On November 25, 2024, Blue Bird Corp (BLBD, Financial) released its 8-K filing detailing its fiscal 2024 fourth quarter and full-year results. Blue Bird Corp, a leading American bus manufacturing company, operates primarily in the Bus and Parts segments, with a significant focus on the U.S. market. The company reported impressive financial achievements, surpassing analyst estimates and setting new records in revenue and profitability.
Performance Overview and Challenges
Blue Bird Corp reported net sales of $1.35 billion for fiscal 2024, marking a 19% increase from the previous year. The company's GAAP net income rose significantly to $106 million, up by $82 million. This performance is crucial as it highlights the company's ability to navigate challenges such as supply chain constraints and inflationary pressures. The increase in unit sales, particularly in electric-powered buses, underscores the growing demand for alternative-powered vehicles.
Financial Achievements and Industry Impact
The company achieved a record Adjusted EBITDA of $183 million, reflecting a $95 million increase. This achievement is significant for Blue Bird Corp and the Farm & Heavy Construction Machinery industry, as it demonstrates the company's successful adaptation to market demands and operational efficiencies. The increase in electric bus sales, supported by the EPA’s Clean School Bus Program, positions Blue Bird Corp as a leader in sustainable transportation solutions.
Key Financial Metrics
For the fourth quarter of fiscal 2024, Blue Bird Corp reported net sales of $350.2 million, a 15.6% increase from the same period last year. The company's gross profit rose by $9.6 million to $59.6 million, driven by higher sales volumes and improved product mix. Net income for the quarter was $24.7 million, up by $6.0 million from the previous year. Adjusted EBITDA for the quarter was $41.3 million, slightly higher than the previous year.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Sales | $350.2M | $302.9M | $1,347.2M | $1,132.8M |
| Net Income | $24.7M | $18.6M | $105.5M | $23.8M |
| Adjusted EBITDA | $41.3M | $40.7M | $182.9M | $87.9M |
Analysis of Company Performance
Blue Bird Corp's fiscal 2024 results reflect a robust growth trajectory, driven by strategic initiatives and market demand for electric and low-emission buses. The company's ability to increase its Adjusted EBITDA margin to 13.6% from 7.8% last year is a testament to its operational efficiency and cost management strategies. The increase in electric bus orders, supported by government programs, positions Blue Bird Corp for continued growth in the sustainable transportation sector.
“I am incredibly proud of our team’s outstanding achievement in delivering a record profit in fiscal 2024, more than double last year’s then-record result,” said Phil Horlock, President & CEO of Blue Bird Corporation.
Looking ahead, Blue Bird Corp has raised its fiscal 2025 guidance, anticipating net revenue between $1.4 billion and $1.5 billion and Adjusted EBITDA between $190 million and $210 million. This optimistic outlook is supported by a strong order backlog and continued demand for alternative-powered buses.
Explore the complete 8-K earnings release (here) from Blue Bird Corp for further details.
