Blue Bird (NASDAQ:BLBD) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Blue Bird (NASDAQ:BLBD) announced its quarterly earnings data on Wednesday. The company reported $1.28 earnings per share for the quarter, beating analysts’ consensus estimates of $1.25 by $0.03, FiscalAI reports. The firm had revenue of $517.16 million during the quarter, compared to analysts’ expectations of $485.73 million. Blue Bird had a net margin of 8.91% and a return on equity of 53.68%.

Here are the key takeaways from Blue Bird’s conference call:

• Record Q3 results: Blue Bird reported $517 million in revenue, $71 million in adjusted EBITDA, and $1.28 in adjusted diluted EPS, with EBITDA exceeding guidance for the 15th consecutive quarter. Year-to-date adjusted EBITDA reached a record $172 million.
• Management raised fiscal 2026 adjusted EBITDA guidance to $245 million-$250 million, or approximately 14% of revenue, while maintaining revenue guidance of $1.74 billion-$1.76 billion and forecasting adjusted free cash flow of $125 million-$135 million.
• Blue Bird will enter the approximately $1.4 billion Class 5 and 6 commercial strip-chassis market through an expanded Ford collaboration and acquisition of Detroit Chassis assets. The company expects production to begin in 2028, reach roughly 10,000 units by 2030, and generate more than $100 million in longer-term adjusted EBITDA.
• School-bus fundamentals remain favorable, supported by an aging fleet, pent-up replacement demand, stable funding, and a backlog of approximately 4,900 units, including about 800 electric buses. Management also cited strong EV demand extending into 2027 and continued growth opportunities from the Micro Bird acquisition.
• The Ford chassis initiative requires approximately $90 million of Blue Bird investment in 2027, including $50 million of capital expenditures, while chassis production will take two years to ramp after its expected 2028 launch. Q3 free cash flow declined year over year because of higher working capital and finished-goods inventory, and tariff volatility remains an ongoing risk despite management’s expectation of a margin-neutral outcome.

Blue Bird Stock Performance

BLBD traded down $7.82 on Thursday, hitting $69.11. 173,605 shares of the company’s stock were exchanged, compared to its average volume of 439,607. The company has a current ratio of 1.83, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The stock has a fifty day moving average of $75.19 and a two-hundred day moving average of $64.81. Blue Bird has a twelve month low of $46.14 and a twelve month high of $83.39. The firm has a market cap of $2.19 billion, a PE ratio of 17.14, a P/E/G ratio of 1.05 and a beta of 1.36.

Hedge Funds Weigh In On Blue Bird

Several hedge funds and other institutional investors have recently made changes to their positions in BLBD. Transamerica Financial Advisors LLC lifted its holdings in Blue Bird by 222.7% in the fourth quarter. Transamerica Financial Advisors LLC now owns 823 shares of the company’s stock worth $39,000 after purchasing an additional 568 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in Blue Bird during the fourth quarter worth approximately $41,000. Caitong International Asset Management Co. Ltd increased its position in shares of Blue Bird by 10,028.6% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 709 shares of the company’s stock valued at $41,000 after purchasing an additional 702 shares during the period. Mcguire Capital Advisors Inc. acquired a new stake in shares of Blue Bird in the fourth quarter valued at $63,000. Finally, Larson Financial Group LLC boosted its stake in Blue Bird by 1,742.3% during the third quarter. Larson Financial Group LLC now owns 1,308 shares of the company’s stock valued at $75,000 after buying an additional 1,237 shares in the last quarter. 93.59% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Blue Bird

Here are the key news stories impacting Blue Bird this week:

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q3 revenue rose to $517.2 million, above the $485.7 million consensus estimate, while adjusted EPS of $1.28 topped expectations of $1.22-$1.25 and increased from $1.19 a year earlier. Unit sales also rose by 1,058 year over year to 3,525. Blue Bird Reports Fiscal 2026 Third Quarter Results
• Positive Sentiment: Full-year revenue guidance was raised or reaffirmed above consensus. Blue Bird projected fiscal 2026 revenue of approximately $1.8 billion, compared with analyst expectations of about $1.7 billion, signaling continued demand and operational momentum.
• Positive Sentiment: Analysts became more bullish. BTIG Research raised its price target from $80 to $95 and assigned a “buy” rating. Needham reaffirmed its “buy” rating with an $86 target. The targets imply meaningful upside from the cited current price. Analyst price-target updates
• Positive Sentiment: Ford collaboration expands Blue Bird’s addressable market. Under a definitive agreement, Blue Bird will design, manufacture, and sell the next generation of Ford F-53/F-59 commercial stripped chassis, broadening its commercial-vehicle operations beyond school buses. Blue Bird Enters Definitive Agreement with Ford
• Negative Sentiment: Market reaction has been unfavorable despite the positive announcements. The supplied coverage does not cite a specific disappointment in guidance, earnings, or the Ford agreement, suggesting the decline may reflect profit-taking, valuation concerns, or broader trading factors rather than an identifiable deterioration in Blue Bird’s fundamentals.

Analysts Set New Price Targets

A number of brokerages recently commented on BLBD. Freedom Capital downgraded shares of Blue Bird from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 7th. DA Davidson set a $86.00 price objective on Blue Bird in a report on Tuesday, June 9th. Zacks Research upgraded shares of Blue Bird from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. Needham & Company LLC reiterated a “buy” rating and set a $86.00 target price on shares of Blue Bird in a research note on Thursday. Finally, BTIG Research boosted their price target on Blue Bird from $80.00 to $95.00 and gave the company a “buy” rating in a research report on Thursday. Seven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Blue Bird has a consensus rating of “Moderate Buy” and a consensus price target of $84.67.

About Blue Bird

Blue Bird Corporation (NASDAQ: BLBD) is a leading manufacturer of buses and mass transportation vehicles headquartered in Fort Valley, Georgia. The company’s core business encompasses the design, engineering, and production of school buses and activity buses, with a product lineup that includes conventional (Type C) models, transit-style (Type D) models and specialty configurations for special-needs and activity transport. In recent years, Blue Bird has expanded its offerings to include zero-emission electric school buses, reflecting its commitment to advanced propulsion technologies and environmental sustainability.

Established in 1927, Blue Bird has built a legacy of safety and reliability in student transportation.