10-K: Blue Bird Soars in FY25 with Strong Sales, Profit Growth

Sentiment:

Annual Report 24 November 2025 9:32 PM

Blue Bird Corporation reported robust financial performance for fiscal year 2025, driven by increased bus sales, strategic pricing, and strong demand for alternative-powered vehicles.

Delay expectedThe U.S. Department of Energy (DOE) initiated a review of all previously awarded grants under the MESC program, including Blue Bird's approximate $80 million grant, for consistency with the goals and objectives of the new administration, with such review still ongoing.The timing of some government grant payments occurred too late in the first nine months of fiscal 2025 to adjust the production schedule to build and sell more higher-priced alternative-powered school buses, resulting in the production of these buses being deferred to subsequent periods.The EPA's fourth round of CSBP funding ($965 million) had applications accepted in September 2024, with award recipients expected in May 2025, but there has been no further communication regarding the status of this round of funding, creating uncertainty.

Capital raiseThe company could pursue raising additional capital via an equity or debt offering utilizing a currently effective "automatic shelf" registration statement to increase liquidity in future periods.The Credit Agreement allows for a minimum of $100.0 million of additional term loans and/or revolving credit commitments, subject to certain limitations and requiring further commitments from existing or new lenders.

Better than expectedNet sales increased by 9.9% to $1,480.1 million, driven by higher unit bookings and an increase in average sales price per unit.Gross profit increased by 18.5% to $303.5 million, and gross margin improved from 19.0% to 20.5%, indicating successful cost management and pricing strategies that outpaced increasing inventory costs.Operating profit and net income saw significant increases of 20.0% and 21.0% respectively, reflecting strong operational performance.Adjusted EBITDA grew by 21.0% to $221.3 million, with margin expansion to 15.0%, demonstrating enhanced profitability.Cash provided by operating activities increased substantially by $65.1 million to $176.2 million, indicating improved liquidity generation.

Summary

Net sales for fiscal 2025 increased by 9.9% to $1,480.1 million, up from $1,347.2 million in fiscal 2024.
Bus segment sales rose by 10.8%, reflecting a 4.5% increase in units booked (9,409 units in FY25 vs. 9,000 in FY24) and a 6.0% increase in average sales price per unit.
Gross profit increased by 18.5% to $303.5 million in fiscal 2025 from $256.2 million in fiscal 2024, with gross margin improving from 19.0% to 20.5%.
Operating profit increased by 20.0% to $167.2 million in fiscal 2025 from $139.3 million in fiscal 2024.
Net income grew by 21.0% to $127.7 million in fiscal 2025 from $105.5 million in fiscal 2024.
Adjusted EBITDA increased by 21.0% to $221.3 million in fiscal 2025 from $182.9 million in fiscal 2024, with Adjusted EBITDA Margin improving to 15.0% from 13.6%.
Cash provided by operating activities increased by $65.1 million to $176.2 million in fiscal 2025.
The company repurchased 1,060,438 shares for $39.5 million in fiscal 2025 under its share repurchase programs.
Backlog remained strong at approximately 3,070 units as of September 27, 2025, despite high sales volume.
An impairment charge of $7.4 million was recorded for the equity investment in Clean Bus Solutions, LLC (CBS) due to projected continued losses.
Actions were initiated to terminate the frozen defined benefit pension plan in fiscal 2026, which will result in a significant non-cash loss recognized in the consolidated statements of operations.

Sentiment

Score: 8

Explanation: The company demonstrated strong financial growth across key metrics (sales, gross profit, net income, EBITDA) and maintained market leadership in alternative-powered buses. Strategic pricing and manufacturing improvements contributed to margin expansion. However, ongoing supply chain issues, the review of a significant government grant, and an impairment charge for a joint venture introduce some caution.

Positives

Strong growth in net sales, increasing by 9.9% to $1,480.1 million in fiscal 2025.
Significant increase in gross profit (18.5% to $303.5 million) and improved gross margin (20.5%) in fiscal 2025, indicating effective cost management and pricing strategies.
Operating profit increased by 20.0% to $167.2 million and net income grew by 21.0% to $127.7 million.
Adjusted EBITDA increased by 21.0% to $221.3 million, with margin expansion to 15.0%.
Cash provided by operating activities increased substantially by $65.1 million to $176.2 million in fiscal 2025, demonstrating improved liquidity generation.
Robust new bus orders and a strong backlog of approximately 3,070 units as of September 27, 2025, despite high sales volume.
Maintained leadership in alternative-powered school buses, selling 5,275 propane, gasoline, and electric powered buses in fiscal 2025, representing approximately 64% of all alternative-powered school buses sold from fiscal 2015 through fiscal 2025.
Delivered the 2,000th electric school bus in fiscal 2024, highlighting strong adoption of EV offerings.
Introduced comprehensive safety upgrades, including three-point seat belts as standard in Q1 fiscal 2025 and 4Front steering wheel deployed air bags starting in Q1 fiscal 2026.
Refinanced term debt in November 2023 with substantially better terms, leading to a decrease in interest expense.
In compliance with all debt covenants as of September 27, 2025.
Authorized two share repurchase programs totaling $160 million, with $110.5 million remaining authorization as of September 27, 2025.
Benefiting from federal funding programs like the EPA's Clean School Bus Program and the Infrastructure Investment and Jobs Act (IIJA) for clean school buses.

Negatives

Parts sales experienced a slight decrease of 1.2% in fiscal 2025.
Selling, general and administrative expenses increased by $19.5 million, partly due to share-based compensation related to the former CEO's retirement and increased labor/R&D costs.
Ongoing supply chain disruptions, occasional shortages of critical components, and increasing raw materials costs continue to impact the business.
The imposition of tariffs during the second half of fiscal 2025 increased procurement costs for certain imported inventory.
The U.S. Department of Energy (DOE) initiated a review of the previously awarded approximate $80 million MESC grant, with its status still ongoing and uncertain.
Deferral of funds relating to governmental grants and subsidies impacted the mix of alternative-powered buses sold in the first nine months of fiscal 2025, with production deferred to subsequent periods.
An impairment charge of $7.4 million was recorded for the equity investment in Clean Bus Solutions, LLC (CBS) due to projections of continued losses.
The termination of the defined benefit pension plan in fiscal 2026 is expected to result in a significant non-cash loss recognized in the consolidated statements of operations.
The company has not paid cash dividends on its common stock to date and does not intend to pay cash dividends in the foreseeable future.
Certain loan agreements restrict the payment of dividends.

Risks

Public health crises and their disruptive impact on the supply chain could materially adversely affect business, results of operations, financial condition, and cash flows.
Reliance on specialist and single-source suppliers for critical components (e.g., engines, transmissions, axles, control modules, steering systems, seats, specialty resins) exposes the company to supply chain disruptions, increased costs, and inability to meet demand.
Disruptions or other developments negatively impacting the workforce or workplace conditions (e.g., shelter-in-place orders) could halt or diminish production capacity.
Reduced profitability and liquidity could lead to issues complying with financial covenants or inadequate access to credit and capital markets.
Current and future military conflicts could cause additional supply chain disruptions and impact commodity costs.
General economic conditions in the markets served have a significant impact on demand for buses, influenced by housing prices, property tax levels, and municipal budgeting.
Products may not achieve or maintain market acceptance, or competing products could gain market share, adversely affecting the competitive position.
The business can be cyclical, leading to significant shifts in operating results from quarter to quarter that make it difficult to project long-term performance.
Costs to produce and ability to sell products may be negatively impacted by changes in trade policies and tariffs.
Entering into firm fixed-price school bus sales contracts without price escalation clauses could subject the company to reduced gross profits or losses if costs increase.
New laws, regulations, or governmental policies regarding environmental, health, and safety standards, or changes in existing ones, may have a significant negative impact on how the company does business.
Safety or durability incidents associated with a school bus malfunction may result in loss of school bus sales and harm to brand reputation.
Disruption of manufacturing and distribution operations (e.g., equipment failures, natural disasters, labor disputes, cybersecurity attacks) would have an adverse effect on financial condition, results of operations, and cash flows.
Disputes with the labor union (USW) may adversely affect the ability to operate, as well as impact financial results.
Rationalization or restructuring of manufacturing facilities, including plant expansions and system upgrades, may cause production capacity constraints and inventory fluctuations.
Material losses and costs related to product warranty claims or product liability claims and recalls.
A failure to renew dealer agreements or cancellation of, or significant delay in, new bus orders may result in unexpected declines in revenue and profitability.
Environmental obligations and liabilities, such as potential remediation costs at the Fort Valley, Georgia facility, could have a negative impact on financial condition, cash flows, and profitability.
Future competitiveness and ability to achieve long-term profitability depend on the ability to control costs, which requires continuous organizational improvement and increased operating efficiencies.
Operating results may vary widely from period to period due to the sales cycle, seasonal fluctuations, and other factors.
The defined benefit pension plan termination during fiscal 2026 could require significant pension funding due to factors like decreasing interest rates or inadequate investment returns, negatively impacting cash flows.
Current or future indebtedness could impair financial condition and reduce funds available for growth or other purposes, and debt agreements impose certain operating and financial restrictions.
Profitability depends on achieving certain minimum school bus sales volumes and margins; if sales deteriorate, results of operations, financial condition, and cash flows will suffer.
Changes in laws, regulations, or governmental policies and programs involving grants, subsidies, and/or other incentives may negatively impact the sale of alternative-powered school buses.
If Huntington Distribution Finance, Inc. cannot provide financial services to dealers and customers, sales and results of operations could deteriorate.
Heavy reliance on trade secrets to gain a competitive advantage; unenforceability of nondisclosure agreements could adversely affect operations.
Inability to prevent third parties from using intellectual property rights, including trade secrets and know-how, without authorization or from independently developing similar intellectual property.
Business could be materially adversely affected by changes in foreign currency exchange rates.
The manufacture of Type A school buses and commercial buses is conducted by the Micro Bird joint venture, which the company does not control and cannot operate solely for its benefit.
The inability to attract and retain key personnel could adversely affect business and results of operations.
Workers' compensation insurance may not provide adequate coverage against potential liabilities.
Need for additional financing to execute business plans and fund operations, which may not be available on reasonable terms or at all.
Interest rates could change substantially, materially impacting profitability.
An impairment in the carrying value of goodwill and other long-lived intangible assets could negatively affect operating results.
The failure of information technology networks and systems could result in the inoperability of critical business processes and substantially disrupt operations.
A cybersecurity incident could compromise the confidentiality, integrity, and/or availability of proprietary electronic information.
Stockholders' ability to achieve a return on their investment will depend on appreciation in the price of common stock, as the company does not currently intend to pay cash dividends.
No assurance that the company will continue to repurchase shares of common stock.
Shares of common stock are reserved for current and future issuance, which would have the effect of diluting existing shareholders.
Anti-takeover provisions contained in the certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.

Future Outlook

Management anticipates continued strong demand for school buses, particularly alternative-powered options, supported by ongoing government funding programs. However, supply chain disruptions and volatility in raw material costs are expected to persist, potentially impacting the ability to meet production needs and pass on rising costs. The company plans to complete the termination of its frozen defined benefit pension plan in fiscal 2026, which will result in a significant non-cash loss. Strategic initiatives include expanding electric vehicle production capacity and introducing new safety features like the 4Front airbag in fiscal 2026. The status of the $80 million MESC grant from the DOE remains under review by the new administration, but Blue Bird is increasing its own investment in the project to expand manufacturing capabilities.

Management Comments

"Blue Bird is the clear leader in alternative powered school buses... and we continue to introduce new or enhanced products to support growing consumer demand for these products."
"Blue Bird is the first major school bus manufacturer to market, and we believe is presently the clear leader in, electric bus sales among all major original equipment manufacturers."
"Our management believes that Blue Bird is in a leading position in the industry due to our range of alternative power offerings and our strong diesel offering."
"We believe that our alternative power options will continue to capture market share in the industry as customers realize benefits on the total cost of ownership and as the adoption of green technology gains traction."
"Our management believes, based on our models, that Type C and Type D school bus registrations will return to a similar level as has been experienced over recent pre-pandemic years (2016-2019) once the supply chain constraints are fully addressed."
"Management believes that supply chain disruptions, including those resulting from current or future military conflicts, could continue in future periods and could materially impact our results if we are unable to i) obtain parts and supplies in sufficient quantities to meet our production needs and/or ii) pass along rising costs to our customers."
"Ongoing improvements in manufacturing operations, when coupled with periodic pricing actions taken by the Company to ensure that the increased sales prices charged for buses keep pace with increased costs to procure inventory to produce the buses, allowed the Company to report gross profit and gross margin that were better than those reported in fiscal 2024."
"New bus orders during fiscal 2024 and continuing into fiscal 2025 remained robust, primarily due to a combination of (i) pent-up demand resulting from the cumulative effect of the COVID-19 pandemic when many school systems conducted virtual learning and (ii) the challenged global supply chain for automotive parts that hindered the school bus industry's ability to produce and sell buses."

Industry Context

The U.S. and Canadian school bus industry for Type C and Type D buses averaged approximately 30,500 unit sales annually between 1985 and 2025. Unit sales in 2025 are projected at about 31,000, a significant increase from 2024, partly due to a primary competitor's manufacturing challenges in the prior year. The industry has been operating below its historical long-term average since the COVID-19 pandemic due to supply chain disruptions, leading to pent-up demand and an aging fleet of over 145,000 buses in service for 15+ years. Funding for school bus purchases is supported by local property taxes and increasing federal programs like the EPA's Clean School Bus Program and the Infrastructure Investment and Jobs Act, as well as state-level initiatives. The industry is highly competitive, with major players like Thomas Built Bus (Daimler Trucks North America) and IC Bus (International Motors, LLC) having potentially greater resources as parts of larger corporations. Blue Bird remains the only publicly traded school bus company, following Lion Electric Company's delisting.

Comparison to Industry Standards

Blue Bird is the leading independent designer and manufacturer of school buses, distinguishing itself from competitors like Thomas Built Bus (Daimler Trucks North America) and IC Bus (International Motors, LLC).
The company is the only principal manufacturer with chassis and body production specifically designed for school bus applications in the U.S.
Blue Bird is the only school bus company to offer Colorado Rack Test and Kentucky Pole Test compliance as a standard specification across its entire product line, emphasizing its reputation for safety and durability.
It is the market leader in propane, gasoline, and electric powered buses, having sold approximately 64% of all alternative powered school buses from fiscal 2015 through fiscal 2025, outpacing competitors in this growing segment.
Blue Bird's propane engine is 90% cleaner than current EPA federal emission standards and already exceeds the stricter emission standards set to take effect in 2027, demonstrating advanced environmental compliance compared to industry benchmarks.
The company was first-to-market with electronic stability control and the industry's first gasoline-powered Type C bus, showcasing innovative product leadership ahead of its competition.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
President and Chief Executive Officer	Philip Horlock	John Wyskiel	February 17, 2025	Retirement of former President and CEO.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Board Structure	The board of directors is divided into three separate classes, with each class serving a three-year term (staggered board).	N/A	Limits the ability of stockholders to elect a full slate of directors at any single annual meeting, potentially delaying changes in control.
Voting Rights	No cumulative voting with respect to the election of directors, meaning holders of more than 50% of shares voted can elect all directors.	N/A	Limits the ability of minority stockholders to elect director candidates.
Board Vacancies	The board of directors has the exclusive right to elect a director to fill a vacancy created by expansion of the board or resignation/death/removal of a director.	N/A	Prevents stockholders from being able to fill vacancies on the board of directors.
Preferred Stock Issuance	The board of directors is authorized to issue preferred stock with voting and other rights without stockholder approval.	N/A	Could adversely affect the voting power and other rights of common stockholders and could have anti-takeover effects by delaying, deferring, or preventing a change of control or removal of existing management.
Stockholder Action	Prohibition on stockholder action by written consent, forcing stockholder action to be taken at an annual or special meeting.	N/A	May delay the ability of stockholders to force consideration of a proposal or to take action, including the removal of directors.
Special Meetings	A special meeting of stockholders may be called only by the chairman of the board, the chief executive officer, or the board of directors.	N/A	May delay the ability of stockholders to force consideration of a proposal or to take action, including the removal of directors.
Director Removal	Permits the removal of directors with or without cause by stockholders voting a majority of the votes cast if American Securities LLC beneficially owns at least 40% of outstanding common stock.	N/A	Provides a mechanism for director removal under specific ownership conditions.
Charter Amendment	Requires an affirmative vote of at least two-thirds of the entire board of directors and by the holders of at least 66.67% of the voting power of outstanding voting stock to amend the certificate of incorporation if American Securities LLC beneficially owns at least 50% of outstanding common stock.	N/A	Creates a high threshold for charter amendments under specific ownership conditions, potentially entrenching existing management.
Bylaws Amendment	Requires an affirmative vote of at least two-thirds of the entire board of directors or by the holders of at least 66.67% of the voting power of outstanding voting stock to amend the bylaws if American Securities LLC beneficially owns at least 50% of outstanding common stock.	N/A	Creates a high threshold for bylaws amendments under specific ownership conditions, potentially entrenching existing management.
Cybersecurity Oversight	The Board of Directors has oversight responsibility for cybersecurity risks, informed at least quarterly. The Audit Committee oversees management's implementation of the cybersecurity risk management program and receives quarterly reports.	N/A	Enhances governance structure for managing and mitigating cybersecurity risks, aligning with regulatory expectations.

Legal Proceedings

The company is engaged in legal proceedings in the ordinary course of its business, including product liability and other cases.
Management believes that the ultimate resolution of these matters will not have a material adverse impact on the company's financial statements, considering insurance coverage and the intention to vigorously defend its positions.

Related Party Transactions

American Securities LLC (through its affiliate ASP BB Holdings LLC) beneficially owns capital stock, which triggers specific corporate governance provisions related to director removal and amendments to the charter and bylaws.
The company incurred approximately $3.2 million in fiscal 2024 and $7.4 million in fiscal 2023 for expenses related to the 2023 and 2024 Offerings, where American Securities LLC (and other selling stockholders in 2023) sold shares, but the company did not receive any proceeds.
Micro Bird Holdings, Inc. is a 50% equity-owned unconsolidated Canadian joint venture with Girardin Minibus JV Inc.
Clean Bus Solutions, LLC (CBS) is a joint venture with GC Mobility Investments I, LLC, a wholly owned subsidiary of Generate Capital, PBC. In connection with its establishment, the company granted Generate Capital warrants to purchase an aggregate of 1,000,000 shares of common stock.

Stakeholder Impact

Shareholders: Positive impact from strong financial performance, share repurchase programs, and potential for stock appreciation. However, dilution risk from future equity issuance and anti-takeover provisions could limit opportunities for a premium on shares.
Employees: Positive impact from the collective bargaining agreement (CBA) with the USW, including wage increases and a signing bonus, as well as comprehensive training and benefit packages. Risk of work stoppages or disputes with the union.
Customers (School Districts, Fleet Operators): Benefit from innovative, safer, and alternative-powered bus offerings. Potential for delays due to ongoing supply chain issues. Impacted by governmental funding programs for clean buses.
Suppliers: Continued engagement with the company, but face ongoing supply chain disruptions and cost volatility. The company is working with suppliers to identify alternative sources.
Creditors: Improved financial health and compliance with debt covenants reduce credit risk, enhancing the company's standing with lenders.

Next Steps

Complete the termination of the frozen defined benefit pension plan in the latter half of fiscal 2026.
Introduce 4Front steering wheel deployed air bag in the first quarter of fiscal 2026.
Continue to expand electric vehicle production capacity to meet growing demand.
Monitor and assess supplier ability to maintain operations and provide parts and supplies in sufficient quantities.
Continue to implement pricing actions to ensure increased sales prices keep pace with rising costs.
Await the outcome of the U.S. Department of Energy's review of the approximate $80 million MESC grant.
Await the announcement of award recipients for the EPA's fourth round of Clean School Bus Program funding (expected May 2025).
Increase the company's own investment in the MESC grant project to expand facility capabilities for all powertrains.
Negotiate with insurance companies on the cost of group annuity contracts to pay pension obligations during the plan termination process.
Provide updated disclosures required by new accounting standards (ASU 2023-09 and ASU 2024-03) in the periods in which they are effective.
Razvan Radulescu's new Rule 10b5-1 trading plan allows for the sale of up to 15,000 shares of common stock between December 10, 2025, and May 8, 2026.

Key Dates

Date	Description
September 24, 2013	Company incorporated in Delaware as a special purpose acquisition company (SPAC).
February 24, 2015	Consummated a business combination, acquired School Bus Holdings Inc., and changed name to Blue Bird Corporation.
May 28, 2015	Registered 3,700,000 common stock shares under the Amended and Restated 2015 Omnibus Equity Incentive Plan.
June 3, 2016	ASP acquired 7,000,000 Transaction Shares from The Traxis Group, B.V.
June 8, 2016	ASP acquired 5,000,000 Transaction Shares from The Traxis Group, B.V.
October 1, 2016	Launched the industry's first gasoline powered Type C bus.
September 29, 2018	Commenced delivery of electric solutions in Type C and Type D buses and sold the first Type D electric vehicles.
September 28, 2019	Introduced the Type C electric vehicle.
July 2019	Launched a state-of-the-art 60,000 square foot paint facility.
January 27, 2020	Amended and Restated 2015 Omnibus Equity Incentive Plan filed.
March 12, 2020	Registered 1,500,000 common stock shares under the Incentive Plan.
October 3, 2020	Fiscal year ended.
October 2, 2021	Fiscal year ended.
August 2022	Temporarily paused the 401(k) match due to supply chain constraints.
August 2022	The Inflation Reduction Act (IRA) was signed into law.
October 1, 2022	Fiscal year ended.
October 2022	The EPA announced the awarding of approximately $965 million as part of its first round of funding for the Clean School Bus Program (CSBP).
December 2022	Resumed the 401(k) match.
May 15, 2023	Effective date of Employment Agreement between Phil Horlock and Blue Bird Corporation.
May 22, 2023	The National Labor Relations Board (NLRB) certified the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW) as the exclusive bargaining representative.
June 7, 2023	Company entered into an underwriting agreement for the 2023 Selling Stockholders to sell 5,175,000 shares of common stock.
June 12, 2023	The first 2023 Offering closed.
September 11, 2023	Company entered into another underwriting agreement for the 2023 Selling Stockholders to sell 2,500,000 shares of common stock.
September 14, 2023	The second 2023 Offering closed.
September 30, 2023	Fiscal year ended.
October 1, 2023	Effective date of Employment Agreement between Razvan Radulescu and Blue Bird Corporation.
October 1, 2023	Effective date of Employment Agreement between Ted Scartz and Blue Bird Corporation.
November 17, 2023	Executed a $250.0 million five-year credit agreement.
December 7, 2023	Established Clean Bus Solutions, LLC (CBS) joint venture; two-thirds of warrants (666,667 shares) became immediately exercisable.
December 14, 2023	Company entered into an underwriting agreement for the 2024 Selling Stockholder to sell 2,500,000 shares of common stock.
December 19, 2023	The December 2024 Offering closed.
January 2024	The EPA announced the recipients of the second round of funding for the CSBP (nearly $1 billion).
January 25, 2024	Effective date of Change in Control Plan and Omnibus Amendment to Outstanding Stock Option and Restricted Stock Unit Awards.
January 31, 2024	Board authorized a share repurchase program for up to $60 million, expiring January 31, 2026.
February 15, 2024	Company entered into an underwriting agreement for the 2024 Selling Stockholder to sell 4,042,650 shares of common stock.
February 21, 2024	The February 2024 Offering closed.
May 2024	The EPA announced the recipients of the third round of funding for the CSBP (over $800 million).
May 23, 2024	Eligible members of the USW voted to ratify a three-year collective bargaining agreement (CBA).
July 2024	Company was selected to receive an approximate $80 million MESC grant from the DOE.
August 8, 2024	Amended and Restated Limited Liability Company Agreement of Clean Bus Solutions, LLC.
September 2024	The EPA announced an additional $965 million for its fourth round of funding for the CSBP and accepted applications.
September 28, 2024	Fiscal year ended.
November 14, 2024	Form of Warrant to Purchase Common Stock of Blue Bird Corporation issued with an Expiration Date of December 7, 2028.
November 14, 2024	Form of Warrant to Purchase Common Stock of Blue Bird Corporation issued with an Expiration Date of August 8, 2029.
December 23, 2024	Filed an automatic shelf Registration Statement on Form S-3ASR (File No. 333-284017).
End of calendar year 2024	MESC grant negotiations concluded and finalized.
Beginning of calendar year 2025	New presidential administration inaugurated, DOE initiated a review of all previously awarded MESC grants.
January 2025	The Clean Heavy Duty Vehicle Program announced over $380 million in funding for electric school buses.
February 17, 2025	Effective date of Employment Agreement between John Wyskiel and Blue Bird Corporation.
February 28, 2025	Effective date of Summary of Retirement Package for Philip Horlock.
March 29, 2025	Aggregate market value of common stock held by non-affiliates was approximately $1,033.9 million.
May 2025	Award recipients for the fourth round of CSBP funding expected to be announced.
August 5, 2025	Board authorized a second share repurchase program for up to $100 million, expiring January 1, 2028.
September 12, 2025	Razvan Radulescu entered into a new Rule 10b5-1 trading plan.
September 27, 2025	Fiscal year ended.
September 2025	Micro Bird opened a facility in Plattsburgh, New York, and began producing small and mid-size commercial buses.
September 2025	Tax credits for zero-emission commercial vehicles under the IRA expired.
November 19, 2025	31,714,959 outstanding shares of common stock.
November 24, 2025	Report date.
December 10, 2025	Start date for sales under Razvan Radulescu's new Rule 10b5-1 trading plan.
January 1, 2026	Expiration date for the second share repurchase program.
January 31, 2026	Expiration date for the first share repurchase program.
May 8, 2026	End date for sales under Razvan Radulescu's new Rule 10b5-1 trading plan.
Fiscal 2026	Expected completion of the defined benefit pension plan termination.
Fiscal 2026	Introduction of 4Front, a steering wheel deployed air bag.
2027	New and stricter emission standards will take effect.
December 7, 2028	Expiration date for warrants to purchase 666,667 shares of common stock.
November 17, 2028	Maturity date of the Credit Agreement.
August 8, 2029	Expiration date for warrants to purchase 333,333 shares of common stock.
2030	Extended exclusive collaboration with Ford Component Sales and Roush CleanTech for cleaner powered school buses.

Recommendation

buy

The company demonstrated robust financial performance in fiscal 2025 with significant increases in net sales, gross profit, operating profit, and net income, alongside improved margins. Its leadership in the growing alternative-powered school bus market, supported by government funding initiatives, positions it well for future growth. Strategic investments in safety and manufacturing efficiency, coupled with successful pricing actions, indicate strong operational management. While ongoing supply chain challenges and the DOE grant review present some near-term uncertainties, the overall trajectory of the business, strong backlog, and commitment to shareholder returns through share repurchases suggest a positive outlook for long-term investors. The impairment of the CBS joint venture is a one-time non-cash event and the pension plan termination, while resulting in a non-cash loss, resolves a long-term liability.

Keywords

School bus, Electric bus, Alternative fuel, Propane bus, Gasoline bus, SEC filing, 10-K, Financial results, Revenue, Net income, EBITDA, Supply chain, Manufacturing, Corporate governance, Share repurchase, Clean School Bus Program, Bipartisan Infrastructure Law, MESC grant, Blue Bird Corporation, BLBD

Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.