Blue Bird (NASDAQ: BLBD) lifts 2026 guidance on record Q2 profitability
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Blue Bird Corporation reported fiscal 2026 second quarter net sales of $352.6 million, down 1.7% from the prior year, as units sold fell 6.4% to 2,148 buses due to fewer production days, partly offset by higher pricing and favorable mix.
GAAP net income increased to $29.3 million, with diluted EPS of $0.90, while Adjusted EBITDA rose to $50.8 million, a 14.4% margin and an all‑time Q2 record for the company. Year‑to‑date net sales reached $685.7 million and net income $60.1 million, both above the prior year.
The company closed the acquisition of the remaining 50% of Micro Bird and raised full‑year 2026 guidance to approximately $1.75 billion in net revenue and $245 million in Adjusted EBITDA, while also increasing its long‑term outlook toward over $2.5 billion in revenue and 15%+ Adjusted EBITDA margin.
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Insights
Blue Bird posts record Q2 profitability, boosts 2026 and long‑term profit targets.
Blue Bird delivered Q2 2026 net sales of $352.6M, down 1.7%, as bus unit volumes fell 6.4% to 2,148 on fewer production days. Pricing and mix offset much of the volume pressure, lifting bus average selling prices and parts revenue.
Profitability improved meaningfully: GAAP net income reached $29.3M and Adjusted EBITDA rose to $50.8M, a 14.4% margin, described as a record second quarter. Year‑to‑date Adjusted EBITDA was $100.9M with a 14.7% margin, supported by higher gross profit and contributions from Micro Bird.
The company closed the remaining 50% acquisition of Micro Bird, incurred related costs of $2.7M, and raised FY2026 guidance to about $1.75B in net revenue and $245M Adjusted EBITDA. Management also outlined a longer‑term ambition of roughly $2.5B revenue and 15%+ Adjusted EBITDA margin, signaling confidence in its alternative‑fuel bus strategy and Micro Bird integration.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Net Sales: $352.6M
Q2 2026 Net Income: $29.3M
Q2 2026 Adjusted EBITDA: $50.8M (14.4% margin)
+5 more
8 metrics
Q2 2026 Net Sales
$352.6M
Three months ended March 28, 2026
Q2 2026 Net Income
$29.3M
Three months ended March 28, 2026
Q2 2026 Adjusted EBITDA
$50.8M (14.4% margin)
Described as all-time second-quarter record
Buses Sold Q2 2026
2,148 units
Down 147 units versus prior year quarter
FY2026 Revenue Guidance
~$1.75B
Raised full‑year 2026 net revenue outlook
FY2026 Adjusted EBITDA Guidance
~$245M
Raised full‑year 2026 Adjusted EBITDA guidance
Cash and Cash Equivalents
$275.9M
Balance as of March 28, 2026
Year-to-Date Adjusted EBITDA
$100.9M (14.7% margin)
Six months ended March 28, 2026
Key Terms
Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted Diluted Earnings per Share, +2 more
6 terms
Adjusted EBITDA financial
"Adj. EBITDA of $51M with 14% Margin and 2,148 Buses Sold"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"We define Free Cash Flow as total cash provided by/used in operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Adjusted Net Income financial
"Adjusted net income of $32.5 million represented an increase of $1.0 million"
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
Buy America–compliant shuttle bus market regulatory
"expands our addressable market with the Buy America–compliant shuttle bus market"
Total Net Leverage Ratio financial
"utilized in the denominator of the calculation of the Total Net Leverage Ratio"
Total net leverage ratio measures how much a company owes after using its cash, compared with the cash it generates in a year; it is usually calculated by subtracting cash from total debt and dividing that net debt by annual operating cash flow or earnings. Investors use it like a debt-to-income check for a household — a higher number means the company may struggle to cover obligations and is riskier, while a lower number suggests more cushion and financial flexibility.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 6, 2026
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
(478 ) 822-2801
(Registrant's telephone number including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
In accordance with General Instruction B.2. to Form 8-K, the following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
The information regarding the results of operations and financial condition of Blue Bird Corporation (the “Company”) responsive to this Item 2.02, and contained in Exhibit 99.1 filed herewith, is incorporated into this Item 2.02 by reference.
ITEM 7.01 REGULATION FD DISCLOSURE
In accordance with General Instruction B.2. to Form 8-K, the following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
The Company, which is the leading independent designer and manufacturer of school buses, announced it will present via live web cast its fiscal 2026 second quarter and year to date financial results on May 6, 2026 . A live web cast is scheduled at approximately 4:30 p.m. Eastern Time. Speakers on the web cast will include: John Wyskiel, Chief Executive Officer; Razvan Radulescu, Chief Financial Officer; and other company leaders.
The webcast can be accessed through a link on the investor relations page of Company’s web site at http://blue-bird.com. Investors are advised to log on to the website at least 15 minutes prior to the start of the web cast to allow sufficient time for downloading any necessary software. The web cast will be available for replay at the same address approximately three hours following its conclusion, and will remain available for a period of at least 12 months.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Exhibit No. Description
99.1 Press release of the Company, dated May 6, 2026 .
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Blue Bird Corporation | ||||||||
| Dated: | /s/ Ted Scartz | |||||||
| Ted Scartz | ||||||||
| Senior VP and General Counsel | ||||||||
Exhibit Index
Exhibit No. Description
99.1 Press release of the Company, dated May 6, 2026 .
BLUE BIRD REPORTS FISCAL 2026 SECOND QUARTER RESULTS
Net Sales of $353M and GAAP Net Income of $29M
Adj. EBITDA of $51M with 14% Margin and 2,148 Buses Sold
FY2026 Guidance Raised
MACON, Ga. (May 6, 2026) – Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2026 second quarter financial results.
Highlights
| (in millions except Unit Sales and EPS data) | Three Months Ended March 28, 2026 | B/(W) Prior Year | Six Months Ended March 28, 2026 | B/(W) Prior Year | |||||||||||||||||||
| Unit Sales | 2,148 | (147) | 4,283 | (142) | |||||||||||||||||||
| GAAP Measures: | |||||||||||||||||||||||
| Revenue | $ | 352.6 | $ | (6.2) | $ | 685.7 | $ | 13.0 | |||||||||||||||
| Net Income | $ | 29.3 | $ | 3.3 | $ | 60.1 | $ | 5.3 | |||||||||||||||
| Diluted EPS | $ | 0.90 | $ | 0.11 | $ | 1.84 | $ | 0.19 | |||||||||||||||
Non-GAAP Measures1: | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 50.8 | $ | 1.6 | $ | 100.9 | $ | 5.9 | |||||||||||||||
| Adjusted Net Income | $ | 32.5 | $ | 1.0 | $ | 65.0 | $ | 2.9 | |||||||||||||||
| Adjusted Diluted EPS | $ | 1.00 | $ | 0.04 | $ | 2.00 | $ | 0.13 | |||||||||||||||
1 Reconciliation to relevant GAAP metrics shown below
“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 $51M / 14% for the second fiscal quarter of 2026, a new all-time second-quarter record for the Company.
“In our push to expand our leadership in alternative-powered school buses, we delivered 201 electric-powered buses this quarter. As of the end of the quarter, we had more than 900 EV buses in our firm order backlog, which supports our EV sales target for 2026.
"Additionally, we are very pleased with the timely closing and integration progress of our recently announced acquisition of Micro Bird. The acquisition strengthens Blue Bird’s position with the industry’s most comprehensive bus portfolio and expands our addressable market with the Buy America–compliant shuttle bus market.
“Based on our strong first half of 2026 and final closing of the Micro Bird acquisition, we are raising our 2026 full-year Adjusted EBITDA guidance to $245 million. We look forward to sustained profitable growth in the coming years as we march towards ~$2.5B in revenue and a 15%+ Adjusted EBITDA margin.”
FY2026 Guidance and Long-Term Outlook
“We are very pleased with our second quarter results, with our highest ever Q2 Adj. EBITDA and Free Cash Flow” 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 strong first half we delivered, we are raising all full-year 2026 guidance metrics, as well as building in consolidated results for Micro Bird for the second half. 2026 Guidance is being raised to Net Revenue at ~$1.75 Billion and Adj. EBITDA to ~$245 million. Additionally, we are raising our long-term profit outlook towards an Adjusted EBITDA margin of $375+ million, or 15%+, on $2.5+ billion in revenue. We are confident in our profitable growth plans.”
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Fiscal 2026 Second Quarter Results
Net Sales
Net sales were $352.6 million for the second quarter of fiscal 2026, a decrease of $6.2 million, or 1.7%, compared to $358.9 million for the second quarter of fiscal 2025. The decrease in net sales is primarily due to a 6.4% decrease in units sold resulting from a 6.7% decrease in the number of production days in the second quarter of fiscal 2026 when compared with the same period in fiscal 2025, which primarily resulted from the timing of holidays, and our corresponding plant shutdown, in our production calendar. As a result of producing fewer buses, we had fewer units that were available to sale. 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 half of fiscal 2026, as well as an increase in Parts sales.
Bus sales decreased $7.6 million, or 2.3%, reflecting a 6.4% decrease in unit bookings that was partially offset by a 4.4% increase in average sales price per unit. In the second quarter of fiscal 2026, 2,148 units booked compared to 2,295 units booked for the same period in fiscal 2025. The increase in unit price for the second 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 increased $1.4 million, or 5.4%, for the second quarter of fiscal 2026 compared to the second quarter of fiscal 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
Second quarter gross profit of $70.6 million represented a decrease of $0.2 million from the second quarter of last year. The decrease was primarily driven by the $6.2 million decrease in net sales, discussed above, and partially offset by a corresponding decrease of $6.0 million in cost of goods sold.
Net Income
Net income was $29.3 million for the second quarter of fiscal 2026, an increase of $3.3 million from the second quarter of last year. Among other smaller fluctuations, the increase in net income was largely driven by a decrease of $5.6 million in selling, general and administrative expenses, primarily due to the significant amount of share-based compensation expense recorded in the second quarter of fiscal 2025 resulting from the retirement of our former President and Chief Executive Officer, with no similar significant expense recorded for the acceleration of vesting of stock awards in the second quarter of fiscal 2026. Partially offsetting the decrease in selling general, and administrative expenses was a decrease of $3.4 million in other (expense) income, net, primarily due to $2.7 million in pretax costs relating to the acquisition of the remaining 50% of the outstanding common stock of Micro Bird effective April 1, 2026, with no such costs incurred during the second quarter of fiscal 2025.
Adjusted Net Income
Adjusted net income of $32.5 million represented an increase of $1.0 million from the second quarter of last year. The increase was primarily driven by the $3.3 million increase in Net Income, discussed above, when adjusting for the impact of expenses that are excluded in calculating Adjusted Net Income, including share-based compensation and Micro Bird acquisition costs, discussed above.
Adjusted EBITDA
Adjusted EBITDA was $50.8 million, which was an increase of $1.6 million compared with the second quarter of fiscal 2025. The increase primarily relates to the increase in Micro Bird earnings, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, that was partially offset by a decrease in other income, net, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, as discussed above.
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Year-to-Date Fiscal 2026 Results
Net Sales
Net sales were $685.7 million for the six months ended March 28, 2026, an increase of $13.0 million, or 1.9%, compared to $672.7 million for the six months ended March 29, 2025. The increase in net sales 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 half of fiscal 2026, as well as an increase in Parts sales. The Bus increases described above were partially offset by a decrease in Bus units sold resulting from a 4.3% decrease in the number of production days during the six months ended March 28, 2026 when compared with the same period in fiscal 2025, which primarily resulted from the timing of holidays, and our corresponding plant shutdown, in our production calendar. As a result of producing fewer buses, we had fewer units that were available to sale.
Bus sales increased $11.9 million, or 1.9%, reflecting a 5.3% increase in average sales price per unit that was partially offset by a 3.2% decrease in units booked. The increase in unit price for the first six 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 4,283 units in the six months ended March 28, 2026 compared with 4,425 units during the same period in fiscal 2025.
Parts sales increased $1.1 million, or 2.1%, for the six months ended March 28, 2026 compared to the six months ended March 29, 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 six months ended March 28, 2026 was $141.9 million, an increase of $10.7 million compared with the same period in the prior year. The increase was primarily driven by the $13.0 million increase in net sales. This was partially offset by an increase of $2.3 million in cost of goods sold, primarily corresponding the increase net sales.
Net Income
Net income was $60.1 million for the six months ended March 28, 2026, which was a $5.3 million increase from the same period in the prior year. Among other smaller fluctuations, the increase in net income was primarily driven by the $10.7 million increase in gross profit, discussed above, and partially offset by a $6.5 million increase in other expense. During the second quarter of fiscal 2026, the Company incurred approximately $2.7 million of pretax costs relating to the acquisition of the remaining 50% of the outstanding common stock of Micro Bird effective April 1, 2026, with no such costs incurred during the the six months ended March 29, 2025. Additionally, during the first quarter of fiscal 2025, the Company sold certain state emissions credits that it was not projecting to use for approximately $2.6 million, with no similar income recorded during the the first six months of fiscal 2026.
Adjusted Net Income
Adjusted net income for the six months ended March 28, 2026 was $65.0 million, an increase of $2.9 million compared with the same period last year, primarily due to the $5.3 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 $100.9 million for the six months ended March 28, 2026, an increase of $5.9 million compared with the same period in the prior year. The increase primarily relates to the increase in (i) gross profit, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, as discussed above and (ii) Micro Bird earnings, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, that were partially offset by (iii) an increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, and (iv) a decrease in other income, net, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, as discussed above.
Conference Call Details
Blue Bird will discuss its fiscal 2026 second 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.
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•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 646-844-6383 or 833-470-1428. The access code is 005726.
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.
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 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 such as (i) transaction related costs 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.
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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.
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Contact:
Mark Benfield
Investor Relations
(478) 822-2315
Mark.Benfield@blue-bird.com
6
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands of dollars, except for share data) | March 28, 2026 | September 27, 2025 | |||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 275,893 | $ | 229,313 | |||||||
| Accounts receivable, net | 12,940 | 20,650 | |||||||||
| Inventories | 144,765 | 139,470 | |||||||||
| Other current assets | 32,969 | 22,195 | |||||||||
| Total current assets | $ | 466,567 | $ | 411,628 | |||||||
| Property, plant and equipment, net | $ | 117,868 | $ | 108,541 | |||||||
| Goodwill | 18,825 | 18,825 | |||||||||
| Intangible assets, net | 40,750 | 41,685 | |||||||||
Equity investment in affiliates | 39,204 | 35,197 | |||||||||
| Deferred tax assets | — | 2,697 | |||||||||
Pension | 4,664 | 4,889 | |||||||||
| Other assets | 1,486 | 1,793 | |||||||||
| Total assets | $ | 689,364 | $ | 625,255 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 127,124 | $ | 151,479 | |||||||
| Warranty | 7,235 | 7,494 | |||||||||
| Accrued expenses | 53,752 | 55,164 | |||||||||
| Deferred warranty income | 12,015 | 11,329 | |||||||||
| Other current liabilities | 49,156 | 6,333 | |||||||||
| Current portion of long-term debt | 5,000 | 5,000 | |||||||||
| Total current liabilities | $ | 254,282 | $ | 236,799 | |||||||
| Long-term liabilities | |||||||||||
| Revolving credit facility | $ | — | $ | — | |||||||
| Long-term debt | 82,982 | 85,324 | |||||||||
| Warranty | 9,540 | 9,681 | |||||||||
| Deferred warranty income | 23,292 | 22,368 | |||||||||
| Deferred tax liabilities | 8,189 | 5,439 | |||||||||
| Other liabilities | 13,151 | 10,229 | |||||||||
| Total long-term liabilities | $ | 137,154 | $ | 133,041 | |||||||
| Guarantees, commitments and contingencies | |||||||||||
| Stockholders' equity | |||||||||||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding at March 28, 2026 and September 27, 2025 | $ | — | $ | — | |||||||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,646,589 and 31,884,721 shares issued and outstanding at March 28, 2026 and September 27, 2025, respectively | 3 | 3 | |||||||||
| Additional paid-in capital | 197,690 | 195,466 | |||||||||
Retained earnings | 128,302 | 88,193 | |||||||||
| Accumulated other comprehensive loss | (28,067) | (28,247) | |||||||||
| Total stockholders' equity | $ | 297,928 | $ | 255,415 | |||||||
| Total liabilities and stockholders' equity | $ | 689,364 | $ | 625,255 | |||||||
7
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands of dollars except for share data) | March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||
| Net sales | $ | 352,635 | $ | 358,851 | $ | 685,719 | $ | 672,723 | |||||||||||||||
| Cost of goods sold | 281,988 | 287,997 | 543,843 | 541,552 | |||||||||||||||||||
| Gross profit | $ | 70,647 | $ | 70,854 | $ | 141,876 | $ | 131,171 | |||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Selling, general and administrative expenses | 31,529 | 37,143 | 65,081 | 64,418 | |||||||||||||||||||
| Operating profit | $ | 39,118 | $ | 33,711 | $ | 76,795 | $ | 66,753 | |||||||||||||||
| Interest expense | (1,545) | (1,813) | (3,111) | (3,728) | |||||||||||||||||||
| Interest income | 1,929 | 1,258 | 3,910 | 2,826 | |||||||||||||||||||
| Other (expense) income, net | (2,922) | 444 | (3,133) | 3,360 | |||||||||||||||||||
| Income before income taxes | $ | 36,580 | $ | 33,600 | $ | 74,461 | $ | 69,211 | |||||||||||||||
| Income tax expense | (9,102) | (9,129) | (18,221) | (17,822) | |||||||||||||||||||
| Equity in net income of non-consolidated affiliates | 1,823 | 1,575 | 3,817 | 3,379 | |||||||||||||||||||
| Net income | $ | 29,301 | $ | 26,046 | $ | 60,057 | $ | 54,768 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic weighted average shares outstanding | 31,629,376 | 31,917,407 | 31,703,272 | 32,072,354 | |||||||||||||||||||
| Diluted weighted average shares outstanding | 32,430,122 | 32,885,993 | 32,558,241 | 33,152,066 | |||||||||||||||||||
| Basic earnings per share | $ | 0.93 | $ | 0.82 | $ | 1.89 | $ | 1.71 | |||||||||||||||
| Diluted earnings per share | $ | 0.90 | $ | 0.79 | $ | 1.84 | $ | 1.65 | |||||||||||||||
8
BLUE BIRD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended | |||||||||||
| (in thousands of dollars) | March 28, 2026 | March 29, 2025 | |||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 60,057 | $ | 54,768 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization expense | 8,045 | 7,710 | |||||||||
| Non-cash interest expense | 158 | 167 | |||||||||
| Share-based compensation expense | 4,027 | 9,940 | |||||||||
| Equity in net income of non-consolidated affiliates | (3,817) | (3,379) | |||||||||
| Loss on disposal of fixed assets | 51 | 285 | |||||||||
Deferred income tax expense (benefit) | 5,390 | (3,962) | |||||||||
| Amortization of deferred actuarial pension losses | 236 | 139 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | 7,710 | 43,313 | |||||||||
| Inventories | (5,295) | (36,034) | |||||||||
| Other assets | (10,241) | (10,955) | |||||||||
| Accounts payable | (25,101) | 9,929 | |||||||||
| Accrued expenses, pension and other liabilities | 43,120 | (17,741) | |||||||||
| Total adjustments | $ | 24,283 | $ | (588) | |||||||
| Total cash provided by operating activities | $ | 84,340 | $ | 54,180 | |||||||
| Cash flows from investing activities | |||||||||||
| Cash paid for fixed assets | $ | (13,319) | $ | (13,616) | |||||||
| Equity investment in affiliates | (190) | (500) | |||||||||
| Total cash used in investing activities | $ | (13,509) | $ | (14,116) | |||||||
| Cash flows from financing activities | |||||||||||
Term loan repayments | $ | (2,500) | $ | (2,500) | |||||||
| Principal payments on finance leases | — | (604) | |||||||||
| Repurchase of common stock in connection with repurchase programs | (19,948) | (30,053) | |||||||||
| Repurchase of common stock in connection with stock award exercises | (2,574) | (4,412) | |||||||||
| Cash received from stock option exercises | 771 | 567 | |||||||||
| Total cash used in financing activities | $ | (24,251) | $ | (37,002) | |||||||
Change in cash and cash equivalents | 46,580 | 3,062 | |||||||||
Cash and cash equivalents at beginning of period | 229,313 | 127,687 | |||||||||
Cash and cash equivalents at end of period | $ | 275,893 | $ | 130,749 | |||||||
9
Reconciliation of Net Income to Adjusted EBITDA
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands of dollars) | March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||
| Net income | $ | 29,301 | $ | 26,046 | $ | 60,057 | $ | 54,768 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Interest (income) expense, net (1) | (233) | 633 | (486) | 1,066 | |||||||||||||||||||
| Income tax expense | 9,102 | 9,129 | 18,221 | 17,822 | |||||||||||||||||||
| Depreciation, amortization, and disposals (2) | 4,673 | 4,251 | 9,244 | 8,494 | |||||||||||||||||||
| Micro Bird acquisition costs | 2,673 | — | 2,673 | — | |||||||||||||||||||
Share-based compensation expense | 1,670 | 7,434 | 4,027 | 9,940 | |||||||||||||||||||
| Micro Bird Holdings, Inc. total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense | 3,628 | 1,713 | 7,136 | 2,869 | |||||||||||||||||||
Adjusted EBITDA | $ | 50,814 | $ | 49,206 | $ | 100,872 | $ | 94,959 | |||||||||||||||
Adjusted EBITDA margin (percentage of net sales) | 14.4 | % | 13.7 | % | 14.7 | % | 14.1 | % | |||||||||||||||
(1) Includes $0.2 million and $0.1 million for the three months ended March 28, 2026 and March 29, 2025, and $0.3 million and $0.2 million for the six months ended March 28, 2026 and March 29, 2025, respectively, representing interest expense on operating lease liabilities, which are a component of lease expense and presented within cost of goods sold or selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.
(2) Includes $0.6 million and $0.4 million for the three months ended March 28, 2026 and March 29, 2025, and $1.2 million and $0.8 million for the six months ended March 28, 2026 and March 29, 2025, respectively, representing amortization charges on right-of-use lease assets, which are a component of lease expense and presented within cost of goods sold or selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.
Reconciliation of Free Cash Flow to Adjusted Free Cash Flow
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands of dollars) | March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||
| Net cash provided by operating activities | $ | 47,761 | $ | 27,770 | $ | 84,340 | $ | 54,180 | |||||||||||||||
| Cash paid for fixed assets | (7,854) | (9,022) | (13,319) | (13,616) | |||||||||||||||||||
Free cash flow | $ | 39,907 | $ | 18,748 | $ | 71,021 | $ | 40,564 | |||||||||||||||
| Cash paid for Micro Bird acquisition costs | 2,673 | — | 2,673 | — | |||||||||||||||||||
| Adjusted free cash flow | $ | 42,580 | $ | 18,748 | $ | 73,694 | $ | 40,564 | |||||||||||||||
10
Reconciliation of Net Income to Adjusted Net Income
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| (in thousands of dollars) | March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||
| Net income | $ | 29,301 | $ | 26,046 | $ | 60,057 | $ | 54,768 | |||||||||||||||
| Adjustments, net of tax expense or benefit (1) | |||||||||||||||||||||||
| Micro Bird acquisition costs | 1,978 | — | 1,978 | — | |||||||||||||||||||
| Share-based compensation expense | 1,236 | 5,501 | 2,980 | 7,356 | |||||||||||||||||||
| Adjusted net income, non-GAAP | $ | 32,515 | $ | 31,547 | 65,015 | 62,124 | |||||||||||||||||
(1) Amounts are net of estimated tax rates of 26%.
Reconciliation of Diluted EPS to Adjusted Diluted EPS
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.90 | $ | 0.79 | $ | 1.84 | $ | 1.65 | |||||||||||||||
| One-time charge adjustments, net of tax benefit or expense | 0.10 | 0.17 | 0.16 | 0.22 | |||||||||||||||||||
| Adjusted diluted earnings per share, non-GAAP | $ | 1.00 | $ | 0.96 | $ | 2.00 | $ | 1.87 | |||||||||||||||
| Adjusted weighted average dilutive shares outstanding | 32,430,122 | 32,885,993 | 32,558,241 | 33,152,066 | |||||||||||||||||||
11
FAQ
How did Blue Bird (BLBD) perform in its fiscal 2026 second quarter?
Blue Bird reported net sales of $352.6 million in Q2 2026, down 1.7% year over year, with 2,148 buses sold. GAAP net income increased to $29.3 million and Adjusted EBITDA rose to $50.8 million, representing a 14.4% margin.
What full-year 2026 guidance did Blue Bird (BLBD) update in this filing?
Blue Bird raised its fiscal 2026 guidance to approximately $1.75 billion in net revenue and about $245 million in Adjusted EBITDA. Management also increased its long‑term profit outlook toward Adjusted EBITDA of $375+ million, or 15%+ margin, on $2.5+ billion revenue.
How did Blue Bird’s electric and alternative-powered buses perform in Q2 2026?
Blue Bird delivered 201 electric-powered buses in Q2 2026 and ended the quarter with a firm order backlog of more than 900 EV buses. Management stated this backlog supports its electric vehicle sales target for 2026 and reinforces its leadership in alternative-powered school buses.
What impact did the Micro Bird acquisition have on Blue Bird’s results?
Blue Bird incurred about $2.7 million of pretax costs in Q2 2026 related to acquiring the remaining 50% of Micro Bird. Management indicated that Micro Bird earnings contributed to higher Adjusted EBITDA and that the deal broadens its bus portfolio and Buy America–compliant shuttle bus market exposure.
How strong were Blue Bird’s year-to-date fiscal 2026 results?
For the six months ended March 28, 2026, Blue Bird generated net sales of $685.7 million, up 1.9% year over year. Net income rose to $60.1 million, while Adjusted EBITDA increased to $100.9 million with a 14.7% margin, reflecting improved profitability.
What is Blue Bird’s cash flow and liquidity position so far in fiscal 2026?
Blue Bird reported $84.3 million of net cash provided by operating activities for the first six months of fiscal 2026 and $71.0 million in free cash flow. Cash and cash equivalents increased to $275.9 million as of March 28, 2026, up from $229.3 million at fiscal year-end.