Blue Bird Corporation (BLBD) reported a record quarterly revenue of $398 million for Q3 fiscal 2025, marking a 20% increase year-over-year, driven by a favorable product mix and pricing strategies. The company sold 2,467 buses, a 15% rise from the previous year, with electric vehicle (EV) sales reaching 271 units, up 33%. Adjusted EBITDA also hit an all-time high of $58 million, reflecting a 14.7% margin, while free cash flow surged to $52 million, significantly exceeding the prior year.
This strong performance comes amid industry-wide tariff uncertainties that have impacted order backlogs, which fell to 3,900 units. Despite this, Blue Bird’s management remains optimistic, citing a robust long-term outlook for EVs and a solid backlog that includes over 500 EVs. The company also announced a new $100 million share repurchase program, reinforcing its commitment to returning value to shareholders.
For market professionals, Blue Bird’s results underscore the resilience of its business model in navigating external challenges while positioning itself for future growth, particularly in the EV segment, which is expected to play a critical role in the school bus market’s evolution.
Source: fool.com