Blue Bird (BLBD) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY2026 results with net sales of $353 million, adjusted EBITDA of $51 million (14.4% margin), and net income of $29.3 million, driven by strong pricing, alternative power leadership, and lower SG&A expenses.

• Sold 2,148 buses in Q2, including 201 electric buses, with over 900 EVs in the order backlog.

• Completed acquisition of the remaining 50% of Micro Bird JV for $201.8 million, expanding product portfolio, addressable market, and integrating 950 employees.

• Free cash flow for Q2 was $40 million, liquidity reached $418 million, and cash balance at quarter-end was $276 million.

• Announced $80 million DOE MESC grant and $300 million+ investment in a new plant focused on Type C buses and automation.

Financial highlights

• Q2 revenue was $353 million, down $6 million year-over-year due to lower volumes; adjusted EBITDA was $51 million (14.4% margin), up $1.6 million year-over-year.

• Adjusted net income for Q2 was $32.5 million, up $1 million; adjusted diluted EPS was $1.00, up $0.04 year-over-year.

• Free cash flow for Q2 was $40 million, $21 million higher than prior year; six-month free cash flow was $71 million.

• Gross margin for Q2 was 20.0%, up 30 bps year-over-year; operating margin was 11.1%, up from 9.4%.

• Cash and equivalents at quarter-end were $275.9 million; total debt was $92.98 million.

Outlook and guidance

• FY2026 guidance raised: net revenue expected at $1.725–$1.775 billion, adjusted EBITDA at $245 million (range $235–$255 million), and adjusted free cash flow at $100–$125 million.

• Long-term outlook targets $2.5 billion+ revenue and $375 million+ adjusted EBITDA (14–15%+ margin).

• Backlog increased to 3,560 units, including over 900 electric units, reflecting strong demand and improved order flow.

• Management expects continued positive impact from government grants for alternative power buses.

• Ongoing supply chain and tariff risks could impact future results if not mitigated by pricing actions.