Blue Bird (BLBD) investor relations material

Strategic rationale

• Enhances scale, increasing estimated FY26 revenue from ~$1.5B to $1.9B and EBITDA from ~$225M to ~$250M.

• Expands product portfolio across Type A, C, and D segments, broadening total addressable market and growth opportunities.

• Satisfies Buy America requirements, doubling Micro Bird's addressable market and increasing geographic reach in Canada.

• Enables vertical integration of EV powertrains and streamlines engineering through cross-platform synergies.

• Positions as a comprehensive provider in school and specialty vehicle segments.

Transaction overview

• Acquiring remaining 50% of Micro Bird for $198.2M, valuing Micro Bird at $429.6M (8.0x FY26E Adjusted EBITDA).

• Consideration is 70% stock (2.7M shares) and 30% cash, with additional $16.5M for Plattsburgh facility and $0.4M for OEM parts inventory.

• Transaction expected to close end of Q2 FY2026, subject to regulatory approval.

• Deal is immediately accretive, with anticipated 8.2% EPS accretion in 2026.

• Maintains strong balance sheet with pro forma total indebtedness of 0.36x FY26E Adjusted EBITDA.

Financial outlook and growth

• Pre-transaction long-term outlook targets $2B revenue and 16%+ Adjusted EBITDA margin.

• Micro Bird targets long-term revenue of $500M+ and 15–16% Adjusted EBITDA margin.

• Post-transaction, pro forma long-term outlook projects $2.5B revenue, 20,000 units, and 15%+ Adjusted EBITDA margin by 2030.

• EBITDA margin expected to double vs 2019, with line-of-sight to $380M+.

• Strong balance sheet and cash flows support profitable growth and shareholder returns.