Blue Bird (BLBD) Investor presentation summary

Investment highlights and industry overview

• Strong industry growth expected, supported by healthy funding and an aging school bus fleet.

• Leading position in alternative power and electric school buses, with over 60% of sales from non-diesel units.

• Beneficiary of federal and state subsidies for electrification, expanding total addressable market with new EV commercial chassis.

• High barriers to entry and clear funding sources, with property taxes as the primary funding for school bus purchases.

• Industry averages 30,500 new units annually, with a total fleet of ~552,000 buses and an average age of 11 years.

Company performance and financial results

• FY2025 set new records with 9,409 units sold, $1.48B in net sales, and $221M adjusted EBITDA (15% margin).

• Q4 FY2025 also achieved record results: 2,517 units sold, $409M in net sales, and $68M adjusted EBITDA (16.6% margin).

• Gross margin improved to 20.5% for FY2025, with adjusted free cash flow at $153M and year-end cash of $229M.

• Significant improvements in net pricing and EV mix drove year-over-year record results.

• Executed a $40M stock buyback and maintained a strong liquidity position.

Strategic initiatives and growth outlook

• Lean transformation and cost reduction initiatives support profitable growth.

• Confirmed FY2026 guidance: $1.45–$1.55B revenue, $210–$230M adjusted EBITDA (~15% margin), and 9,500 units sold.

• Long-term outlook targets $2B revenue and 16%+ adjusted EBITDA margin.

• Capital allocation includes $100M share repurchase, $200M for manufacturing expansion, and <2x debt/EBITDA target.

• EV ecosystem development includes turnkey charging solutions, telematics, and vehicle-to-grid integration.