Blue Bird Corporation Reports Q2 2026 Financial Results with Increased Net Income

Blue Bird Corporation reported its financial results for the second quarter and first half of fiscal 2026, revealing a net income of $29.3 million for the three months ended March 28, 2026, compared to $26.0 million for the same period in the previous year. For the six months, net income increased to $60.1 million from $54.8 million year-over-year. The company’s net sales for the second quarter were $352.6 million, a decrease of 1.7% from $358.9 million in the prior year, while total sales for the first half rose to $685.7 million, up 1.9% from $672.7 million.

The decline in quarterly sales was attributed to a 6.4% decrease in units sold, primarily due to fewer production days compared to the previous year. However, this was partially offset by a 4.4% increase in average sales price per unit, driven by changes in customer and product mix as well as price increases implemented to counteract rising procurement costs. The Bus segment, which includes the manufacture of school buses, saw a decrease in sales of $7.6 million, while the Parts segment experienced a 5.4% increase in sales, attributed to higher fulfillment volumes and price adjustments.

Operationally, Blue Bird faced ongoing challenges from supply chain constraints and inflationary pressures, which have been exacerbated by geopolitical events. Despite these challenges, the company managed to maintain production levels and fulfill sales orders. The company’s backlog increased to approximately 3,560 units as of March 28, 2026, including over 900 electric-powered units, reflecting a recovery in demand following previous declines.

In terms of strategic developments, Blue Bird announced the acquisition of the remaining 50% of Micro Bird Holdings, which will allow the company to fully consolidate Micro Bird's operations starting in the third quarter of fiscal 2026. This acquisition, valued at approximately $201.8 million, is expected to enhance Blue Bird's market position and operational capabilities. The company also reported a significant increase in cash flow from operations, totaling $84.3 million for the first half of fiscal 2026, compared to $54.2 million in the prior year, indicating improved liquidity and operational efficiency.

Looking ahead, Blue Bird remains cautious about the potential impacts of ongoing supply chain disruptions and changes in governmental policies on its operations. The company is focused on navigating these challenges while capitalizing on its strong market position in the school bus industry, particularly in alternative-powered vehicles. The management's outlook suggests a commitment to maintaining production levels and addressing cost pressures through strategic pricing and operational improvements.