Blue Bird (NASDAQ:BLBD) Releases Earnings Results, Beats Expectations By $0.03 EPS

Blue Bird (NASDAQ:BLBD) announced its quarterly earnings results on Wednesday. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.25 by $0.03, FiscalAI reports. The company had revenue of $517.16 million for the quarter, compared to the consensus estimate of $485.73 million. Blue Bird had a return on equity of 53.78% and a net margin of 17.48%.

Here are the key takeaways from Blue Bird’s conference call:

• Record Q3 results: Blue Bird reported $517 million in revenue, $71 million in adjusted EBITDA, and $1.28 in adjusted diluted EPS, with EBITDA exceeding guidance for the 15th consecutive quarter. Year-to-date adjusted EBITDA reached a record $172 million.
• Management raised fiscal 2026 adjusted EBITDA guidance to $245 million-$250 million, or approximately 14% of revenue, while maintaining revenue guidance of $1.74 billion-$1.76 billion and forecasting adjusted free cash flow of $125 million-$135 million.
• Blue Bird will enter the approximately $1.4 billion Class 5 and 6 commercial strip-chassis market through an expanded Ford collaboration and acquisition of Detroit Chassis assets. The company expects production to begin in 2028, reach roughly 10,000 units by 2030, and generate more than $100 million in longer-term adjusted EBITDA.
• School-bus fundamentals remain favorable, supported by an aging fleet, pent-up replacement demand, stable funding, and a backlog of approximately 4,900 units, including about 800 electric buses. Management also cited strong EV demand extending into 2027 and continued growth opportunities from the Micro Bird acquisition.
• The Ford chassis initiative requires approximately $90 million of Blue Bird investment in 2027, including $50 million of capital expenditures, while chassis production will take two years to ramp after its expected 2028 launch. Q3 free cash flow declined year over year because of higher working capital and finished-goods inventory, and tariff volatility remains an ongoing risk despite management’s expectation of a margin-neutral outcome.

Blue Bird Trading Up 4.0%

BLBD traded up $2.62 on Friday, reaching $68.63. 342,251 shares of the company traded hands, compared to its average volume of 446,685. The firm has a fifty day simple moving average of $75.10 and a two-hundred day simple moving average of $64.93. The company has a quick ratio of 1.27, a current ratio of 1.83 and a debt-to-equity ratio of 0.28. Blue Bird has a one year low of $46.14 and a one year high of $83.39. The company has a market cap of $2.17 billion, a P/E ratio of 8.35, a price-to-earnings-growth ratio of 1.04 and a beta of 1.36.

Analyst Ratings Changes

A number of research firms have recently weighed in on BLBD. Barclays upped their target price on shares of Blue Bird from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Monday, July 20th. Zacks Research upgraded Blue Bird from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 7th. Freedom Capital lowered shares of Blue Bird from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 7th. Wall Street Zen downgraded shares of Blue Bird from a “buy” rating to a “hold” rating in a report on Saturday, July 25th. Finally, Needham & Company LLC restated a “buy” rating and issued a $86.00 price target on shares of Blue Bird in a research report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $85.50.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. boosted its position in Blue Bird by 197.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 712,707 shares of the company’s stock valued at $33,497,000 after buying an additional 472,990 shares during the period. Marshall Wace LLP increased its position in shares of Blue Bird by 383.1% during the third quarter. Marshall Wace LLP now owns 425,214 shares of the company’s stock worth $24,471,000 after acquiring an additional 337,196 shares during the period. Invesco Ltd. increased its position in shares of Blue Bird by 266.6% during the third quarter. Invesco Ltd. now owns 208,981 shares of the company’s stock worth $12,027,000 after acquiring an additional 151,976 shares during the period. Voloridge Investment Management LLC raised its stake in shares of Blue Bird by 288.2% in the third quarter. Voloridge Investment Management LLC now owns 182,864 shares of the company’s stock valued at $10,524,000 after acquiring an additional 135,763 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund acquired a new stake in shares of Blue Bird in the fourth quarter valued at $6,037,000. 93.59% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Blue Bird

Here are the key news stories impacting Blue Bird this week:

• Positive Sentiment: Strong fiscal Q3 results: Blue Bird reported $1.28 in adjusted earnings per share, ahead of the $1.22-$1.25 consensus range, while revenue reached $517.2 million versus expectations of approximately $485.7 million. Unit sales increased by 1,058 year over year to 3,525, and nine-month revenue rose to $1.20 billion. Blue Bird Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Revenue outlook exceeds estimates: The company issued fiscal 2026 revenue guidance of approximately $1.8 billion, above the roughly $1.7 billion analyst consensus. The higher outlook reinforces expectations for continued demand for Blue Bird’s school buses, including electric and low-emission models.
• Positive Sentiment: Ford commercial-vehicle agreement: Blue Bird entered a definitive agreement with Ford to design, manufacture and sell the next generation of Ford F-53/F-59 commercial stripped chassis. The arrangement could diversify Blue Bird’s revenue base and expand its presence beyond school buses. Blue Bird Enters Definitive Agreement with Ford
• Positive Sentiment: Analyst confidence increased: BTIG raised its price target from $80 to $95 and reaffirmed a Buy rating. DA Davidson lifted its target from $86 to $91 and also rated the stock Buy, while Needham reaffirmed its Buy rating with an $86 target. The revisions imply substantial upside from recent trading levels.
• Neutral Sentiment: Mixed market reaction: Separate coverage focused on why BLBD shares were falling after the earnings release, indicating that investors may have been weighing valuation, expectations and the details of the outlook despite the quarterly beat. Why Blue Bird Shares Are Falling Today

Blue Bird Company Profile

Blue Bird Corporation (NASDAQ: BLBD) is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company’s core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability.

Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation.