Tag: Blue Bird Corporation Stock

Release of its fiscal 2024 second-quarter financial results spurred a remarkable 13.19% surge in Blue Bird Corporation (NASDAQ: BLBD) stock price during Wednesday’s after-market session, reaching $42.49. This notable increase followed a modest 1.16% uptick in the regular trading session, closing at $37.54.

Strong Quarter Performance And Market Outlook

Blue Bird’s (BLBD) order backlog of approximately 5,900 units shows that the company is in strong demand from the market, even if its unit sales were somewhat lower than the year before. In the quarter, the company’s sales broke all previous records with $346 million, a 15% rise. Remarkably, adjusted EBITDA increased by $25 million from the prior year to an all-time high of $46 million, or a 13% margin.

By delivering a record number of electric-powered buses throughout the quarter, Blue Bird strengthened its dominance in the market for alternatively powered school buses. Furthermore, by the end of the quarter, the business had about 500 orders for electric school buses in its backlog.

Expansion In EV Sector Collaborative Ventures

Blue Bird experienced significant growth in electric vehicle (EV) orders, particularly from the EPA’s Clean School Bus Program, which allocated nearly $1 billion in funding during Phase 1 of its $5 billion initiative in 2023.

Anticipating further EV orders, Blue Bird eagerly awaits Phase 2 (A and B) of the program, which promises at least $1.5 billion in grant and rebate funding for electric school buses over the next year. The company remains proactive in collaborating with its dealers and school districts to capitalize on these opportunities.

Fulfilment Through Extended Collaboration

Moreover, Blue Bird solidified its commitment to clean school bus transportation by extending its exclusive collaboration with Ford Component Sales and ROUSH CleanTech until 2030. This strategic agreement reinforces Blue Bird’s leadership in low- and zero-emission student transportation.

Initiating their partnership in 2012, Blue Bird, Ford, and ROUSH CleanTech have collectively deployed over 40,000 alternative-fuel powered school buses, illustrating their commitment to sustainable transportation solutions.

Blue Bird Corporation (NASDAQ: BLBD) demonstrated resilience by achieving a 1.07% gain, closing the previous trading session at $21.81. This positive momentum extended into the after-market session, propelling the stock to a further increase of 6.92%. The upswing was spurred by investor confidence following the release of the company’s financial results subsequent to the conclusion of the regular session.

Blue Bird (BLBD) disclosed its fiscal performance for the fourth quarter and full year of 2023. During the quarter, net sales reached $303.0 million, marking a notable uptick of $45.3 million, equivalent to a 17.6% surge from the corresponding period in the previous year. This increase resulted from strategic product and mix adjustments, along with pricing measures implemented by management in response to heightened inventory purchase costs.

Additionally, there was a 5.0% growth in the number of units booked, with 2,116 units in the fourth quarter of fiscal 2023 compared to 2,016 units in the same period of fiscal 2022. After adjustments, BLBD’s net income for the quarter amounted to $21.3 million. That represented a substantial $42.7 million increase compared to the corresponding quarter last year. This notable improvement was primarily attributable to the $41.7 million surge in net income.

In response to the escalating demand for electric school buses, Blue Bird recently established a joint venture (JV) named Clean Bus Solutions, LLC, in collaboration with Generate Capital, a prominent sustainable investment and operating company. The purpose of this JV is to address the growing need for clean transportation for students in North America and expedite the adoption of electric vehicles (EVs).

The JV’s comprehensive fleet electrification-as-a-service offering aims to facilitate school districts’ transition to advanced electric vehicles by providing electric school buses and associated charging infrastructure through an affordable monthly subscription. This turnkey electrification solution encompasses BLBD’s leading range of electric school buses, financing for both vehicles and charging infrastructure, project planning and management, as well as fleet and charging optimization.

To accommodate the increasing demand for electric vehicles, Blue Bird is actively expanding its production capacity. The company recently inaugurated its Electric Vehicle (EV) Build-up Center, a specialized 40,000 sq.ft. facility designed to significantly augment the production of electric school buses. This facility is poised to enable BLBD to manufacture up to 5,000 EVs annually in the years ahead.