Blue Bird Corp SEC 10-Q Report

Blue Bird Corp, a leading manufacturer of school buses, has released its Form 10-Q report for the second quarter of fiscal 2025. The report provides a comprehensive overview of the company's financial and operational performance, highlighting key metrics and challenges faced during the period. Despite ongoing supply chain disruptions and inflationary pressures, Blue Bird Corp has demonstrated resilience through strategic pricing actions and a strong focus on its core North American markets.

Financial Highlights

• Net Sales: $358.9 million, an increase of 3.7% compared to the same period last year, driven by a small increase in Bus unit bookings and changes in customer and product mix.
• Gross Profit: $70.9 million, reflecting an improvement in gross margin due to ongoing pricing actions that exceeded inflationary pressures.
• Operating Profit: $33.7 million, a decrease from the previous year due to higher selling, general, and administrative expenses, primarily from increased share-based compensation and labor costs.
• Net Income: $26.0 million, consistent with the previous year, despite increased operating expenses.
• Diluted EPS: $0.79, unchanged from the previous year, reflecting stable net income despite increased costs.

Business Highlights

• Revenue Segments: The Bus segment reported net sales of $332.7 million for the second quarter of fiscal 2025, reflecting a 4.6% increase due to a 1.8% rise in unit bookings and a 2.8% increase in average sales price per unit. The Parts segment experienced a decrease in sales to $26.1 million, down 6.5% from the previous year, primarily due to product and channel mix variations.
• Geographical Performance: The U.S. market accounted for $299.3 million in net sales for the second quarter of fiscal 2025, while Canada contributed $59.5 million, showing a significant increase from $29.1 million in the previous year. Sales to the rest of the world were minimal, indicating a focus on North American markets.
• Sales Units: In the second quarter of fiscal 2025, the company booked 2,295 bus units, a slight increase from 2,254 units in the same period of fiscal 2024. This reflects a stable demand for buses despite ongoing supply chain constraints.
• Operational Challenges: The company faced ongoing supply chain disruptions, which led to occasional shortages of critical components and increased raw material costs. These challenges impacted the production and sales mix of school buses.
• Future Outlook: Management anticipates continued supply chain disruptions and inflationary pressures, which could affect production and sales. However, the company remains optimistic about maintaining strong backlog levels and leveraging pricing actions to mitigate cost increases.
• Product Mix Impact: The mix of diesel and alternative power buses, including propane, gasoline, and electric, influenced sales performance. Alternative power buses accounted for a significant portion of sales, reflecting the company's leadership in this segment.
• Pricing Strategy: The company implemented periodic pricing actions to ensure that sales prices keep pace with increased costs, contributing to improved gross margins despite higher procurement costs.
• Backlog and Demand: The company's backlog remained robust at approximately 4,400 units as of March 29, 2025, driven by pent-up demand and supply chain challenges that limited industry production capacity.

SEC Filing: Blue Bird Corp [ BLBD ] - 10-Q - May. 07, 2025