MACON, Ga. — Blue Bird Corporation (“Blue Bird”) (Nasdaq: BLBD), the leader in electric and low-emission school buses, announced today its fiscal 2026 third quarter financial results.
“I am incredibly proud of our team in delivering another outstanding quarterly result,” 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. We delivered an exceptional Adj. EBITDA of $71M for the third fiscal quarter of 2026, including consolidated results from our recent Micro Bird acquisition.
“In our push to expand our leadership in alternative-powered school buses, we delivered 355 electric-powered buses this quarter. As of the end of the quarter, we had more than 770 EV buses in our firm order backlog, which supports our EV sales target for 2026.
“Additionally, we just announced a major collaboration agreement with Ford Motor Company to design, manufacture and sell the next generation F53/59 commercial stripped chassis. Blue Bird will integrate Ford’s next generation medium-duty gas powertrain into this new stripped chassis. As part of this arrangement, Blue Bird will also purchase the assets of Detroit Chassis LLC’s Detroit Plant. Detroit Chassis is the assembler of the current F53/59 stripped chassis. This transaction is anticipated to close early 2027, shortly after the current chassis ends production. Production of the next generation stripped chassis is planned to begin early 2028. This move is a significant component of our Long-Term Strategy, and will position us to be a growing player in the specialty vehicle/chassis market.”
FY2026 Guidance and Long-Term Outlook
“We are very pleased with our third quarter results, driven by excellent Blue Bird results as well as the integration of Micro Bird,” 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. With the record first nine months we have delivered, we are raising our full-year 2026 Adj. EBITDA guidance.
“The updated 2026 Guidance is Net Revenue at ~$1.75 Billion and Adj. EBITDA to ~$247 million. Additionally, we are raising our long-term profit outlook to include the recent announcement of our expanded Ford collaboration and purchase of Detroit Assembly Plant’s assets, towards a 2030+ long-term Adjusted EBITDA of $500+ million, or 15%+, on $3.3 billion in revenue. We are confident in our profitable growth plans.”
Fiscal 2026 Third Quarter Results
Net Sales
Net sales were $517.2 million for the third quarter of fiscal 2026, an increase of $119.1 million, or 29.9%, compared to $398.0 million for the third quarter of fiscal 2025. Micro Bird contributed $122.9 million of net sales during the third quarter of fiscal 2026. The $3.8 million, or 1.0%, decrease in net sales for the legacy Blue Bird operations is primarily due to a 7.2% decrease in units sold resulting from timing due to a customer mix change as we produced a large number of units for certain customers that we will recognize as revenue in the fourth quarter of fiscal 2026 when the units are delivered to coincide with school resuming. Many of these units contributed to the significant increase in finished goods inventory at June 27, 2026. However, the decrease resulting from selling fewer units was partially offset by Bus customer and product mix changes and cumulative Bus price increases, including increases that were 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 second half of fiscal 2025 and continuing into the first three quarters of fiscal 2026.
Bus sales increased $119.5 million, or 32.1%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025, which included the $122.9 million of net sales that Micro Bird contributed during the third quarter of fiscal 2026. Bus sales for the legacy Blue Bird operations decreased $3.5 million, or 0.9%, reflecting a 7.2% decrease in unit bookings that was partially offset by a 6.7% increase in average sales price per unit. In the third quarter of fiscal 2026, 2,290 legacy Blue Bird units booked compared to 2,467 units that booked during the same period in fiscal 2025. The increase in legacy Blue Bird unit price for the third quarter of fiscal 2026 compared to the same period in fiscal 2025 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs.
Parts sales decreased $0.3 million, or 1.2%, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. This small decrease is primarily attributed to slight variations due to product and channel mix that slightly exceeded price increases that were implemented to offset increases in inventory costs.
Gross Profit
Third quarter gross profit of $103.4 million represented an increase of $17.4 million from the third quarter of last year. The increase is primarily attributed to the acquisition of Micro Bird, which contributed $17.3 million of gross profit during the third quarter of fiscal 2026.
Net Income
Net income was $185.3 million for the third quarter of fiscal 2026, an increase of $148.8 million from the third quarter of last year. Micro Bird contributed $7.4 million of net income during the third quarter of fiscal 2026. Among other smaller fluctuations, the increase in net income for legacy Blue Bird operations was largely driven by an increase of $136.8 million in other income (expense), net, which primarily consists of $4.5 million of pretax costs relating to the acquisition of the remaining 50% of the outstanding voting common stock of Micro Bird effective April 1, 2026 and a $160.5 million gain during the third quarter of fiscal 2026 resulting from remeasuring the value of the previously held 50% equity investment to its acquisition date fair value in connection with the Micro Bird acquisition, which was partially offset by a $19.6 million loss resulting from the settlement of the pension benefits earned by the majority of pension plan participants. Neither of these had corresponding gains/losses during the third quarter of fiscal 2025.
Adjusted Net Income
Adjusted net income of $45.0 million represented an increase of $6.3 million from the third quarter of last year. The increase was primarily driven by $148.8 million increase in Net Income, discussed above, when adjusting for the impact of certain expenses and gains that are excluded in calculating Adjusted Net Income, including share-based compensation, Micro Bird acquisition costs, gain from Micro Bird Acquisition, and pension plan settlement loss, discussed above.
Adjusted EBITDA
Adjusted EBITDA was $71.4 million, which was an increase of $12.9 million compared with the third quarter of fiscal 2025. Micro Bird contributed $16.5 million of Adjusted EBITDA during the third quarter of fiscal 2026. The $3.6 million decrease in Adjusted EBITDA for the legacy Blue Bird operations primarily relates to the (i) $1.2 million increase in equity in net loss of non-consolidated affiliates and (ii) $3.0 million decrease in Micro Bird total interest expense, net; income tax expense or benefit; depreciation expense and amortization expense that is included in calculating Adjusted EBITDA, both during the third quarter of fiscal 2026 when compared with corresponding period in fiscal 2025.
Year-to-Date Fiscal 2026 Results
Net Sales
Net sales were $1,202.9 million for the nine months ended June 27, 2026, an increase of $132.1 million, or 12.3%, compared to $1,070.7 million for the nine months ended June 28, 2025. Micro Bird contributed $122.9 million of net sales during the nine months ended June 27, 2026. The $9.2 million, or 0.9%, increase in net sales for the legacy Blue Bird operations is primarily due to Bus customer and product mix changes and cumulative Bus price increases, including increases that were 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 second half of fiscal 2025 and continuing into the first three quarters of fiscal 2026. The legacy Blue Bird Bus increases described above were partially offset by a decrease in Bus units sold resulting from timing due to a customer mix change as we produced a large number of units for certain customers that we will recognize as revenue in the fourth quarter of fiscal 2026 when the units are delivered to coincide with school resuming. Many of these units contributed to the significant increase in finished goods inventory at June 27, 2026.
Bus sales increased $131.3 million, or 13.2%, for the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025, which included the $122.9 million of net sales that Micro Bird contributed during the nine months ended June 27, 2026. Bus sales for the legacy Blue Bird operations increased $8.4 million, or 0.8%, reflecting a 5.7% increase in average sales price per unit that was partially offset by a 4.6% decrease in units booked. The increase in unit price for the first nine months of fiscal 2026 compared to the same period in fiscal 2025 was primarily due to customer and product mix changes as well as price increases implemented to offset increases in inventory costs. This increase was partially offset by the impact of booking 6,573 units in the nine months ended June 27, 2026 compared with 6,892 units during the same period in fiscal 2025.
Parts sales increased $0.8 million, or 1.0%, for the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025. This increase is primarily attributed to price increases that were implemented to offset increases in inventory costs as well as higher fulfillment volumes and slight variations due to product and channel mix.
Gross Profit
Gross profit for the nine months ended June 27, 2026 was $245.3 million, an increase of $28.2 million compared with the same period in the prior year. Micro Bird contributed $17.3 million of gross profit during the nine months ended June 27, 2026. Gross profit for legacy Blue Bird operations was primarily driven by the $9.2 million increase in net sales.
Net Income
Net income was $245.3 million for the nine months ended June 27, 2026, which was a $154.1 million increase from the same period in the prior year. Micro Bird contributed $7.4 million of net income during the nine months ended June 27, 2026. Among other smaller fluctuations, the increase in net income for legacy Blue Bird operations was largely driven by an increase of $130.4 million in other income (expense), net, which primarily consists of $7.2 million of pretax costs relating to the acquisition of the remaining 50% of the outstanding voting common stock of Micro Bird effective April 1, 2026 and a $160.5 million gain during the third quarter of fiscal 2026 resulting from remeasuring the value of the previously held 50% equity investment to its acquisition date fair value in connection with the Micro Bird acquisition, which was partially offset by a $19.6 million loss resulting from the settlement of the pension benefits earned by the majority of pension plan participants. Neither of these had corresponding gains/losses during the nine months ended June 28, 2025.
Adjusted Net Income
Adjusted net income for the nine months ended June 27, 2026 was $110.0 million, an increase of $9.2 million compared with the same period last year, primarily due to the $154.1 million increase in net income, discussed above, when adjusting for the impact of certain expenses and gains that are excluded in calculating Adjusted Net Income, including share-based compensation, Micro Bird acquisition costs, gain from Micro Bird Acquisition, and pension plan settlement loss, discussed above.
Adjusted EBITDA
Adjusted EBITDA was $172.3 million for the nine months ended June 27, 2026, an increase of $18.8 million compared with the same period in the prior year. Micro Bird contributed $16.5 million of Adjusted EBITDA during the nine months ended June 27, 2026. The $2.3 million increase in Adjusted EBITDA for the legacy Blue Bird operations primarily relates to the $11.7 million increase in gross profit, when adjusted for the impact of expenses that are excluded in calculating Adjusted EBITDA, as outlined in the revenue and cost of goods sold discussions above, that was partially offset by the (i) $6.4 million increase in selling, general and administrative expenses, when adjusting for the impact of expenses that are excluded in calculating Adjusted EBITDA, and (ii) $3.4 million decrease in other income, net, when adjusted for the impact of income and expense amounts that are excluded in calculating Adjusted EBITDA as discussed above, all during the nine months ended June 27, 2026 compared to the nine months ended June 28, 2025.
About Blue Bird Corporation
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 25,000 propane, natural gas, and electric powered buses sold. 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.
