Blue Bird Corp (NASDAQ:BLBD) Surpasses Q4 and Full-Year 2025 Earnings Estimates

Blue Bird Corp (NASDAQ:BLBD) has released fiscal fourth-quarter and full-year 2025 results that surpassed analyst expectations, driving a positive market reaction in after-hours trading. The school bus manufacturer reported record financial performance for both the quarter and the full fiscal year, beating its own guidance and demonstrating strong operational execution in a challenging supply chain environment.

Earnings Performance Versus Estimates

The company delivered a decisive beat on both top and bottom line metrics for the fourth quarter. Revenue came in at $409.4 million, representing 16.9% year-over-year growth and exceeding analyst estimates of $388 million. This strong sales performance was complemented by even more impressive profitability metrics.

• Q4 2025 Revenue: $409.4 million (Actual) vs. $388.0 million (Estimate)
• Q4 2025 Non-GAAP EPS: $1.32 (Actual) vs. $1.05 (Estimate)

The earnings per share figure of $1.32 surpassed expectations by approximately 29%, highlighting significant operational leverage and effective cost management. For the full fiscal year 2025, the company achieved revenue of $1.48 billion and an adjusted EBITDA of $221.3 million, both representing all-time records for the company.

Market Reaction and Price Action

Investors responded favorably to the earnings beat, with the stock rising approximately 3.5% in after-market trading following the announcement. This positive movement adds to recent gains, with the stock having advanced 9.7% over the past week and 6.6% over the past two weeks, suggesting building momentum ahead of the earnings release. The market's reaction indicates approval of both the quarterly outperformance and the company's record annual results.

Management Commentary and Strategic Focus

President and CEO John Wyskiel expressed pride in the team's performance, citing improved operations and expanded leadership in alternative-powered buses as key drivers. The company delivered a record 901 electric-powered buses during the fiscal year and ended with approximately 680 EV buses in its firm order backlog, supporting its electric vehicle sales targets for 2026.

Chief Financial Officer Razvan Radulescu noted the business is in a "very strong position" and continues to deliver ahead of the company's communicated plan. Management highlighted their success in navigating tariff impacts through strategic pricing actions while maintaining profitability.

Forward Guidance and Analyst Expectations

Looking ahead, Blue Bird reaffirmed its full-year 2026 guidance for net revenue of approximately $1.5 billion and adjusted EBITDA of $220 million. This revenue guidance appears slightly conservative when compared to analyst estimates of $1.54 billion for full-year 2026 sales. The company also reiterated its long-term outlook targeting an adjusted EBITDA margin of 16% or higher on approximately $2 billion in revenue.

The company's first-quarter 2026 revenue guidance of approximately $340.8 million compares to analyst expectations of $340.78 million, indicating alignment with near-term projections.

Financial Health and Operational Highlights

The earnings report revealed several positive financial trends beyond the headline numbers:

• Full-year unit sales increased by 409 units to 9,409 buses
• Gross profit improved significantly to $303.5 million for the year
• Net income reached $127.7 million, up $22.2 million from the prior year
• Strong balance sheet with $229.3 million in cash and cash equivalents
• The company continues to benefit from favorable product mix and pricing strategies

The company's focus on electric and low-emission school buses positions it well for continued growth as school districts increasingly transition to cleaner transportation options.

For more detailed earnings information and future estimates, readers can view the complete earnings and estimates data for BLBD.

Disclaimer: This article presents financial information for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any particular security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.