BLBD · Blue Bird Corporation

Blue Bird Corporation delivered strong fiscal 2026 Q2 results despite a 1.7% decline in net sales to $352.6 million, driven by a 6.4% drop in units sold to 2,148 due to fewer production days from holiday timing. This was offset by a 4.4% rise in average bus sales price per unit from customer/product mix and price hikes to counter tariff-related inventory cost increases, plus 5.4% growth in parts sales. Gross profit held nearly steady at $70.6 million, reflecting cost discipline amid lower volume. GAAP net income rose $3.3 million to $29.3 million, boosted by a $5.6 million drop in SG&A expenses (no repeat of prior year's CEO retirement share-based compensation), though offset by $2.7 million in Micro Bird acquisition costs. Adjusted EBITDA hit a Q2 record of $50.8 million (14% margin), up $1.6 million YoY, supported by Micro Bird earnings contributions. Year-to-date, sales grew 1.9% to $685.7 million with net income up to $60.1 million. CEO John Wyskiel highlighted operational excellence, 201 electric buses delivered (900+ EV backlog), and Micro Bird integration to broaden the portfolio into Buy America-compliant shuttles. CFO Razvan Radulescu noted peak Q2 free cash flow. Guidance raised sharply for FY2026 to ~$1.75 billion revenue and $245 million Adjusted EBITDA, incorporating Micro Bird from H2, signaling confidence in scaling to $2.5+ billion revenue at 15%+ margins long-term. A webcast at 4:30 p.m. ET detailed these results.