Blue Bird Corporation Reports 6.1% Net Sales Increase to $333.1 Million in Q1 Fiscal 2026

Blue Bird Corporation reported a net sales increase of 6.1% for the first quarter of fiscal 2026, reaching $333.1 million compared to $313.9 million in the same period of the previous year. The growth was primarily driven by a 6.8% rise in bus sales, which amounted to $307.7 million, reflecting a slight increase in unit bookings and a significant rise in average sales prices. The company’s gross profit also improved, totaling $71.2 million, up from $60.3 million, while net income rose to $30.8 million from $28.7 million, resulting in basic earnings per share of $0.97, compared to $0.89 in the prior year.

In terms of operational changes, Blue Bird's inventory levels showed a slight increase, with total inventories at $140.9 million as of December 27, 2025, compared to $139.5 million at the end of the previous quarter. The company experienced a notable shift in its customer mix, which contributed to the increase in average sales prices. However, parts sales saw a minor decline of 1.2%, totaling $25.4 million, attributed to variations in product and channel mix. The company’s backlog of orders increased to approximately 3,370 units, including over 850 electric-powered units, indicating a positive trend in demand.

The financial results were impacted by ongoing supply chain constraints and inflationary pressures, which have been exacerbated by geopolitical events. Blue Bird has implemented price increases to offset rising procurement costs, which have helped maintain profitability despite these challenges. The company reported a decrease in selling, general, and administrative expenses to $33.6 million from $27.3 million, reflecting a strategic focus on cost management.

Looking ahead, Blue Bird remains cautious about the potential impacts of supply chain disruptions and changes in governmental policies on its operations. The company is actively monitoring these factors and has taken steps to mitigate risks, including diversifying its supplier base and securing fixed-price contracts for critical materials. The outlook for the remainder of fiscal 2026 remains optimistic, with expectations for continued demand for school buses, particularly alternative-powered models, supported by government grants and incentives.