Blue Bird Corporation

Blue Bird reported Q3 revenue of $517 million, up $119 million year over year; adjusted EBITDA was $71 million, up $13 million year over year; gross margin was 20%; and adjusted diluted EPS was $1.28, up $0.09 year over year. Adjusted free cash flow was $28 million, and year-to-date revenue was $1.2 billion with adjusted EBITDA of $172 million and free cash flow of $100 million. For fiscal 2026, management raised adjusted EBITDA guidance to $245 million to $250 million, or about 14%, on revenue of $1.74 billion to $1.76 billion, and guided adjusted free cash flow to $125 million to $135 million. They also reiterated medium-term and long-term targets, including approximately $2 billion of pro forma revenue and about $260 million of adjusted EBITDA for 2026-2027, then roughly $3 billion of revenue and $400 million to $500 million plus of adjusted EBITDA longer term.

John Wyskiel emphasized execution, pricing discipline, and strategic expansion. He said the company beat guidance again, handled tariff volatility well, maintained a strong backlog, and remains dominant in alt-power with a strong EV order book. He also framed the Ford chassis collaboration and Micro Bird acquisition as important steps in broadening Blue Bird from a school bus maker into a larger specialty-vehicle platform.

Razvan Radulescu highlighted that the quarter included the first full consolidation of Micro Bird after the April 1, 2026 acquisition of the remaining 50% joint venture stake. He said Micro Bird contributed about $123 million of revenue and $7.8 million of adjusted EBITDA in the quarter, while consolidated liquidity ended at $259 million after the acquisition and debt paydown. He also noted cash of $117 million, operating cash flow of $31 million, debt down $5 million year over year, and adjusted EBITDA margins of 13.8% reported versus 16.1% pre-consolidation. On capital allocation, he said Blue Bird plans to refinance and expand its credit facility by year-end 2026, keep leverage under 2x adjusted EBITDA, and has about $90 million remaining on its share repurchase program.

Analysts focused heavily on the Ford chassis deal, asking whether it replaces Blue Bird’s prior chassis path, how the ramp to 10,000 units should be viewed, and what could go wrong in a two-player market. Management said the Ford path is now the primary route, described the 2028 launch and 2029 as ramp years, and repeatedly said the model is conservative with upside potential. They also clarified that Ford will manage the current F-53/F-59 wind-down, that Blue Bird is buying assets for $7 million cash with no dilution, and that the collaboration includes customer-transition support to reduce risk.