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

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

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 Down 1.2%

BLBD traded down $0.90 during midday trading on Wednesday, reaching $76.93. The company’s stock had a trading volume of 345,242 shares, compared to its average volume of 441,728. The firm has a market capitalization of $2.43 billion, a price-to-earnings ratio of 18.90, a PEG ratio of 1.01 and a beta of 1.36. The company has a current ratio of 1.83, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. Blue Bird has a 1 year low of $42.95 and a 1 year high of $83.39. The stock’s 50-day moving average is $75.07 and its 200-day moving average is $64.61.

Hedge Funds Weigh In On Blue Bird

Several large investors have recently made changes to their positions in the business. Janney Montgomery Scott LLC grew its stake in shares of Blue Bird by 34.1% in the fourth quarter. Janney Montgomery Scott LLC now owns 5,422 shares of the company’s stock worth $255,000 after acquiring an additional 1,378 shares during the last quarter. Private Advisor Group LLC bought a new stake in Blue Bird in the 3rd quarter worth about $239,000. Creative Planning purchased a new position in Blue Bird in the 3rd quarter worth about $224,000. CANADA LIFE ASSURANCE Co lifted its stake in Blue Bird by 76.3% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 4,482 shares of the company’s stock valued at $211,000 after acquiring an additional 1,940 shares during the period. Finally, Mangrove Partners IM LLC bought a new position in Blue Bird during the 4th quarter valued at about $202,000. 93.59% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Needham & Company LLC lifted their price objective on Blue Bird from $78.00 to $86.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Wall Street Zen cut Blue Bird from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. BTIG Research lifted their price target on Blue Bird from $65.00 to $80.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Freedom Capital lowered Blue Bird from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 7th. Finally, Barclays upped their price target on Blue Bird from $75.00 to $85.00 and gave the stock an “overweight” rating in a research note on Monday, July 20th. Seven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target 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.