Blue Bird (BLBD) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 results with net sales of $333.1 million, up 6.1% year-over-year, and Adjusted EBITDA of $50.1 million (15% margin), both surpassing guidance and prior year figures.

• Order intake and backlog remain strong, with 3,400 units and over 850 electric buses extending into 2027.

• Alternative power segment led performance, with 48% of sales mix and 121 electric buses delivered in Q1.

• Operational improvements, automation, and new manufacturing strategies supported margin expansion and future growth.

• First commercial chassis order received, with production expected to start in late Q4 and sales in fiscal 2027.

Financial highlights

• Q1 revenue reached $333.1 million, up 6.1% year-over-year, with 2,135 buses sold and gross margin improving to 21.4%.

• Adjusted EBITDA was $50.1 million (15% margin), up $4 million year-over-year.

• Adjusted net income was $32.5 million, with adjusted diluted EPS at $1.00, both up year-over-year.

• Free cash flow was $31.1 million, up $9.3 million year-over-year.

• Liquidity at quarter-end was $385 million, with $241.7 million in cash and $5 million debt reduction over the year.

Outlook and guidance

• FY2026 revenue guidance maintained at $1.45–$1.55 billion; Adjusted EBITDA guidance raised to $225 million, with a range of $215–$235 million.

• Adjusted free cash flow guidance is $40–$60 million, after $75 million in CapEx for the new plant.

• Long-term targets: $1.8–$2 billion revenue, 12,000–13,500 units, and $280–$320+ million EBITDA at 15.5–16%+ margin.

• 800 EV unit sales guided for 2026, with long-term annual EV sales expected at 750–1,000+ units.

• Medium-term outlook targets 15% margin, up to 10,000 units, and $1.6 billion revenue.