Blue Bird (NASDAQ:BLBD) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Blue Bird (NASDAQ:BLBD) issued its earnings results on Wednesday. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.25 by $0.03, FiscalAI reports. The company had revenue of $517.16 million for the quarter, compared to analysts’ expectations of $485.73 million. Blue Bird had a net margin of 8.91% and a return on equity of 53.68%.

Here are the key takeaways from Blue Bird’s conference call:

• Record Q3 results: Blue Bird reported $517 million in revenue, $71 million in adjusted EBITDA, and $1.28 in adjusted diluted EPS, with EBITDA exceeding guidance for the 15th consecutive quarter. Year-to-date adjusted EBITDA reached a record $172 million.
• Management raised fiscal 2026 adjusted EBITDA guidance to $245 million-$250 million, or approximately 14% of revenue, while maintaining revenue guidance of $1.74 billion-$1.76 billion and forecasting adjusted free cash flow of $125 million-$135 million.
• Blue Bird will enter the approximately $1.4 billion Class 5 and 6 commercial strip-chassis market through an expanded Ford collaboration and acquisition of Detroit Chassis assets. The company expects production to begin in 2028, reach roughly 10,000 units by 2030, and generate more than $100 million in longer-term adjusted EBITDA.
• School-bus fundamentals remain favorable, supported by an aging fleet, pent-up replacement demand, stable funding, and a backlog of approximately 4,900 units, including about 800 electric buses. Management also cited strong EV demand extending into 2027 and continued growth opportunities from the Micro Bird acquisition.
• The Ford chassis initiative requires approximately $90 million of Blue Bird investment in 2027, including $50 million of capital expenditures, while chassis production will take two years to ramp after its expected 2028 launch. Q3 free cash flow declined year over year because of higher working capital and finished-goods inventory, and tariff volatility remains an ongoing risk despite management’s expectation of a margin-neutral outcome.

Blue Bird Stock Performance

NASDAQ BLBD traded down $0.90 on Wednesday, reaching $76.93. 345,242 shares of the stock were exchanged, compared to its average volume of 441,728. Blue Bird has a one year low of $42.95 and a one year high of $83.39. The firm has a market capitalization of $2.43 billion, a PE ratio of 18.90, a PEG ratio of 1.01 and a beta of 1.36. The company’s 50-day simple moving average is $75.07 and its two-hundred day simple moving average is $64.61. The company has a current ratio of 1.83, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Transamerica Financial Advisors LLC boosted its stake in shares of Blue Bird by 222.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 823 shares of the company’s stock worth $39,000 after acquiring an additional 568 shares during the period. Aster Capital Management DIFC Ltd bought a new position in Blue Bird in the 4th quarter worth approximately $41,000. Caitong International Asset Management Co. Ltd boosted its stake in Blue Bird by 10,028.6% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 709 shares of the company’s stock worth $41,000 after purchasing an additional 702 shares during the period. Mcguire Capital Advisors Inc. purchased a new stake in Blue Bird during the 4th quarter valued at approximately $63,000. Finally, Larson Financial Group LLC grew its holdings in Blue Bird by 1,742.3% during the 3rd quarter. Larson Financial Group LLC now owns 1,308 shares of the company’s stock valued at $75,000 after buying an additional 1,237 shares in the last quarter. Institutional investors own 93.59% of the company’s stock.

Wall Street Analysts Forecast Growth

BLBD has been the topic of a number of research reports. BTIG Research raised their price target on Blue Bird from $65.00 to $80.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Zacks Research upgraded Blue Bird from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. Needham & Company LLC raised their target price on Blue Bird from $78.00 to $86.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Wall Street Zen downgraded Blue Bird from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Finally, Barclays boosted their price target on Blue Bird from $75.00 to $85.00 and gave the company an “overweight” rating in a report on Monday, July 20th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $82.17.

About Blue Bird

Blue Bird Corporation (NASDAQ: BLBD) is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company’s core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability.

Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation.