Document


(in millions except Unit Sales and EPS data)	Three Months Ended June 28, 2025		B/(W) Prior Year		Nine Months Ended June 28, 2025		B/(W) Prior Year
Unit Sales	2,467		316		6,892		358
GAAP Measures:
Revenue	$	398.0	$	64.6	$	1,070.7	$	73.8
Net Income	$	36.5	$	7.7	$	91.2	$	10.3
Diluted EPS	$	1.12	$	0.27	$	2.76	$	0.33
Non-GAAP Measures1:
Adjusted EBITDA	$	58.5	$	10.2	$	153.4	$	11.8
Adjusted Net Income	$	38.7	$	8.1	$	100.8	$	11.3
Adjusted Diluted EPS	$	1.19	$	0.28	$	3.05	$	0.36

“I am incredibly proud of our team in delivering another outstanding result, achieving a new all-time quarterly record revenue and profit,” 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. Our backlog remains strong with approximately 3,900 units at the end of the third quarter, despite industry orders slowing due to tariff-related pricing actions. Unit sales were above the same period as last year, and revenue was up by $65M, driven by product mix and pricing. We delivered an exceptional Adj. EBITDA of $58.5M for Q3 2025, a new all-time record for the Company.

“We are very pleased with the third quarter results, with our highest ever quarterly 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 tightening our full-year 2025 guidance for Net Revenue at ~$1.45 Billion and raising our Adj. EBITDA guidance to $205-215 million and Adj. Free Cash Flow to $90-$100 million. Additionally, we are raising our long-term profit outlook towards an Adjusted EBITDA

Net sales were $398.0 million for the third quarter of fiscal 2025, an increase of $64.6 million, or 19.4%, compared to $333.4 million for the third 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, as well as a small increase in Parts sales.

Bus sales increased $64.2 million, or 20.8%, reflecting a 14.7% increase in unit bookings and a 5.4% increase in average sales price per unit. In the third quarter of fiscal 2025, 2,467 units booked compared to 2,151 units booked for the same period in fiscal 2024. The increase in unit price for the third 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.

Net income was $36.5 million for the third quarter of fiscal 2025, an increase of $7.7 million from the third quarter of last year. Among other smaller fluctuations, the $16.6 million increase in gross profit, discussed above, was offset by an increase of $6.2 million in selling, general and administrative expenses, primarily due to an increase in a) research and development expense in the third quarter of fiscal 2025 and b) labor costs.

Adjusted EBITDA was $58.5 million, which was an increase of $10.2 million compared with the third quarter of fiscal 2024. The increase primarily relates to the increase in gross profit, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the gross profit discussion above that was 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, as discussed above.

Net sales were $1,070.7 million for the nine months ended June 28, 2025, an increase of $73.8 million, or 7.4%, compared to $996.9 million for the nine months ended June 29, 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, as well as a small increase in Parts sales.

Bus sales increased $73.7 million, or 8.0%, reflecting a 5.5% increase in units booked and a 2.4% increase in average sales price per unit. 6,892 units booked in the nine months ended June 28, 2025 compared with 6,534 units booked during the same period in fiscal 2024. The increase in unit price for the first nine months 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.

Net income was $91.2 million for the nine months ended June 28, 2025, a $10.3 million increase from the same period in the prior year. The increase in net income was primarily driven by the $20.5 million increase in gross profit, discussed above, and among other smaller fluctuations, was partially offset by an increase of $17.5 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 Chief Executive Officer, b) labor costs and c) research and development expense.

Adjusted EBITDA was $153.4 million for the nine months ended June 28, 2025, an increase of $11.8 million compared to the same period in the prior year. This increase is primarily due to the increase in gross profit, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the gross profit discussion above, that was 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, as discussed above.

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 20,000 propane, natural gas, and electric powered buses in operation today. 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.

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 believe that Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted Earnings per Share 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 paragraph. We believe the non-GAAP measures offer additional financial metrics that, when coupled with the GAAP results and the reconciliation to GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business.

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 based on recent revenue generation and product/overhead cost control 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.

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 operations.

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:

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.


(in thousands of dollars, except for share data)	June 28, 2025		September 28, 2024
Assets
Current assets
Cash and cash equivalents	$	173,066	$	127,687
Accounts receivable, net	21,108		59,099
Inventories	151,042		127,798
Other current assets	15,457		8,795
Total current assets	$	360,673	$	323,379

Property, plant and equipment, net	$	103,837	$	97,322
Goodwill	18,825		18,825
Intangible assets, net	42,152		43,554
Equity investment in affiliates	35,913		32,089
Deferred tax assets	5,008		2,399
Finance lease right-of-use assets	—		332
Pension	7,070		4,649
Other assets	1,972		2,345
Total assets	$	575,450	$	524,894
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	150,158	$	143,156
Warranty	7,190		7,166
Accrued expenses	45,391		55,775
Deferred warranty income	10,801		9,421
Finance lease obligations	—		975
Other current liabilities	10,039		14,480
Current portion of long-term debt	5,000		5,000
Total current liabilities	$	228,579	$	235,973
Long-term liabilities
Revolving credit facility	$	—	$	—
Long-term debt	86,493		89,994
Warranty	9,384		9,013
Deferred warranty income	20,988		18,541
Deferred tax liabilities	—		2,783
Finance lease obligations	—		6
Other liabilities	8,159		9,020

Total long-term liabilities	$	125,024	$	129,357
Guarantees, commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at June 28, 2025 and September 28, 2024	$	—	$	—
Common stock, $0.0001 par value, 100,000,000 shares authorized, 31,480,251 and 32,268,022 shares issued and outstanding at June 28, 2025 and September 28, 2024, respectively	3		3
Additional paid-in capital	195,872		185,977
Retained earnings	52,230		—
Accumulated other comprehensive loss	(26,258)		(26,416)

Total stockholders' equity	$	221,847	$	159,564
Total liabilities and stockholders' equity	$	575,450	$	524,894


	Three Months Ended				Nine Months Ended
(in thousands of dollars except for share data)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net sales	$	398,011	$	333,367	$	1,070,734	$	996,942
Cost of goods sold	312,083		264,014		853,635		800,392
Gross profit	$	85,928	$	69,353	$	217,099	$	196,550
Operating expenses
Selling, general and administrative expenses	35,859		29,625		100,277		82,798
Operating profit	$	50,069	$	39,728	$	116,822	$	113,752
Interest expense	(1,738)		(2,107)		(5,466)		(8,550)
Interest income	1,483		990		4,309		3,132
Other (expense) income, net	(580)		(2,729)		2,780		(5,918)
Loss on debt refinancing	—		—		—		(1,558)
Income before income taxes	$	49,234	$	35,882	$	118,445	$	100,858
Income tax expense	(12,375)		(9,938)		(30,197)		(26,645)
Equity in net (loss) income of non-consolidated affiliates	(404)		2,767		2,975		6,671
Net income	$	36,455	$	28,711	$	91,223	$	80,884

Earnings per share:
Basic weighted average shares outstanding	31,556,312		32,305,396		31,899,623		32,238,805
Diluted weighted average shares outstanding	32,581,820		33,653,447		33,023,743		33,222,354
Basic earnings per share	$	1.16	$	0.89	$	2.86	$	2.51
Diluted earnings per share	$	1.12	$	0.85	$	2.76	$	2.43


	Nine Months Ended
(in thousands of dollars)	June 28, 2025		June 29, 2024
Cash flows from operating activities
Net income	$	91,223	$	80,884
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	11,671		10,913
Non-cash interest expense	249		305
Share-based compensation expense	12,910		7,017
Equity in net income of non-consolidated affiliates	(2,975)		(6,671)
Dividend from equity investment in affiliates	—		2,991
Loss on disposal of fixed assets	316		33


Deferred income tax (benefit) expense	(5,442)		4,165
Amortization of deferred actuarial pension losses	209		516
Loss on debt refinancing	—		1,558
Changes in assets and liabilities:
Accounts receivable	37,991		(21,432)
Inventories	(23,244)		(9,251)
Other assets	(8,709)		680
Accounts payable	7,305		(9,961)
Accrued expenses, pension and other liabilities	(10,408)		(5,987)

Total adjustments	$	19,873	$	(25,124)
Total cash provided by operating activities	$	111,096	$	55,760
Cash flows from investing activities
Cash paid for fixed assets	$	(18,215)	$	(10,137)
Equity investment in affiliates	(850)		—

Total cash used in investing activities	$	(19,065)	$	(10,137)
Cash flows from financing activities
Revolving credit facility borrowings	$	—	$	36,220
Revolving credit facility repayments	—		(36,220)
Term loan borrowings	—		100,000
Term loan repayments	(3,750)		(134,300)
Principal payments on finance leases	(981)		(440)
Cash paid for debt costs	—		(3,128)


Repurchase of common stock in connection with repurchase program	(38,993)		—
Repurchase of common stock in connection with stock award exercises	(4,412)		(301)
Cash received from stock option exercises	1,484		1,974

Total cash used in financing activities	$	(46,652)	$	(36,195)
Change in cash and cash equivalents	45,379		9,428
Cash and cash equivalents at beginning of period	127,687		78,988
Cash and cash equivalents at end of period	$	173,066	$	88,416


	Three Months Ended						Nine Months Ended
(in thousands of dollars)	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Net income	$	36,455		$	28,711		$	91,223		$	80,884
Adjustments:
Interest expense, net (1)	326			1,214			1,392			5,729
Income tax expense	12,375			9,938			30,197			26,645
Depreciation, amortization, and disposals (2)	4,363			4,055			12,858			12,253

Share-based compensation expense	2,971			2,474			12,910			7,017


Stockholder transaction costs	—			—			—			3,154
Loss on debt refinancing	—			—			—			1,558
Micro Bird Holdings, Inc. total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense	1,989			1,852			4,858			4,442
Other	—			2			—			(81)
Adjusted EBITDA	$	58,479		$	48,246		$	153,438		$	141,601
Adjusted EBITDA margin (percentage of net sales)	14.7		%	14.5		%	14.3		%	14.2		%

(1) Includes $0.1 million for both the three months ended June 28, 2025 and June 29, 2024, and $0.2 million and $0.3 million for the nine months ended June 28, 2025 and June 29, 2024, respectively, representing interest expense on operating lease liabilities, which are a component of lease expense and presented as a single operating expense within cost of goods sold or selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.

(2) Includes $0.4 million and $0.3 million for the three months ended June 28, 2025 and June 29, 2024, respectively, and $1.1 million and $1.3 million for the nine months ended June 28, 2025 and June 29, 2024, respectively representing amortization charges on right-of-use lease assets, which are a component of lease expense and presented as a single operating expense within cost of goods sold or selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.


	Three Months Ended				Nine Months Ended
(in thousands of dollars)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net cash provided by operating activities	$	56,916	$	989	$	111,096	$	55,760
Cash paid for fixed assets	(4,599)		(4,494)		(18,215)		(10,137)
Free cash flow	$	52,317	$	(3,505)	$	92,881	$	45,623



Cash paid for stockholder transaction costs	—		—		—		3,154
Cash paid (received) for other items	—		2		—		(81)
Adjusted free cash flow	52,317		(3,503)		92,881		48,696


	Three Months Ended				Nine Months Ended
(in thousands of dollars)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Net income	$	36,455	$	28,711	$	91,223	$	80,884
Adjustments, net of tax benefit or expense (1)



Share-based compensation expense	2,199		1,831		9,553		5,193

Stockholder transaction costs	—		—		—		2,334
Loss on debt refinancing	—		—		—		1,153
Other	—		1		—		(60)
Adjusted net income, non-GAAP	$	38,654	$	30,543	100,776		89,504


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Diluted earnings per share	$	1.12	$	0.85	$	2.76	$	2.43
One-time charge adjustments, net of tax benefit or expense	0.07		0.06		0.29		0.26
Adjusted diluted earnings per share, non-GAAP	$	1.19	$	0.91	$	3.05	$	2.69
Adjusted weighted average dilutive shares outstanding	32,581,820		33,653,447		33,023,743		33,222,354