Blue Bird Corporation
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsBlue Bird Corp is a leading independent designer and manufacturer of school buses, operating in two segments: Bus and Parts.
What they do
Blue Bird designs, engineers, manufactures, and sells school buses and extended warranties through its Bus segment, and sells replacement bus parts through its Parts segment. The company has sold more than 619,000 buses since 1927 and is expanding its presence in electric and low-emission school buses.
Revenue drivers
- Bus segment — Core business: sale of school buses and extended warranties. Quarterly revenue growth in Q3 FY2026 was driven by bus customer/mix and price increases, partially offset by lower unit volume.
- Parts segment — Sale of replacement bus parts, providing recurring revenue and aftermarket support.
- Electric and low-emission buses — Delivered 355 electric buses in Q3 FY2026, with over 770 EV buses in firm order backlog, supporting sales targets for 2026.
- Micro Bird — Acquisition contributed $122.9 million in net sales during Q3 FY2026, a significant new revenue stream.
Recent performance
In Q3 FY2026 (three months ended June 27, 2026), revenue was $517.2 million, up 29.9% from $398.0 million in Q3 FY2025. GAAP net income was $185.3 million, up from $36.5 million in the prior-year quarter. Diluted EPS was $5.27, compared to $1.12 in Q3 FY2025. Adjusted EBITDA was $71.4 million (14% margin), versus $58.5 million in the prior-year quarter. For the nine months ended June 27, 2026, revenue was $1.20 billion, net income $245.3 million, and adjusted EBITDA $172.3 million.
Strategy
Management is focused on expanding leadership in alternative-powered school buses, improving operations, and navigating tariffs. The company announced a collaboration with Ford Motor Company to design and manufacture the next-generation F53-59 commercial stripped chassis, including acquiring Detroit Chassis LLC's Detroit Plant assets, expected to close early 2027 with production starting in 2028. This positions Blue Bird in the specialty vehicle chassis market. The company also set a long-term outlook of $500+ million adjusted EBITDA on $3.3 billion in revenue by 2030+.
Risks
- Tariffs and supply chain — Tariffs imposed during fiscal 2025 and continuing into 2026 have increased procurement costs for imported inventory, potentially pressuring margins.
- Public health crises — Pandemics or similar outbreaks could reduce school bus demand, disrupt supply chains, and negatively impact operations and liquidity.
- Government policy changes — Reductions in grants, subsidies, or incentives for alternative-powered buses could reduce customer purchasing.
- Single-source suppliers — The company relies on single-source suppliers for critical components, exposing it to supply shortages and price volatility.
Outlook
Management raised FY2026 adjusted EBITDA guidance to $247 million on net revenue of $1.75 billion. The company remains confident in profitable growth, driven by strong results, Micro Bird integration, and the Ford collaboration. Long-term outlook includes $500+ million adjusted EBITDA on $3.3 billion revenue by 2030+.