Blue Bird Corporation Reports 19.4% Increase in Quarterly Net Sales to $398M

Blue Bird Corporation reported significant financial performance improvements in its latest quarterly filing, with net sales reaching $398.0 million for the three months ended June 28, 2025, a 19.4% increase from $333.4 million in the same period last year. The company's gross profit also rose to $85.9 million, up from $69.4 million, reflecting a gross margin improvement driven by increased bus unit bookings and strategic pricing adjustments to offset rising procurement costs. For the nine months ended June 28, 2025, net sales totaled $1.07 billion, a 7.4% increase compared to $996.9 million in the prior year, with net income rising to $91.2 million from $80.9 million.

The company experienced notable changes in its operational metrics, with bus sales increasing by 20.8% in the latest quarter, attributed to a 14.7% rise in unit bookings and a 5.4% increase in average sales price per unit. The parts segment also saw a slight increase in sales, contributing to the overall revenue growth. Blue Bird's total cash provided by operating activities surged to $111.1 million for the nine months ended June 28, 2025, compared to $55.8 million in the prior year, indicating improved cash flow management.

Strategically, Blue Bird has focused on enhancing its product offerings and expanding its market presence. The company continues to navigate supply chain challenges that have persisted since the COVID-19 pandemic, which have affected production capabilities and costs. Despite these challenges, Blue Bird has maintained a strong backlog of approximately 4,900 units as of June 28, 2025, reflecting ongoing demand for its school buses. The company has also implemented pricing actions to ensure that sales prices keep pace with increased costs, which has positively impacted gross profit margins.

In terms of operational developments, Blue Bird's employee headcount has remained stable, and the company has made significant investments in its manufacturing capabilities. The total assets increased to $575.5 million as of June 28, 2025, up from $524.9 million a year earlier, driven by higher cash reserves and inventory levels. The company reported a total of $151.0 million in inventories, reflecting a strategic decision to stockpile critical components in anticipation of future production needs.

Looking ahead, Blue Bird remains cautiously optimistic about its financial outlook, although it acknowledges the ongoing uncertainty surrounding supply chain constraints and their potential impact on operations. The company plans to continue leveraging its strong market position and innovative product offerings to drive growth while managing costs effectively. Blue Bird's management is committed to navigating the evolving market landscape and is focused on maintaining operational efficiency to support its long-term objectives.