Blue Bird Corp (NASDAQ:BLBD) reported fiscal third-quarter 2025 results that exceeded analyst expectations, prompting a positive market reaction. The company posted revenue of $398 million, up 19.4% year-over-year, surpassing the consensus estimate of $385.2 million. Adjusted earnings per share (EPS) came in at $1.19, beating expectations of $0.98 by a significant margin. Following the earnings release, shares rose nearly 8.7% in after-hours trading, reflecting investor optimism.
Key Financial Highlights
- Revenue Growth: Sales climbed to $398 million, driven by higher unit sales (2,467 buses vs. 2,151 in Q3 2024) and improved pricing to offset tariff-related costs.
- Profitability Expansion: Adjusted EBITDA reached a record $58.5 million, up $10.2 million from the prior year, with margins improving due to favorable product mix and cost controls.
- Strong Backlog: The company’s order backlog remains robust at approximately 3,900 units, despite industry-wide slowdowns tied to tariff-related pricing adjustments.
Market Reaction & Outlook
The strong earnings beat and raised guidance appear to be the primary drivers behind the stock’s after-hours surge. Blue Bird now expects full-year 2025 adjusted EBITDA of $205–215 million, up from previous projections, aligning closely with analyst estimates of $210 million. The company also announced a $100 million share buyback program, signaling confidence in its financial position and future cash flow generation.
Looking ahead, management anticipates sustained growth, targeting long-term adjusted EBITDA margins of 16%+ on approximately $2 billion in revenue. This outlook suggests continued momentum in the electric and low-emission school bus segment, where Blue Bird has delivered a record 271 electric buses this quarter.
Press Release Summary
- Record Performance: Q3 marked all-time highs in revenue and profitability.
- EV Leadership: The company has 1,200 electric buses either sold or in backlog, reinforcing its position in alternative-powered transportation.
- Guidance Raise: Full-year revenue is now projected at ~$1.45 billion, with adjusted free cash flow expected between $90–100 million.
For more detailed earnings estimates and historical performance, visit Blue Bird’s earnings page.
Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.
