Blue Bird’s stock fell sharply by 15.2% following an earnings report that disappointed investors primarily due to a cautious outlook and increased uncertainty around tariff volatility and strategic expansion costs, despite solid underlying operational execution.
- Reported Q3 revenue rose to $517 million, up $119 million year-over-year, driven by the sale of 3,525 buses.
- Adjusted EBITDA improved to $71 million, a $13 million increase from last year, and adjusted free cash flow totaled $28 million.
- Alt-Power segment continued strong with 54% unit sales mix; EV bookings stood at 355 units with 776 units in backlog heading into 2027.
- The backlog finished at 4,900 units, supported by order intake growth of 9% over 12 months, indicating stable demand despite market headwinds.
- Investors reacted negatively amidst concerns about the margin-neutral tariff recovery strategy, uncertainty in future funding for the EPA Clean School Bus program, and the sizable investment and integration risk from the new chassis market entry and Detroit Chassis asset purchase.
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