Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2025 fourth quarter and full year financial results.

Highlights

“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time record revenue and profit for the quarter and year,” 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. Unit sales were above last year by 409 units, and revenue was up by $133M, driven by higher volume, product mix and pricing. We delivered an exceptional Adj. EBITDA of $221M / 15% for fiscal 2025, a new all-time record for the Company.

“In our push to expand our leadership in alternative-powered school buses, we delivered a record 901 electric-powered buses this year. As of the end of the fiscal year, we had ~680 EV buses in our firm order backlog, which supports our EV sales target for 2026.

“Based on our strong 2025 performance, we are reaffirming our 2026 full-year financial guidance for revenues of $1.5B and Adjusted EBITDA of $220 million. We expect 2026 to be a repeat of the all-time record result we achieved in 2025, and we look forward to sustained profitable growth in the coming years as we march towards ~$2B in revenue and a 16%+ Adjusted EBITDA margin.”

FY2026 Guidance and Long-Term Outlook

“We are very pleased with our 2025 results, with our highest ever revenue and Adj. EBITDA,” 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. We are reaffirming full-year 2026 guidance for Net Revenue at ~$1.5 Billion and Adj. EBITDA guidance of $220 million. Additionally, we are reiterating our long-term profit outlook towards an Adjusted EBITDA margin of 16%+ on ~$2 billion in revenue. We are confident in our profitable growth plans.”

Fiscal 2025 Fourth Quarter Results

Net Sales

Net sales were $409.4 million for the fourth quarter of fiscal 2025, an increase of $59.2 million, or 16.9%, compared to $350.2 million for the fourth quarter of fiscal 2024. The increase in net sales is primarily due to an increase in Bus unit bookings, Bus customer and product mix changes and cumulative Bus price increases, including an increase that was 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 third quarter of fiscal 2025.

Bus sales increased $60.6 million, or 18.7%, reflecting a 2.1% increase in unit bookings and a 16.3% increase in average sales price per unit. In the fourth quarter of fiscal 2025, 2,517 units booked compared to 2,466 units booked for the same period in fiscal 2024. The increase in unit price for the fourth quarter of fiscal 2025 compared to the same period in fiscal 2024 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs.

Parts sales decreased $1.4 million, or 5.3%, for the fourth quarter of fiscal 2025 compared to the fourth quarter of fiscal 2024. This decrease is primarily attributed to variations in product and channel mix.

Gross Profit

Fourth quarter gross profit of $86.4 million represented an increase of $26.8 million from the fourth quarter of last year. The increase was primarily driven by the $59.2 million increase in net sales, discussed above, and partially offset by a corresponding increase of $32.3 million in cost of goods sold.

Net Income

Net income was $36.5 million for the fourth quarter of fiscal 2025, an increase of $11.8 million from the fourth quarter of last year. Among other smaller fluctuations, the $26.8 million increase in gross profit, discussed above, was offset by a corresponding $7.1 million increase in income tax expense. Also partially offsetting the increase in gross profit was a $6.1 million decrease in Equity in net income of non-consolidated affiliates, which was primarily due to a non-cash impairment charge of $7.4 million that reduced the carrying value of the Company's investment in Clean Bus Solutions, LLC included within equity investment in affiliates on the Consolidated Balance Sheets to $0 at September 27, 2025.

Adjusted Net Income

Adjusted net income of $43.4 million represented an increase of $17.6 million from the fourth quarter of last year. The increase was primarily driven by the $11.8 million increase in Net Income, discussed above, when adjusting for the impact of expenses that are excluded in calculating Adjusted Net Income.

Adjusted EBITDA

Adjusted EBITDA was $67.9 million, which was an increase of $26.6 million compared with the fourth quarter of fiscal 2024. The increase primarily relates to the increase in gross profit, discussed above.

Year-to-Date Fiscal 2025 Results

Net Sales

Net sales were $1,480.1 million for fiscal 2025, an increase of $132.9 million, or 9.9%, compared to $1,347.2 million for fiscal 2024. The increase in net sales is primarily due to an increase in Bus unit bookings, 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 during the second half of fiscal 2025, which were partially offset by a small decrease in Parts sales.

Bus sales increased $134.2 million, or 10.8%, reflecting a 4.5% increase in units booked and a 6.0% increase in average sales price per unit. In fiscal 2025, 9,409 units were booked compared to 9,000 units booked for fiscal 2024. The increase in units sold was primarily due to product and customer mix changes as well as slight improvements in supply chain constraints impacting the Company's ability to produce and deliver buses due to shortages of critical components during fiscal 2025 compared to fiscal 2024. The increase in average unit sales price was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs.

Parts sales decreased $1.3 million, or 1.2%, for fiscal 2025 compared to fiscal 2024. This small decrease is primarily attributed to slight variations due to product and channel mix that were slightly larger than price increases that were implemented to offset increases in inventory costs.

Gross Profit

Fiscal 2025 gross profit was $303.5 million, an increase of $47.4 million from the same period in the prior year. The increase was primarily driven by the $132.9 million increase in net sales, discussed above, and partially offset by a corresponding increase of $85.6 million in cost of goods sold.

Net Income

Net income was $127.7 million for fiscal 2025, a $22.2 million increase from the same period in the prior year. The increase in net income was primarily driven by the $47.4 million increase in gross profit, discussed above, and among other smaller fluctuations, was partially offset, among other smaller fluctuations, by an increase of $19.5 million in selling, general and administrative expenses, primarily due to an increase in a) share-based compensation expense recorded in the second quarter of fiscal 2025 relating to the retirement of our former President and CEO, b) labor costs and c) research and development expense.

Adjusted Net Income

Adjusted net income was $144.1 million for fiscal 2025, an increase of $28.8 million compared to the same period in the prior year. This is primarily due to the $22.2 million increase in Net Income, discussed above, when adjusting for the impact of expenses that are excluded in calculating Adjusted Net Income.

Adjusted EBITDA

Adjusted EBITDA was $221.3 million for fiscal 2025, an increase of $38.4 million compared to the same period in the prior year. This increase is primarily due to the a) increase in gross profit, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the revenue and gross profit discussions above and b) $1.1 million increase in the sale of certain state emissions credits included in the other income (expense), both of which were partially offset by a smaller increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA.

Conference Call Details

Blue Bird will discuss its fourth quarter 2025 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 404-975-4839 or 833-470-1428. The access code is 005726.

A replay of the webcast will be available approximately two hours after the call concludes via the same link on Blue Bird’s website.