Blue Bird Corporation Reports Revenue Growth and Increased Net Income for Q2 and First Half of Fiscal 2025

Blue Bird Corporation reported its financial results for the second quarter and first half of fiscal 2025, revealing a modest increase in revenue and net income compared to the same period last year. For the three months ended March 29, 2025, the company generated net sales of $358.9 million, a 3.7% increase from $345.9 million in the prior year. The gross profit for the quarter was $70.9 million, up from $63.6 million, while net income slightly rose to $26.0 million from $26.0 million in the previous year. For the six-month period, net sales reached $672.7 million, a 1.4% increase from $663.6 million, with net income climbing to $54.8 million from $52.2 million.

The company experienced a notable increase in operating expenses, which rose to $64.4 million for the first half of fiscal 2025, compared to $53.2 million in the same period last year. This increase was primarily driven by higher share-based compensation expenses and labor costs. Despite the rise in expenses, Blue Bird's operating profit for the first half decreased to $66.8 million from $74.0 million, reflecting the impact of increased costs on profitability.

In terms of operational metrics, Blue Bird reported a total of 4,425 bus units booked in the first half of fiscal 2025, a slight increase from 4,383 units in the same period last year. The average sales price per unit also saw a marginal increase, contributing to the overall revenue growth. However, parts sales experienced a slight decline, decreasing by 0.6% for the six-month period. The company continues to face challenges related to supply chain constraints, which have affected its ability to produce and deliver buses, although management noted improvements in manufacturing operations.

Looking ahead, Blue Bird remains cautiously optimistic about its future performance. The company has a backlog of approximately 4,400 units as of March 29, 2025, indicating sustained demand for its products. However, ongoing supply chain disruptions and inflationary pressures present uncertainties that could impact production and profitability. The company is actively monitoring these challenges and has implemented pricing actions to mitigate rising costs. Blue Bird's management believes that its existing cash balances and expected cash flows will be sufficient to meet operational requirements for at least the next 12 months, while also pursuing opportunities for geographic expansion and product innovation.