Blue Bird Corporation Reports Q1 Fiscal 2025 Results with $313.9M in Net Sales

Blue Bird Corporation reported its financial results for the first quarter of fiscal 2025, ending December 28, 2024, revealing net sales of $313.9 million, a decrease of 1.2% from $317.7 million in the same period last year. The decline in revenue was primarily attributed to changes in customer and product mix within the Bus segment, which saw a slight decrease in average sales price per unit. Despite this, Parts sales increased by 6.2%, reflecting price hikes driven by inflationary pressures and higher fulfillment volumes. The company’s gross profit for the quarter was $60.3 million, down from $63.6 million a year earlier, while operating profit fell to $33.0 million from $38.0 million.

In terms of profitability, Blue Bird's net income rose to $28.7 million, compared to $26.2 million in the prior year, resulting in basic earnings per share of $0.89, up from $0.81. The increase in net income was supported by a significant reduction in interest expense, which fell to $1.9 million from $3.6 million, due to a decrease in the stated term loan interest rate. Additionally, other income increased substantially, primarily from the sale of state emissions credits, contributing positively to the overall financial performance.

Operationally, Blue Bird continues to navigate challenges posed by ongoing supply chain constraints, which have affected production capabilities and costs. The company reported a backlog of approximately 4,400 units as of December 28, 2024, down slightly from 4,800 units at the end of the previous fiscal year. The company’s inventory levels increased significantly, driven by strategic purchases of critical components to mitigate future supply chain disruptions. As of the end of the quarter, total assets stood at $535.2 million, with total liabilities of $355.5 million, resulting in stockholders' equity of $179.7 million.

Looking ahead, Blue Bird remains cautious about the potential impacts of supply chain disruptions and inflation on its operations. The company has implemented pricing strategies to offset rising costs and is focused on maintaining production levels to meet demand. Management anticipates that while the current economic environment presents challenges, the strong demand for school buses, particularly alternative-powered models, will support future growth. The company’s liquidity position is solid, with $136.1 million in cash and cash equivalents, and it has access to an additional $143.3 million under its revolving credit facility, providing a buffer against potential financial pressures in the coming quarters.