power segment, with EVs representing 10% of unit volume and a strong EV backlog of 776 units extending into 2027. The company raised its full-year fiscal 2026 Adjusted EBITDA guidance to a record $245-$250 million, reflecting strong operational execution and pricing discipline. Blue Bird Corp (NASDAQ:BLBD) successfully closed the Micro Bird acquisition, which is expected to contribute to growth in the Type A school bus and commercial shuttle bus markets, and the company maintains a strong liquidity position of $259 million. The company's long-term outlook has been significantly raised to approximately $3 billion in revenue and $400-$500 million in Adjusted EBITDA, driven by the Ford collaboration and other strategic initiatives. Blue Bird Corp (NASDAQ:BLBD)'s Blue Bird unit sales were 7% below the prior year level, driven by a large number of GSA and fleet units in finished goods inventory, which delayed revenue recognition. Gross margin for the quarter was 160 basis points lower year-over-year, primarily due to the dilutive impact of consolidating Micro Bird's revenue. Adjusted free cash flow for Q3 was $24 million lower than the prior year, impacted by a seasonal increase in working capital and finished goods inventory. The company faces ongoing volatility and uncertainty related to the administration's tariff policies, which it must continue to manage to achieve a margin-neutral outcome. The new Ford chassis collaboration requires a significant investment of approximately $90 million in 2027, including $50 million in CapEx, with production not expected to start until early 2028. The company's Q4 forecast includes a small reduction in units sold versus the previous forecast, indicating some near-term demand softness. Q: Can you clarify if the Ford agreement is now your primary path forward for the commercial chassis market, or is it in addition to your existing plans for excess chassis capacity in Fort Valley? A: John Wyskiel (President and CEO) confirmed that the Ford collaboration is the company's primary path forward. He emphasized the significant engineering work involved and the strategic advantage of entering the market with Ford's cooperation, which they view as a solid agreement that catapults them into the segment. Q: Regarding the Ford stripped chassis production, Ford has averaged over 15,000 units a year over the last decade, but you're only guiding to 12,000 as a full production level. Is this just conservatism, or have you seen fleets switch to other options like EVs? A: Razvan Radulescu (CFO) stated that the 12,000-unit target is a conservative base case. He noted there is room for higher numbers and upside potential, but they want to be prudent given the cyclicality in the RV and last-mile delivery markets. The company will execute on this base case and grow from there. Q: Can you provide more detail on the $10,000 average selling price (ASP) increase in the Blue Bird C and D business? How much was mix of EV, inflation, or features? A: Razvan Radulescu (CFO) explained that the majority of the ASP increase is from year-over-year price increases, with additional elements from increased tariff recovery and a bit of EV mix. He declined to split out the specific components in more detail. Q: What are you hearing from major dealers or large school districts about their plans to buy buses in the coming school year? A: John Wyskiel (President and CEO) highlighted that the market fundamentals remain strong, citing an aging fleet with over 250,000 buses older than 10 years, the upcoming replacement cycle for the high-volume 2017-2019 period, and pent-up demand from the COVID era. He expressed confidence in solid demand heading into the next season, supported by stable funding. Q: Can you talk about the read-across or synergies you expect from the new Ford collaboration to your bus market? A: John Wyskiel (President and CEO) noted that the collaboration will provide significant technical read-across, particularly in E/E architecture and ADAS (Advanced Driver Assistance Systems), which is likely to become legislated in the school bus market. He also highlighted the scalability of the new chassis design, which could facilitate expansion into other vehicle and body opportunities down the road. Q: With Micro Bird now integrated, how should we think about the target backlog range for the combined platform? A: Razvan Radulescu (CFO) explained that the combined backlog should be viewed together. For Micro Bird, a backlog of 1,000 to 1,500 units is desirable, though it is more seasonal. For Type C and D buses, the backlog is stable at around 3,500 units, with a lower end of about 3,000 units, below which supply chain lead times could become challenging. He noted that pre-COVID, they operated with a backlog of under 2,000 units, so it is manageable with proper supply chain expectations. Q: Can you clarify the purchase price for the Detroit Chassis asset acquisition and whether there will be any dilution? A: Razvan Radulescu (CFO) confirmed that the asset acquisition is $7 million in cash with no dilution. He clarified that the collaboration agreement with Ford is not an M&A transaction, and the total investment for Blue Bird is approximately $90 million, of which $50 million is CapEx. Q: How should we think about the ramp-up to 10,000 units for the new chassis production, and is there potential to accelerate? A: Razvan Radulescu (CFO) stated that the start of production (SOP) is in the middle of fiscal 2028, with 2028 and 2029 considered ramp-up years. The company is being conservative in its guidance, but there is upside potential to accelerate the path to 10,000 units and beyond. John Wyskiel added that this is largely a two-player market, and taking over the successful F-53/F-59 platform presents a great opportunity. Q: Can you explain the year-over-year decline in Blue Bird unit sales for Q3, and what is the outlook for Q4? A: Razvan Radulescu (CFO) attributed the 7% decline in Blue Bird unit sales to a high number of GSA and fleet units in finished goods inventory, which take longer to recognize revenue. These units will be revenue-recognized in Q4, and some will bleed into fiscal 2027. The backlog remains stable, and the company is solid into Q4 while taking orders for next year. Q: With the Ford collaboration, does this replace your previous plans to enter the chassis market with your own design? A: John Wyskiel (President and CEO) confirmed that the Ford path is now the primary route, as it presents a 10 times larger opportunity to enter the segment. Razvan Radulescu added that they will revisit propane and EV offerings later as the market develops, but for now, the focus is on launching the gas chassis with Ford. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Blue Bird (BLBD) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.92%. A quarter ago, it was expected that this school bus maker would post earnings of $0.81 per share when it actually produced earnings of $1, delivering a surprise of +23.46%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Blue Bird, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $517.16 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.70%. This compares to year-ago revenues of $398.01 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Blue Bird shares have added about 65.6% since the beginning of the year versus the S&P 500's gain of 13%. While Blue Bird has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Blue Bird was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.61 on $560.4 million in revenues for the coming quarter and $4.74 on $1.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 36% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Aebi Schmidt Holding AG (AEBI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +316.7%. The consensus EPS estimate for the quarter has been revised 15.8% higher over the last 30 days to the current level. Aebi Schmidt Holding AG's revenues are expected to be $468.4 million, up 68.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Bird Corporation (BLBD) : Free Stock Analysis Report Aebi Schmidt Holding AG (AEBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net Sales of $517M and GAAP Net Income of $185M Adj. EBITDA of $71M with 14% Margin and 3,525 Buses Sold FY2026 Adj. EBITDA Guidance Raised MACON, Ga., August 05, 2026--(BUSINESS WIRE)--Blue Bird Corporation ("Blue Bird") (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2026 third quarter financial results. Highlights "I am incredibly proud of our team in delivering another outstanding quarterly result," said John Wyskiel, President & CEO of Blue Bird Corporation. "The Blue Bird team continued to exceed expectations, improving operations, navigating tariffs, and expanding our leadership in alternative-powered buses. We delivered an exceptional Adj. EBITDA of $71M for the third fiscal quarter of 2026, including consolidated results from our recent Micro Bird acquisition. "In our push to expand our leadership in alternative-powered school buses, we delivered 355 electric-powered buses this quarter. As of the end of the quarter, we had more than 770 EV buses in our firm order backlog, which supports our EV sales target for 2026. "Additionally, we just announced a major collaboration agreement with Ford Motor Company to design, manufacture and sell the next generation F53/59 commercial stripped chassis. Blue Bird will integrate Ford’s next generation medium duty gas powertrain into this new stripped chassis. As part of this arrangement, Blue Bird will also purchase the assets of Detroit Chassis LLC’s Detroit Plant. Detroit Chassis is the assembler of the current F53/59 stripped chassis. This transaction is anticipated to close early 2027, shortly after the current chassis ends production. Production of the next generation stripped chassis is planned to begin early 2028. This move is a significant component of our Long-Term Strategy, and will position us to be a growing player in the specialty vehicle/chassis market." FY2026 Guidance and Long-Term Outlook "We are very pleased with our third quarter results, driven by excellent Blue Bird results as well as the integration of Micro Bird" said Razvan Radulescu, CFO of Blue Bird Corporation. "Our business is in a very strong position and we continue to deliver ahead of the plan we have been messaging. With the record first nine months we have delivered, we are raising our full-year 2026 Adj. EBITDA guidance. "The updated 2026 Guidance is Net Revenue at ~$1.75 Billion and Adj. EBITDA to ~$247 million. Additionally, we are raising our long-term profit outlook to include the recent announcement of our expanded Ford collaboration and purchase of Detroit Assembly Plant's assets, towards a 2030+ long-term Adjusted EBITDA of $500+ million, or 15%+, on $3.3 billion in revenue. We are confident in our profitable growth plans." Fiscal 2026 Third Quarter Results Net Sales Net sales were $517.2 million for the third quarter of fiscal 2026, an increase of $119.1 million, or 29.9%, compared to $398.0 million for the third quarter of fiscal 2025. Micro Bird contributed $122.9 million of net sales during the third quarter of fiscal 2026. The $3.8 million, or 1.0%, decrease in net sales for the legacy Blue Bird operations is primarily due to a 7.2% decrease in units sold resulting from timing due to a customer mix change as we produced a large number of units for certain customers that we will recognize as revenue in the fourth quarter of fiscal 2026 when the units are delivered to coincide with school resuming. Many of these units contributed to the significant increase in finished goods inventory at June 27, 2026. However, the decrease resulting from selling fewer units was partially offset by Bus customer and product mix changes and cumulative Bus price increases, including increases that were intended to mitigate the impact of increased procurement costs for certain of our imported inventory as a result of the imposition of tariffs beginning during the second half of fiscal 2025 and continuing into the first three quarters of fiscal 2026. Bus sales increased $119.5 million, or 32.1%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025, which included the $122.9 million of net sales that Micro Bird contributed during the third quarter of fiscal 2026. Bus sales for the legacy Blue Bird operations decreased $3.5 million, or 0.9%, reflecting a 7.2% decrease in unit bookings that was partially offset by a 6.7% increase in average sales price per unit. In the third quarter of fiscal 2026, 2,290 legacy Blue Bird units booked compared to 2,467 units that booked during the same period in fiscal 2025. The increase in legacy Blue Bird unit price for the third quarter of fiscal 2026 compared to the same period in fiscal 2025 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs. Parts sales decreased $0.3 million, or 1.2%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. This small decrease is primarily attributed to slight variations due to product and channel mix that slightly exceeded price increases that were implemented to offset increases in inventory costs. Gross Profit Third quarter gross profit of $103.4 million represented an increase of $17.4 million from the third quarter of last year. The increase is primarily attributed to the acquisition of Micro Bird, which contributed $17.3 million of gross profit during the third quarter of fiscal 2026. Net Income Net income was $185.3 million for the third quarter of fiscal 2026, an increase of $148.8 million from the third quarter of last year. Micro Bird contributed $7.4 million of net income during the third quarter of fiscal 2026. Among other smaller fluctuations, the increase in net income for legacy Blue Bird operations was largely driven by an increase of $136.8 million in other income (expense), net, which primarily consists of $4.5 million of pretax costs relating to the acquisition of the remaining 50% of the outstanding voting common stock of Micro Bird effective April 1, 2026 and a $160.5 million gain during the third quarter of fiscal 2026 resulting from remeasuring the value of the previously held 50% equity investment to its acquisition date fair value in connection with the Micro Bird acquisition, which was partially offset by a $19.6 million loss resulting from the settlement of the pension benefits earned by the majority of pension plan participants. Neither of these had corresponding gains/losses during the third quarter of fiscal 2025. Adjusted Net Income Adjusted net income of $45.0 million represented an increase of $6.3 million from the third quarter of last year. The increase was primarily driven by $148.8 million increase in Net Income, discussed above, when adjusting for the impact of certain expenses and gains that are excluded in calculating Adjusted Net Income, including share-based compensation, Micro Bird acquisition costs, gain from Micro Bird Acquisition, and pension plan settlement loss, discussed above. Adjusted EBITDA Adjusted EBITDA was $71.4 million, which was an increase of $12.9 million compared with the third quarter of fiscal 2025. Micro Bird contributed $16.5 million of Adjusted EBITDA during the third quarter of fiscal 2026. The $3.6 million decrease in Adjusted EBITDA for the legacy Blue Bird operations primarily relates to the (i) $1.2 million increase in equity in net loss of non-consolidated affiliates and (ii) $3.0 million decrease in Micro Bird total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense that is included in calculating Adjusted EBITDA, both during the third quarter of fiscal 2026 when compared with corresponding period in fiscal 2025. Year-to-Date Fiscal 2026 Results Net Sales Net sales were $1,202.9 million for the nine months ended June 27, 2026, an increase of $132.1 million, or 12.3%, compared to $1,070.7 million for the nine months ended June 28, 2025. Micro Bird contributed $122.9 million of net sales during the nine months ended June 27, 2026. The $9.2 million, or 0.9%, increase in net sales for the legacy Blue Bird operations is primarily due to Bus customer and product mix changes and cumulative Bus price increases, including increases that were intended to mitigate the impact of increased procurement costs for certain of our imported inventory as a result of the imposition of tariffs beginning during the second half of fiscal 2025 and continuing into the first three quarters of fiscal 2026. The legacy Blue Bird Bus increases described above were partially offset by a decrease in Bus units sold resulting from timing due to a customer mix change as we produced a large number of units for certain customers that we will recognize as revenue in the fourth quarter of fiscal 2026 when the units are delivered to coincide with school resuming. Many of these units contributed to the significant increase in finished goods inventory at June 27, 2026. Bus sales increased $131.3 million, or 13.2%, for the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025, which included the $122.9 million of net sales that Micro Bird contributed during the nine months ended June 27, 2026. Bus sales for the legacy Blue Bird operations increased $8.4 million, or 0.8%, reflecting a 5.7% increase in average sales price per unit that was partially offset by a 4.6% decrease in units booked. The increase in unit price for the first nine months of fiscal 2026 compared to the same period in fiscal 2025 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs. This increase was partially offset by the impact of booking 6,573 units in the nine months ended June 27, 2026 compared with 6,892 units during the same period in fiscal 2025. Parts sales increased $0.8 million, or 1.0%, for the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025. This increase is primarily attributed to price increases that were implemented to offset increases in inventory costs as well as higher fulfillment volumes and slight variations due to product and channel mix. Gross Profit Gross profit for the nine months ended June 27, 2026 was $245.3 million, an increase of $28.2 million compared with the same period in the prior year. Micro Bird contributed $17.3 million of gross profit during the nine months ended June 27, 2026. Gross profit for legacy Blue Bird operations was primarily driven by the $9.2 million increase in net sales. Net Income Net income was $245.3 million for the nine months ended June 27, 2026, which was a $154.1 million increase from the same period in the prior year. Micro Bird contributed $7.4 million of net income during the nine months ended June 27, 2026. Among other smaller fluctuations, the increase in net income for legacy Blue Bird operations was largely driven by an increase of $130.4 million in other income (expense), net, which primarily consists of $7.2 million of pretax costs relating to the acquisition of the remaining 50% of the outstanding voting common stock of Micro Bird effective April 1, 2026 and a $160.5 million gain during the third quarter of fiscal 2026 resulting from remeasuring the value of the previously held 50% equity investment to its acquisition date fair value in connection with the Micro Bird acquisition, which was partially offset by a $19.6 million loss resulting from the settlement of the pension benefits earned by the majority of pension plan participants. Neither of these had corresponding gains/losses during the nine months ended June 28, 2025. Adjusted Net Income Adjusted net income for the nine months ended June 27, 2026 was $110.0 million, an increase of $9.2 million compared with the same period last year, primarily due to the $154.1 million increase in net income, discussed above, when adjusting for the impact of certain expenses and gains that are excluded in calculating Adjusted Net Income, including share-based compensation, Micro Bird acquisition costs, gain from Micro Bird Acquisition, and pension plan settlement loss, discussed above. Adjusted EBITDA Adjusted EBITDA was $172.3 million for the nine months ended June 27, 2026, an increase of $18.8 million compared with the same period in the prior year. Micro Bird contributed $16.5 million of Adjusted EBITDA during the nine months ended June 27, 2026. The $2.3 million increase in Adjusted EBITDA for the legacy Blue Bird operations primarily relates to the $11.7 million increase in gross profit, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the revenue and cost of goods sold discussions above, that was partially offset by the (i) $6.4 million increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, and (ii) $3.4 million decrease in other income, net, when adjusted for the impact of income and expense amounts that are excluded in calculating Adjusted EBITDA as discussed above, all during the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025. Conference Call Details Blue Bird will discuss its fiscal 2026 third quarter and year-to-date financial results in a conference call at 4:30 PM ET today. Participants may listen to the audio portion of the conference call either through a live audio webcast on the Company's website or by telephone. The slide presentation and webcast can be accessed via the Investor Relations portion of Blue Bird's website at www.blue-bird.com. Webcast participants should log on and register at least 15 minutes prior to the start time on the Investor Relations homepage of Blue Bird’s website at http://investors.blue-bird.com. Click the link in the events box on the Investor Relations landing page. Participants desiring audio only should dial +1 585 542 9983 or +1 833 461 5787. The access code is 243172911. A replay of the webcast will be available approximately two hours after the call concludes via the same link on Blue Bird’s website. About Blue Bird Corporation Blue Bird (NASDAQ: BLBD) is recognized as a technology leader and innovator of school buses since its founding in 1927. Our dedicated team members design, engineer and manufacture school buses with a singular focus on safety, reliability, and durability. School buses carry the most precious cargo in the world – 25 million children twice a day – making them the most trusted mode of student transportation. The company is the proven leader in low- and zero-emission school buses with more than 25,000 propane, natural gas, and electric powered buses sold. Blue Bird is transforming the student transportation industry through cleaner energy solutions. For more information on Blue Bird’s complete product and service portfolio, visit www.blue-bird.com. Key Non-GAAP Financial Measures We Use to Evaluate Our Performance This press release includes the following non-GAAP financial measures "Adjusted EBITDA," "Adjusted EBITDA Margin," "Adjusted Net Income," "Adjusted Diluted Earnings per Share," "Free Cash Flow" and "Adjusted Free Cash Flow". Adjusted EBITDA and Free Cash Flow are financial metrics that are utilized by management and the board of directors, as and when applicable, to determine (a) the annual cash bonus payouts, if any, to be made to certain employees based upon the terms of the Company’s Management Incentive Plan, and (b) whether the performance criteria have been met for the vesting of certain equity awards granted annually to certain members of management based upon the terms of the Company’s Omnibus Equity Incentive Plan. Additionally, consolidated EBITDA, which is an adjusted EBITDA metric defined by our Credit Agreement that could differ from Adjusted EBITDA discussed above as the adjustments to the calculations are not uniform, is used to determine the Company's ongoing compliance with several financial covenant requirements, including being utilized in the denominator of the calculation of the Total Net Leverage Ratio. Accordingly, management views these non-GAAP financial metrics as key for the above purposes and as a useful way to evaluate the performance of our operations as discussed further below. Adjusted EBITDA is defined as net income or loss prior to interest income; interest expense including the component of operating lease expense (which is presented as a single operating expense within cost of goods sold or selling, general and administrative expenses in our U.S. GAAP financial statements) that represents interest expense on lease liabilities; income taxes; and depreciation and amortization expense including the component of operating lease expense (which is presented as a single operating expense within cost of goods sold or selling, general and administrative expenses in our U.S. GAAP financial statements) that represents amortization charges on right-of-use lease assets; as adjusted for certain non-cash charges or credits that we may record on a recurring basis such as share-based compensation expense and unrealized gains or losses on certain derivative financial instruments as well as certain charges or credits such as (i) transaction related costs or gains or (ii) discrete expenses related to major cost cutting and/or operational transformation initiatives. While certain of the charges that are added back in the Adjusted EBITDA calculation, such as transaction related costs and major cost cutting and/or operational transformation initiatives, represent operating expenses that may be recorded in more than one annual period, the significant project or transaction giving rise to such expenses is not considered to be indicative of the Company’s normal operations. Accordingly, we believe that these, as well as the other credits and charges that comprise the amounts utilized in the determination of Adjusted EBITDA described above, should not be used in evaluating the Company’s ongoing annual operating performance. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA and Adjusted EBITDA Margin are not measures of performance defined in accordance with U.S. GAAP. The measures are used as a supplement to U.S. GAAP results in evaluating certain aspects of our business, as described below. We believe that Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors in evaluating our performance because the measures consider the performance of our ongoing operations, excluding decisions made with respect to capital investment, financing, and certain other significant initiatives or transactions as outlined in the preceding paragraphs. We believe the non-GAAP measures offer additional financial metrics that, when coupled with the U.S. GAAP results and the reconciliation to U.S. GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income and Adjusted Diluted Earnings per Share should not be considered as alternatives to net income or GAAP earnings per share as an indicator of our performance or as alternatives to any other measure prescribed by GAAP as there are limitations to using such non-GAAP measures. Although we believe the non-GAAP measures may enhance an evaluation of our operating performance because they exclude the impact of prior decisions made about capital investment, financing, and other expenses, (i) other companies in Blue Bird’s industry may define Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share differently than we do and, as a result, they may not be comparable to similarly titled measures used by other companies in Blue Bird’s industry, and (ii) Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share exclude certain financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing disclosure of the differences between Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share and GAAP results, including providing a reconciliation to GAAP results, to enable investors to perform their own analysis of our operating results. Our measures of "Free Cash Flow" and "Adjusted Free Cash Flow" are used in addition to and in conjunction with results presented in accordance with GAAP and Free Cash Flow and Adjusted Free Cash Flow should not be relied upon to the exclusion of GAAP financial measures. Free Cash Flow and Adjusted Free Cash Flow reflect an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. We define Free Cash Flow as total cash provided by/used in operating activities as adjusted for net cash paid for the acquisition of fixed assets and intangible assets. We use Free Cash Flow, and ratios based on Free Cash Flow, to conduct and evaluate our business because, although it is similar to cash flow from operations, we believe it is a more conservative measure of cash flow since purchases of fixed assets and intangible assets are a necessary component of ongoing manufacturing operations. Accordingly, we expect Free Cash Flow to be less than operating cash flows. Forward Looking Statements This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to expectations for future financial performance, business strategies or expectations for our business. Specifically, forward-looking statements include statements in this press release regarding guidance, seasonality, product mix and gross profits and may include statements relating to: Inherent limitations of internal controls impacting financial statements Growth opportunities Future profitability Ability to expand market share Customer demand for certain products Economic conditions (including tariffs) that could affect fuel costs, commodity costs, industry size and financial conditions of our dealers and suppliers Labor or other constraints on the Company’s ability to maintain a competitive cost structure Volatility in the tax base and other funding sources that support the purchase of buses by our end customers Lower or higher than anticipated market acceptance for our products Other statements preceded by, followed by or that include the words "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target" or similar expressions These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. The factors described above, as well as risk factors described in reports filed with the SEC by us (available at www.sec.gov), could cause our actual results to differ materially from estimates or expectations reflected in such forward-looking statements. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805517808/en/ Contacts Mark BenfieldInvestor Relations(478) [email protected]

Interested in Blue Bird Corporation? Here are five stocks we like better. Strong Q3 performance: Blue Bird reported $517 million in revenue and record adjusted EBITDA of $71 million, helped by consolidating Micro Bird. The company raised its fiscal 2026 adjusted EBITDA outlook to $245 million–$250 million while maintaining revenue guidance of $1.74 billion–$1.76 billion. Ford chassis expansion: Blue Bird will design, manufacture and sell next-generation Ford F-53 and F-59 commercial strip chassis, expanding its addressable market by an estimated $1.4 billion. Production is expected to begin in early calendar 2028, with the segment targeted to generate more than $100 million in long-term adjusted EBITDA. Demand remains favorable: Backlog totaled approximately 4,900 buses, including nearly 800 electric vehicles, while alternative-power buses represented 54% of quarterly unit sales. The company cited aging school-bus fleets, replacement demand and continued government support for electric-bus adoption. Top 3 High-Risk, High-Reward Plays for Bullish Investors Blue Bird (NASDAQ:BLBD) reported fiscal 2026 third-quarter revenue of $517 million and adjusted EBITDA of $71 million, as the school-bus manufacturer said it exceeded its guidance across metrics and raised its full-year adjusted EBITDA outlook. The company also announced an expanded collaboration with Ford Motor Co. that will move Blue Bird into the Class 5 and 6 commercial strip-chassis market. Under the agreement, Blue Bird will assume design, manufacturing and sales responsibility for the next-generation Ford F-53 and F-59 commercial strip chassis, using Ford medium-duty powertrains. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Is CRISPR Therapeutics the NVIDIA of gene editing? “The Blue Bird team delivered outstanding sales and Adjusted EBITDA, beating guidance for the 15th consecutive quarter,” President and CEO John Wyskiel said during the company’s earnings call. Blue Bird sold 3,525 buses during the quarter ended June 27, including 1,235 Micro Bird units. The company consolidated Micro Bird’s results for the first time following its April 1 acquisition of the remaining 50% stake in the joint venture. → 3 Drone Stocks That Should Soar After the Summer Slump Gene therapy: Why does it cost millions for a single treatment? Revenue rose $119 million from the prior-year period to $517 million, with Micro Bird contributing approximately $123 million. Blue Bird’s core bus revenue was $369 million, down 1% year over year, which CFO Razvan Radulescu attributed to a higher level of finished-goods inventory for General Services Administration and fleet customers. However, average Blue Bird bus revenue per unit increased by about $10,000. Adjusted EBITDA increased $13 million year over year to a record third-quarter $71 million. Micro Bird consolidation accounted for $8 million of the increase. Adjusted net income was $45 million, while adjusted diluted earnings per share rose $0.09 from a year earlier to $1.28. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Adjusted free cash flow totaled $28 million, down $24 million from the prior-year quarter due to seasonal working-capital needs and finished-goods inventory for GSA and fleet orders. Blue Bird ended the quarter with $117 million in cash and total liquidity of $259 million. Year-to-date revenue increased 12% to $1.2 billion. Year-to-date adjusted EBITDA reached $172 million, up $19 million from the prior year. Year-to-date free cash flow was $100 million, up $7 million year over year. Quarterly gross margin was 20%, down 160 basis points, primarily reflecting the consolidation of Micro Bird. Blue Bird ended the quarter with backlog of approximately 4,900 units, including about 1,300 Micro Bird units and nearly 800 electric vehicles. Its Type C and D backlog was just under 3,600 units. Alternative-power buses represented 54% of unit sales during the quarter. The company sold more than 350 electric vehicles, or 10% of total unit volume, including 300 Blue Bird EVs and 55 Micro Bird EVs. Blue Bird said its EV order book extends into 2027. Wyskiel said the company continues to see favorable school bus market fundamentals, citing an aging fleet, replacement demand and supply constraints in recent years. He said more than 250,000 school buses are more than 10 years old, while buses sold during the high-volume 2017 through 2019 period are approaching replacement age. The company said industry orders increased 7% on a trailing 12-month basis, while Blue Bird’s order intake rose 9%. Wyskiel also said funding for electric school buses remains relevant, pointing to continuing EPA Clean School Bus program activity, state funding and fleet EV mandates. Blue Bird said its Ford agreement runs through the end of 2033, with an extension opportunity through 2036. The company also plans to acquire assets from Detroit Chassis LLC’s Detroit Assembly Plant, the current contract assembler of the F-53 and F-59 chassis. The Detroit Chassis asset purchase is expected to close in calendar-year first quarter 2027, following the end of production for the current chassis. Blue Bird expects production of its next-generation chassis to begin in calendar-year first quarter 2028. In the question-and-answer session, Radulescu said production startup would occur around the middle of fiscal 2028, followed by ramp-up activity through fiscal 2029. Blue Bird estimated the new opportunity expands its addressable market by $1.4 billion across commercial delivery and Class A recreational-vehicle segments. The company expects the segment to reach approximately 10,000 annual units by 2030 and produce more than $100 million in longer-term adjusted EBITDA, representing margins of 14% to 15%. Radulescu said Blue Bird expects to invest about $90 million in 2027 for the initiative, including $50 million of capital expenditures. The Detroit Chassis asset acquisition will cost $7 million in cash, according to the company’s comments during the call. Wyskiel said the Ford collaboration became Blue Bird’s primary route into the chassis market, replacing its earlier plan to enter the segment independently. He said the company expects Ford’s involvement in transferring fleet, RV and specialty-body manufacturer relationships to support an orderly market transition. For fiscal 2026, Blue Bird maintained its revenue outlook midpoint and now expects revenue in a range of $1.74 billion to $1.76 billion. The company raised its adjusted EBITDA forecast to a range of $245 million to $250 million, or about 14% of revenue, from its previous outlook. Blue Bird forecast adjusted free cash flow of $125 million to $135 million for the year. The outlook includes up to $5 million of extraordinary capital expenditures related to the company’s 50% fiscal 2026 share of a new plant investment supported by a Department of Energy grant, Radulescu said. Looking further ahead, Blue Bird said pro forma results for fiscal 2026 and 2027, including a full year of Micro Bird consolidation, indicate approximately $2 billion in revenue and roughly $260 million in adjusted EBITDA before the non-capitalized component of the Ford chassis investment and other early-stage product investments. The company updated its long-term targets to approximately $3 billion in revenue and adjusted EBITDA of $400 million to $500 million or more, with adjusted EBITDA margins of 14.5% to 15% or higher. Blue Bird also said it intends to refinance and expand its credit facility by the end of calendar 2026, maintain leverage below two times adjusted EBITDA and remain opportunistic with share repurchases. About $90 million remained under its existing buyback authorization. Blue Bird Corporation (NASDAQ: BLBD) is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company's core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability. Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Blue Bird Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Blue Bird stock has delivered a very strong 245.6% return over the past three years, yet the latest valuation work suggests the shares still trade below an intrinsic value estimate built from a Discounted Cash Flow (DCF) approach and are also flagged as cheap on earnings-based multiples. Over three years, Blue Bird has returned 245.6%, which puts recent price action firmly in the context of a longer period of strong gains. Analysts currently expect further earnings and revenue growth, which can support the intrinsic value case, while any disappointment in those expectations or a reset in sentiment would be a clear risk to today's valuation. The broader checks lean cheap, with Blue Bird screening as undervalued on 5 of 6 valuation metrics, according to the valuation scorecard. The issue now is whether Blue Bird's current price already reflects this improved outlook or if the combination of intrinsic value and market multiples still leaves a meaningful margin in the stock. Blue Bird delivered 73.1% returns over the last year. See how this stacks up to the rest of the Machinery industry. The Discounted Cash Flow (DCF) model for Blue Bird starts with how much cash the business can return to shareholders over time. On the latest twelve-month figures, Blue Bird generated about $186 million of free cash flow, and the model assumes these cash flows continue growing rather than shrinking. Based on these projections, the DCF approach points to an estimated intrinsic value of about $109 per share, which sits roughly 28.1% above the current share price and implies that Blue Bird appears undervalued on a pure cash flow basis. The recent expectations for strong earnings growth and revenue expansion help explain why the market price has moved higher, but the cash flow model indicates that, even after this move, the share price remains below the level suggested by the projected cash generation. On balance, the Discounted Cash Flow analysis indicates Blue Bird stock currently appears undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Blue Bird is undervalued by 28.1%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Blue Bird. P/E is a useful lens for Blue Bird because the company is currently profitable and covered by earnings forecasts. On this measure, Blue Bird trades on a P/E of about 18.6x, compared with an industry average of roughly 26.5x for Machinery stocks and a peer group average near 25.2x. The stock therefore changes hands at a clear discount to many listed peers. The tailored fair P/E ratio for Blue Bird, which reflects factors such as its growth outlook, margins, size and risk profile, is about 26.5x. That is meaningfully above the current 18.6x multiple, indicating that the market is pricing Blue Bird below the level that this framework suggests could be reasonable for its earnings profile. On the P/E multiple alone, Blue Bird stock appears undervalued compared with both its industry and a more tailored fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation puzzle for Blue Bird leaves off by spelling out which paths for growth, margins and earnings would need to play out for the stock to be worth materially more or less than today's price, and they sit on the company’s Community page. Each narrative ties its number to a concrete view of where Blue Bird's growth, profitability and risks might go next, giving you a reference point to revisit as new data comes through. The Blue Bird community is split between a cleaner-transportation growth story and a tougher, policy and cost constrained future. Bull case: 6% undervalued Read the full Bull Case to see why Blue Bird could be undervalued Bear case: 7% overvalued Read the full Bear Case to see why Blue Bird could be overvalued Do you think there's more to the story for Blue Bird? Head over to our Community to see what others are saying! For Blue Bird, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiples still point to an undervalued stock, rather than one that has obviously run ahead of itself. The key question from here is whether the business can deliver on the growth, margin and cash generation assumptions that underpin that 28.1% intrinsic value gap. If those fundamentals hold up, the current discount may prove to be an opportunity, while any stumble in demand, profitability or sentiment could mean the market is already correctly pricing in the risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BLBD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]